WA Perthites, would you buy in Innaloo?

Hey man,

Thanks for the thoughts.

1. What would make duplexes with street frontage more favorable? Also, how can they build more of townhouses and villas, I can't see any free land in the area?
2. The yield is around 3.6% in the area. I'm in the accumulation phase and this might make it harder for me to buy more properties.. not sure, just speculating.
3. How do you measure this (being overpriced)? I suppose compared to the surrounding suburbs of the same proximity to CBD?
4. You reckon a freestanding street front villa, with no strata fees, would be a good choice?

Thanks a lot!!

 

If there is an oversupply of townhouses and villas in the area, you would think the vacancy rate would be really high. However with the vac rate of 3.5% Innaloo compare very well compared to the most of Perth?

 

Are you saying that Belmont will experience some sort of gentrification? Do you reckon a new train station might also contribute to it?

 

1. I think they're generally considered to be closer to a freestanding house than a grouped dwelling. No common property, no strata meetings etc. Plus, they aren't being made anymore really. There's still a reasonable number of old houses on big lots waiting to be developed last time I looked.

2. I agree, aim for something with a high yield. My own strategy is always to go for a high yield - but you shouldn't compromise on growth prospects either.

3. I generally compare what a potential buyer can get for that price bracket. But I also meant in terms of development potential, which a lot of Belmont has.

4. No. See point 1. There's a big difference in amenity between a street front villa (presumably in a triplex or 4 pack) and a duplex.

 

If you are going to jump into Perth market today...... I think the angle would be to low ball everything, its a buyers market you want to to ensure you get an absolute screaming bargain, at least that will improve your chances moving forward.

At the end of the day you can look at past statistics etc but it wont necessarily be a guarantee/prediction of what % for future growth.
Some of the dodgiest areas/suburbs can achieve amazing growth and overshoot areas/suburbs that are considered superior.... and no one will even see it coming. This happens frequently from my experience, its just that investors are brain washed to believe stats is one of the secret to successful investing, if this were really true we would all be making pots of money following them.

MTR

 

I didn't know they were replacing crap i was just thinking the higher density living changes. You can knock down crap but still attract the same tenants

 

Problem is it seems remote he's actually going to buy anything near term.

 

Correct, in Perth not within the next 6 months unless the market records consecutive month on month increases.

 

Protip: Don't use median house stats (especially month on month) to pick the bottom - you're better off using number of total listings, number of sales and possibly average days on market.

 

Thanks a lot mate.

The three parameters you listed, do they refer to the suburb or the whole of Perth?