Advice on Where to Buy in the Perth Inner City Area

[cbear2004]

Hello, everyone!

I am looking for some advice on where to buy my first property. I plan on spending not more than 400K (as I am single and will be servicing the mortgage by myself), with the view of using it as my PPOR for the next few years and hopefully holding it as an IP once I trade up.

I have been looking around the inner city suburb of Maylands and Bayswater for villas and units, and East Perth for units. Other suburbs I'm considering are those around the Cannington area which are a bit further out also for villas and units. I am tempted to forgo the convenience of location for a bigger spread, but I guess it would not be practical for what I want to do with the property eventually.

I was hoping that members of the forum would be able to give me some feedback on Maylands as a suburb. Which pockets should I avoid? I am hoping to find something within 500 m or so of the train line, but I don't want to buy somewhere that will hamper any possible growth in the value of the property because of safety concerns, etc.

I was also wondering if anyone has an opinion on whether buying a villa in Maylands would be better value in the long term than buying a 2 bed apartment in East Perth (Wellington street) in the long run? Input will be greatly appreciated!

Many thanks in advance.

C.

 

[Samwise]

I work in East Perth. Every day I stare out at all those thousands of units and look up and down the empty soul-less streets, and wonder who on gods earth is buying these things? Where do they buy there coffee, what do they do on a weekend?

My advice, find a location that you WANT to live in, and buy the best thing you can afford. If you cant afford to buy there, rent ... and buy an IP someplace else and let someone else live in that. Life is too short.

Just my 2c

 

[Samwise]

... and theres a huge difference between a unit in East Perth and a house in Cannington - no one can make this (lifestyle) decision for you

 

[finnesko]

As Sam says only you can make a lifestyle descision as where to live.

If you are considering holding the unit for the long term utilimately as an IP, it would be worthwhile getting professional advice as to the structure you may wish to purchase the property in in order to maximise tax effectiveness both short & long term term.

 

[Don K]

I would go for Maylands for both PPOR and IP. Or around Vic Park.

 

[Aaron Sice]

I work in East Perth. Every day I stare out at all those thousands of units and look up and down the empty soul-less streets, and wonder who on gods earth is buying these things? Where do they buy there coffee, what do they do on a weekend?

My advice, find a location that you WANT to live in, and buy the best thing you can afford. If you cant afford to buy there, rent ... and buy an IP someplace else and let someone else live in that. Life is too short.

Just my 2c

they go over the hill to whatman st.

 

[Ausprop]

cast the net wide, it's amazing that you can buy somehting like this for this sort of money:

http://www.realestate.com.au/property-apartment-wa-claremont-107650441

 

[gooram]

East Perth, Maylands and Bayswater are all areas with good potential. Forget Cannington to live or to invest.

East Perth would be my pick, but you need to be in the Claisebrook Cove area. With the Riverside development and the new Stadium, it bodes well for future growth.

There's always a trade-off though, you'll get a lot less bang for your buck in EP compared to Bayswater, but you'll get to walk to the river, the city, the pub, restaurants etc etc.

Disclaimer, I've lived in the area and it's my favourite place to be in Perth.

 

[Alex P Keaton]

East Perth would be my pick, but you need to be in the Claisebrook Cove area. With the Riverside development and the new Stadium, it bodes well for future growth.

I'm in highgate which is very close to the claisebrook cove area. Only a 5 minute bike ride away! I hope to see a flow on effect to the values in my area. I'm close to NIB stadium.

There is also planned redevelopment on lord street close to the summers street intersection which is great. office/resi mixed development.

 

[cbear2004]

Thank you so much for the input everyone.

One thing I am a bit apprehensive about in East Perth is that with the rise of many apartment blocks within the CBD, I don't know if I still have the same potential in terms of capital growth and rental yield in the future. With my budget, the most I can get right now is an apartment on the fringes of the Claisebrook cove development. The unit I am looking at in particular is in a complex along Wellington street.

I am leaning towards Maylands because I do have a preference for either a townhouse or a villa. I'm still quite unclear from just looking around which pockets to avoid. Is Rupert Street or Kenilworth Street (nearer to Meltham Station) as good area?

One thing I have discovered from looking around is that many of these villas are old stratas, and the ones in small groups that I have been looking at only have common insurance. As the people who have kindly replied to my queries seem to have a bit of experience in property, I just wanted to ask whether buying into something with an old strata title in a complex where everyone seems to be allowed to go their own merry way building on the "common areas" is a good idea or whether I should run quickly away in the other direction?

Thanks again, heaps and heaps and heaps.

 

[Angel13]

Not that I've ever lived in Perth but I visit a lot. East Perth is my favourite area. I always go for breakfast, coffee or a drink at Claisebrook cove when I visit.

I had a two bedroom unit (IP) a few streets back from Claisebrook cove which I bought it in late 2003 for $315K and sold it in 2007 for $590K. But the CGT really hurt!

I don't know what the market there is like now but my vote (coming from a pure emotional perspective) is for East Perth.

 

[gooram]

Thank you so much for the input everyone.

One thing I am a bit apprehensive about in East Perth is that with the rise of many apartment blocks within the CBD, I don't know if I still have the same potential in terms of capital growth and rental yield in the future. With my budget, the most I can get right now is an apartment on the fringes of the Claisebrook cove development. The unit I am looking at in particular is in a complex along Wellington street.

