WA Your thoughts (Perth)

Short intro, we are looking to buy a block with future development potential.

The plan is to live in the property for 5-8 years or until the kids are in school and we aren’t relying on the in laws to watch them the days my wife is at work. Once they are in school we already have a house in Stirling we will be rebuilding to live in. At this time depending on what’s is available we would be looking to do a battleaxe subdivision and renting both houses out.

The question I am wanting is thought on Ballajura, we have found several suitable blocks 700+ sqm with decent houses. Prices are between $450 and $550 which actually comes in well under budget.

What are your thoughts on future growth in the area?

Given the train line running through Morley Malaga and Bennett Springs would you think Beechboro would be a better choice?

 

That is more @Westminster's neck of the woods I think? I don't know much about the area.

 

“Under budget” or “at a profit”?

Even if I was land banking (which is essentially what you are doing) I would want the asset to be capable of making a profit if developed with today’s prices. Anything else is just speculation and imo you would be better off buying 1-2 (non-developable) IPs and then looking for a development site in 8yr you know will stack up.

That’s is just me though. If you are confident in the capital growth of an area then land banking could serve you well.

To (not) answer your question though: Ballajura is not a suburb I know intimately. I do know a number of people who like Bechborough as a capital growth play though (I myself am on the fence: proximity to beach and attractiveness of suburb are big draws, but distance from CBD, train and amenities is a bit far to be a top pick for me).

 

$450K for 700sqm 14km from the CBD doesn't sound bad to me...

Is 20 minutes from the beach considered far in Perth?

Any growth drivers in Ballajura in terms of infrastructure or gentrification?

 

From recollection the split coding zoning for the blocks in Ballajura sucked for some reason. I'm trying to remember what it was - maybe you needed over 1000sqm or something stupid to get the higher zoning? Anyway do look it up if you're interested in buying for subdivision.

When I compare Ballajura and Beechboro in terms of demographics then Ballajura wins because it has it's fancy part around the lakes. It's a diverse suburb that has some bad parts and good parts. Does that mean that a less gentrified suburb like Beechboro is a bad investment? No. You can make money from bad suburbs but if you are going to live yourself there and want less tenant issues then you go as nice as possible.

 

Welcome to the candy shop that is Perth at the moment, spoiled for choice. There is plenty of stock with long term potential, in the medium term however sit back and take the time to pick the candy of choice.

 

You need over 1300sqm for the higher coding under Swan's UHS Split Coded policy.

If you're PPORing, tell us the areas you want to live in, school catchments etc in the hope we can help with devvy potential in those areas.

 

Something in Nollamara, give it a budget makeover to live in. 11km from CBD
750m2 houses come up in that price range

 

What are some of the areas in Perth to invest in property for good capital and rental yields.
Budget is 400K

 

I wouldn't be touching Nollamara given the massive choice you have for opportunity.

 

I'd be looking at future "Better Suburbs" areas in the City of Stirling.

I'd be looking at Dual Density areas in City of Kalamunda.

I'd be looking at anything within an 800m radius of Bayswater Trainstation with a land component that isn't strata.

Anything within the R60 section of Lathlain near Burswood train station / Red Castle Apartments.

 

41A Sylvia Road Nollamara WA 6061 - House for Sale #127788038 - realestate.com.au
This looks like a very livable house. Cross Wanneroo road to Balcatta and pay a bit more, cross Morley Drive to Yokine and pay more again. . Looks to be 2 bathrooms too. No idea what Perth property will be doing in 8 years but house will always be 10km from CBD and a 800m walk to zone 1 bus stops. The price of petrol will continue to go up. A $450k 750m2 R40 block of land with $100k of livable house. But yes way to many options in Perth.

 

Why?
So which decent areas would you recommend for anyone under the budget of 400K?

 

The suburbs next to it (Balga, Koondoola, Girrawheen), have a lot of state housing and are low socioeconomic areas, and with that comes crime and lower purchasing demand as people avoid it. And lower demand translates to lower capital growth.
It has also been mentioned on here quite a few times that this problem spills down to westminster and nollamara.

Other areas with a lot of state housing that I know of are:

• Lockridge, with the reputation and lower demand spilling over to Kiara.
• Parts of Coolbellup. Willagee previously had a lot also, but Willagee has improved and I think a lot of the state housing might have been sold off, but you still have to be careful which parts of Willagee you buy in. If looking there, get someone with an RPData/Pricefinder subscription to take a look at the owners of houses around any property you are looking at to make sure you are not too close to state housing properties.

 

Under $400k will get you a villa in that area or an original house. A villa like 1000 other villas in the area which you will compete against 1000 same same villas to rent and sell. The trio of nollamara, balga and westminster are, in my opinion, over developed. The only person likely to be the one making money is the person who developed the villas but even they can't make money in the area at the moment.

Try and find a suburb that has more diversity in it's housing stock and isn't just a sea of 3 x 2 villas. I'd suggest older stock in older suburbs which have more land component - consider Dianella, Hamersley, Warwick. If you can find an old style duplex in those area which often have quite a large land compenent you can increase yield and capital growth with a renovation or even an extension

 

But I guess under strict budget of 400, you are only left with 3x2 options, no?
Also, in your opinion which suburbs are worth looking?

 

Do you mean something like this?
Old house with bigger land component.Demolish and build new?
56/1 Jackson Road Como WA 6152 - Retirement Living for Sale #125992858 - realestate.com.au

 

That’s a over 55s/retirement villa in a complex. I wouldn’t pick that

 

Do you intend to live in it or purely IP? If you intend to live in it then there are additional criteria like where you work that need to be factored in.

 

why not?the plot is area is big and you are going to demolish it anyway.