WA Post a Bargain - Perth 2020

Things are pretty grim in Wheatbelt towns. I wonder what these places would rent for if brought up to habital standard?

 

3A Ben Close, Craigie, WA 6025

 

6 Irma Cl, Huntingdale, WA 6110

Assuming no surprises, this will sell quickly.

 

Perfect for those with a passion for 90s project homes in 'original' condition.

 

I would say a sub-$10k (at most) renno and rent it out. Yield will be 6%+

 

Yeah I think even a very basic repaint and tidy up could have it fetch maybe $375/week? 6.3% gross yield with OK capital gains prospects (eventually) sounds pretty good, enough to service a P&I loan and cover rates + PM fees.

Middle ring bargains like this are where I think you truly can find good yield, low entry point and still have future CG prospects. It gets lost in the macro stats for Perth where the inner ring drags the average yield and median price down, and everybody thinks you need to go elsewhere (e.g. regional) to find good yield - not so.

 

Macro stats don't mean much. Every house needs to be evaluated on a case by case basis. At this stage, inner ring is still the best place to be and ride the wave outwards. Having said that, a bargain is a bargain is a bargain.

@Rex how is your shopping for the next buy going?

 

We purchased a PPOR by the coast in the Safety Bay area late 2019 - will not be in a position to make another purchase for a few years now I think, so I'm just an eager spectator at present.

I agree inner ring is the place to be for capital gains, but if you need cashflow and low entry point, the middle ring is good buying and unlikely to get cheaper, and will perform well in the longer term.

 

I saw this listing today and thought it had some promise - yes it's an apartment but for that price it would be worthy of some investigation to see how the yield and potential value add (kitchen reno etc) stack up considering it's 3 bedrooms

1/7 Ninth Avenue, Maylands, WA 6051

 

Strata is a bit high but more importantly the yield based on their stated potential rent of "$270 to $300" is low for an unit buy but nevertheless an interesting find though.

 

Oh lawdy that's some bold and original 70's architecture.

 

No kitchen reno, it would be a crime to destroy those orange cabinets...

 

Rent potential of $270-300 per week
• Strata fees: $1,697 per annum
• Strata sinking fund: $159 per annum
• Council rates: $1,464.92 per annum
• Water rates: $969.06 per annum

May not worth it.

 

That may be the case. I thought the proposed rent was a little low but it might be correct. I mentioned it as as it's an affordable buy in for a 3 bedder close to the city which would warrant some investigation

 

I'm interested in the $10,000 Reno bit.
Can 10g really get your house painted and a few other tidy ups in the perth area ?

 

Unless it's a brand new house or high spec renno, hiring "professional" painters is a total waste of money. For bulk work, you can hire handyman people for $35 to $40 an hour and get it sorted.

 

Ok.
This is one area I am looking at and actually below my $350 to $450000 budget but open to outside this.
What would people do to a property like this to boost rent without overspending ?
Paint first but I'm guessing window covers. Maybe some fittings. What about articulation system for lawns ?

 

If it's livable then the most I'll do is a paint job (if required), general cleanup, tidy the lawns and deep clean the bathroom and laundry areas and put it up for rent.

I wouldn't spend money to boost rent because ROI will be shocking.

 

In $450k budget range, you can also buy something much much closer to the city with higher potential for CG. Won't be houses but strata free villa are a possibility.

 

Cheers for that. I'm after a rental return of around 5% or better. This should have me adding in about $100 a week to completely cover it.
From what I see the options closer in will move me further away from 5%.
But I'm still learning the WA market before I dive in.