I am leaning towards Maylands because I do have a preference for either a townhouse or a villa. I'm still quite unclear from just looking around which pockets to avoid. Is Rupert Street or Kenilworth Street (nearer to Meltham Station) as good area?

One thing I have discovered from looking around is that many of these villas are old stratas, and the ones in small groups that I have been looking at only have common insurance. As the people who have kindly replied to my queries seem to have a bit of experience in property, I just wanted to ask whether buying into something with an old strata title in a complex where everyone seems to be allowed to go their own merry way building on the "common areas" is a good idea or whether I should run quickly away in the other direction?

Thanks again, heaps and heaps and heaps.

There's a pocket in Maylands adjacent to inglewood on the beaufort st side of the railway. I would suggest this is a good place to start. Also, anywhere near the river, and around the train station. There's a bit of "gentrifying" going on around 8th avenue so that pocket between the 8th ave, the railway and guildford is also good in my opinion.

 

[sanj]

i know maylands pretty well, live here atm on inglewood border (in betw beaufort and railway) and have lived nearby in the past as well

it is a suburb definitely on the up, a lot of people who cant afford inglewood are moving there just like they moved to inglewood when mt lawley got to be too expensive.

in terms of areas to avoid, there are still some ugly pockets around, kennedy is a bit of a ********, has some rough characters around, mainly young and stupid ********s but nothing too bad. basically avoid the ghetto flats and youll be fine.

just walk around and youll get a feel for it. gooram's tips for locations are generally correct too

 

[Don K]

Thank you so much for the input everyone.


One thing I have discovered from looking around is that many of these villas are old stratas, and the ones in small groups that I have been looking at only have common insurance. As the people who have kindly replied to my queries seem to have a bit of experience in property, I just wanted to ask whether buying into something with an old strata title in a complex where everyone seems to be allowed to go their own merry way building on the "common areas" is a good idea or whether I should run quickly away in the other direction?

What do you mean by “old stratas”? If a complex has only a few units sometimes they do not have BC but still they should not be able to build whatever they like in a common area. I do not remember seeing many of them in Perth. If the complex you are looking at has 4 or more units I think 99% of them have BC and common building insurance. A bit confused but I would go with villa considering your budget. Inner city apartment tends to have high BC fees just one more thing to consider.

Do they still have the famous gun shop?

 

[gooram]

What do you mean by “old stratas”? If a complex has only a few units sometimes they do not have BC but still they should not be able to build whatever they like in a common area. I do not remember seeing many of them in Perth. If the complex you are looking at has 4 or more units I think 99% of them have BC and common building insurance. A bit confused but I would go with villa considering your budget. Inner city apartment tends to have high BC fees just one more thing to consider.

Do they still have the famous gun shop?

That's right.

Regardless of how many units in the complex, if there is common property, then the property is still governed by the strata titles act. The owners can choose not to have a strata management company, but that just means they have to manage it themselves. It doesn't mean that nobody is managing it and everyone can do whatever they want. That's never the case.

 

[bene313]

The word not long ago was that there are some upgrades coming to the Maylands shopping centre/area? Not sure of the progress, maybe speak to the local council to find out. This will be positive for prices in the area.

 

[cbear2004]

Thank you so much for all the input. I really value the pearls I am picking up on this board.

Given the fact that one can get an apartment in the city or East Perth for the same price as a villa with the same square area in Maylands, I am still a bit confused as to what would be a better value purchase in terms of eventual rental yield, capital growth, etc.

As I have already said, I am buying this as my first home with the view to hopefully moving up in 5 years or so and holding it as my IP. I am happy to live in either area, but I am a bit concerned that with so many apartments being built and already built in the CBD/East Perth/West Perth area that an apartment may not give me as much of a return (given the supply relative to the demand) as compared to a unit in Maylands. Also, at this point, the inner city lifestyle in Perth still leaves a lot to be desired even if there are signs of life.

Is it a reasonable supposition that Maylands may be better value? It's hard when one is trying to marry buying a place to live in whilst trying to double it up as a potiential investment property down the line!

Thoughts?

Again, many thanks for all the input so far!

Your thoughts on this

 

[Chomp]

I like Mount Lawley and High Gate over East Perth and especially Maylands. Just be aware of the Social housing, seriously knock on peoples doors and ask them what the block of units etc.. is like to live in.

I have a problem owner in our block, my end is ok but neighbours near him have to get new tenants regularly.

Chomp

 

[gooram]

It sounds like you want the decision made for you. In the end, it will always be a gamble as to which location works out better for you. There are pro's and cons with each option as already highlighted. It's probably up to you now to decide on what is going to be best.
I would stay away from anything on hay st or adelaide tce... and I would also be wary of high body corporate fees that you get when you have pools and gyms and elevators. Land content is gold in any of the locations you're talking about, so maybe that could be a driver for you?

 

[cbear2004]

Hi! You are right, part of me wishes I could have the decision made for me! LOL

But seriously, I don't know where the evidence lies in terms of where you're better off buying - an apartment in a building with no plot of land or a villa with a tiny plot of land but in an old strata? It is, to be honest, quite confusing!

I am trying to be practical about choosing somewhere with minimun requirements for strata maintenance, even if I am looking in the city. Definitely avoiding anywhere with a lift!

Again, many thanks to everyone answering my queries.