Is this a good investment?

Hey guys I’m new to the site and what a wealth of info I’ve gained just in the last 2 days.

I’m a first home buyer/investor. I was hoping someone could tell me if this property here is a good idea either long term or short term.

Thanks

20 SALMON GUM GROVE, Beechboro WA 6063

 

Link says it is already under offer

 

Short answer: "No".

 

mind me asking what the long answers is?

 

Maybe Ok for long term. Only 1 car space, bedroom would require painting. I guess it would rent around $400pw if renting it out. Not too many 4x2 for rent in Beechboro at the moment.

 

There's nothing special about it. Average area, nothing special with the price, terrible location for a subdivision, the subdivision potential is very meh, house itself seems like an average layout.

It seems like maybe a PPOR purchase for someone, but I can't for the life of me see much good for investment.

What makes you attracted to it?

 

Good to know thanks for the info.

To be honest just the fact that I’ve been reading that Beechboro is a high yield area, the block is sub sub divisible And it looks like it could have some renovations I could do myself that would create some equity. But your points are points I’m not yet seeing or know about being new to the investment game so thanks for the heads up.

 

I would take the approach that probably 97% of properties are not investment grade, and you should be looking for something special about a property that makes it superior to others. There's never going to be a perfect property, but you should be able to assess the ways that its superior to others.

I would also avoid anything with subdivision potential unless you understand how to utilise that potential. Otherwise you're just risking overpaying for something that you don't understand because its almost always factored into the price.

 

Do you have an example of something that would make a property stand out?

 

Lots. I keep a shortlist of all the ones I find online in WA actually.

Here's one on my list - https://www.realestate.com.au/property-house-wa-osborne+park-133593230

But I'm not sure my list will help you on your own journey. My point is that you need to get the skills and experience to be able to assess for yourself when a new potential purchase comes up.

That probably means looking at lots of property, both online and in person - as well as doing lots of extra reading and learning on here too.

 

Now I see what your talking about. That property ticks a lot of boxes and gives me a lot mor clarity. I’ll keep the research up and keep an eye out for sure. Appreciate your help it’s been a huge help!

 

Great thread I’ve taken a lot from that also. Cheers mate