First Homebuyer/Investor (Inner Suburbs Apartment v Villa) - Perth

Hey guys,

A little about my situation. I have recently been contemplating buying my first property, which will (eventually) be an investment property. I intend to live in it for the foreseeable future (3-5 years) maybe making some improvements along the way depending if renovations are required or not. My plan is to have it rented out when I decide to upgrade to a family home.

I am looking in the $250k to $350k price range, which I realise is not much at all, but after much research I have narrowed down the types of properties and locations I could afford within this bracket.

Specifically I am looking at inner city suburbs such as:
- Subiaco
- Osborne Park
- Joondanna
- Leederville
- West Leederville
- West Perth
- East Perth

As you can probably tell being close to the city is what I am looking for (I work in the CBD).

I guess my biggest question is; Would I be better off say with a 1 bedroom apartment in the more desirable suburbs such as Subiaco or Leederville OR a 2 bedroom villa in the further out suburbs such as Osborne Park and Joondanna. These are just examples of properties I am looking at and I am more than open to further suggestions that fall within the price range and similar locations (Preferably NOR).

I fortunately I am quite flexible with my own living situation and don't intend for this to be an emotional purchase even though I plan to live in the property for some time. My biggest concern is what could be the best investment particularly looking for rental returns starting in 5 years (or thereabouts). I am less concerned about short term capital growth as this will be a buy and hold strategy (potentially for life).

My parents recommend that 2 bedroom would be better as it will be more desirable for people renting and buying if I ever wish to sell, and noting there is potential for an oversupply of 1 bedroom units in and around the city. This makes sense to me as the market does seem saturated (at least at this price range) with 1 bedroom apartments.

Anyhow, I know I must sound like a complete rookie, which I am so feel free to fire away any advice or criticism of my strategy that you may have. This is an exciting start to what I hope will be a long and successful journey in Property Investment and I would love input from people who are passionate about this too. ​

 

It sounds like you've had a good starting go at a strategy, so next step for you might be just to get out there and look at the various properties and strata complexes that you might potentially buy in - to get a feel for what might be better value than others.

Do that for at least a few months and I think that will help narrow things down a lot for you.

 

Lots of choices. Anywhere close to Wanneroo road or Train line will get you into the city on PT or bike.
Life style is a factor. Do you want to live near "urban buzz" cafes etc
Eventually you need to sell it. So what will make it attractive to buyers in the future?
Read a little about Strata's. Pre 1985 have more common property and less actually owned by you.
I would live further out on more land and newish build.
Something like this. Walk to pub. Close to a primary school either you might have kids or future owners and tenants. Shops just up the road. 1 zone bus ticket to city.
4/18 Edna Street, Tuart Hill, WA 6060

Huge number of options. Your head will hurt thinking about them.

 

Thanks for the encouragement. It's guess getting in as many viewings as possible will open my eyes to what I like, and what I think future consumers will be looking for in the rental market.

 

I, myself am not that fussed about what urban buzz is available. I ride a scooter in to the city everyday and just want to be close enough so that I can opt to ride the scooter, ride my bicycle, or take public transport. I suppose urban buzz will be a draw for potential renters in the future. For myself I am pretty happy hitting Netflix, PS4, watching the sport but I have always wondered what the average consumer looks for.

 

I guess you need to determine what that commuter distance is. Then look in that zone.
With modern electric bicycles Joondalup would be in commuting distance for a Cat 6 racer along the PSP.

 

We went for a villa/duplex thing up here in Darwin and it was the best decision. My complex permits pets and this has been the saving grace for the other unit owners.

Tenants will pay for a place close to the city where they can keep a small dog or cat.

During the epic Darwin downturn all the units remained rented at all times because of the pets. It literally solved the vacancy problem.