WA Where to buy in WA

Discussion in 'Where to Buy' started by S-Star, 19th Jul, 2016.

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  1. Ald

    Ald Well-Known Member

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    There are no state houses in that pocket of Karrinyup.

    It's is precisely because the rezoning is difficult and the inability to subdivide makes this a perfect place to invest. Families want big blocks.
     
  2. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

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    We lived in the country for years and didn't want to live right in the thick of things - our pocket is perfect. It's quick to the free way, and right on the beach which is usually close to deserted. Perfect!
    It's only an hour to the city by train too, I go in reasonably regularly and quite enjoy it.
     
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  3. Jamie_

    Jamie_ Well-Known Member

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    Look, it's clear you have a vested interest in this pocket, which is okay. But i'm sorry to point out to you that there is actually a decent amount. Especially between Jackson Ave & Newborough St. Maybe things have changed since you've moved over to NSW, but from someone who is currently living in the local area i'm afraid your wrong.
     
  4. Ald

    Ald Well-Known Member

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    Thinking long term and thinking of the family that are upper middle class but not old money, the families who can't afford to send their kids to the most expensive schools like Methodist Ladies College, Penross, Wesley, Guiford Grammar, Aquinas.

    The families I speak of will send their kids to the cheaper private high schools of Hale and St Marys where they will get just as good an education.

    Karrinyup should be 1.6m in a new house.

    Sure you can go to floreat, city beach, apple cross, nedlands and you can pay those prices for a old and tired house like you can get in that pocket of Karrinyup on the similar sized big blocks. But investors and smart families are after value. They can enjoy a better lifestyle a more convenient daily lifestyle than anyone in apple cross, city beach or floreat can at a fraction of the cost.

    So if the families I speak of buy a older house in that super tightly held pocket of Karrinyup with a south facing backyard block near the park on a quiet street at the current price of about $880- $950k (you will have difficulty getting anything at 700k on a full block on a street like Gamble Way or Mcklintock) and build an upto 500k modern quality house on it and watch your family grow and thrive there. When it comes to retire, your property will have triple the equity in it. Or just buy and rent it out while the neighbours demolish and build and wait for the capital gains.

    If on the other hand the family I speak of buys in nedlands or floreat well then they have no money to buy a new house and have to live in the old junk. Even most of the renovations in floreat and nedlands are done on the cheap. Just look a little closer past the Miele appliances and you see the 30 year old structure that's rotting. I have looked at perhaps 30 -60 houses in Floreat , it's a suburb for old money that can afford to demolish and rebuild. Houses in Floreat need to be demolished and rebuilt. It's like Mt Lawley, wooden floors and no insulation from the ground. Freeze every winter.

    That pocket of Karrinyup, south of Karrinyup road is the most undervalued suburb that I can see right now in the whole of Perth. It's location in my opinion surpasses city beach, floreat, nedlands in terms of convenience and access to everything that Perth offers without the premium expensive prices of shops in Claremont for the same stuff. The suburb that has also the best prospects for capital growth that I can see. It's right next to Trigg which has outperformed every one of the other suburbs mentioned in the last 12 years and that pocket is next in line. Trigg 14 years ago was a suburb with a mediocre name now it's is like a second city beach. If you bought in Belhus 10 years ago, you scored.

    I am a value investor for long term suburbs that beat all other suburbs for capital growth, amenity and convenience and which have not taken off yet, I see that in Perth only in that little pocket. I know what is of timeless value to the families that are the backbone of Australia, I know that the houses that these families are interested in are the 10% of investments that just never fail. These are the families that have aspirations for a warm and functional, very healthy, traditional family life, seek value, are not rich yet and want a big block with a south facing backyard in family suburbs where the kids can play on the street and they can settle down close to everything. These are the families that will be the new rich. In Sydney I see zero value investing. In Brisbane I only see the lack of a nearby beach.

    Perth has 2 - 3 years of difficulty ahead, but now is the time to buy, you will see that within 1 year Perth will be economically recovering but at a super slow pace and property prices will start rising from Spring this year. In 4 -5 years time Perth property Prices will have doubled following Sydney. But Perth will have again many high paid jobs.
     
  5. Ald

    Ald Well-Known Member

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    I have no vested interest there at the moment, but have the option to buy from my ex neighbours there.

    The area you described is not the pocket I described, the pocket i am talking about is south of Jeanes road, west of Duke.
     
