Midland, Perth, WA

[Tulamalula]

HI all

What do you think about Midland for a shabby house on a big block for future development? I notice on RE.com houses with large blocks are going $100K more than ones that are the same size but can't be developed. Clearly vendors out to attract the future developer buyer market. Is this normal?

Lot of change going on in that area.

 

[MTR]

HI all

What do you think about Midland for a shabby house on a big block for future development? I notice on RE.com houses with large blocks are going $100K more than ones that are the same size but can't be developed. Clearly vendors out to attract the future developer buyer market. Is this normal?

Lot of change going on in that area.

Development sites are getting snapped up as is the case pretty much everywhere in Perth.

If you are not planning to develop straight away I would look at areas that are earmarked for rezoning with lower entry level.

Midland deve site will be $500K-550+, you will need deep pockets to hold a development site, and rents wont be that great. Also another consideration is clay in soil, this is a big issue in Midland, that is in part why I will not buy in this area. I also don't like the end value of the units in this area.

MTR

 

[Tulamalula]

Thanks MTR, I think i just realised this. Am 5 years too late for Rivervale/Belmont, even Cloverdale. Going back to focus on the original plan of unit close to city - for first IP - am getting way too far ahead of myself

 

[MTR]

The problem I see with buying units in inner city Perth is that there has already been considerable growth over the last 2 years. Will we get continued growth?? I would say yes but perhaps it wont be double digit growth. Not great, especially if the property is negatively geared.

Are there better markets to play in at the moment? I think Brissy is on the cusp of starting to rise and we know inner west in Syd, units are moving. If this is outside your comfort zone its unfortunate as you may miss out on capturing some serious growth.

I would read any posts pertaining to these areas and as I mentioned before Alan aka propertyunity is a Buyers Agent and knows these areas, read his posts, find out what is happening from those on the ground, just my opinion, we all have one

MTR

 

[sanj]

Thanks MTR, I think i just realised this. Am 5 years too late for Rivervale/Belmont, even Cloverdale. Going back to focus on the original plan of unit close to city - for first IP - am getting way too far ahead of myself

youre only 12-18 months too late, not 5 years. city of belmont sites are up over 30% in that period

imo MTR is possibly the best investor on SS when it comes to timing growth in various markets around australia, it would be worth considering her advice

 

[MTR]

youre only 12-18 months too late, not 5 years. city of belmont sites are up over 30% in that period

imo MTR is possibly the best investor on SS when it comes to timing growth in various markets around australia, it would be worth considering her advice

Thanks for the compliment but too generous, I have had my share of stuff ups along the way, its the only way you can learn. What does not kill you makes you stronger

 

[westminster]

Development sites are getting snapped up as is the case pretty much everywhere in Perth.

If you are not planning to develop straight away I would look at areas that are earmarked for rezoning with lower entry level.

Midland deve site will be $500K-550+, you will need deep pockets to hold a development site, and rents wont be that great. Also another consideration is clay in soil, this is a big issue in Midland, that is in part why I will not buy in this area. I also don't like the end value of the units in this area.

MTR

The clay soil can be exxy.
As a slight alternative but still with the same soil possible problems look at Woodbridge - not rezoned but big blocks which even at R20 can be subdivided.
2320sqm site for $899k
http://www.realestate.com.au/property-house-wa-woodbridge-115690159

Suitable for 4 houses - beautiful park at rear and river reserves. Close to Guildford Grammer and Governor Stirling.

Woodbridge is nicer than Midland in my opinion. Got some very very nice houses in there and still a decent train access to CBD.

 

[Tulamalula]

I need to keep hubby in his comfort zone with the first property - hence Inner city Perth unit.

Brisbane I much prefer, Sydney even better, but with Sydney prices double those for the same comparative areas in Perth and Brisbane, for first IP I think i will have a battle on my hands. Sydney - Marickville, Petersham etc,

Anyway, he's warming to the idea so maybe I can get him to see the benefit of Sydney over B and P.

 

[Tulamalula]

Thanks Westminster, I just got a big resounding NO, we are not developing anything from hubby ... but I will still look I usually always get my way if the plan is sensible.

 

[westminster]

Thanks Westminster, I just got a big resounding NO, we are not developing anything from hubby ... but I will still look I usually always get my way if the plan is sensible.

