Hi everyone, I'm hoping you can help or offer advice on my 1st IP! I'm looking to invest in Perth and the surrounding suburbs as I'm not confident investing in other states as yet. I've been looking at a number of areas including Innaloo (with the developments happening in Scarborough) and also further out in Midland and Forrestfield (with the proposed train line extension). My budget is around 500k and I'm planning to live in the property for the 1st 6 months and then move out to renting again and hopefully secure tenants. Would anyone have any advice on these locations or just general IP advice? I'll be completely honest I'm a novice to all this and have found your forums full of helpful advice and information. If anyone has the time to point me in the right direction it would be greatly appreciated! Cheers
Hi CCPerth You look like your doing the right things. There's better investors on PC than me but I'd say that the downward market in Perth has more to go so use the time to research, surround yourself with like-minded people and make sure you have all finances are ready so you can 'pounce' when the right one comes along. One of my early mistakes was to not structure finance well. Should have consulted with a broker so that they knew what our plans were.. Also ensure you've thought about taxation implications. Buying in trust/lowest earner(if married/partner)or joint? Hope this helps and all the best LG
Welcome! My tips would be - understand how much you can borrow based on your deposit, any grants, and your comfort level as to the debt. - understand how much the place will rent for once you leave it. No point buying in an area or house that has terrible rental prospects - eg an 8 bedroom house with one outside toilet - how tax affects profits - for example this will be your PPOR then an IP so it's best not to place more deposit than you need to on it to maximise your losses. Whilst this isn't what you HAVE to do, it's generally what is recommended - you don't need a preapproval but you do need to open a relationship with a broker and get a feel for how much you can borrow so you can really get to know what that money can buy you - don't be afraid of building. If you are a FHOB the grant is bigger, builders are doing some good incentives and you get excellent depreciations once you turn it to an IP - don't rush, get to know areas and remember - there is always another deal over the horizon.
Hi CCPerth, Perth is offering some great investment opportunities. Though there are many houses for sale only about 2% or so are 'investment grade'. So it is wise to understand and work out what your potential Return on Investment will be in 5 to 7 yrs once you rent it out. Know your total gross yield before you place an offer. In my opinion Innaloo, Forrestfield and Midland have already past the stages of a 'growth suburb'. Target high growth areas to create value (Capital growth) for the future. You have a healthy budget and you make money when you buy right. This being your first IP would be the basis for subsequent ones so don't be afraid to get good advice BEFORE you invest. Certainly important to work what you want achieved in 7 years and beyond. Established properties hold value and new properties require time and effort to build. I wouldn't suggest building one for your first IP unless you have the time.
Thanks for the advice everyone. I've also been looking at employing a buyers agent since this is my 1st IP. Has anyone had experience of using such a service or could recommend a reputable one in Perth? Cheers
Could anyone point me in the right direction as to where I can find the R-Codes for a particular suburb???
You should be able to find them on the relevant website of the council or WA planning commission? Someone here will know for certain, good luck.
It's the code that designates how much the block could be developed, I think it stands for residential, ie, the higher the code the greater the development, the code specific to that area denotes how small subsequent blocks in the coded area will be, Westminster can explain it much better than me. Some areas in Perth have been designated as requiring greater urban infill, therefore within a particular council or shire area you may find wildly varying R Codes, the closer a property is to infrastructure, shopping, transport, the higher an R code is likely to be, this will vary from Council to council however and one street could have a higher R code than another, hope that helps.
Most councils have some software called Intramaps which is a mapping/spatial database that allows you to put in the address and get all sorts of useful information about a property, including it's density or R code. Some councils are helpful and put the link on their main page and call it Online Mapping but some bury it. This is a link from Intramaps software company that might be easier to use Digital Mapping Solutions (DMS) | IntraMaps | Web Based GIS Solutions