  6. Ald

    Ald Well-Known Member

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    The combination of multiple one way streets in the pocket of the suburb combined with the topographical highs and hills result in an enclave that is isolated. That is the entire appeal, why I called it a secret, hidden suburb. It's almost like a closed off estate. Many people used to be surprised that there was such a peaceful and serene pocket of suburb next to a beautiful park. South you have messy cramped Scarborough. I lived on northstead street the properties were already 1.2 million and I could hear my neighbours having sex or arguing. Everything surrounding that pocket is more expensive and to its west is the $2 million suburb of Trigg.

    The best all round street in the entire Perth has to be the north side of Fyfe Court, or Peet crescent facing the north the reserve, closer to the beach. I would prefer to live there again if I could buy a specific house then in Peppermint Grove. I loved living in Fyfe court Trigg, so convenient for everything so quick to the CBD and the best morning surf in Perth. But things rusted there and it got windy and was not as quiet as on Gamble Way or Mclintock deeper inland where I also lived.

    I have just calculated that I have lived in 46 different properties in my life. Damn that's too many!
     
  7. Ald

    Ald Well-Known Member

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    You would be correct in saying that there is some good buying in Perth at the moment. I am astounded why the money is going to Sydney. It's the worst place in Australia to live. Perth has the best prospects of all Australian cities in my opinion. Even if I was a billionaire I would not touch Sydney. Polluted seas, traffic, cramped. Keep Sydney that's a basket case.
     
  8. sanj

    sanj Well-Known Member Premium Member

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    you are moving the goalposts now by comparing old vs new. even if doing that, the value for money on offer atm in prime suburbs is insane. for example this sold for about 2m m, might have been 2.05m in november. I suspect 1.85 would do it now. applecross, 1000sqm, suhdiviable if the need arose in the future, not old and crap. you'll need to do a lot of convincing to change my mind that a new build in karrinyup for 1.6m is a better buy.
    reiwa.com - 13 Tain Street, Applecross
    I suspect you don't know perth as well as you claim
     
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  9. JohnPropChat

    JohnPropChat Well-Known Member

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    I don't know a thing about prime suburbs but I always felt that they are way over priced compared to intrinsic value but most people don't buy into prime suburbs just for their intrinsic value.

    I also noticed that they are the first to get hammered(during a down cycle) and the last to gain value (in a boom). I could be totally wrong though.
     
  10. sanj

    sanj Well-Known Member Premium Member

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    youre right they do get hammered which is why there is so much value out there atm.

    for example, there are near new properties that cost the previous owner around $7m all up, selling for barely construction cost alone, about 4m.

    there are 7 odd year old homes on $1.6m blocks that would cost someone $3-3.3m bare minimum to buy, build etc that are selling for up to $1m below replacement cost.

    in many pockets all people want atm is either land value or really new and shiny and only slightly older properties (eg still under 10 years old and still very high specced family homes) are falling by the wayside and going dirt cheap.

    people are so fussy atm at top end (rightfully so) that often opportunities are missed.

    last year I sourced a magnificent cbd penthouse for a client that had sat on market for ages due to combo of terrible furnituee/Staging, timing and inattentive agent. 5% was spent on minor renoscar and within 4 months or so a highly prominent agent approached us with a cash buyer willing to pay more than 30% over cost.
     
  11. sanj

    sanj Well-Known Member Premium Member

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    check this out. 3x2 spacious and high specced townhouse on top of 94sqm office all on one mized use title in applecross near the river, frwe way etc. if you separated access and leased office separately you'd probably end up with around during 75-80sqm leftover and achieve say 20k per year rent.

    the entire thing sold for under $1m. would cost someone under 40k per year in interest to live here.

    Sold Price for 72A Kishorn Road, Mount Pleasant WA 6153 - 2012824263
     
  12. Ald

    Ald Well-Known Member

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    I would agree with you that the property you mentioned was excellent quality. I would still however easily argue that what you bought in applecross was a worse investment. I would never live in applecross at 1.8 million in that house or 2.2 million new house in Floreat or 3 million in swanbourne if I could live for 1.8 million in a new house in Trigg or better yet live for 1.4 million in a new house in that pocket of Karrinyup .

    Applecross sucks, horrible trip to the CBD. Plenty of traffic, far to the beaches.

    Give me the healthy surf and yoga lifestyle with fishing for ocean caught fish like you have from my favourite suburb anyway. More affordable food, easier commute, more affordable house, equally good schools.

