WA Opinion on the property below!

Greetings guys,

Deadmutt here. First time poster, and soon to be first time property investor!

I've found the following property that has caught my eye, and note, I have actually already placed an offer on it.

I'm after peoples opinion on the property. Ranging from likes/dislikes, to analysis, whatever people can be bothered to do. This is more just for fun that basing a decision of any sort off. I would just like to see what other people think about the place.

I also wouldn't mind opinions on putting solar panels on an investment. My brief research suggests has revealed many articles say it's not worth. But to me, surely when renters are looking, even if you don't advertise for more money, I believe it's more attractive to shorten times looking for, or to help keep tenants! a 3kw system shouldn't really be more than around $3500 anyway. which is minimal in the grand scheme.

Anyway, some background information!
Age: 25
Cash on hand: 90k
Shares:80k
Owner occupied house: Build for 600k in 2016
Mortgage: 390k
Income: ~ 150k

I look forward to the responses!

99B Gateway Boulevard, Canning Vale, WA 6155

 

Offers can be withdrawn before acceptance.
What you learn off posts on here.
Nope.
I would guess low prospect of capital growth.
Very small land area.
Rent won't cover interest repayments.

 

Cheers for the response mate!

It's currently leased for $350 a week, although my property manager thought more like $380/$390, which will cover the interest easily.

 

Not many properties in WA would be cash flow positive.

Other out going costs
Council rates
Water rates
Building insurance
Renters insurance
Property Management 10% to 12% (totall for year) of rent collected in WA if using a PM
Maintenance
Loan fees
as well as bank interest

The money used as a deposit could be invested elsewhere so you are losing that income

Income
rent
any tax benefits from NG

 

The Emperor's New Clothes is a story from my childhood I remember.

Mine is
Nope
Why? Land area is small, Prospect of capital growth I would guess to be low, what would the drivers be in that area for price increase? not many properties in Perth would be truly cash flow positive, looks like a "developer quality" build. That is my 2 cents may well be wrong. Searches on here don't suggest Canning Vale is a future stand out.

Ask a question, don't like the answer don't make it wrong.

your welcome

 

Welcome!

How much actually is it? It's been on market for 161 days and started at $410k lowered to $399, then from $379k then all offers presented.

The current owners bought it for $382,500 in 2016 which was a better market than today so I would say that are holding out to reduce their losses but it's evident that it's not worth what they paid now. Even when they bought it, it was on the market for 150 days and started at $450k and ended up at $382,500

So it's been quite troubled finding buyers both times it sold.

From an aesthetics perspectives the style of the exterior and interior is not modern or pleasing to me. It would be a hot little shoe box. A single garage will turn a lot of people off it as canningvale doesn't have the best public transport system so people will most likely have 2 cars

99C Gateway sold for $382k in Feb last year on more land, has an additional bedroom and bit better style https://www.realestate.com.au/property/89c-gateway-bvd-canning-vale-wa-6155

Depending on what you could pick it up for it's a no go for me unless it was a complete bargain (like $320k) but even then I wouldn't be expecting great things in terms of capital growth

 

All depends on what your offer amount is as to whether this is a worthwhile purchase (don't think you've disclosed this?). Being such a buyer's market these days I would hope you've thrown in a lowball offer. I wouldn't go over maybe$360K personally but am no expert on this area.

Be cautious relying on your PM's prediction of being able to achieve an extra 10% rent immediately. Yes it's a neat and well presented place, but so are many houses in the area and median rent in Canning Vale for a 3 bed is $360 P/W (according to RE.com), and you would be competing against bigger 3x2s with double garage etc. 87 m 2 is very small floor area for a 3x2, and the block is tiny.

The Nicholson Rd train station is being built nearby (don't know how much this has already been priced into the market though), but will still be a 26 minute trip to the CBD. I would say minimal prospects for above-average capital growth and there is probably better investment buying elsewhere in this Perth market.

 

Agree with the other Perth investors here to say it appears to be a very average investment property at best, and probably in the "bad" category.

Canning Vale is an awkward suburb to invest a lot of the time, and buying something with tiny land component with a premium price (because of the new-ish house) would be something pretty sub-par imo.

 

Cheers for all the responses! I'll take them on board.

Is there any suggestions for where to potentially turn my efforts for a price range of approx $350,000?

 

This is the type of thing I'd look at in that price bracket 1 Wade Street, Gosnells, WA 6110
You'd need to do your own feasibility on it to work out if it's worthwhile but it has land, the ability to carve off another block and keep the current house which you could renovate to improve if you wish but it's in pretty good state as is - I bet there are floorboards underneath that shaggy carpet though

 

@Kapot

 

Aside from the property itself, PLEASE don't use cash as your deposit for an IP, as you're literally throwing away thousands in deductions over the course of your loan. You'll be much better off debt recycling the cash through your home loan - this is a great strategy we show our clients that will reduce your home loan, and increase your deductible debt.

 

I did intend to use some cash to keep my overall LVR below 80% I can't remember the exact figure but it wasnt an awful lot to dodge LMI

 

Are you cross colling?

 

Yeah potentially. The finances haven't been fully set in motion. I've had a couple of chats with a mates dad who's a broker but not gone too deep into direction etc

 

And youve already put in an offer?

 

Yeah they didn't end up taking it, so I've backed off for a bit. Considering other options, from other properties to maybe other asset classes now.

 

Take some time and get your bases covered with knowledge and strategy.
The deal of a lifetime comes along once a month