just read this pdf sent from rp data
Apparently for WA affordable Suburbs within 20 k is
Houses / Units (In brackets below)
Carlisle :Less than 5 km (Units: mount hawthorn)
Balga: 5 ot 10 km UNits : (Balga)
Koondoola 10 to 15 Km ( Lockridge)
Maddington: 15 to 20 KM ( Gosnells)
Hi Jerome,
Did the report define 'affordable"? Was it a dollar value? Comparison to rental income? or ???????
They have taken into account the number os houses sold and the median value within those kms to project the most affordable houses , That is what i understand from the chart they provided ..I will see if i can send you the pdf file
Balga and Koondoola are expensive in value for the rental return now. As these are lower value suburbs lots of people have purchased them as a owner occupier. People have noticed this and increased the sale price massively. 4×1 760sqm were going for 300-320 at the start of the year. Now a lot are in the 360-400k. I own a house in the next suburb and i could easily sell it for 50K+ then i could at the start of the year.
Koondoola and Girrawheen are also changing zoning in a year or so which has increased the price in some of the areas.
I don't really care that much about the pricetag. I care more about the rental yield. In other words, will the property pay for itself, and if not, how much will I be out of pocket, and for how long, before it does.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Agree with Jac comments, Will do the math against rental yield vs purchase price
Maybe the title should have been best high yield suburbs?
High yield is good, but I also like a bit of capital growth too. Theres no way I'd buy a house in balga for $400k (maybe 320-350k) when there are other good suburbs at similar prices nearby.
Actually I just had a quick look on RE.com and I couldn't find any for 400k (no 4×2) all I see is 2b and 3b fairly cheap because the govt is selling off their commission housing.. yeah you can buy $238k 2b and rent for $320pw CF+ I'd be calling property managers to see if they would take on your rental, theres not that many advertised for rent??
Hi Jerome,
Thanks for the follow-up – further reading tells me 'affordability' as per the report is wholely and solely based on purchase prices. There is no consideration of rental yields in the research as they are looking at the properties as if they were purchased by owner occupiers.
Property Observer has a summary on the report in an article released today here
The PO article confirms some people's impressions / beliefs / research about house prices dropping more than untis the further you are from the city. Probably a key message for those who want a house but can only afford the outer city limits.
Needless to say, you do not want to pay more than a similar property would sell for, in case you have to offload the property. You don't want to do so at a loss. But equally you don't buy a seemingly "cheap" property only to find the rent comes nowhere close to supporting the mortgage.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
would love to know the most affordable suburbs for Melbourne in a 20Km radius of the CBD
Hi Joe,
Post #8 has a link to the Property Observer article which included an analysis of all state capitals. The information you are after is in the link.
Thanks Derek, must have missed it
im pretty pissed off (deleted …..) comments taken back
Think my sig is now showing
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