Dalkieth, Cottesloe?

Big Tone

Big Tone

I am thinking about a temporary relocation to WA (5yrs), looking at the Dalkeith area and just looking for any recommendations (or traps) to look for,
I would look at purchasing with view to IP when time is up, (if I dont decide to stay)

All opinions are welcome and appreciated.

Big Tone
 
Western Australia Investment

Big Tone,

You are considering two excellent suburbs that both have very different focus. Cottesloe is very much the laid back beach lifestyle. Dalkeith is the established family location with close proximity to the CBD, University, hospital & river. It’s a real personal preference between the two. If you spend a lot of time at the beach, then Cott is unbeatable. If you plan to hang out by your pool then Dalkeith is excellent. Both areas are very expensive compared to the rest of Perth & even compared to the expensive parts of Sydney. Both Dalkeith & Cott have been hit by downward housing prices. How much further they will drop is anyone’s guess. These suburbs certainly had a massive increase over the last 7 or so years.

The key for both of these suburbs is to try & stay away from the main roads (Stirling Highway, Curtain Ave & North St). For Cott try & get as close to the water as possible with out being on Marine Pde.

Rents have gone up in this area over the past 5 years. So a 5 year plan would probably work out quite well. The current thinking there is that you would need to hold an investment in the area you are considering for at lease 5 years.

Its a fantastic venue. I’m sure you will enjoy it. :D

Philip
 
I think tho that Cott has had a bigger drop than Dalkeith, so could be better buying?

plus you get to rub shoulders with Alan Bond and Twiggy - may even flick you some good share tips if you are lucky
 
Not sure of your family status BT, but unless you've got a place already lined up for the kids in one of the private schools the closest public high school is a fair way, especially on a pushy.
Nice blue chip areas. I'm a Nedlands boy, so a bit biased towards Dalkeith.
Lots of parks, more trees and the foreshore is a great place to go exploring.
 
Most of the dumps have a 2 in front of it The nicer ones are obviously far more.

As an IP, you'll probably get $ 700 to $ 800 per week in rent for the dumps, and up to $ 1,300 p.w. for the nicer ones.

That's about 1.4% gross yield for the dumps, and about 1.8% gross yield for the nicer ones.

If it's a rental, by the time you take the SRO's Land Tax impost out of your rental return, it will be most likely be cashflow negative even if you own it outright.

What is your budget ??
 
TPFKAD said:
Most of the dumps have a 2 in front of it The nicer ones are obviously far more.

As an IP, you'll probably get $ 700 to $ 800 per week in rent for the dumps, and up to $ 1,300 p.w. for the nicer ones.

That's about 1.4% gross yield for the dumps, and about 1.8% gross yield for the nicer ones.

If it's a rental, by the time you take the SRO's Land Tax impost out of your rental return, it will be most likely be cashflow negative even if you own it outright.

What is your budget ??
Click to expand...

Ouch......................
 
Big Tone,

As you can see, there is a big bias towards Dalkeith for those that live anywhere near it, & Cottesloe for those that spent time there. Those that live outside these areas will probably sledge both, in preference for where they are. And those that live outside Western Australia are RES (Rotten Eastern Staters) & their opinions don’t come into the equation.

Cottesloe certainly has taken a hit price wise. I watched a house chase the market down over a 12 month period from $2.2 down to a $1.3m sale early this year. Even at $1.3m I wasn’t convinced it was value buying, unless you were prepared to hold for 5 years.

Both suburbs are blue chip prime locations & great places to live.

Philip
 
I saw one follow the market down from $2.8 i think it was to around $1.6. A cat was killed out the front and the owner was determined to offload it because of bad karma. Was a real bargain - especially as they knocked back a strong offer of over $2m during the original sales campaign.

oh to be cashed up now... if I take one thing from these GFC days...it's buy in gloom sell in boom, not just buy relentlessly! hopefully I am around for the next boom!
 
What TPFKAD said +1

Interested in why you are picking on the second and third most expensive suburbs in Perth (after Peppy Grove)?

Terrible places for investing - the yields are truly in the mud and likely to stay that way for some time to come - rents would have to go up a lot! In my experience properties in these type of upmarket areas in Perth have significantly more tenant / PM issues than the median suburbs. A lot of tenants at that level know how to play the game and the PMs are pretty slack as well... this was our worst property by far!

If you really want to buy in one of these areas you just have to ask yourself which you like more - gardens or the beach? Cott has (generally) smaller blocks but has the train line... in Dalkeith you need a car to get anywhere the buses don't go.

Fantastic places for renting though! Low rents and lovely lifestyle...

IMO buy lots of houses somewhere else in Perth with a decent yield for the same money and rent a nice place near the beach or among the greenery so you enjoy your time in Perth. It's a fantastic place to live! ;)
 
TPFKAD said:
Most of the dumps have a 2 in front of it The nicer ones are obviously far more.

As an IP, you'll probably get $ 700 to $ 800 per week in rent for the dumps, and up to $ 1,300 p.w. for the nicer ones.

That's about 1.4% gross yield for the dumps, and about 1.8% gross yield for the nicer ones.

If it's a rental, by the time you take the SRO's Land Tax impost out of your rental return, it will be most likely be cashflow negative even if you own it outright.

What is your budget ??
Click to expand...

I was hoping to get away with even 2's, anymore may just stretch me a little thin.

BT
 
Big Tone said:
Because I dont really want to live in a $hithole,

Big Tone
Click to expand...

you could get equal comfort factor from any of these places:

subiaco
shenton park
daglish
jolimont
floreat
city beach
mosman park
nedlands
claremont
swanbourne

But if you have the coin for a top 3 suburb then go for it.
 
Big Tone said:
Because I dont really want to live in a $hithole,

Big Tone
Click to expand...

Ummm, how much do you know about Perth? There are lots of suburbs in very nice convenient locations with much better houses than these if you want them... and with much cheaper prices to boot. Cottesloe in particular has some of the oldest dumps in Perth...

That's like saying if you were moving to Melbourne that I only want to live in Toorak because anything else is a #$%^hole? :confused: Or the same for Point Piper in Sydney?

If you were to ask where in Perth would be very convenient to live that you could get a nice house representing good value it would be an entirely different question - some idea of your budget would help...

And Ausprop beat me to it - some verrrry nice suburbs there!
 
Dalkeith or Cott

Hi
I live in Perths Western Suburbs and really like living here. Lived in Nedlands for 15 years and now am in Claremont. If you are single, then definitely Cottesloe/Subi/Claremont as they have more resources for dining out etc.

Nedlands borders Dalkeith and you can buy a huge and stunning house on a 1/4 acre for a third of the price less than Dalkeith (you do pay for the name). Nedlands has a lot of families and Stirling Highway has buses to both Private and Public Schools which is very convenient. If you live in Dalkeith and have high school aged kids, they will have to be driven to and from school. Dalkeith is also very popular with wealthy overseas immigrants (maybe because of the prestige??) and also has a lot of older residents.

Cott has buses and also a train station which brings in lots of folks on weekends and holidays to go to the beach, get drunk at the beachside pubs, nick cars, pee on your lawn, vomit, break into your house, brawl etc on the way back to the train. So I would aim for south Cott rather than North Cott which is close to the pubs and train station. Or even Swanbourne which is prestigious in a more discrete, low key way. Mind you if I had the cash, a nice house overlooking the river in Dalkeith would suit me fine! If money is not a huge problem, just come over for the weekend and have a look around.
 
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