WA Perth for $500k?

Hey guys,

Looking to get into the Perth market with a budget of $ 500k limit and just starting to look at areas at that price point.

1) does anyone have a recommendation for a good buyers agent in Perth??

2) any areas spring to mind that I could further research at that price point?

Thanks all

 

I bought 1 yesterday for 482k renting at 600 pw.

Around Rockingham.

Regards

 

There are several threads on here about Perth and Perth suburbs. Perth Market, Perth post a bargain, Perth for dummies, Perth southern suburbs and Rockingham what's the deal.

Buyers agents also have threads, they are very busy at the moment, it's hard to research a specific property the better ones are sold in under 2 weeks

 

Wow! That’s what I’m hoping for. I’ve never been there so feel like I’m taking a bit of a stab in the dark. Reading furiously on here. Will need a buyers agent Can I ask what suburb or roughly what area? I was having a bit of a look at Hillman.

 

Excellent, I would say with these numbers you purchased well.
6.5% gross yields
Its getting harder to achieve this

 

When you get into the $500k mark isn`t generally better to buy something closer to the CBD?

 

Depends what you can find at this price point???not necessarily the best areas, I am talking houses??

 

Use REIWA and have a look at the medians, target the suburbs where all the surrounding suburbs are 10/20% more expensive, to me proximity to CBD & transport & amenities $ work are still important factors, don`t be fooled by the yield, capital growth is what you need to target in boom periods.

 

$500k I think a soon-to-be R40 in Beckhenam 3 unit dev site will cut it. Hard to compare by the way, it depends where and what the poster bought. Like if it is a front beach subdividable block in a good Rockingham suburb 100% cracking deal!

 

It hard to compare

Beckenham, I looked at this a while back, but could not make the numbers work at the time??

 

Yep I think this is still the case, however maybe after 2/3 years of booming prices? Who knows.

 

I don't understand the obsession with development blocks. If it's not going to make money today why will it in the future? 70% of home owners live in them that's a big market of future buyers. Of the remaining 30% only a small number will be developers.
Some ideas to think about.
What makes an “investment grade” property?

 

It depends on your strategy. It is not going to make money today not true, there are opportunities where you can chop the land in half and sell land or build. Not expensive exercise, building not recommended due to current market issues. Long term it makes sense as more people -> more houses are needed. It also makes sense if rezoning is happening. To me, it is a strategy that makes a lot of sense but it is just a strategy among a few.

 

landbank

 

Its worked well for me

In saying this, I would not be land banking in Balga or Midland for obvious reasons. Its more about understanding end values and potential of a particular suburb.

 

A development protential block in Beckingham was recommended.

If it's going to make money today. That is one reason to buy.

If it's NOT going to make money today. What needs to change for it to make money in the future? Gambling on a zoning change is one strategy.
I regularly fly over Perth. There is a lot of vacant land.

In the future are you going to value add or hope to sell to a "developer" to value add.
Old crappy houses on big blocks probably don't appeal to a large part of the 70% of PPOR buyers that make up the buying market. Looking at the amount of developer 3x2x2 on the market at near cost possibly doesn't appeal to a lot of buyers either.

Several developers on this forum. From what I read only a very small percentage of properties end up being "investment" grade for them but as always YMMV

 

That's an incredible buy. Could you tell us a bit more? How close to the beach in Rockingham, and does it have a pool? I feel only a property with a pool can fetch that much rent in Rocko, or is there something else exceptional about the property?

 

this has always been my way of thinking but happy to be proven wrong?

 

I have just seen this forecast from the banks. What makes it a good idea to buy now if it is going to drop next year? Do people see this coming to fruition?

 

I think there are plenty of threads on why Perth indicators are pointing to a boom cycle
It started rising in 2021
Go to reiwa

If you are interested in riding the boom cycle you need to start by researching all Perth threads.