Armadale/Kelmscott - IP?

[rookieinvestor]

These two suburbs have big blocks (800+) with R40 zoning and a low price tag (around 350k). Understandably these are 35 km from the CBD but has all the facilities (hospital, communication, schools)in place? CG was more than 10% last year for Armadale with rental yield 6%.

Good idea to go for first IP - buy and hold?

 

[Singo]

I think so. If you can buy a retain and build subdividable property with around 5.5% yield or close to cashflow neutral, that could be a great investment.

 

[mrdobalina]

Just be aware blocks in Armadale may have clay soil. I don't think the problem is as bad in Kelmscott.

Have a look at Maddington. There is established infrastructure around the train station (Bunnings, Maccas, etc). However the R30 zoning in some areas is less dense.

 

[rookieinvestor]

Just be aware blocks in Armadale may have clay soil. I don't think the problem is as bad in Kelmscott.

Have a look at Maddington. There is established infrastructure around the train station (Bunnings, Maccas, etc). However the R30 zoning in some areas is less dense.

Thanks for the soil info. Keeping an eye on Midland as well. Better option from CF point?

Wondering whether a H&L in a new estate near ocean will have better appeal?

 

[rookieinvestor]

I think so. If you can buy a retain and build subdividable property with around 5.5% yield or close to cashflow neutral, that could be a great investment.

Thanks Singo. What is your view on Kenwick/Beckenham/Maddington?

 

[boeman]

Thanks for the soil info. Keeping an eye on Midland as well. Better option from CF point?

Wondering whether a H&L in a new estate near ocean will have better appeal?

Midland is mostly clay also. This can increase your build cost significantly (5% +) and also I think the ship has sailed for affordability as Pindan and such are buying them up for multi unit R40 stuff. Nowhere near the $350k pricetag for these either.