WA Post a Bargain - Perth 2019

Discussion in 'Where to Buy' started by hematite, 1st Jan, 2019.

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  1. hematite

    hematite Well-Known Member

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    {Note from mods - this thread continued from here: WA - Post a Bargain - Perth 2018}



    Nice work Damo - good to see you finally got it! The great thing about Perth is you have some high paying industries (Oil and Gas, Mining), and if both partners are in the same industry (Happens quite a lot), you can be on $240k combined as 21 year old graduates, which if spent right, can buy a very nice home for a FHB.
     
    Last edited by a moderator: 22nd Jan, 2019
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  2. JL1

    JL1 Well-Known Member

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    Any reason this isn't selling? Price dropped from 280 to 275.. one in the block sold for 441k in 2014. Rents currently low 300's, in a better market push closer to 400. Just seems crazy you can get 2 beds without living underneath someone in a prime location 2km from the CBD for under 300k.

    Ok strata levy isn't too flash, but at that price??

    7/60 Smith Street, Highgate, WA 6003
     
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  3. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    There are a few weirdos in the complex but I have always considered them to be pretty good value. I have a one bedroom townhouses about 500m away and mine are $500kish and rent for $400pw. Yes it's dated, yes it's open parking but it's an awful lot of construction in a great location.
    The biggest hassle is practically no furniture will fit up that spiral staircase, so you either buy flatpack and build in the room or take it up and over the balcony. And they don't have courtyards, just the balconies

    PS last one in the complex sold for $300k but had been renovated probably in the last 10-15yrs so quite a bit more modern. So it's definitely worth less than that but how low??
     
    Last edited: 7th Jan, 2019
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  4. Shogun

    Shogun Well-Known Member

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    The land has value (as entire block and as a small section). You are buying a percentage of that. You can estimate that
    The Unit has a build cost. Down grade due to age,factor in reno cost to get back to as "new"
    Unit has a "rent" value. You can then calculate what size loan would be cash flow negative/neutral/positive.
    Media suggest very little price growth in near future.
    State Government has plans in place to cope with large population growth in next 20 to 50 years.
    My dodgy maths suggests a $200k loan 5% and $330 a week rent would almost pay its way.
    Just because it sold for $400k once doesn't mean much. Another may have sold for $300k just a factor to consider.
    To me if I wanted to live in that area or my investment strategy wanted a property to hold.
    I think that is a bargain at $275k looking at what $300k buys in Osborne Park Tuart Hill etc a lot further out of town. Whether it's a good investment. Who knows?
    But YMMV
     
  5. JohnPropChat

    JohnPropChat Well-Known Member

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    Rental will more likely be in the $250/week range in this market.

    Rental Income: $13k ($250/week)
    PM Fees: 12% = $1560
    Council + Water + Strata = $4550

    Rent pays for about 54% of the P+I payments. Not a great cash cow considering it is a unit.

    Many older inner city units are cheap for a reason.

    Now, if you can buy all 16 or so units for $275k a pop, that's about $4.5mil for 2800m2 of R80 land throw in an extra 6 mil or so for construction and you have some decent profits in there but then again there are plenty of other options in the $10mil range ...
     
  6. Shogun

    Shogun Well-Known Member

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    A lot less attractive at $250 a week
     
  7. Aaron Sice

    Aaron Sice Well-Known Member

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    Aren't carbays in these ones all common?
     
  8. M M

    M M Member

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  9. Cmelderis

    Cmelderis Well-Known Member

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  10. Aaron Sice

    Aaron Sice Well-Known Member

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    Not really....especially considering rent in Samson.
     
  11. Scaphella

    Scaphella Well-Known Member

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    25 Mereworth Way, Marangaroo, WA 6064 waiting to see how much these go for. Can not believe they skimped on the landscaping!
     
  12. JohnPropChat

    JohnPropChat Well-Known Member

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  13. Scaphella

    Scaphella Well-Known Member

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    These ones are the first cab off the rank for the area. Kinda fit for the location & might appeal to first home buyers who could pay like $380k, minus 10k grant and no stamp duty. Rent it out in a year for $350pw or even more with the way things are going. Pity the finish just isn’t quite there...
     
  14. JohnPropChat

    JohnPropChat Well-Known Member

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    Can get 5% yields in middle ring suburbs on older properties where the CG aspect still exists unlike houses like these I reckon
     
  15. boeman

    boeman Well-Known Member

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    Too expensive in this market I would have thought, considering Balga stock pricing on similar product being low $300s these days isnt it?
     
  16. Scaphella

    Scaphella Well-Known Member

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    Agree!
     
  17. Scaphella

    Scaphella Well-Known Member

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    depreciation & low maintenance would be handy....Perhaps suited for retirees with the shops a 2 minute walk away. 39 Mereworth just sold for $369k, id imagine the numbers would stack up for a 3 unit site there. Mine certainly doesn’t o_O
     
  18. JohnPropChat

    JohnPropChat Well-Known Member

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    Perhaps but retirees have better ways to source income. ETFs with good dividends inside of Super for example.
     
  19. Shogun

    Shogun Well-Known Member

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    I would say no chance at $395k asking. Look at the quality of the brick laying in one of the pictures it screams cheap to me the lack of landscaping doesn't help either probably would look like that after 6 months anyway but poor presentation won't get you top money.

    A lot better locations to buy a $395k unit closer to Perth

    That whole area is riddled with developers "having a go" and losing money at the moment
     
  20. Scaphella

    Scaphella Well-Known Member

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    I meant to live in, not as an investment.