WA Perth IP - around 1 million

Hi... For a budget of up to 1 million (but no need to stretch to that limit) for a Perth investment property, any thoughts? I've thought of your buy/rent/hold in the inner city suburbs (but they are quite pricey in these areas especially for a house...) as a "safer" option. I've also thought maybe two smaller units or houses in outer suburbs. Wondering if anyone had any ideas?

 

Best to buy land with the ability to add dwellings via future sub division potential.

Land increase in value and dwellings decrease in value over time.

Not advice just something to ponder.

 

I've been looking at that too. Eg, house on a sub-divisible land. But am discovering my budget isn't quite enough. Maybe I'm looking at the wrong suburbs (inner city).

 

May pay to engage an expert to assist you, aka buyers agent

 

What areas have you been looking at? Something like this is in your budget:

109 The Strand Bedford WA 6052 - House for Sale #126470614 - realestate.com.au

 

It depends a lot on what you're hoping to achieve, how hands on you want to be, what your servicing is going to look like long term.

Generally speaking though, assuming you're about average income and family situation, buying to subdivide is a good way to get bang for your buck, add value and reduce debt if necessary. It also can be a good way to recycle any PPOR debt you may have, if you were to sell off a block for eg, reduce your PPOR loan and then reuse the cash to buy another, rinse and repeat.

 

I started looking at established homes in suburbs like Wembley and surrounds. Will take a look at the Bedford link, thanks.

The traditional buy/rent/hold is easy to do. Over east, I'd go townhouse or apartment but I get the impression Perth is less inclined towards apartment living and more towards house in suburb. That sound about right?

I looked at subdivision too but honestly I haven't seen too much value in those that I found for sale. The market looks like it's moved.

 

Would you look outside of Perth? You could consider using a BA. Regarding the subdivision, there's no need to rush - it's just something to have as an option if/when servicing gets tight. That point is a lot closer for most people than they think! Depending on your income and family situation, it may/may not be an issue.