WA Post a Bargain - Perth 2018

Discussion in 'Property Analysis' started by Spiderman, 2nd Jan, 2018.

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  1. doubletoplei

    doubletoplei Well-Known Member

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    Looking for some insights please?

    Why this has stayed for sooo long and still hasn't been sold?

    168 Railway Parade Queens Park WA 6107 - House for Sale #126986922 - realestate.com.au

    Zoning sounds interesting, property is terrible and big negative gearing.

    location wise not too bad, but maybe still the conceptual issue being at south east?

    very old fibro home, so additional cost for demo.

    Anything else?

    How much do you guys consider this a "deal"? 500k? 450k? 400k?
     
  2. Username86

    Username86 Well-Known Member

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    Interesting.. the property I looked at is also on the Salter point side and went for 855psqm @ R20 so my numbers must be way off. Thanks for the reply
     
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  3. charttv

    charttv Well-Known Member

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  4. JohnPropChat

    JohnPropChat Well-Known Member

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    I know the area well, unless you have deep pockets - I say the zoning has been priced in. Long term hold maybe. Wouldn't go past $500k.
     
  5. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    If there is clay/S class soil then consider going waffle slabs like they do in Eastern States and then reverse brick/brick veneer or timber framing with cladding. It gets around the expensive cut and fill required to create a sand/A class pad.

    I would be concerned however that there is more than clay going on. With that swampy lake behind I would be worried about peat and acid sulphate soils.
     
  6. doubletoplei

    doubletoplei Well-Known Member

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    Thanks for the valuable comments @Westminster , @charttv ,@JohnPropChat , I actually didn't think too much about soil. I was mostly considering land scarcity around the area, and the R60 - R160 zoning (minimum 3 storey and ground floor has to be commercial). Everyday I learn stuff from you guys :)

    The current vendor paid 535K 4 years ago before the rezoning was done, but then I thought he paid too much as back in 2012 it was sold for only 390K. The property is very old and rents for only $250. But somehow I felt the zoning may be a good thing down the (potentially super long) track, thus asking how much you would consider it a bargain.
     
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  7. Rush1

    Rush1 Member

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    I should have done exactly the same, my friend bought a place for $425 000 and it is worth close to $800k now. He bought another house close to his ppor for $320 000 it is worth $520k now. I meant to move to Melbourne in 2014, had a job offer but couldn't take it due to personal reason.
    geez I wish I had taken the offer. :(
     
  8. Aaron Sice

    Aaron Sice Well-Known Member

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    Have a look around the area.

    It's bottom of the barrel. People only live there if the have to or are attached to the area.

    Brand new product doesn't do well here and while the zoning is favourable, currently anything new in this area is trying to make a silk purse out of a sow's ear - which the underlying intent of the TPS amendment to City Centre is about.

    There are better places to park your money. Have a look at a Vic Park character home on a simple R40 block that is a duplex size, but isn't because of the house position. You'd be amazed what you can do with a block like that.
     
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  9. theperthurbanist

    theperthurbanist Well-Known Member

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    Care to expand on that @Aaron Sice , for those of us too uninformed to read between the lines? Are you suggesting to hold and knock-down/develop later, or that there is a trick to developing these as a duplex now?
     
  10. baussie

    baussie Member

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  11. Perthguy

    Perthguy Well-Known Member

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    The other thing to watch out for in this area is council subdivision contributions. My mate did a subdivision up the road and council subdivision costs were around $30k from memory. Steep.
     
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  12. JohnPropChat

    JohnPropChat Well-Known Member

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    Not to derail the thread but just curious as to where people are looking/buying in the $800k to $1mil range for IP in Perth?
     
  13. Kendra Shen

    Kendra Shen New Member

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  14. Aaron Sice

    Aaron Sice Well-Known Member

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    That'd be Gosnells and their Public Open Space contributions.
     
  15. Aaron Sice

    Aaron Sice Well-Known Member

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    You can't demolish a heritage home in Vic Park without serious just cause - which is why you target these houses on these lots.

    You can call me for more specifics but just rethink what your 'access' is and all will be revealed.
     
