Advice on Where to Buy in the Perth Inner City Area

[Don K]

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

If that is the case we will keep confusing you for sure. As others mentioned always pros and cons. Do your own DD. That's the only way to make up your mind.

If it is your PPOR and maybe IP in the future probably better to buy what you like because PPOR and IP are very different and a lot of investors would not want to live in their IP.

Am I confusing you more?

 

[Will]

Apartments generally provide the cash-flow yields and houses bring with them capital gains. Inner city apartments in perth are generally providing steady yields but nothing ground breaking. If your looking to live in the place why not put in some sweat equity and get yourself a house in maylands or the surrounding area and when you move out either sell it for the lump sum capital or rent it out for the inflated price due to the reno's. You will not have to pay CGT etc as its your PPOR. As the others have said, do your due diligence first. If your in some kind of strata arrangement there will be fees, so accept that.

You need to think about your end state and that will help you better decide what to do now.

 

[vaughan]

Apartments generally provide the cash-flow yields and houses bring with them capital gains.

Really? Where, generally?

Thanks.

 

[Will]

Units provide cash-flow with relatively little maintenance unless your lift goes down or your building floods, which seems to be quite the case in quite a few of the East Perth buildings (Adelaide tce). You're somewhat restricted on sale price by other sale prices of similar units in your building. It gives buyers a strong indication of what the purchase price should be, where as there is a lot more effort needed to appraise a house that is staged to targeting emotional buyers. Long term trends for units in east perth is current at 10.3% however there can be lengthy vacant periods in some off the buildings. Cbear just needs to talk to some property managers in the area to know which buildings are sound for owner occ and which for investments, as I did. There knowledge of the area is quite good. Cbear needs to think long term also. If he will be turning the place into an investment in the years to come how will it perform in the market then and what his goals will be at the time.

 

[Don K]

House is more expensive but rent is not as high comparison so yield is lower.
Apartment requires less land to build one which means often more available so CG is lower.

BUT! Depends on what people are after in the area. Apartments can achieve as good CG as houses and houses can achieve as good yield as apartments in some area. Some people want to live near CBD without spending weekend mowing their huge backyard while others still prefer doggies running around their house.

 

[Rixter]

Forget Cannington to live or to invest.

What are your reasons for doing that?

 

[cbear2004]

If that is the case we will keep confusing you for sure. As others mentioned always pros and cons. Do your own DD. That's the only way to make up your mind.

If it is your PPOR and maybe IP in the future probably better to buy what you like because PPOR and IP are very different and a lot of investors would not want to live in their IP.

Am I confusing you more?

Yes, you are!

Seriously, the more I look the more confused I get. I took out a map of Perth last week and looked at suburbs within 5-8K radius of the city that was on the train line and still had places that were within my budget. I found Glendalough on the Joondalup line and Carlisle on the Armadale line. As Carlisle is a better drive for me to work (as I work SOR), I had a quick look through some things on offer, and found this:

http://www.realestate.com.au/property-house-wa-carlisle-107986826

It's survey strata, and I was thinking that it is something I would consider living in until I had the cash and time to demolish and build on it (sweat capital), but I have never had any experience with fibro and am worried that the whole "demolish and build" scenario may not really be as straightforward as it sounds. Any thoughts about both Carlisle as a suburb and experiences with demolishing a fibro? There are a couple of villas in Maylands that I am really interested in as well, but the land area + survey strata set up is mighty tempting for someone with my limited means...

 

[Will]

That place isn't really a 'Demolish me' kind of house. Its had some reno's which means the asking price is going to reflect that. There are certainly better houses out there. The house looks fine and is staged nicely however I don't really know that area so again do some due diligence. Drive the street then walk it, is it close to shops? Is it close to public transport etc. Check council records etc see what you can find out on the place. What are the other houses in the street/neighbourhood like? Ensure you get professionals to inspect the place as its an older style house and structural problems may be lurking.

Again I don't know the area but there's a start for you.

 

[cbear2004]

That place isn't really a 'Demolish me' kind of house. Its had some reno's which means the asking price is going to reflect that. There are certainly better houses out there. The house looks fine and is staged nicely however I don't really know that area so again do some due diligence. Drive the street then walk it, is it close to shops? Is it close to public transport etc. Check council records etc see what you can find out on the place. What are the other houses in the street/neighbourhood like? Ensure you get professionals to inspect the place as its an older style house and structural problems may be lurking.

Again I don't know the area but there's a start for you.

Oh, no! I wouldn't demolish right away. I was thinking a few years down the line depending on circumstance and funds, it would be nice to have a 400 m2 survey strata block to work with so close to the city.

I was just wondering if anyone had an idea about how it would cost to do it, as it is a 1950's fibro, hence likely to have asbestos.

I've narrowed it down to this and a cute little villa in maylands that needs a cosmetic kitchen and bathroom reno for about 50k less. About a 1km walk to the station in Maylands, a 600m walk to Beaufort street, right on the Inglewood border.

Does anyone have any comments on Carlisle as a suburb? It seems undervalued, but when I drove around, quite a bit of new houses going up on subdivided blocks, so I reckon it won't be at the affordable price point for much longer.

 

[Don K]

I've narrowed it down to this and a cute little villa in maylands that needs a cosmetic kitchen and bathroom reno for about 50k less. About a 1km walk to the station in Maylands, a 600m walk to Beaufort street, right on the Inglewood border.

