Searching for my first Investment Property in Perth . Tips ??

Hi All,

First time post in here. Me and my wife , thinking about getting our first IP and have started to look at few suburbs-Beckenham, Cannington, Wembley, etc. Just would like to get some tips on where to start and what could be the initial strategy going forward. We would like to get a unit/apartment as IP, well thats what we think at the moment but yeah one which we can manage within our budget. We looking at not more than 400k at this time.

Any tips, we would appreciate!!! Like which suburbs to look at. Perth market is slowing down and hence thinking it might be a good time to buy at a relatively cheaper price compared to the peaks of 2013-14.

Thanks

Akanshu and Sandhya

 

Where to start? Go to home opens, see how many people are there, what you get for the price, talk to the agents, get on their mailing lists, ask if the seller is "motivated"... this is what I am doing right now. Feet on the ground beats desktop any day.

I really suggest you wait a bit longer to buy though. I don't think the good deals will be coming through until between July and December of this year at the earliest. Use the next 5 to 6 months to get familiar with the areas where you are looking and to get a feel for the market.

You can get a place now for under $400k but whether that looks like a good deal in 6 months time is unknown. My guess is that it won't.

5/114 Wright Street, Kewdale WA 6105 | For Sale BY NEG $399-$449,000

 

I would work out what your longer term goals are and see what kind of property/ies are going to get you there based on your current income.

If this is your first, I would look to get something you can develop or renovate to get some equity quickly, so you can go again without having to save up another deposit.

 

I would recommend waiting for sometime before purchasing in Perth as I feel prices are or will be heading south for a while .

 

Thanks all for your replies. We will be looking for the coming few months before deciding on getting our first IP.

 

I would look at vacancy rate and rental trends very closely in Perth before committing. To put it mildly there is a s%^load of apartment coming on line in Perth with no tenants available.

Furthermore , Id' think about spending a year researching and saving and asking yourself the questions. Why Perth, why now?

 

@radson, hi mate, ive considered investing and PP in other states other then Perth. But i feel un secure about investing in a place i will never know as good as Perth, any advice?


Perth was in a bit of a party phase fueled by the resource sector....hold on till towards the end of this year and do your research till then so your ready to be a predator when the time is right good luck

 

Im an investing beginner myself but I think @petewargent 's blog is a great introduction to the state of the Australian economy and factors to consider when you decide on where and when to invest. For example.

Pete Wargent blog: Rental growth slows

Look at that line for Perth !!

I still think Perth prices in an investment sense, do not yet yet reflect the rather scary vacancy rates and yields available. Of course there are markets within markets and streets within suburbs etc that are bucking the trend.