WA Post a Bargain - Perth 2018

My perception of that part of Bayswater is that it is quite slummy. I have looked at a couple of houses there. I wasn't impressed.

I found south-west of Coode Street a lot better.

 

Agree, it's not as nice as some other parts of Bayswater but for the right price ...

 

Clay seems to be a hit or miss closer to the river. $690k is already out of OP's budget, let alone $790k

 

The character preservation area is actually south-west of King William and Whatley Cres, some really nice houses there and likely under preservation rules.



EDIT: Forgot to put the link - http://www.bayswater.wa.gov.au/cproot/8371/2/USC-Item 9.1.10-PDS-18072017.pdf

 

Yea you are right and that is something I have thought about in some other locations - building the third and leaving room to later knock down the existing and put 2 more in later. I was looking in locations like Willagee/Warwick with R40 zoning, but the smaller blocks that far out in family locations didn't appeal to me, but R25 blocks closer in would make a good option I think. It gives you a kind of double ability to value add - adding value now, and then again later - plus location would mean good long term growth.

I saw that property also. You can technically fit in 2 more, but I have a feeling they would be pretty squashed in. I think your other idea of build and then knockdown & build 2 more some time later is much more appealing.

Thanks for the link and comments.

 

Thanks for the link. Interesting to note there are a few around. Unfortunately way out of my reach, a bit like that duplex you mentioned a while ago where both left and right could be subdivided again to put a new house on each side, then sell both sides of the existing duplex. Makes me feel like a poor kid standing outside a chocolate shop with no money to actually go in and get any chocolate lol.

Appreciate the links though since I'm not ready to buy and just learning what is out there and what opportunities are available to look for when I'm ready.

 

If you are just learning what is out there, what do you make of this?

295 Fisher Street Cloverdale WA 6105 295 Fisher Street Cloverdale WA 6105 - House for Sale #127397510 - realestate.com.au

 

Yeah that is actually one of the things that concerned me about that area with Belmont/Cloverdale and even Rivervale, is that price dropped so much more as a percentage of peak than many other suburbs. I found the drops ranged mostly from about 10-20% through Perth with these locations being at the 20% end. Maybe I am wrong, but I took this to be an indication of lower demand.
It's crazy that this one is being offered for 28% less than 2013. I am thinking that something like this might be a great location to buy now at such a huge discount and sell (with value adding) after it rises, but maybe not so great to hold for the long term (decades or multiple cycles) because in the next downturn I would think it will probably drop again more than some of the higher demand locations as it has done this cycle. Do you have any thoughts on this idea of buying to sell instead of buying to hold for multiple cycles?

R20 and positioned pretty much perfectly for a retain and split.
I actually like the lower zoning that can still be split because you end up with a big block of land for long term appreciation of value, as opposed to say something in Hamilton Hill that you can split into 220sq blocks and then the total value of a property will be a higher proportion of the depreciating asset on such a small block.

Not on a main road and very nice being across the road with views to the park.
Bit of a bummer that the train is far, but bus is not far and a bus ride of just 8km (as the bird flys) so I would think not a bad commute time.
Shops (& Belmont Forum) within walking distance too which is great.

I am thinking a great strategy for that might be to
- buy low (ie now if you can get the advertised price)
- wait for values to rise (I would guess 4-8 years to get to peak)
- split
- reno the original and sell that and the split off land separately

Development might be good, but I guess you would need to run the numbers, but for myself I am liking development mainly as a way for high cash flow on a property I will hold long term to reduce being forced to work just to pay for the cashflow for a decade until rents rise enough to make it positive CF, so if I was going to sell it, I think it might just go the easy route and sell off the split land without developing it.

Anything obvious that I missed? Or any other criticism of my thoughts would be appreciated.
Is there anything very wrong with the property or location that I missed?

 

Perth house prices start to show signs of growth, new Domain Group report shows

Sentiment is changing.

 

Definitely not what I hear on the ground. All these are ripples from pebbles. Will be a few years before an asteroid-splash. For now it's a full-on buyers market. Kid in a candy shop and all that. Those who buy well will do good in the long term.

 

Im looking at multiple estates for a first home, any recommendations? I have looked at areas including Bushmead Estate, Baldivis, Piara Waters, Willeton.. looking for a stepping stone to the “dream home” in Willeton/Bull Creek area for school zones. Are there any particular suburbs that are better than others for capital growth over the next 5-10 years in the 450-550k bracket?

 

Some good development sites at good prices compared to 2013-14, however you will still need deep pockets to hold, rents have also been hammered.

 

103 Norman Street Innaloo WA 6018 - House for Sale #127557598 - realestate.com.au

 

What are your thoughts of it?

 

Could be a bargain if negotiated I reckon around 650-670K mark?
@Blacky do you see any potential in possible re-development

 

Not saying this is a bargain as I dont know the South Perth apt market but seriously, where else in Oz can you buy a 3 bed apt with these views for this price! This is what I love about Perth, amazing lifestyles are so much more affordable and achievable
13S/9 Parker Street South Perth WA 6151 - House for Sale #127420506 - realestate.com.au

 

How did you come to that figure? Did you work backwards from end values minus costs then a desired 20% margin?

Considering it's listed at from $719k it's going to take quite a lot to get it to your desired bargain range.

Main road development blocks in Innaloo are around mid $650-670k so yes in comparison if you could get Norman for that price it might be a comparative bargain. However I see no reason why it would sell that low or if it would be profitable at that price.

There are a couple of Housing Commission auctions in Innaloo that will be interesting to watch and see how much they go for. Traditionally Perth people don't like auction terms so it will be interesting if they go for a cheaper price

108 Beatrice Street Innaloo WA 6018 - House for Sale #127571554 - realestate.com.au
26 Crocker Way Innaloo WA 6018 - House for Sale #127571794 - realestate.com.au

All in all I'm not a huge fan of Innaloo. I think it's over developed with far too much 3 x 2 product which is pretty much same old, same old.

 

I’ve found a couple of great sites.

Capable of 10+ units + small commercial space. $1.5m

By my (very rough) maths a $5mil TDC at 25% net of GST.

Only problem is I can’t fund $5m
Maybe next year.

Blacky

 

Did anyone attend this auction?

119 & 121 Woodside Street Doubleview WA 6018 119 & 121 Woodside Street Doubleview WA 6018 - House for Sale #127495974 - realestate.com.au

 

I had intended to for a gander but forgot about it. I'm mega curious as to what it went for.