WA Perth market 2020

Discussion in 'Where to Buy' started by Redwing, 1st Jan, 2020.

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  1. Redwing

    Redwing Well-Known Member

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    I saw this in the paper the other day

    Japan’s Sumitomo Forestry takes controlling stake (51%) in WA’s Scott Park Group
     
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  2. Ross Forrester

    Ross Forrester Well-Known Member

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    My wife is thinking about buying a residential investment property around Perth.

    Price around $700k to $1m.

    Any thoughts on what to do? I like commercial but that is a no. And we have a good amount in ETF's. This property will not be a SMSF property.

    I am trying to stop the after tax cash outflow to around $10k to $20k a year but that might be dreaming.
     
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  3. Rex

    Rex Well-Known Member

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    That budget gets you a lot in Perth. I'd be looking for a front character home or nice townhouse within 5km of CBD, ideally a 3 bedder. North Perth, Mount Lawley, Victoria Park and surrounding areas perhaps. Should be no problem keeping the cash outflow within those limits if you select well.
    I don't have the $$ to be investing in these areas, so am not an expert, but others on here have a wealth of knowledge regarding these areas.
     
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  4. Ross Forrester

    Ross Forrester Well-Known Member

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    I like North Perth. I hadn’t really thought of that.
     
  5. Damo93

    Damo93 Well-Known Member

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    My opinion may be slightly biased as I live in the area but I would look at a 4x2 in Mt Pleasant/Booragoon surrounds at that price range. I am a fan of investing in leafy, desirable suburbs rather than townhouses for example within 5km ring (I also think stock is moving very fast and may be a little late to the party for decent stock within 5km ring.

    Option 1: At the lower end of your budget you would be looking at a reno job but likely larger land component. Require likely 10-15% of purchase price to sink into renovation - rental income expected to be $700+ per week.

    Option 2: At the higher end of your budget you would get a mid spec reno. A renovated 4x2 with likely lower land component. No work required but less potential for CG over medium to long term - rental income also expected in the same vicinity as above.
     
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  6. Midland_dreaming

    Midland_dreaming New Member

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    I would be interested to hear peoples thoughts on property investment options in Midland given the ongoing redevelopment works, recent shopping centre expansion, and the opening of the new university later this year. Do you think we will see growth in the rental market for existing properties or do you think that the new developments (such as midland oval) will create an oversupply of apartments and keep demand low?
     
  7. RoadRunnerPerth

    RoadRunnerPerth Active Member

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    There seems to be a lot of new and still being completed apartments around a lot of areas in Perth. A lot of the completed ones still have apartments available a year or so later... I think Perth has an oversupply and it will take a while to be absorbed. Some of the quality looks a bit ‘questionable’. ;)
     
  8. Propin

    Propin Well-Known Member

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    Interesting! I used to work for one of Sumitomo’s businesses.
     
  9. Ketsle

    Ketsle Well-Known Member

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    Its not a new university, just a separate campus of curtins fyi. That being said i dont think it will have a major impact for the area. There may be a localised boost in student accommodation type rentals but only for international/interstate student but even then, its very accessible by the train next door so theres no inherent reason for an immediate increase in demand for stock as you can live somewhat anywhere in perth and still be able to get there. Like their bently campus or other unis. Above all else midland still get a pretty bad wrap as an area to live in.
     
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  10. Damo93

    Damo93 Well-Known Member

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    I have lived in and still work in Midland and have seen much change over the past 5 years. There is still much stigma around Midland as being an undesirable low socioeconomic suburb and it doesn’t take long to find out why when driving around the area. In saying that there has been a lot of changes and investment but I think people are willing to travel here for work, study etc. One could live in South Guildford, Swan Valley area, have a much safer and nicer place to live in while being not too far away from Midland.
    In regards to property investment, most of the changes to the hospital, shopping center, tafe (announced over 2 years ago) etc has been factored in and there’s a lot of land around that could create future housing stock. There are large blocks however for example on Spring Ave that if someone had the capital could produce 8-10 units. I haven’t done any feaso so would need to do your own DD to work out the benefits, if any.
     
  11. Propin

    Propin Well-Known Member

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    I like Wembley Downs - Ocean Reef. So many options in that price range! I’ve had to drop my son off for a few get togethers over the holidays and I just love the areas where you view the ocean driving the streets! Not sure what rent return is like though.
     
  12. Propin

    Propin Well-Known Member

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    I think the moving of the Midland Train Station could make a big difference as the current set up is so creepy. I would never consider a unit there but I think a house in a better street may be OK. Parts of Midland were renamed Woodbridge. I’m not sure if that is more expensive with the name change. Possibly the nicer area though.
     
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  13. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    @Midland_dreaming I agree whole heartedly with @Damo93 thoughts.

    The new secondary health campus for Curtin University opened late last year near the Hospital I hadn't heard of another university project than that??

    It's certainly improved in the last 5 years but I think the Midland Oval project will probably create plenty of supply and I think Midland will have plenty of stock for years to come. There is no shortage of development sites

    My postcode is Midland but I'm in the Swan Valley so I tend to agree with @Damo93 that some of the surrounding areas may benefit more to the new amenities than actual Midland. I'm probably half way between Ellenbrook and Midland so I have all the commercial and retail and government amenities I need without living in the 2 areas that I don't particularly like.
     
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  14. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    PS I forgot to mention the other joy of Midland is that quite a bit of the land has clay soil so you'll be paying extra for earthworks
     
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  15. charttv

    charttv Well-Known Member

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    spot on. The new student accommodation in the city is also starting to come online and would be pretty tempting I imagine Student Accommodation In Downtown Perth | Campus Perth
     
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  16. JohnPropChat

    JohnPropChat Well-Known Member

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    1. Inner ring dev stock with an OK house on it
    2. Inner ring character home with renno potential
    3. Inner ring block of land and build new house, the depreciation will keep your bank account happy
     
  17. Ketsle

    Ketsle Well-Known Member

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    Didn't even know about that but looks pretty good! As my partner (and a LOT of country kids) had to do, moving to perth and finding accommodation when youre 19, im sure if you ask anyone they'll tell you how bad the colleges at UWA (unsure about other campus') are for the price. Think it was something like 15-20k for the year for a tiny 20+ year old room with mould growing on the walls... This would be a much better alternative for those students.
     
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  18. Shogun

    Shogun Well-Known Member

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    Price and standard of accommodation/rooms aside.

    Actually living at a University campus was a great experience for me. In hindsight I would take on campus over inner city anyway. Some overseas students are well interesting to live with.
     
  19. Ketsle

    Ketsle Well-Known Member

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    I think on campus definitely has its merits when youre in a completely new place. Think they could just improve the living quarters for the amount they charge you.
     
  20. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    Thanks to NRAS a lot of new residential living was built on campus at Curtain and UWA (at the resi colleges across the road) so there has been a nice increase in quality. NRAS was the goose that laid the golden egg for student accomodation - they could get the $10k a year on the studio for 10yrs = $100k and they pretty much only cost $100k to build.
     
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