Recommendation for first IP - Perth vs Western Sydney vs Adelaide

Discussion in 'Where to Buy' started by Vivid, 9th Dec, 2021.

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  1. Vivid

    Vivid New Member

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    Hi guys,

    I'm in my early 20s and live in South Western Sydney. This will be my first time stepping foot into the property market and am looking forward to learning more about it.

    For my first IP purchase, I've been looking at properties within the 550-650K range. My maximum capacity is at 750K but don't want to stretch myself out too much. My goal is to hopefully gain some CG and use equity to help buy PPOR/2nd IP in future (after 3 to 4 years).

    I was thinking of the below options:

    Perth
    Suburbs: Spearwood, Hamilton Hill & Thornlie
    In close proximity to city/coast, Perth seems to be at the bottom of the cycle and relatively affordable so hoping for some CG with decent yield.

    South Western/Western Sydney
    Quite difficult in current market to pick up a freestanding house within my price bracket, low yield and not too sure about how good CG will be compared to interstate options.

    Adelaide
    Suburbs: Toward Northeast (Modbury, Ridgehaven)
    Was thinking of buying a large (800m+) plot and hold it long term for subdivision in future. Seems to be have decent yield but not feeling confident about how much it might grow in value.

    This is all new to me, so would love to hear other's thoughts and advice. Thanks!
     
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  2. ninonium95

    ninonium95 Member

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    Hey Vivid,

    Our background has lots of similarities!
    I am also from South Western Sydney, however I have decided to look into buying my first IP in Perth. Reason is that with my budget I will not be able to purchase a property in Sydney that will tick all my boxes.
    If you want to know more about Perth I reckon you should read through all the Perth topics on this forum! I did that when I first joined and it was extremely helpful. You can post your questions into Perth Market 2021 thread and everyone will help out.
    I'm not looking into Adelaide at the moment, but I think it has its own charm and is also on a growth, like how Perth is doing.
    If you would like to exchange more info on Perth, you are more than welcome to DM me! I am also learning more about property investing and having a buddy in this journey would be great!

    Have a nice day!

    Nik
     
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  3. MTR

    MTR Well-Known Member

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    I say follow the cycle/rising market. Easiest way to make money

    I will comment on Perth, currently low/no stock, all the areas you mentioned are booming. Good choices…. I can also add, but too many atm

    My advise if you buy in Perth you will need to align with the right real estate agent, its tough market atm, lots of competition

    Also rents are tight. Multiple applicants

    My prediction is Perth will continue to rise in 2022. We have the best economy in Oz and one of the highest wages.

    Go with your gut…. My 2c worth:)
     
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  4. The.Night.King

    The.Night.King Well-Known Member

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  5. MTR

    MTR Well-Known Member

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    A big fan of These suburbs Rockingham you mentioned, will also add Safey Bay

    It is still possible to get 6% yields

    Lowest median in Rockingham is Cooloongup
     
  6. Shogun

    Shogun Well-Known Member

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    If I had $550k/$650k and at a stretch $750k I wouldn't be buying anywhere near Rockingham but YMMV
     
  7. Jaye Kershler

    Jaye Kershler Well-Known Member

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    I prefer Adelaide at the moment over Perth but I don't think Perth is to far away from playing catch up.

    Suburbs to consider and more due diligence required

    Adelaide
    Redwood Park
    Aberfoyle Park
    Port Noarlunga South

    Perth
    Hamersley
    Riverton
    Greenwood

    Don't write off Brisbane, my pick would be north Brisbane preferably with that budget around Petrie, Strathpine or Bald Hills or in the south around Capalaba, Regents Park or Edens landing
     
  8. Sandy Varin

    Sandy Varin Member

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    YMMV?? Pardon my ignorance!
     
  9. Shogun

    Shogun Well-Known Member

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    YMMV Your miles may vary.

    Google it. Your fuel usage, same car might be different to mine. Your experience might be different to mine.

    What I have learnt over the years is many Forums suffer from Cognitive Dissonance.
     
  10. Shogun

    Shogun Well-Known Member

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  11. Sandy Varin

    Sandy Varin Member

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    I'm a newby here, following this chat, just looked at these houses, they look great, what's the catch? Seem cheap compared to Brisbane now.
     
  12. Sandy Varin

    Sandy Varin Member

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    Hahahaha, I did google it but I thought it might have been a town!
     
  13. MTR

    MTR Well-Known Member

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    we are at the early stages of the cycle in Perth. Brisbane started earlier

    Look at medians of suburbs mentioned by other posters, they will vary. Thornlie ….. some pockets are getting rezoned to R40, this is major attraction and new rail to come.

    I would also look at Morley, its only 8km from city, west of Morley Drive, house, scarce but the better pocket.

    $750,000 will get you into Willagee, this is an area that is gentrifying, one of the hottest areas in Perth. Problem is low stock, literally when a house hits market multiple offers in 2-3 days
     
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  14. Sandy Varin

    Sandy Varin Member

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    Well just learned what a R40 is :) thanks.
     
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  15. PeterCr

    PeterCr Well-Known Member

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    Unless its on Leach Highway Willagee - some houses seem to be lower than 750K on Leach Hwy - possibly some constraints with build and restrictions.
     
  16. 2FAST4U

    2FAST4U Well-Known Member

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    After reading the Perth 2021 thread I'm extremely bullish on Perth!

    I've released equity and will be purchasing in Perth (Thornlie) in Q1 2022. I've already got a couple of properties in Adelaide, which is why I'm keen to diversify. If I didn't hold in Adelaide I would definitely consider it. Western Sydney just seems bonkers to me but it's a completely different market compared to Adelaide/Perth due to its size, population, finance industry etc.
     
  17. Propin

    Propin Well-Known Member

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    I feel like Brisbane & Perth started at the same time but Brisbane has moved heaps faster in growth.
     
  18. MTR

    MTR Well-Known Member

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    Great

    just google R codes for WA, if looking developing to work out land size sqm per unit, then relevant council to find out if there are any easements which will impact development

    Developing c

    i would never buy on a highway