WA Understanding Perth property market fundamentals

My budget is under 400K preferably near the sea( I believe I will have to move to bit undesirable areas?)What would be other decent areas that you can recommend with a potential to appreciate in future?

 

400K preferably near the sea, far north (Yanchep?)or south(Rockingham) with that budget for a house.
Not sure about capital growth potential with that distance.
Its supply and demand, everyone wants a house near the beach and CBD hence you will be priced out of places like Karrinyup with that budget IMO due to the high demand.
Might have to reset your expectations unfortunately.

 

Thanks, a lot man. I appreciate your response.
It seems so.I have started to look in areas like Shoalwater and spearwood.
If the beach is out of criteria then would you recommend any specific suburb?

 

South lake, Coolbellup

 

So what is not the norm from investors perspective in your opinion?

 

Thanks for your comment. What suburbs are you talking about? Cant see such blocks anywhere in a desirable suburb in Perth.

 

Thanks for your comment.Apparently,it seems so.

 

Yanchep? YANCHEP? 400k will get you a much better property than that.

Considering Byford has a population well in excess of Yanchep (and still growing) and is getting a central train-station why would you look at Yanchep?

You.have 400k in Perth and youre on the internet asking opinions.....?

 

The nerve! What does he think this is, some kind of property investment forum?

 

I would take Yanchep over Byford.

 

With that budget and a near the sea wish I'd look at Clarkson, Craigie, older duplex in Padbury/Warwick/Greenwood/Hammersley

 

What's in Yanchep? No employment, no hubs, nothing. Neerabup estate is still in it's infancy.

Byford has Pinjarra farming hub (soon to link to Mandurah and Fremantle), Armadale, Rockingham industrial - way more opportunity there for a live/work.

1300+sqm right in the centre of town sub $400k.

89 Park Road Byford WA 6122 - House for Sale #128068178 - realestate.com.au

 

Are there duplexes in Hamersley? Not many, if any - and still would be unlikely to secure for $400k - more like mid to high $400k.

29 Whitely Street Hamersley WA 6022 - House for Sale #128693210 - realestate.com.au

More likely to get one in Warwick or Greenwood at that price.

 

There's not many but they do exist. Rare as hens teeth and snapped up pretty quickly.
$397k 48 Eastwood Way, Hamersley, WA 6022 - Property Details
$370k 48 Eastwood Way, Hamersley, WA 6022 - Property Details

 

There you go!

 

I reckon the old duplex half is really underrated. They can be cheap, they have land and I have seen a stunning reno of a duplex half

173A Lawrence Street, Bedford, WA 6052 - Property Details

 

Agreed. I often find PPOR first home buyers make a rule that a duplex half with some backyard as the "smallest they will go" when trying to find something affordable.

I reckon its often the best growth prospects for the lower price bracket in any given area.

 

Agreed. Many of them are on 300-400sqm blocks which is considered family size in some new land estates. They have scope to grow from being a FHOG 2 x 1 to being extended (up or back) to be a family home. All without transaction costs

 

He does want to be as close to the beach as possible

But I agree with @Westminster: "With that budget and a near the sea wish I'd look at Clarkson, Craigie, older duplex in Padbury/Warwick/Greenwood/Hammersley ".

Its all depending on what his goals are: For me, I would love to get a house in Warwick with a bit of land to add value for my next purchase but still slightly out of reach with my budget.

 

My advice to you is this:

Forget about buying anything for a few years.

Find a very nice, flash house in the western suburbs, perhaps in Subiaco or Floreat and take on a lease as a renter. Sublet the other rooms to other working professionals.

Get super fit, go to bed early, eat healthy and cut every single one of your expenses to a minimum (like Mr money mustache. Google it).

Save all your money and grow it in the cheapest index fund you can find, asx mlt or betashares a200 or vangaurd. Shove your superannuation into hostplus balanced index fund. Look for the signs of an impending stock market crash and check the prices daily. Pull out into cash as it starts crashing, the warnings signs will be there.

Read the intelligent investor by benjamin graham.

When you have accumulated 70% deposit buy a house on 720 sqm in the south part of Karrinyup on Gamble Way or McLintock. Carine, Western side. If you can afford it Wembley Downs or Floreat west of forum south of the Boulevard. Start visiting home opens on only the best streets in these suburbs, and read a text book on house building and the building codes of australia and understand the prices of renovating and what needs to be fixed in a property.

Its hard because you only understand properties after you have owned may and fixed many things yourself and many things you have even had tradies fixed, even things you could do. You will find tradies are mostly useless, expensive and troublesome mistakes. You will find a few good ones eventually, they will likely all be foreigners. Only buy a house after you have been to 200 home opens and made ten dummy offers to buy a house in a suburb you are not interested in so that they dont know you in the suburb you might buy, but you understand the process. When you have the money and the experience, in early winter, go find the houses you like the look of from the street and from google and prior property info on the internet and knock on the door with your expensive personal business card, and have a look at the house, dressed very elegantly and classic and make an offer at slightly above market price with a big cash deposit bonus and let them know you will be unconditional and flexible in every way and let them know who your conveyancer is. Dont worry if you dont get the house, its just one of many some better some worse but this is Australia and the houses are nearly all garbage anyway.

Remember this, a property is a piece of trouble, dont get married to one or the idea of it. If thats your mentality, to get emotional about a house purchase, go to a funeral parlour and pick out a flash coffin that you like, see the different models and various options and the prices, then realize that is a box just like a house, and that its going to rot and one day will be meaningless. Treat your house like a place to live in, once you can afford it. Its a place to be happy in and thrive in for you to find happiness. It will never make you happy. Renovate it and flip it after two years and upgrade, do this a few times and then sit tight for a few years accumulating great wealth via investing by being your own bank. Gone are the times of using banks money to outsmart them. Since about 2012 banking has changed in Australia. From now on banks will outsmart their clients and nobody will find it easy to make money with their money. Once you understand property then you can learn about leveraging and becoming a landlord, if it suits you, but you can be like 99% of landlords here or you can be smart. But thats a different story