WA 1st IP but where to go?

Discussion in 'Where to Buy' started by LastKey, 16th May, 2022.

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  1. LastKey

    LastKey Active Member

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    @See Change Thanks for the detailed response. My rationale is the same; the market is moving fast, and I don't have time to learn quickly. I really appreciate your opinion on it.
     
  2. LastKey

    LastKey Active Member

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    @Troysonbassaniproperty What potential areas I am looking at and what are the price ranges there? Do you specialise in those areas?
     
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  3. bricksnmortar85

    bricksnmortar85 Well-Known Member

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    Recently bought in Bargara, premium regional QLd area,
    Multiple applications in a short space of time, high quality tenant secured in 48 hours. 3x1 on 700sq ms bought for 480K,700 ms to the beach, rents for $550 a week
     
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  4. bricksnmortar85

    bricksnmortar85 Well-Known Member

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    Also own two in Perth
    Secret Harbour and Port Kennedy, exceptional yields and also have grown a lot since Jan, stoked with our IPS, we bought three in three months,
    Looking for our fourth, we own a PPOR in bayside Melbourne
     
  5. Stugots

    Stugots Well-Known Member

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    Can't go long, or wrong with Perth atm? A big distinction haha :D
     
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  6. 27649

    27649 Well-Known Member

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    Yes I specialise in these areas (on the ground). Opportunities that are in the more blue chip suburbs that have positive cashflow and capital growth range from 350k-550k
     
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  7. LastKey

    LastKey Active Member

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    @bricksnmortar85 Did you search for them yourself or used a BA?
     
  8. gach2

    gach2 Well-Known Member

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    Purchased my first perth property sight unseen (had never even been to the region) but it was just a 160k piece of land. Nearly bought a second but ended up moving here before purchasing there rest.

    Im anti buyers agent (personally) and while there are a lot of flops out there Ive been taught to believe that there are good ones out there but clients need to have better expectations

    I guess if you do your research and know what you want (type of property in a region) a BA is a pretty good idea specially between east coast and perth. Unless you want to come back and forth looking for property.

    Hard work initially but this on the other hand will make it easy to purchase future interstate properties and really understand Perth.
     
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  9. bricksnmortar85

    bricksnmortar85 Well-Known Member

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    Did it all ourselves
     
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  10. LastKey

    LastKey Active Member

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    @bricksnmortar85 Can you share the process you follow? For example, how do you locate the area to buy? and select the actual street and then the property? Any tools you use?
     
  11. bricksnmortar85

    bricksnmortar85 Well-Known Member

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    Can give you a basic overview, you need as much local knowledge as possible that’s where a Property manager is key.
    Need to look at supply and demand, vacancy rates, days on market, any government investment in infrastructure, for example a new hospital,
    Check out the governments commitment of 500M plus to the Bundaberg area. Short term growth and yield is very important to us to keep building a portfolio
    That’s a basic macro overview
    Lots of years of podcasts, forums, watching the market, you can’t go wrong with the Bundaberg region, but suburb selection is vital! Property managers are gold knowledge!
    All the best on your journey
     
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  12. southern-investor

    southern-investor Well-Known Member

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    Brisbane. Still got legs in it and if your budget is $650k+ you got plenty of options left.
     
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  13. AnasWestie

    AnasWestie Well-Known Member

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    Hi mate,

    Welcome to the forum.

    I am from Western Sydney (Auburn, hence the name Westie) and had just moved to Perth recently.
    I bought few IPs in Perth, excellent rental yields between 6.5 to 7% and properties had a steady and decent growth.
    I also own investment over East.

    I bought in Brisbane in Redcliffe Peninsula that had gone up few hundred Ks and I would not be buying in Brisbane now after 40% growth, I would buy again in few years.

    I am still buying in Perth, I just bought another one last week. Lower entry level Circa 350k with rental return 6% and walking distance to the beach.

    If it was my first IP with income similar to yours I would buy a property with potential subdivision closer to Cannington in particular Beckenham or Langford you will get decent yields to cover the repayments and you will be able to self-manufacture growth via subdivision in future.

    The only issue is ensuring that you do not overpay for it as most of these properties with potential development are overpriced.

    Alternatively you can buy decent 4x2 in Mandurah (particularly Halls Head or Dudley Park) and let it sit and grow, you will get decent yields around 5%+

    There other suburbs, I love Thornlie, excellent yields, decent infrastructure, new train line, 10min to Cannington business district, 15min to Airport, 25min to City, adjacent to Canning Vale, Parkwood and more affluent suburbs, Forest Lakes has solid houses with high demand from families circa 500k
    The other side has bigger blocks with older homes and potential for subdivison, there will be rezoning in there 2023-2024 which will allow more development.

