WA Perthites, would you buy in Innaloo?

Hi guys,

Hope everyone is having an easy one.

Do you think Innaloo would be a good suburb to buy in? And of course, not now but when the market fundamentals improve.

Some good things I've noticed about the suburb.. Close to everything you could want, shopping centres, parks, beach, restaurants/take away, pubs, industrial area (Osborne Park), primary schools, medical facilities, easy transport. Aside from your work, you'd barely ever need to travel more than 3 or 5km. The thing I like most for this suburb is the rental yield of around 4.1%, which is much better than most of other Perth suburbs of this proximity to CBD.

Cheers!

 

Sure. Good area. Close

 

Yeah I would.

Good access to CBD via freeway / stirling train station. Good access to the beach. Good access to satelite CBD (osborne park). Good schools, shopping centre etc. Has everything around it you'd need. Good long term hold target.

 

Cheers guys. Like I said, the rental yield makes it really attractive to me, would make it much easier to hold.

However I've noticed the typical blocks in the area are quite small. Not ideal?

 

I don't get why a suburb's median rental yield would have any bearing on your decision to buy there?

I'm sure the stats are probably padded by all the apartments there, both new and old - almost none of which would be investment grade purchases for most normal strategies.

 

Correct , and that just reflects the ones filled with tentnat. Innaloo is rental city, an absolute stack lying empty......not that that rules it out, just saying. Haven't looked at vacancy stats lately though. Good luck

 

Yep definitely. It's close to CBD in one direction and with massive redevelopments happening at Scarborough Beach and Karrinyup shops in the other direction...it's always going to be a sought after little spot.

 

It's a suburb with a good location and fundamentals. For the right price I would buy there.

Besides, it's close to Karrinyup South. What's not to like?

 

Innaloo has a lot of positives as you've listed above, a downside though is the absolute plethora of townhouses and villas, with more constantly being built although that's slowed a bit. In the past the downside has been that someone with a 5 year old townhouse would be competing with a new one, should he or she decide to sell and that's held back capital growth IMO. Think of it as the grouped dwelling version of canning Vale where someone selling has had to compete with new product nearby for the last decade and more and so CG has always been muted

 

Thanks Sanj for your comments.

Would you say that would still be a concern nowadays? Just looking at Google maps, I can't see any free land in the area.

 

Further supply (CG impact) aside, there is still a sh!tloade of existing competition to deal with in terms of rentals.

Not that I'm saying it's a bad area. Without having looked into it closely, I think it stacks up nicely when you look at price vs location.

 

It looks like I can only afford a townhouse/villa in the suburb. Freestanding houses seem to be in the 700+ range and well above my budget.

Do you think a townhouse/villa would be a good investment in the suburb? I don't know what indicators to look at in order to figure out an answer to this question.

However, some of my picks so far with some of the positives/negatives:

1. Innaloo townhouse/villa (yields seem to be OK),
2. Bayswater house (low yields),
3. Belmont house (even though they are building a new train station in the suburb, the demographics is pretty bad and I can't see this changing any time soon),
4. Doubleview townhouse.

Any thoughts would be very welcome.

 

Lol I love it!

 

I gotta listen to thoughts of a Perth expert.

What about t/h and villas in the suburb?

 

Having to explain to everyone constantly that you don't live in a toilet.

 

My personal opinions:

1. Just no. Way too many, and there's heaps of potential for more to be built. Duplexes with street frontage are another story though.

2. Probably the best out of the 4, but not that great compared to some other stuff going in Perth atm. Yield I would have described as 'normal' rather than low?

3. Belmont houses are *mostly* overpriced, with the rare exception that pops up occasionally.

4. See point 1.

 

That it's not karrinyup south! !! It's rubbish.

@sanj would the over supply of t'houses etc possibly change the dynamic of the area? Increase of lower socio economic

 

Overpriced? What are you talking about? Doesn't everyone with a million bucks dream of living in Belmont?

reiwa.com - 9 Williamson Avenue, Belmont

P.S. it is under offer. I don't understand

 

Why would old crap houses being replaced by new, modern townhouses lower the standard of resident from a socio economic pov? If anything it would increase it, consider the improving demographics of say Belmont with all the recent developments, also innaloo isn't exactly cheap, the Trevor's and shervonnes are likely to be a few kms inland and north in cheaper accomm if new