I think I would start smaller too. You have plenty of serviceability down the track once you are confident with your aptitude and sleep at night factor

 

[sanj]

Thanks for the compliment but too generous, I have had my share of stuff ups along the way, its the only way you can learn. What does not kill you makes you stronger

same, ive made plenty of bad decisions too.

im serious btw, youve got a fantastic track record, i know i tend to give your opinions a fair bit of weight when it comes to picking areas and timing entries.

 

[RetireRich101]

imo MTR is possibly the best investor on SS when it comes to timing growth in various markets around australia, it would be worth considering her advice

Where is the SomerSoft "like" icon?

 

[aramz]

Spot on with your comment Sanj. MTR is a book of knowledge and has helped me heaps with my property purchases earlier in the year.

 

[Rixter]

I purchased an IP in Midland in 2000...since then its tripled in value along with the yield.

Midland was one suburb that ticked the boxes for us as part of our MACRO due diligence in relation to purchasing criteria within our bigger picture CGA Property Investment Strategy - as per this post below....



Quite a few of our properties have doubled/tripled in value over the course of a decade.. Rents on those have doubled & some close to tripled also.

Over the coming decade Im looking for them to double yet again.

I believe we have attained that growth because early on in our investment journey we decided to target / purchase in areas that had recently been approved for or were in the planning stages for gentrification.

We looked for the following 4 flag sectors injecting money. -

Government, Commercial, Retail, Private

We discovered this ultimately uplifted & beautified the area resulting in people's attraction thus moving in and creating demand.

We have found this to work very well if you are looking for short to medium term capital growth so as to leverage against and build your portfolio faster.

Typically these are some of the signs we looked for where sectors were injecting money -

A/ Local/State/Federal Government. ie Major arterial roads, Govt Depts locating to area, Street Scrapping, New Public Transport, Recreational facilities, Hospitals/Medical facilities, Suburb Redevelopment Authorities being formed. etc

B/ Big Multi National Retail & Commercial type companies. ie Major Shopping Centres, McDonalds Hungry Jacks, KFC, Bunnings, Harvey Normans, Good Guys, etc. These companies spend $Millions on market research before going into and setting up shop in an area. If there was no current or immediate future demand for their products and services they would not be moving in, so leverage off the back of their research.

Sources for information as part of your due diligence - You can check out all the federal/state/local government planning & development websites at this one convenient link (http://www.oultwood.com/localgov/cou.../australia.php).

Other sources I use to gather info are from all the various big multi-national company websites, local newspapers, community news, local businesses, and people in the area.....general networking etc.

C/ Private People/Investors. ie Owner occupiers and Investors bowling over old houses then rebuilding new modern homes and redeveloping town houses / villas.

Get out and about. Jump in your car and drive around the area. Better still is once you're in your prospective area hit the streets by foot. You will see so much more on foot than by driving.

 

[Tulamalula]

So Rixter, if you were starting from day 1 now, where would you look, what would you do?

I see money being injected into the city with Elizabeth Quay and E. Perth Development, but also loads of new apartment complexes with soe pretty hefty price tags.

10 years ago Perth was very different I would imagine (have only been here since 2005) - how far out must one go?

 

[Rixter]

So Rixter, if you were starting from day 1 now, where would you look, what would you do?

I would conduct the same 4 flag DD as listed in post 14 above to find an area within my pre-approved purchasing budget.

Its simple - just keep duplicating what works..why change a proven recipe.

Sounds very boring but effective.

 

[Tulamalula]

Boring but effective works for me, only I don't know where to find out what plans are int he works, ugh more research !

 

[Rixter]

Boring but effective works for me, only I don't know where to find out what plans are int he works, ugh more research !

Yep due diligence & then some more due diligence.... Its simple, not easy.. If it was easy, everyone would be doing it.

It takes time & patience but the rewards will keep paying you handsomely.

The secret to creating wealth from real estate is that there is no secret.

If you want to create real wealth its as simple as purchasing good quality well located property as fast as you can reasonable afford and hold for the long term, then just keep duplicating the same.

Like I said it takes time - 1 to 2 property cycles.

 

[Tulamalula]

Happy New year Rixter, why are you on SS and not out celebrating?

I'm now searching the northern suburbs, in Beldon at present, God how I love Google satellite pics!

 

[Rixter]

Happy New year Rixter, why are you on SS and not out celebrating?

Happy NY to you too...Im on SS helping you & others. Thats heaps better than staying up late drinking. I can do that any time