First IP in Perth

[Zebra]

Hi all,

I'm a first home buyer who is thinking of purchasing a small apartment in Perth, living in it for 6 months whilst renovating it, then moving back home and renting it out (hopefully close to positive geared).

I've been doing some research and there appears to be some small units in North Perth for about $200,000 and some in East Perth for about $230-250,000. Most of the are about 40m2. I'm hoping to get something 50m2.

Just wondering what your opinions are about my plan? Alternatively I'll wait for awhile (and save $$) to purchase something bigger.

 

[Rolf Latham]

Hi Zebra

My comment is only from the lending POV.

40 sq m can be harder to get finance for so pls consider that

ta
rolf

 

[Aaron Sice]

^^^ i was just going to say this - 50sqm seems to be the minimum without incurring a more in-depth finance scrutiny.

have you thought about Wembley at all?

 

[sanj]

Hat is your budget (purchase+reno)? Are you planning on doing a lot of the work yourself?


I think maylands is worth considering. A suburb on the up, great location and you can still get 1 bed apartments in low 200s and 2 bed under 250k if you look hard enough.. Returns are quite good in maylands for some units (recently saw one sold with 7% return) and i think cap growth prospects are very good

 

[Milanista]

Avoid sub 50sqm due to finance.. I recently purchased a 2x1 in Maylands. Good tenant demand from city professionals. Good yields and prospect for CG.

 

[Kent Cliffe]

I would suggest saving as much as you can for the next 6 months. Perth isn't going to run away in that time and units tend to lag a little behind properties on full blocks. So you may have a 9 to 12 month window up your sleeve to increase your budget and thus obtaining a more appealing investment property (from financing/letting perspective).

 

[RenoTeam]

Agree with everyone else on this thread- yes over 50 sq m is hard to finance. How long have you been looking at this area, and have you crunched the numbers on rental prices for before & after reno?