Does anyone have any comments on Carlisle as a suburb? It seems undervalued, but when I drove around, quite a bit of new houses going up on subdivided blocks, so I reckon it won't be at the affordable price point for much longer.

Cosmetic reno for $50K?? You sure? Not $5K?

Carlisle is a bit sleepy IMO. Western part of Lathlain would be my preference but hard to find one within your budget I think.

 

[WesternRat]

I read it as $50k less than the Carlisle option, but requiring a cosmetic touch up.

 

[Don K]

I read it as $50k less than the Carlisle option, but requiring a cosmetic touch up.

Oops. Thanks mate.

 

[cbear2004]

Hi, guys, just wanted to let you know I cast my lot in with the Maylands villa. I am feeling a bit over my head at the moment, which is normal, I hope! Thank you for the advice, everyone!

 

[Ergophobia]

What are peoples thoughts on the Murdoch area in light of the hospital being built?

Or has the boat sailed on this area?

 

[cbear2004]

I guess it depends on what your budget is. I think you won't be able to find anything in murdoch for less than 500K anymore. Surrounding suburbs might be more affordable.

 

[hematite]

I am in the same position. Looking to buy a first PPOR (and property for that matter) under 400k. I am looking for a 2bd townhouse and started looking in Mt Lawley which has townhouses for about 430ish, so a little high for me.

I wanted to keep it under 400k to keep the debt manageable and also to get the extra 2k grant.

I've since looked at Maylands and whilst quite different to Mt Lawley (less old heritage houses with nice european cars and soccer mums), it looks quite nice from the outside. I've only really walked around the west side of maylands closer to Beaufort st so unsure of what the river side is like.

Im looking for a place close to the airport (I work FIFO) and somewhere which I can fix up (I did lots of renovations in our family home). Would you go Maylands or Vic Park for capital gains?

edit: I've just looked at Rivervale and that is even cheaper....Any thoughts on that area?

 

[Don K]

Im looking for a place close to the airport (I work FIFO) and somewhere which I can fix up (I did lots of renovations in our family home). Would you go Maylands or Vic Park for capital gains?

edit: I've just looked at Rivervale and that is even cheaper....Any thoughts on that area?

Have you done some resarch about new train line to the airport? It will take a while but worth looking. Rivervale...is cheaper not because it is undervalued IMO. Close to CBD though. If it is your PPOR you need to buy something you are happy with after all.

 

[hematite]

Have you done some resarch about new train line to the airport? It will take a while but worth looking. Rivervale...is cheaper not because it is undervalued IMO. Close to CBD though. If it is your PPOR you need to buy something you are happy with after all.

Thanks for the post Don K. I think that pocket seems to be undervalued however I am not that experienced with Perth suburbs as i've only been here about 7 months.

I work in resources so I don't envisage myself staying in Perth too long so am also looking for something that I can lock up and leave (and rent out) once I am done here.

I just did a bit of research regarding the train line. That would be great however as you say it is some time away. Looks like a good value boost for suburbs on the Midland line.

 

[INVSTOR]

I've since looked at Maylands and whilst quite different to Mt Lawley (less old heritage houses with nice european cars and soccer mums), it looks quite nice from the outside. I've only really walked around the west side of maylands closer to Beaufort st so unsure of what the river side is like.

Go to Tranby House and have some scones. Best scones in the world!! The river area is quite nice. http://www.foodspotting.com/places/55649-tranby-house-maylands/items/3019-scones (apart from the big unit complexes). I think the waterpark is an asset to the area too. http://www.bayswater.wa.gov.au/3/124/1/maylands_waterland.pm
There's some new nicer houses being built in the area near river also.

 

[cbear2004]

I am in the same position. Looking to buy a first PPOR (and property for that matter) under 400k. I am looking for a 2bd townhouse and started looking in Mt Lawley which has townhouses for about 430ish, so a little high for me.

I wanted to keep it under 400k to keep the debt manageable and also to get the extra 2k grant.

Hi! I looked at quite a few properties before I (FINALLY) settled on what I got (well under 400k). There were a few townhouses from 380-400k at Caledonian Avenue, which is more on the river side of Maylands, as well as around Rupert St (where there are a few mid-sized complexes consisting mostly of townhouses). I skipped them because I had to get something walking distance to the train line specifically, but there were a few nice ones over there that you may want to cast your eye on.

The upside of getting something on the Beaufort street side is easy access to public transport (buses on Beaufort) and a quick whiz into Mount Lawley and all the lifestyle ameneties. But that will probably not be an issue if you have a car.

There was a villa along Railway Parade in a small 12-villa complex, already renovated, 2br, for 399,000 a few weeks ago (which I almost got but didn't because it didn't allow pets), you may want to look at that as well. Railway Parade is kinda busy so I don't know how you would consider that in the greater scheme of things, but it was a nice little place. Oh, and it is on the Mount Lawley side of the border - so a little more shine when you try to sell it off. Sometimes it's all about the suburb.

Townhouses in Maylands are probably a bit pricier than what you would get elsewhere, though. On the upside, easy access to Tonkin Highway and the airport (for FIFO) and just 10 minutes to the city. I am hoping that due to its location, things can only get better.