WA Perth Property investing questions

I have been reading some of the threads about Perth property e.g. bargains in Perth and have some questions.

First of all, what is an outer ring vs an inner ring? Are you talking about properties within 10km of the CBD and then anything outside of that is the outer ring?

I have a villa in an inner city suburb which is my PPOR (starter home). For me it's ideally located because it's only 20 minutes drive to my workplace in the city and I need to drive because my job involves driving throughout the day. I hate peak hour traffic, so 20 minutes (max 30 minutes) in peak hour traffic is just fine for me.

While I know that most properties did take a dive in terms of what it was worth post the mining boom, I am a little unsure about investing into property again. But I thought I'd have a proper look into property investing before I make that decision of just staying on the course of share investing.

What makes a property have a mix of future capital gains and yield? I don't think something purely capital gains is for me for my next property investment but I would like a mix of both.

The other thing is that I'm not very handy so I'm not interested in something that will require me to do lots of work. I can paint a room, but I'm not about to renovate a bathroom or put new floorboards down by myself.

 

I don't think they are fixed zones just arbitrary. People talk about lots of "rings" 5, 10, 15 etc The other day a member wrote he was buying within 7km

 

Did someone say inner ring?

Yes these are "radius" distance from the CBD. Inner ring.

Assuming we are talking non-unit stock i.e. no apartments, the yield tends to go up the further you move away from the city. The purchase prices comes down significantly but the rents only come down by a bit.

For example, one can find 7%+ yields in Armadale but only 4.5% in Vic Park, generally speaking of course.

With interest rates being record low, having a high yield only means you are loosing a big chunk on tax since it'll be positively geared quite easily. That's not a bad thing but your effective yield is now less.

I would focus on stock that has good capital gain prospects, these tend to be well located suburbs with gentrification on the cards. Also family suburbs with a large % of OO population but these suburbs sometimes tend to be a bit irrational in terms of value buying.

EDIT: High yields are only good if that house can attract half decent tenants. You' only need one ****ole to obliterate your yield

 

Do you mean overseas population?

Do you count villas in this as well? In other words you're just saying buy a proper house?

 

Never mind I realised you meant Owner Occupied

 

I think the definitions of what people use change but quite generically its
under 5km close to city, inner city suburbs
under 10km inner ring
10-20 middle ring
20-30 outer ring
30+ pray you have a train station and aren't in a massive over supply land estate.

 

Villas are OK as long as they are not in a huge complex. The further out you go, the less preference for villas.

 

40-55km: saturn’s ring