    If you decide you do not want to invest in Perth, go regional, maybe regional Queenslands.

    I personally stick to Capital cities where fundementals area always strong, it has worked brilliantly so far.

    Best of luck!
    Anas
     
  14. bookworm

    bookworm Well-Known Member

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    I think it makes sense to rentvest because assuming you want to buy in inner west, your budget won’t get the type of quality that will perform

    Also move in for 6 months and WFH

    Give you flexibility to sell without CGT :)
     
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  15. Sam123456

    Sam123456 Well-Known Member

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    I second regional Queensland but it is a segmented market, so you may end up having to research 5 different towns.

    Perth seems hot and still got a big distance to go in some areas, but my guess is that there are suburbs where outbidding may lead to overbidding.

    Parts of regional qld would allow you to get an investment grade property in the 400s. From what I've seen in Perth I wouldn't be rushing into the suburbs at the lower end, but who knows. If their demographic changes a bit or things get really scarce, then they may post the greatest percentage returns - a la Nambour on the Sunshine Coast. It's not impossible that the 450k houses in Perth will quickly go to 650k if there's enough migration to cause an actual lack of homes, rather than just the lack of nice homes that exists at the moment. BUT that's a big IF.

    I'd do some research and post a candidate properties. If an internet forum can't find ten negative things to say about it, then you are likely on the right track, I guess someone reading might snipe your sale but you'll know what to look for in the future.

    For what it's worth troysonbassani's ( the buyer agent active on this thread) has given advice that rings very true to me about Rockhampton and the surrounds. I don't know enough about his other areas (Cairns, Bundaberg, Mackay) to comment.

    Townsville also seems hot but I'm not confident that'll be the case in two years because there is quite a bit of unfinished stock. When that's done, the rental market might be less owner friendly simply because a few thousand dwellings makes a big difference in a town of only 70k households. Frankly, there are some good properties for sale in TSV but there's a bit of a rush of lemmings from the south buying up the trash people have been waiting 10 years to offload. Good gross yields but be very selective in this market.
     
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  16. 38215

    38215 Well-Known Member

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    Just a word of caution re schools and planning educational pathways for unborn children...

    Disclaimer: I was the same. Result: We have just gone through 4(!) well / top-ranked public schools in quick succession (via owning / renting / applying out of catchment) before finally going private for both kids and we are meeting lots of parents who went through the same.

    I know it is an emotive topic, but I would caution against tying your choice of IP to an idea of having kids and what school those kids would enjoy.

    Obviously the quality of schools in a given area will attract (or repel) certain types of buyers, but given the staff shortages we see (& will likely continue to see for years) my predictions for the public sector aren't that great [end of sweeping generalisation].

    If you do go public, rentvesting may be great for being able to swap schools if need be.
     
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  17. igor1234

    igor1234 Well-Known Member

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    so we were exactly at same situation some years ago, but with lower single income and half the deposit. we started with a unit accross the road, and then bought a unit in a bad condition for us to live that we fixed up. many people here would argue houses would always outperform units, which is mostly true, but having ppor gives u step in the market + rip off benefits for 1st home buyer in NSW + if u buy right and something u can fix up a bit, u will build up equity quickly. Then you can get your 2nd property in 2-3 years, and after 3-5 years, u can think about bigger ppor/house etc.

     
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  18. sanj

    sanj Well-Known Member Premium Member

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    While above may be true for you, there is literally decades worth of buyer patterns and history of particular areas being honed in on by some, disproportionately recent migrants from the Chinese and indian diaspora or by local born aussies of those ethnicities.

    Sri lankans in perth have been congregating around willetton etc since late 80s/early 90s, Indonesian and singaporean chinese families have focused on applecross high school and rossmoyne initially, expanding to also target willetton high school. Advanrage also being that a fair few properties in areas like winthrop are actually in both applecross and rossmoyne high school zones.

    For many asian families, kids having access to high quality education would trump most other items on the must have list and also, private school costs can be pretty prohibitive.



    Historically these sort of suburbs around Australia have also seen price growth that outperforms general market conditions and i expect that to continue now that private school fees have grown to the levels they have
     
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  19. LastKey

    LastKey Active Member

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    [QUOTE="foxtrotunicorn, post: 1172870, member: 38215"
    If you do go public, rentvesting may be great for being able to swap schools if need be.[/QUOTE]

    Luckily I've been in a place where all public schools are very good. That's part of why I don't want to move from here and continue rentvesting until I can afford to have PPOR in a preferable location.
     
  20. LastKey

    LastKey Active Member

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    That's food for the thought as well. Thanks for the idea.
     

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