WA Post a Bargain - Perth

Inspired to start this thread after reading @Jess Peletier post, she is buying a new primary residence, good timing for this.

Beach front in Madora Bay were selling for over $1M+ can now be picked up at around $600-700K. OMG

Here is another bargain, development site, excellent location in Willagee, I think this around 20% below market value around 2013/14
19 Tedrake Street Willagee WA 6156 - House for Sale #124171862 - realestate.com.au

 

Perth is the only major city on the West coast. Surely it has a strong future? Is that place capable of forward thinking and diversifying away from being a banana republic state?

Or will it keep submitting itself to the grip of each boom and bust cycle that goes with commodity prices?

Edit: Would there even be anything left in profits after developing that site?? I look at a lot of the newer houses for sale in Perth and I wonder how the developers even could make any money from them after factoring in construction costs and land purchase etc

I do feel like Perth will have its time though. And the basic principle goes, buy what other people don't want in investment. Unless its those $1 houses in Detroit, you really don't want those.

 

Plenty of posts on the subject. Markets work in cycles and we are in a downturn at the moment, recovery will happen I guess when the state of the economy and market sentiment improves, which also means more jobs.

I think the buyers in Perth at the moment will be low balling, looking for bargains

.......but this thread is about posting a bargain, I am interested to see how prices/values have faired.

MTR

 

when you say bargain... it's not realized until the fat lady sings Could the same site be 30% BMV same time next year....

 

hello MTR - curious to know, if you think it is a bargain why not snap it up yourself? I know you are not contemplating buying in Perth currently but if it is a bargain why not land bank it when the market turns? (Is it because you think there are better returns in the states...)

 

Can see Perth staying bad for a while. Population growth is now really low too, so its not like you are building into a future under-supply event either. Mining cycles can last a long time.

 

I already have development sites 2 development sites land banked, you generally need deep pockets for this strategy.

If development numbers stacked up today I would prefer to build today and it would be much easier in Perth than Melb because I am on the ground.

Are there better returns in USA? Well its a totally different strategy/beast, cash flow and growth, if you can achieve both for me its far more attractive, however does not mean I wont do both if something suitable comes along.

I have not been looking at Perth since 2014 so I am curious as to what investors are buying and what they see as good deals.

Had a quick look at villas in Yokine, the older style which need renovating, typical 3x1, some seem to be good value at the moment. I guess good value is in the eye of the beholder, as would need to consider yields.

 

Sure! But if you take the investing hat off and put the PPOR hat on all of a sudden Perth looks like the land of milk and honey...

The numbers can look great once you factor in renting vs buying....also you can buy in areas that you'd only dreamt about during the boom....It's not always about CG.

 

You purchased a bargain in Darwin? PPOR .. nice.

Blue chip in Perth $1.2M+ has been looking good for some time now, ideal for those looking at upgrading.

 

Yup, its not just me either. Lots of my friends who were previously renting have recently bought amazing places for very little. If you buy smart it costs the same or even a bit less than renting...

 

Say I was the David Copperfield of Perth here to catch fallen knives.... what would be good Perth suburbs in the 350-450k with minimum R30 development potential...

 

Nice one. I was going to say this one but it is already under offer

109 Sevenoaks Street Bentley WA 6102 - House for Sale #123978294 - realestate.com.au

 

Beckenham, Thornlie or Gosnells?

 

I was thinking about this today. If land developers are not lodging their subdivision applications, some time down the track, land supply will be restricted. In the past, when this has happened, land prices have increased. A market can be flat as anything but as soon as supply is restricted, prices increase. I think WAPC has a regular publication on land supply?

 

at lease one of them is in my radar... thanks Perthguy

 

I don't see it as a good deal. This duplex block that is really a triplex block went under offer in Cloverdale. I could not make the numbers work at $549,000. That said, I ran the numbers on triplex. Numbers might works as a double/double - subidivide into 2 green title lots, retain the existing house and build behind on lot 1 and then build a house and granny flat on lot 2. Expensive to develop all that though.

12 Whiteside Street, Cloverdale WA 6105 - House For Sale - 2013139312

 

Not saying this is a good deal. Just posting it as an example:

reiwa.com - 73 Blanche Street, Gosnells

 

Oh boy, where do I start? I always keep a shortlist of 'potentials' as I'm browsing through WA listings. This one came to mind.

3A & 3B Stormon Ridge Winthrop
3A & 3B Stormon Ridge Winthrop WA 6150 - Duplex/Semi-Detached for Sale #124081742 - realestate.com.au

Duplex 4x2 for under $500k potentially. Passed in at auction not long ago, so who knows what they will take.

 

733sqm block zoned R20/30, corner lot.
I often get confused with the /
what does this mean?

So the R code for R20 and R30 is

• R20: average site area of 450m2 per dwelling and minimum of 350m2
• R30: average site area of 300m2 per dwelling and minimum of 260m2

Does this mean I could have 2 x 366m2 lots?

 

Since it's a corner with no common driveway then yes. Unless it's on a major intersection and they only will allow one crossover

Split coding (the slash) is detailed on council website . Look up the town planning scheme