WA Post a Bargain - Perth 2020

https://www.realestate.com.au/property-townhouse-wa-wembley-134404194

Any reasons for this being so cheap? Bad neighbours? Nearby construction 24/7?

 

Wembley is full of stuff like that. It has a huge supply of cheap apartments and townhouses. There is usually around 20 properties for sale under $250k at any time in the suburb

 

What an honest agent! "This property is ripe for a renovation..."

 

I hate these spiral stairs, no for me

 

Markets within Markets.

Don't get fooled by the postcode, the same principals apply to a property in wembley as they would in east perth. That side of Wembley is VASTLY different to say south of Herdsman parade. Much much higher density with smaller units which means lower rents which means different demographic of people living there. Hate to generalise but you can connect the dots. Most of those developments are pretty old too and are a bit of an architectural eyesore (See crop circles below)

However, if you are ever in the area, pop into the Pearfect Pantry for quite literally the best brownie you'll ever eat!

 

On the plus side a bus goes past straight to UWA. So if you want to be a slum lord to students might be useful.

Oh and nice Tiger snakes near the lake

 

I think they are already rising to some extent. Sellers are saying, ‘no’ to low offers as they know they can get more $$$ and more offers will come in.

 

Oh memories!!!! I did my time in those flats back in Uni days. Im not saying all good memories, in fact the first thing I remember was the cockroach infestation through the buildings.

 

48A Parkside Avenue, Mount Pleasant, WA 6153
https://www.realestate.com.au/property-house-wa-mount+pleasant-134406314

 

https://www.realestate.com.au/property-house-wa-st+james-132186274

Any thoughts on this? It is sold 'as is', needs major renos, potential to subdivide. Wondering why it has been on the market for so long and has been listed in 2011, 12, and 18 but not sold...

 

It doesn't seem that special? Not a great area, and main road. Price seems to have factored it all in. Do you know the area well?

 

I agree it's not the best area, however it is close to university, tafe and the city, and I think it would become gentrified and 'inner city' in the long term. Would it make sense to retain and build at the back? Maybe rent $300 for existing house, $400 for new house, $700k total cost?

 

Except thousands of properties in the greater metro area would fulfil this criteria - it doesn't mean they are all good investments. My point is that you can do better, and should probably aim to do so. I think its better to assume that 99% of properties are not investment grade, and you want to be picking the cream of the crop.

I would say that is not a good strategy here. It costs pretty much the same to build a new house whether its on a main road or not - so why do it where it will be worth less?

 

You're completely right. Thank you for saving me. Don't know what I was thinking

 

Just doing some revision to educate myself. I was at the auction but out-bid. This was sold in 2017 for $850k: https://www.realestate.com.au/prope...ctoria-park-wa-6101?source=property-search-hp

Now it has 4 units each sold for, say, $425k. Do you think it was a bargain at $850k? Anyone can enlighten me how much the developer would have made after costs? Thanks.

 

I can't see how they made any money on it. There is about $800k worth of construction there.

 

I would say lost money, unless it was a builder who purchased this .... just on my quick numbers. Assuming $200k per build, but maybe wrong, dependent on sqm

 

Lol we both came to same conclusion. Wow, scary

 

Glad I was out bid

 

This reminds me of Yokine

You pay similar price only for 3 unit/villa site, but end values have dropped so much it makes no sense. In 2013/14 a different story, but end values were perhaps $100,000 more each