WA Post a Bargain - Perth 2020

Just be patient and keep looking. I previously posted about a deal that fetched close to 5% in Vic Park and that is an absolute inner suburb. Granted such deals don't come by often, I would still pick better CG potential over slightly higher yield any day.

 

Cheers for that.so far I seem drawn to the south side of the swan from Bicton to vic park for villas etc at the top end of my price range or further out to cannington canningvale etc for more affordable buy in standalone house with 700sqm + land. My wishlist at the moment is.
$350 to $450(actual limit of $650 if a deal arrived)
4x2x2 in outer ring or 3x1x1 inner area.
Street appeal.trees etc. Green grass.
Add in $150 or so on top of rent to hold
Plan CG over 10 year plus hold.
No major renos I cant do from a distance.

Cheers.

 

Good list. I would change outer ring to middle-ring (< 20km) from the city). No point going past that at this time or spending that much in outer ring burbs

700sqm can be a unnecessary requirement if there is no zoning or can't do a retain and build. I say anything over 450sqm to 500 sqm with 4x2x2 is worth looking at.

41 Temple Street, Victoria Park, WA 6100
Good street appeal, 3x2 (good for future generations). big chunk of land for inner city.

 

I thought this was a good buy 21 Fitzroy Road, Rivervale, WA 6103

Good part of rivervale. 5 klm to the city.
650sqm or so of land. Nice street appeal. Light Reno already done. Unsure of sub potential but just looking at it theres room to the back.price says in the 5's but with current market does that .ean you can offer mid to high 4s with a chance ????

 

I had a laugh at the ad "this home has been tastefully renovated throughout" umm really? Does a minor kitchen reno sometime in the 70s or 80s count? No photo of the bathroom to see if there has been any reno work done there

The owner bought it for $446k in 2009 so there is plenty of ouch in this and will probably hold out for an offer in the $500s and might just be testing the market as they aren't using a REA but are selling it themselves - perhaps to save money on what potentially has had no gains due to timing of the market. According to Rpdata it rents out (self managed) for $300pw



Also those photos as the exact same ones on Rpdata dated 2016 so it probably has a bit more wear and tear in the 4yrs.

This is the kitchen from 2009 - I think they have just painted the pine coloured cabinetry and put new handles on for their "renovation"



The biggest concern with buying houses of that age are
1. the roof tiles (capping issue , possible cracked tiles), roof structure (already bowing) and leaks
2. stump/floor level issues
3. bathrooms and failing waterproofing
4. condition of brickwork - spalling, mortar falling out etc

 

Only way to know is try it but the yields going to suck. For a 3x1 in Rivervale, it's going to fetch anywhere from $300 to $350.

 

Yep it lost me at the yield. I'd want $400 + per week as a buy and hold to be a option.
I think if the building condition was ok and the rent a little higher I'd consider it in the high 4s.
I'm still about 2 months away from buying at this stage anyway. Still building my knowledge of Perth at this point.
I have had IPs both new and 80 years old and I'd often pick the older one as the longer lasting. They definitely dont build them like they use to.

 

I think Rivervale is a great place for capital gains potential with period homes and proximity to CBD, but the low yield makes it a difficult buy & hold proposition.

RE subdivision potential, not sure if you are familiar with this, but split zoning such as in this area (R20/R40) means that the council will have some higher planning standards that you'd have to meet to access the R40 and subdivide. The extra cost/works often make it unviable in the current market but it's a case by case basis. Research local planning schemes and policies for more detail.

 

It's all case by case. A good building inspector is your best friend.
4.6% yield ($400/week on $450k purchase) wouldn't be that hard to find but probably not with large land component in inner ring,

EDIT: Given where Perth is in the cycle, it makes more sense to prioritize CG over yield especially with interest rates going down.

 

This is now under offer. It'll do well.

 

Busy road but with a bit of discount, a good entry point for 3x2 villa in Vic Park.
2/15 Miller Street, Victoria Park, WA 6100

This will sell quickly.

 

I really liked this one but about 12 months too early for me sadly

 

How's your Sydney hunt going?

 

Not great.
Strata fees are exorbitant and land component is basically out of reach unless I go much further out. I know what I am looking for but either stock doesn't exist or the numbers don't add up and entry cost is much higher than Perth.
I'm thinking inner/middle Perth is ideal considering i am approx. 12 months out to buy again.
I would be comfortable in the 350-550k range.
In the meantime, still looking, reducing debt and save save save.
Hows your inner-ring hunt looking?

 

https://www.realestate.com.au/prope...ep-pdp|sold-pdp:property-history-cta#timeline

This is a good example of subdivision, renovate and sell. The owner bought it in 2017 and it was a subdividsible block.

Renovated the front home, which you can see from the old pics how original it was. Then subdivided and created the real block which has got a rear access. One can build on the rear block and sell, or live in the rear and use the proceeds from the sale of the front house to build a ppor.

A clever model I think.

 

That is a tidy profit for a flat market if I am reading the historic sales right
- Bought $835K
- Sold new rear block $420K
- Sold renovated front house $725K

I'd say over $150K profit before tax. Would have made even more if they'd painted that ugly red brick facade and hired a good photographer.

 

Agreed. At least they took out the front brick wall...

 

Yeah, I am holding onto one in greater western Sydney, mostly a cash flow play from a few years ago but rental yields have come down a bit. Will be interesting to see what Sydney will be doing in 18 months time.

Looking for number 6 in Perth but finance is getting tricky with the majors but still doable. Other than that, I am sitting tight to ride the wave while paying down debt.

 

I think I’m more comfortable staying away from booming eastern state cities as I don’t have a crystal ball and feel a bit safer sticking to more local options. I know diversification is important and taking a risk can pay off but I just don’t have the capital for it at this stage anyway.

I am just hunting for number 2 in Perth! I like the look of this one in Ardross:

18A Leverburgh Street, Ardross, WA 6153
18A Leverburgh Street, Ardross, WA 6153

 

This looks good
117 Seventh Avenue, Maylands WA 6051