Hello
We are looking to invest in property mainly to utilise our tax a bit better (we earn over 100k each) but obviously first and foremost it has to be a sound investment for capital growth capabilities. We already have a home that we live in which we are paying off.
Was first looking at an NRAS property in Evanston SA and now i'm looking at other options first as I thought they seemed a little overpriced compared to other houses in the area.
My question is, would a new or near new townhouse in scarborough be a good place to invest? To me the area is great, being coastal and not far from perth. And with the new development going on there later. Also the rental returns seem good for the prices. BUT Scarborough has gone down over the past few years! I just dont know. I guess main concern is the property depreciating. I keep hearing "Perth is at its peak, somethings gotta give soon, mining looks like slowing down"…
Someone please help if you have any feedback?
Thanks
Somebody345 wrote:Was first looking at an NRAS property in Evanston SA and now i'm looking at other options first as I thought they seemed a little overpriced compared to other houses in the area.
I have seen a bit of NRAS stuff advertised and this comment could be applied to a fair proportion of the stuff I have seen advertised.
Somebody345 wrote:My question is, would a new or near new townhouse in scarborough be a good place to invest? To me the area is great, being coastal and not far from perth. And with the new development going on there later. Also the rental returns seem good for the prices. BUT Scarborough has gone down over the past few years! I just dont know. I guess main concern is the property depreciating. I keep hearing "Perth is at its peak, somethings gotta give soon, mining looks like slowing down"…
Because Scarborough has 'gone down' over the last few years doesn't make it a bad investment area, That description could applied to many of Perth's suburbs in the same time frame. If you are looking at price movements look beyond the last 3/4 years and then compare those results to other suburbs.
REIWA publicise long term growth and rental rates at http://reiwa.com.au/Research/Pages/Price-growth-by-suburb.aspx – I suggest poking around there for a while as part of your research.
Bear in mind the stats are only available to show past results – there is no website, organisation etc that can predict the future. Having said that I do believe long term past figures are a good place to start with your research.
Do you live in Scarborough?
Reason I ask is that some investors get so focussed on their local area they are scared to cross suburb boundaries. You may find there are other options a little closer to the main arterial transport routes. Personally, while Scarborough has the beach it does miss out a little on other property drivers.
As an aside Perth rental returns have been improving over the last 12 months. Unit rents have increased by 11.4% and houses by 15.7% (APM Research recently released) so I expect Scarborough rent returns have probably tracked the wider market.
If you are worried by prices 'depreciating' you may wish to consider some form of renovation, small scale development or subdivision. Might be worth considering.
Thanks Derek!
Yeah having no train station nearby is not good, but I did hear something about them setting up trams there as part of the facelift.
No we dont live in Scarborough, we live in Duncraig. I would like to buy in Perth so I can manage it myself but im not closed off to out of other areas of WA.
We have renovated our own place and as business owners we dont have time or energy to renovate again! Or even oversee.
I just dont know what to buy! SO hard!
No worries. Running a business would certainly suck a lot of time out of your day.
There is some research which suggest proximity to a railway line is a big plus for capital growth.
If I were you I would first look at the fundamentals of the area and the property and only when this is sorted worry about the management issue. To me management is a 'secondary' consideration – with my personal preference being to employ an expert in the field.
I would invest in Scarboropugh now. I think Western Australia is a good place to have your money at the moment and given the proximity to the city from Scarborough ie next to City Beach and Scarboroughs iconic status, l dont think you can go far wrong. In fact the prominent reason Scarboro is so deflated in price terms is due to the City of Stirling being slow to act in terms of the Scarb. Seas Project and developers needing big cash reserves for 458 high rise projects in Scarbrough as well as GFC. Moreover given W.A and Darwin in particular are not only gateways to mining and all the boom has and will have to offer in future, W.A like Darwin is geographically close to Asia and rising S/E Asian tiger economies as well as Indonesia. Given that Perth is so isolated from every other city in the world (the most isolated l believe) its gepgraphic stance to Asia as a western democratic hub makes it more aligned with Asia than it is with the eastern seaboard. L believe in time, Asian capital will flow into Perth as it is already showing signs of. First the business money begun to relocate from Melb and Sydney to Perth ie many of the the mining headquarters of major companies began to relocate to Perth recently. Our CBD is currently undergoing expansion due to the lack of large capacity central office space. Asian investors have traditionally gone east where the larger populace resides but this will change in time as cross culturally, Perth people travel to Asia as frequently or more frequently than they go East these days for Rand R, the reverse will also occur over time. . Also rents are massively on the rise in Perth; always a forerunner in my personal opinion to property price hikes, note the above is all personal opinion only and not to be relied upon.
I very recently bought a unit in Glendalough (very close to Scarborough) and so far am extremely happy with the investment. It offers a great rental return and will be looking to buy again in the general area soon. Scarborough is definitely in the mix as a possible option.
Hi Wheeler,
Is your unit along Herdsman Parade or somewhere else in Glendalough?
I understand the Herdsman Pde units have shown little growth over the long term apart from tracking the wider market
Hi Derek, its off Harborne St in Gledalough.
Lived in a unit on Harborne Street many years ago – not sure if they are the same ones,
I would invest in Scarborough. I read a lot of articles and did online research all confirming that Western Australian market is recovering.
Market still patchy at the moment mattsta.
We are no-where near being at the stage when everything purchased turned to gold as it did in 2006.
We have noticed development blocks were are buying for our clients have increased slightly in the areas we are focussing. Competition for these sorts of blocks has increased in last 6 months.
Could be an early sign …………………………………… then again it may be a false dawn.
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