WA Where in Perth for 450 to 500k budget ?

Hi all,

Green investor here, just wanted opinions on where the best area for investment would be in Perth for a budget of 450-500k.
I am from Melbourne and I have never invested interstate, but the prices for property and rental return in Perth look a lot more attractive than Melbourne.

My goal is to get a decent rental yield, along with good potential for future CG (is it possibel to have both in Perth for my budget ? ).

I have no idea about the different areas in Perth and which places to avoid, so any replies would be really appreciated.

Cheers
Samm

 

Perth Market 2021 is good place to start.
Perth post a bargain is another

Lots of similar posts to yours on Eastern State people with FOMO wanting to buy in Perth.

Search Perth Greater region House 350+ m2 and $450k. Find houses within 20 km of CBD then search suburb same and surrounding names on here.

 

I like spending other people's money.
Under 5km to Joondalup, a City center outside Perth. Has everything you want shops, Uni Hospital, Bunnings etc
4x2 are popular to rent I would guess $400/$450
Reasonable land area, vacate land can be $800/$1000/m2
Close ish to beach

78 Prince Regent Drive, Heathridge, WA 6027 https://www.realestate.com.au/property-house-wa-heathridge-137264378

Or
Area must be 25/30 years old
I rarely see this area mentioned
20 Carmen Court, Joondalup, WA 6027 https://www.realestate.com.au/property-house-wa-joondalup-137204618

Development size block but not a money maker at the moment. Area is blanket R40 and full of developer properties
Rent maybe 300+
65 Arkana Road, Westminster, WA 6061 https://www.realestate.com.au/property-house-wa-westminster-137100342

 

For south of river in that price bracket I'd suggest look at Coolbellup, Spearwood, Yangebup will still achieve a good yield and have growing desirability due to proximity to Perth/Freo/beach to drive price growth. I also like Cannington and surrounds, as well Shoalwater and surrounding near-coastal areas though a bit lower yield. In all these areas pick a house that is reasonable quality or otherwise be prepared to spend a bit to tidy it up and get it looking neat - just to ensure good tenant quality. You will have no trouble achieving at least 5% gross yield in that price bracket with the way rents are in Perth at present.

 

Congratulations on starting your interstate investment journey.

My advice is to look at the data it does not matter if the area is 10km from the city or 50km what matter is the data on each suburb.

Perth and Brisbane are not Sydney and Melb where proximity to the city determines the value!

For instance Thronlie which is in the opinion of Joe considered not the best suburb is doing much much better Data wise than Dianella or Balljura which are considered to be nicer suburbs in laymen opinion.

Likewise Warnbro approx 50km away from Perth is doing much better data wise than suburbs 10k near the city.

What matters is the data. Now you have to put in the effort and now how to find out the appropriate data that indicates growth and demand.

If you want suburb recommendation, I would suggest Thornlie for that budget or Warnbro, check their data and you will find that it ticks it all and is a precursor for upcoming boom.

 

Perth Suburbs Median House Prices and Growth Rates - REIWA

You need to becareful with numbers. Some suburbs came off a very low base. Just because Armadale went up 28% doesn't make it a good place to buy. Past performance is no indication of future performance but YMMV.

Karrinyup shopping center had $800 million spent on it.
Joondalup shopping center had a huge upgrade.
Morley Galleria, Innaloo, Garden City and Whitfords all have big developments put on hold.
I don't see this in lots of areas being claimed as good areas to invest.

Big players must have faith in these areas.

 

I would look to entry level housing in suburbs closer to the city.

 

Local knowledge is a key too and I am from Syd and looking for an IP...Brisbane is going gang buster and Perth is also getting popularity. Our budget is slightly higher (800-1m) and want to make sure we get value for money long term regardless of Bris or Per.

I cantacted "10 BA in Perth website" and from there found out the following company, aparently they have won many awards (national/local).

Members from Perth, any opionion?

Client Testimonials | Property Wizards

 

I know very little about the various areas in Perth but this one seems like a winner. How long and how many problems until it shines is anyone's guess...

https://www.realestate.com.au/property-unit-wa-rockingham-136650134?sourcePage=rea:buy:srp-map&sourceElement=listing-tile

2582m2 with 18 units across the road form the beach.

Here's 800m2 for sale at $2.1mil....so you could expect 2400m2 to be worth $6.3mil...divided by 18 units is $350k per unit land value...
https://www.realestate.com.au/property-house-wa-rockingham-136196726?sourcePage=rea:buy:srp-map&sourceElement=listing-tile

..but its been in the market for almost 3 months so people that know more than me don't think its a such a great buy.

 

Looks like a big block so good land content.
3/163 Railway Parade, Mount Lawley, WA 6050 https://www.realestate.com.au/property-villa-wa-mount+lawley-137244718

 

I have used them to source a development site, they are nice people, I just expected more value for the money paid.

 

"$6.3mil...divided by 18 units is $350k per unit land value..." - that is the problem. These 60 year old apartments have basically no residual building value so you are paying land value for a portion of a site that you can't redevelop/sell off until you get 15 of the other 18 owners to agree. And unless you actively run it as an airbnb it's negatively geared thanks to the $5K/year strata fees so you lose money each year while you wait. No thanks as an investment, would make a nice affordable lifestyle/retirement property though.

 

Thank you for sharing @Colin Rice , appreciate it.

I also spoke to Peter from Resolve Property Solutions (South Perth)

 

@Peter gavalas is good at Resolve, I would also recommend having a chat to Matthew Hughes from Capital Property Advisory at your price point.

Your price point is awesome and you can probably do something really smart plays in Perth with that sort of money. A nice retain and build in a very nice location could be on the cards. Or just get a nice development site with a decent house on it for good holding income and wait for it to grow more then develop in 5 or so years

 

I also recommend you to talk to Matthew and his team at Capital Property Advisory.

 

+1 for Matt, a good operator.

 

Let us know how you go, its a good time to invest in Perth, imo.

 

Will do @Colin Rice , I will update in near future. Thx

 

I would save myself money spent on BA and do a course that teach me the same knowledge and data BA use to determine where growth suburbs are.
Also for that budget I would buy one with high cashflow and one with subdivision potential probably both in Perth.

 

Capital property advisors are good.

I would not invest in a city I did not grow up in without support.