WA Mandurah WA??

Not a fan of canal blocks..... beach side for me

 

So many coastal properties in Perth/Peel. Good quality canal blocks on the other hand ...

 

To give you an idea of pricing we purchased beach shack one street back from beach with ocean views in 2001 for $199000
Bank value in late 2006 for $600k
Today its work about $400k, $200k drop from peak

When will hit $600k again??? No idea, my guess not anytime soon

 

Wow Compared to Perth price $/m2 some of those canal blocks do look cheap.

 

I’d say when you consider distance, I’d say Mandurah is very similar to Rosebud in Victoria. Both nice touristy areas they have nice beaches.

 

And now Rosebud and many areas in Mornington Peninsula are seeing a rise in house prices, in contrast with the rest of Melbourne.

Mandurah will be like Rosebud - be desirable again when Perth proper become too expensive. The issue is when.

 

But who wants to tie up their money with the opportunity cost?
I know people that have holiday homes there and love them for that but for investment it's a no from me. If you want a really nice holiday home then it's probably a nice time to get in as some of the high end stock I've seen at 50% what it was in 2010 - quite probably it was overpriced in 2010 though so you need to take it all with eyes wide open.

 

After sorting the PPOR and finding this thread on Mandurah I quite like the idea of a holiday home that can generate rental income but also be a place to escape and enjoy the water. I started looking in Mandurah and noticed a lot of 1000sqm+ blocks zoned R60-R100. I have posted a few below, i am yet to do some on the ground research but I think if one was to grab one of these lots say in the next 2-5 years (assuming prices won’t change much at all) I think theres some potential for CG and the opportunity to make $$. Thoughts???

2 Parkview Street, Mandurah, WA 6210

48 Allnutt Street, Mandurah, WA 6210

96 Cooper Street, Mandurah, WA 6210

63 Cooper Street, Mandurah, WA 6210

91 Anstruther Road, Mandurah, WA 6210

 

@Damo93 step away from the computer

None of those really are holiday home locations in Mandurah and it's unlikely you'd be able to have the funds to develop them to their R60-100 capacity so really you'd be buying a house that needs renovating, lots of maintenance, in a **** area, with little or no holding income and tying up your money hoping the site 'as is' will go up in value.

If you want a holiday home that you can rent out short term then it's unlikely to be a development site. You'd be looking at something more like this 6 Donnelly Gardens, Dudley Park, WA 6210 . My FIL has one about 500m from here and it's quite a pretty area with some reasonably priced houses.

 

Haha i probably need to for a bit

I was thinking of two potential options to purchase in 3-5 years time.

Option 1
R60-100 Development potential in close to Forum and Foreshore (which i think we won’t have the funds to fully take advantage of)

Or

Option 2
A tidy holiday home under 350k 2-3 streets from beach - thinking Silver Sands, San Remo area with 60-70% LVR and rent out for $300 per week and can be used as future holiday home (partner thinks it isnt far enough away to be a holiday home)
32 Sievewright Street, Silver Sands, WA 6210
Thoughts?

 

Does this lot have or need a connection to deep sewerage to develop in Mandurah?
Also I believe it costs extra to build within 1km of the shoreline (extra costs for stainless steel everything and extra costs for wind bracing)

 

WA - Perth market 2018

 

That Perth thread is so last year

 

as much as it's a good time to buy mandurah there is no point until Perth starts going to well
it's a predictable cycle and the holday area never booms be4 the main show

 

For someone who is so into timing, I would have thought that you would take that $600k and ran when the market tripled in only a few years?

Dudley Park had canal blocks for $300k ish about 5 years ago. Many were sold for $450k+ a couple of years ago. 50% growth on just holding the land. Some even sold single level homes on said land for close to a mil. While beach shacks are good, they can be had from Falcon to Madoray bay and everywhere in between.

Yanchep is another good example, people rushed in droves to buy there citing just one thing "beach". Now Yanchep beach is pretty good but not good enough by itself to make heavy investments. People who bought there are still in denial that it will still go up ignoring the fact that land supply is plenty up there. Don't even get me started on the new estates all the way to Two Rocks. Yuck.

I am seeing similar things happen in Padbuy, Kingsley etc. Sort of mini-boom happening and priced over fundamentals. Major factor cited is beach. They are not even on the good side of Marmion.

Perth is uniquley positioned to have access to world class beaches from almost any suburb from North to South without too much driving. Unless you are deep inland like Byford.

 

I seriously considered Mandurah a few years ago. To put it bluntly - Stay away! unless you find an absolute bargin or a lifestyle driven choice.

 

Madora Bay was our holiday home, we now rent it as no one is interested in using it
The others sold off

 

Thanks, I think I’ll focus on making the PPOR liveable and keep investing in my ETF before looking for a IP. One thing at a time haha, Happy New Year!