WA What's wrong with this property?(case study)glendalough

Hi guys,

I'm an obvious newbie to real estate investing, but could I get some tips in regards to what might be wrong with this property?

I would think a 4 Bedroom would do very well in a suburb like Glendalough, its not that dodgy and the place looks pretty decent, so what might put potential renters off the place?
As far as i can see, the infrastructure and lifestyle seems to be there in the area, and the price would indicate a rental of maybe 400+ a week? any pitfalls you can think of would be appreciated,

24/50 Pollard Street,

 

I would have to see it but from the pics:
- 1 bathroom in a 4 bed house is a problem
- kitchen is cut off from the living/dining
- small bedrooms?

Is the 4th bed a real bed? Or really a study?

 

I thought the same, small bedrooms and only 1 bathroom is not so great.... is there a second toilet?

 

hmm not from what I can see. yeah i was thinking along the lines of it might be too small, and its part of a complex? but yeah 4 bed 1 br is a bit lacking

 

Main thing is that its part of a complex, and apparently only has one car bay. Doesn't seem very good.

 

My place is marginally bigger (118 m2) and is a 3-bedder, so they must be pretty small rooms.

MIne also is only about 60% of that price, albeit in Geelong's northern suburbs. A 4-bedder in a large complex like that is a little odd, don't know if a family of kids will work well in those confines.

 

[QUOTE="Shankiedoodle, post: 303225, member:
As far as i can see, the infrastructure and lifestyle seems to be there in the area, and the price would indicate a rental of maybe 400+ a week? any pitfalls you can think of would be appreciated,

24/50 Pollard Street,[/QUOTE]
What's the asking price? I note a 3 bedder asks for $300 pw rent. would a 4th bedroom get you another $100 pw? looks like a big complex..at least 35 townhouses. what's the strata fees? any swimming pool, gym, tennis court? maintenance would be high if you have these facilities.

 

Has it sold previously, and often? Visit the complex at lots of different times, get out and walk around it, speak to neighbours, speak to people walking their dogs, take your dog! Could be some local issues, sometimes you can get lucky and find local Police to ask if the address is "well known".

 

Glendalough is a very small suburb and full of drug addicts. So many flats there. It's a great location but I think it will be a long while before it's considered "desirable". Potentially some development opportunities however due to the zoning, if you can find a large block of land amongst all the complexes.

With regard to the property you posted, as others have said the fact is has 4 beds is negated by the single bath and car space. Always worth having a closer look though if you see potential.

 

I'd try to convert a bed into a bathroom and have a 3x2 in an area saturated with 3x1s.

Fibreglass waterproofing paint does wonders.

 

My family bought a 3 bedroom apartment in Glendalough in 2003 for 150k and sold it this year for 350k.

 

That's probably an average result for any Perth property bought in 2003. I'd imagine there are many Perth properties worth more than 3 times what they were in 2003.

 

Any suburbs that you personally think will perform well mid and long term?

 

Mount hawthorn

 

Hmm yeah i do think Mount Hawthorn is a pretty good suburb. Just a bit out of my budget (first time buyer, small deposit).

That actually sounds like a pretty good honestly. I guess that outlay would be around 20-30k?

 

Thanks!

Way less, try $7-10k.