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  16. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    Well the main thing would be that it's on Collier Road which is quite busy so make sure that the price takes that into account - I can't say if I think it does as I don't know the area too well. @Big Daddy might have some thoughts as he owns an IP near by.
    In terms of investment for later on what is your idea with the purchase? Do you want to simply buy and rent out as is for 5yrs in the assumption it will go up in value, do you wish to demolish and build a duplex on it, do you want to renovate it to increase its value? What is a good investment for you may not make a good investment for someone else so you need to be somewhat clear about what scenarios you can do with the block. As your first IP there might be a lot of things you don't know but you are attracted to this site for a reason beyond I'm guessing just it's price?
     
  17. Aaron Sice

    Aaron Sice Well-Known Member

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    "...Hi Mr Agentwoman. I'm a prospective purchaser / tenant; and we're looking for something on the corner of a main road..."

    ...said no-one ever.
     
  18. Big Daddy

    Big Daddy Well-Known Member

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    Its a very busy road but quite close to the galleria which is having a 350m redevelopment soon. I bought my place in the mini boom of 2013 and only because it was advertised as R25 when infact it was to be rezoned R60/100 so i thought i was getting a deal even if its on a main road as the rezoning price was not built in and next door had sold for a bit more a few months earlier. BIg mistake, after rezoning the property next door is currently on the market for a price that puts my purchase price at 100k over (and it already has the zoning price uplift built in) plus the 15k or so of negative cash flow each year makes this a lesson i will never forget. Buy only if its super cheap.

    If its within the Morley Activity Centre then it may be zoned residential/retail and the corner of a main road might be a blessing.
     
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  19. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    I follow these suburbs - 6004; 6000; 6003; 6005; 6006; 6007; 6008; 6016; 6050; 6051; 6060; 6052; 6053
     
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  20. Jamie_

    Jamie_ Well-Known Member

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    peppermint grove, wa 6011; sorrento, wa 6020; watermans bay, wa 6020; scarborough, wa 6019; woodlands, wa 6018; floreat, wa 6014; doubleview, wa 6018; maylands, wa 6051; glendalough, wa 6016; karrinyup, wa 6018; inglewood, wa 6052; karrinyup wa 6018; north perth, wa 6006; mount lawley, wa 6050; craigie, wa 6025; hillarys, wa 6025; kallaroo, wa 6025; heathridge, wa 6027; coolbinia, wa 6050; wembley downs, wa 6019; wembley, wa 6014; claremont, wa 6010; churchlands, wa 6018; burswood, wa 6100; lathlain, wa 6100; trigg, wa 6029; alfred cove, wa 6154; highgate wa; gwelup, wa 6018; west leederville, wa 6007; iluka, wa 6028; stirling, wa 6021; victoria park, wa 6100; east victoria park, wa 6101; leederville, wa 6007; yokine, wa 6060; joondanna, wa 6060; osborne park, wa 6017; shenton park, wa 6008; bedford, wa 6052; bayswater, wa 6053; carlisle, wa 6101; dalkeith, wa 6009; crawley, wa 6009; nedlands, wa 6009; kensington, wa 6151; daglish, wa 6008; jolimont, wa 6014; menora, wa 6050; tuart hill, wa 6060; dianella, wa 6059; innaloo, wa 6018; east perth, wa 6004; bentley, wa 6102; st james, wa 6102; perth, wa 6000; west perth, wa 6005; subiaco, wa 6008; fremantle, wa 6160; east fremantle, wa 6158; como, wa 6152; 6003; mount hawthorn, wa 6016; currambine, wa 6028; embleton, wa 6062; south perth, wa 6151; morley, wa 6062,maylands, wa 6051; morley, wa 6062; gnangara, wa 6077; coogee, wa 6166; north coogee, wa 6163; clarkson, wa 6030; mosman park, wa 6012; cottesloe, wa 6011; ballajura, wa 6066; connolly, wa 6027; wanneroo, wa 6065; mount claremont, wa 6010,maylands, wa 6051; mount claremont, wa 6010,watermans bay, wa 6020; mount claremont, wa 6010; mount pleasant, wa 6153;


    hahaha... i have too much time, probably even some double-ups in there.
     
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