    Sanji your second example is just not something a family would be interested in.

    A ordered and non dysfunctional family sends their kids to good schools they can afford, the parents go to work and they want a clean and ordered house that is functional and practical, a good kitchen with a proper double sink and big bathrooms and bedrooms and a big backyard in a quiet and private setting. They want to sit down and teach their children after work so that their children are better at school and they want their children to not have rubbish for friends or friends who's parents are divorced and thus the kids are messed up.
    This is the family that wants to settle down, buy or renovate a house in a suburb where they will never loose money and never have too high a mortgage. They want to be close to the beach so they can have cheap entertainment for the kids, sun and fun on Sunday in the surf followed by a barbecue with friends and convenience to schools the shop and the highways and activities for kids.

    Tick, tick, tick, it's Karrinyup south. Tick tick tick tick for everything and anything. You can't get anything remotely as good as that with affordable prices anywhere else in Perth, it makes that suburb a buy at these prices so that for the next 40 years holding a property there you will have nothing to worry about for your retirement.

    But go buy in applecross if you want. Go sailing on the river just don't fall in because my mate who lived in Applecross and I caught a 2m bull shark in the river upstream of canning bridge and that shark was very angry, not as angry as my mate however who could not recover his favourite lucky tackle and the fish that the shark ate. He waited until it ran out of energy and turfed it overboard.
     
  13. sanj

    sanj Well-Known Member Premium Member

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    no.just no.
     
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  14. Ald

    Ald Well-Known Member

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    As an agent working in applecross you would say that
     
  15. Perthguy

    Perthguy Well-Known Member

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    You're crazy! If you are onto a good pocket you keep it to yourself ;) What do you want, to start competing with every other investor?

    I found a great pocket in Melbourne and kept my mouth shut about it :p
     
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  16. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    hey @Ald we get that you love the pocket but it doesn't really suit the OPs budget but is a good reasonably priced PPOR location.
    Even for a PPOR I'm always still thinking about it as an investment - hard to turn the investment hat off.
     
  17. boeman

    boeman Well-Known Member

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    In 10 years time I would say the $1.4m house in Karrinyup would be worth maybe $1.8 if you are lucky.

    Buy something in mid to low $1m in the more bespoke western suburbs and time the market and you could just about double your money.

    I personally would prefer Karrinyup/Carine/North Beach/Trigg also, but sometimes you have to look at things from the outside.
     
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  18. Propin

    Propin Well-Known Member

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    I was just looking at Carine sold prices. Quite reasonable at the moment around the $800,000 Mark. Still some reasonable homes around $700,000 although you get more for your money in the high sevens.
     
  19. boeman

    boeman Well-Known Member

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    We walk our dogs around Carine every night, go to the shops, I am also partial to the pub.

    Great suburb, school has a good reputation (produced the likes of me, unsure whether good or bad), good location, large blocks etc.
     
  20. Phase2

    Phase2 Well-Known Member

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    How did this turn into suburb bashing? Is this the old NOR vs SOR rubbish again?

    The great thing about property is that buyers value different things.. In the higher-priced suburbs around Perth, some like leafy green suburbs and cafe strips that are close to the city e.g. Mt Lawley/Subiaco, others like leafy green suburbs that are close to nice beaches on the river e.g. Applecross, and some like to be close to the beach. If you want all of the above you get Peppermint Grove or thereabouts.

    For the record, I live in Applecross and I really like it. I can windsurf in Lucky Bay, little kids like the calm, shallow waters in the river, the public schools are good and the community is pretty nice, I also take the bus to work in the CBD and its only 30mins door to door (includes walking time). It's not "better" than the other suburbs I mentioned, but it works for me and my family.

    I know other people who love the beach and so they live in Trigg/Burns Beach and would never consider anywhere else. It works for them.

    Of course none of this helps the OP..
    So @SStar, if it were me looking to be near the beach with a quick trip to the city by train and growth potential, I'd be looking around Sorrento, Hillarys, Kallaroo and Mullaloo (maybe the southern edge of Ocean Reef (but watch your school zoning) staying west of Marmion Avenue (Route 71) as its an easier walk to the beach. There are houses in the $500-600k bracket, and you can easily stretch up to $700k if you want something a bit more upmarket.

    There's nothing wrong with the Southern areas either, but it looks like more $ are being spent on infrastructure in the northern corridor, therefore more CG.
     
    Last edited: 28th Jul, 2016

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