Perth or Brisbane

Hey guys,

Currently looking at my options to buy something early next year. At the moment I’m looking at land banking in Perth, buying a large block with an existing house close to the city. Or possibly Brisbane although I already have an apartment in the GC so possibly a bit over exposed in qld...
Goal is CG

Budget is 400k. Thanks!

 

I doubt any $400k large blocks will be anything desirable in Perth. The advice on here seems to be look at cash flow more than counting on capital gains. Many say now is not the time to buy in Perth.

Brisbane seems to be mentioned a lot as a good place to buy. Not sure if it is or its just cognitive dissonance in action.

 

Then it could be a good time to buy.

 

Not even close to being over exposed in QLD with only one unit IP there.

 

That is 100% of my property portfolio though

 

When I started out I think I bought my first 4 or 5 in Sydney before branching out. I don't just 'diversify' in order to buy in more locations, but rather follow the state or states which offer the best overall opportunities at the time.

Personally I believe having 3 or 4 properties in one state (and none in others) doesn't mean you are necessarily 'over exposed', especially if the state you are looking at offers better opportunities than others at the time of assessment.

 

What like like a $400k house in Westminster on a biggish block?
Nothing I see in that range looks exciting to me. Happy to see some examples of good sub $400k large blocks.

 

I said time

 

Maybe somewhere in Beechboro. You wouldn’t get these opportunities in Brisbane. 9 Amur Close, Beechboro WA 6063 - House For Sale | Domain

 

I don't know if $400k is the right price point for subdivisible blocks. It would be interesting to compare $400k vs $450k vs $500k.

Where I would start is Embleton, Bassendean, City of Belmont LGA, East Cannington (maybe), Beckenham, Thornlie and Gosnells as a last resort. Some parts of Queens Park maybe.

I have not really been looking so I don't know what is around.

I was saying it may be a good time to buy, not that $400k is a good price point, especially in Westminster.

 

Always the search for the Holy Grail.

Pick any 2 ?

From what I read not many on here are predicting that in the near future for many properties in Perth. Only select areas/price points might achieve good CG. Again from on here Cash Flow is very important at the moment.

I would guess most large blocks you can buy at $400k there is a whole street (suburb?) valued at the same price. At some point someone has to put sale-able houses on the land and sell them for a profit.

If you plan on "land banking" then surely it needs to be CF positive.

Probably a great time to buy a PPOR an investment property maybe not for everyone.

That was the point I was trying to make. Nothing I see (not that I look that much) seems very exciting or a desirable area meeting the original 3 criteria.

 

Just have to know where to look

276 Keymer Street Cloverdale WA 6105 276 Keymer Street, Cloverdale, WA 6105 - Property Details

As I said, it could be a good time to buy. You just need to find the right deal.

 

But if you "land bank" I assume that means hold. Will it pay it's way?
If you did develop it today. Would it turn a profit.

Looking at some "developments" in my street this year. I doubt they made much profit. Watching a few others in the next suburb to sell what they sell for.

As a unit buyer Cloverdale (and I go to the airport a lot) would not be high on my list of places to live but ymmv

 

High on your list of places to live and future profit potential are not the same thing.

I doubled my money in a suburb where I had no desire to live in Melbourne. If you can recognise a very lucrative **** hole then you will be ahead of the curve.

You are not going to find any property, on land, close to the CBD in a suburb you would live in. Yet that is what the OP is looking for.

 

Ok yeah, all my experience in investing before 2018 is with the asx so I’m possibly overthinking diversification. Cheers

 

I dont know anything about beechboro but I’ll have a look, cheers

 

Well the yields are not too good in Perth at the moment, I think I could expect a profit (if I got something for the right price) simply through a retain and split. I wouldnt necessarily want to live in Cloverdale either but I don’t think it’s a bad area and how many other suburbs have 600+ sqm blocks 12km to the cbd for 400K?

 

Can we all agree this was a good buy for 345k 796sqm with a potential yield of 4.5%?

 

I picked up a splitter block in Cloverdale in 2016 with a house that needed extensive renovations. I spent over a year renovating so got to know the area quite well. I don't mind it. I would definitely live there but that IP is not near the airport. It's on a quiet street right on the Belmont border. There is room in the back yard to build another house in the future.

 

Do you mind me asking what the yield is and what/how you plan to do with it in the future?