WA Build a house in Two Rocks vs Golden Bay

Hello Folks,

I am looking to build a house either in Two Rocks or Golden Bay.

Can someone shed some light on if it's better to buy land and build a house? Or get a packaged house and land?

I live in Sydney and don't have much exposure to WA. If someone has recently purchased a land and signed a build contract (or) bought a house and land package, please let me know your experience and which area would be good for investment?

Thanks in advance.

Regards

 

There's quite the difference between the two. What's the goal here?

 

- Looking to get the Federal and State govt grants
- Would like to move from Sydney to Perth for a year (can find some budget packages near beach side in these 2 areas only)
- Later put the property on rent and move back to Sydney or other areas

 

So an investment property? What if they don't perform as well as other potential purchases? Because I would say there's a good chance they won't being so far out where there is plenty of land to develop in the future.

 

Yeah, you are right.
But, I have found packages for around 320k in both these areas about 500m to the beach, I can get 45000 in grants (Tax free as well), so the price comes down to 275k.
Plus, I can live in for a year and I get to claim depreciation after a year once I start renting it out.

I would be happy if I can rent it out for about 325 to 350 a week after a year and it can cover off the mortgage plus claiming the depreciation benefits.

 

Link some of the packages? I reckon you can do much better for the same price range with many other potential purchases.

Just because something is close to the beach, doesn't make it a good investment.

 

I think you’ll find that it isn’t so easy to find consistent tenants in areas where FHB are predominantly building and where there is lack of amenities. At that price I can only assume a cookie cutter outer suburb design that will be worth less than what you paid for in a short space of time; when purchasing an established property within your budget much closer to the CBD with established amenities will see much higher potential for CG in the short-medium term and be far easier to rent out.

 

Shudder

Lot 262 Cowaramup Loop, Two Rocks, WA 6037 https://www.realestate.com.au/property-house-wa-two+rocks-134773006

Why rent at $325/350 a week when you could buy yourself?

 

Just looking at the different loactions

 

very different value propositions, if you consider reasonably sized 350m2 block ballpark $
$130k Two Rocks
or better move southwards closer to stations and services
$180k Alkimos

$180k Golden Bay
or better move northwards closer to stations and services
$220k Wellard $260k Success

my approach would grab something as close to Perth as you can, the extra money on the block will be repaid in rental return and future value.

and for me I wouldnt join the govt funds mob, the competition has inflated tradies wages leading to higher build costs and making the existing stock much better value IMO.

If you dont have family considerations, hard to beat an city sub $300k 2 bed apartment, eg East Perth, even better if Airbnb or similar allowed in the building (if you are not going to be there for long).

 

I would certainly go Golden Bay if I had to pick between the two. Though I would chose neither as a first choice for an IP - go a bit closer in if you can. If you are set on a house & land package I think you are at least correct in targeting coastal areas as opposed to inland estates .

Golden Bay 45mins to the CBD and it will be a very easy commute when a train station is built at Karnup plus there is economic activity and established amenities close to the north and south vs Two Rocks being an 80 minute bus+train trip to the CBD and at the literal frontier after which there is nothing but farms and holiday shacks. Plus Golden Bay is a little bit constrained in terms of beachside land (west of the main road) remaining to be developed, although there is probably still 10 years worth of new releases near the beach. Two Rocks however has heaps of land waiting to be developed and released. A new build in either location is likely to under perform the metro market in general, but you probably already know this.

Also, you may struggle to find a builder that can meet the required milestones for the grants so be very careful.

 

If you want to get grants you'll be hard pushed to find a builder who will guarantee meeting the timelines to get them - all of them have been jacking up the prices and their processes are so flooded that there are very few that could get a contract out before the end of the year. Even people that signed up months ago are now being told they might not get their HIA contract by the end of the year which is the main criteria for getting any grants.
I would say for 90% of the current sign ups you are not getting ahead with the grants but in fact paying over market price for the land plus over market for the construction.