Perth investment options

Discussion in 'Introductions' started by Deyoung, 14th Jan, 2020.

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  1. Deyoung

    Deyoung New Member

    Joined:
    13th Jan, 2020
    Posts:
    4
    Location:
    Perth
    Hi there, trying to get started in the Perth investment property scene.

    Currently have 2 x IPs, in NZ and Hobart and purchased a house to live in within Perths northern suburbs last year.

    Hoping to buy another couple cheaper houses on decent sized blocks and build granny flats seperate to the main dwelling and rent them out long term.

    Has anyone had experience doing these sorts of projects in Perth?
    Easy to rent out etc?
     
  2. Rex

    Rex Well-Known Member

    Joined:
    12th Feb, 2018
    Posts:
    990
    Location:
    Perth
    I have no direct experience renting out granny flats, but separately rented granny flats are relatively uncommon over here in Perth. My anecdotal experience viewing rent listings is that when you do see a house with granny flat, it's often rented together with the main house, in which case they probably aren't earning a worthwhile yield premium. Perth folks like their privacy and space, and renting a granny flat is just not a mainstream cultural norm here.

    Granny flats probably work in areas with with high demand for cheap accommodation though e.g. near-city areas and student accommodation near unis. If you want to pursue a granny flat strategy In Perth I'd suggest focus your efforts in these areas, but do you due diligence. The Perth market is very different to Sydney in this regard.
     
  3. thatbum

    thatbum Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    4,911
    Location:
    Perth, WA
    Yeah I did a pair of GFs behind an existing duplex pair. I could write pages and pages about my experiences and lessons learned.

    What did you want to know?

    Overall I think its a strategy that you have to be very, very careful in implementing. Its not something I would say works in most areas, with most property types, or with most GF designs and setups.

    I would say its only worthwhile in very select sites and conditions.
     
  4. Deyoung

    Deyoung New Member

    Joined:
    13th Jan, 2020
    Posts:
    4
    Location:
    Perth
    Which area of Perth did you build yours?

    I'm looking at a tidy enough house on a near 700sqm block in a nice pocket of Craigie (off market sale can probably purchase for around $380k)

    Was going to level, fence grass or pave the front yard to make outdoor living and fence off the rear along with driveway down the side of house, would give the rear granny flat approx 300sqm making it feel like a really seperate house vs a small pokey granny flat.

    Would hope that the front house could rent for $380 approx and $280 for a 2 bedroom granny flat.

    Being a self employed Carpenter I will carry out the bulk of the work myself
     
    Rex likes this.
  5. Aaron Sice

    Aaron Sice Well-Known Member

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    18th Jun, 2015
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    Location:
    Ocean Reef, WA
    Also the builder you choose not varying the designs without asking....!
     
    thatbum likes this.
  6. Westminster

    Westminster Tigress at Tiger Developments Business Member

    Joined:
    3rd Jun, 2015
    Posts:
    10,002
    Location:
    Perth
    If it's Craigie there is a lot which is zoned medium density and can be subdivided so why chose a granny flat over something that can be on it's own title?

    One of the issues with granny flats is getting finance for the build as it doesn't add much value to the site in the banks eyes so you may need to put in a lot of cash.

    As with most projects a corner block would be primo to give a separate access and more privacy. But if done well it can be just like any other battle axe or front/back project just ensure everyone has fences, some private courtyard and adequate parking.

    I have quite a few 1-2 bedroom IPs in my portfolio and all are on their own title but are the size of a granny flat (70sqm) and rent out well. I have them in Clarkson, Warwick and Highgate. Clarkson rents for around $280pw, Warwick rents for $350pw and Highgate rents for $400-420pw
     
    ellejay likes this.

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