Mt Lawley unit - going to start looking

After changing my mind about where to buy a gazillion times in the past few days, I think the best thing for our family for a first IP will be Mt Lawley. Reasons are: (and feel free to chip in your thoughts).

  • 2k from city
  • can buy under 400K
  • Cafe strip on Beaufort Street is a bit famous
  • Close to Highgate clubs for those that want to get drunk and have a short cab ride (or ride in a paddy wagon) home
  • market - those wanting to live close to the city, but not in the city.
  • 2 bedder - to suit couple, couple with child, singles, friends sharing
  • Median growth over past year, units $350K up to $400K
  • Median growth past 10 years, $150 up to $360K
  • Close to us (Maylands) so I can actually go and inspect properties; could possibly self-manage
  • Inner-city, I don't think you can go too far wrong inner-city


http://www.realestate.com.au/property-apartment-wa-mount+lawley-113769471
 
Two things I would note:

Rent - You haven't mentioned the rent you expect to get. Unless you have a boatload of serviceability, a low yielding property can hammer your future ability to purchase.

Self-managing - you have to really ask whether you want to go down this path. Do you have the skills, time, or experience? Will self-managing limit your future property choices in terms of going to other areas or interstate?
 
Rents are around $400 wk; self managing, well that one's open to debate - I am pretty bored sitting home with the kids and they're in day care 2 days week - this will depend on whether my business (I work from home) increases in 2014 which I expect it will. We also have around $4000k disposable income per month after paying to live.
 
Just because you have time doesn't mean you have the skills or the personality for it. Personally, I think if you don't know how to do a job well, you're better off paying an expert to do it, especially if you expect to get efficiencies of scale.

Is your disposable income reflected in your savings at all? Your posts say you have a PPOR with lots of equity, but nothing else, and you're in your late 40s. You're spending 6-7k a month on living expenses. How much of that is for the mortgage?
 
We're both 47, expenses per month are child support (3 more years then $1400 month will be freed up), mortgage is $2100 month, living expenses another $2K month - outgoings are around $5000-$6000 month all up, leaving $5000-$6000 month free, which we're paying down on the current mortgage, ie pay goes into the mortgage and we redraw. No other loans, we're not big spenders, and PPoR is fully renovated so no more $ going into this place.

I also bring in anywhere from $1000-$3000 month with my business.

The goal is to have a property fully paid for, one for each of the kids (3) when we die, which will hopefully be in 40+ years.
 
Pls stop paying off your mortgage immediately, especially as I believe you mentioned it may become an IP one day. Get an offset account and funnel the extra cash into that.

The areas youre targeting are good ones, ive got some experience in the area. I believe inner perth is still undervalued in comparison to inner syd and melb, for example check out some of the recent marrickville threads, a similar unit in marrickville would be 500k or so despite being 11km from the city whereas the properties you linked are around 5km from perth cbd
 
Believe me I woud buy tomorrow, it's ridiculous paying down this mortgage and not investing our disposable income in property, or anything really. I have a very conservative husband. he doesn't want to owe the bank, he doesn't get it. Fortunately I can pull rank on him and he'll do what I say, especially if all the numbers add up (he's an engineer, loves his numbers).

I would go straight for a 2 bedder in Marickville, Petersham if I had my choice - and pay a buying agent as I can't easily get to Sydney. But the size of the mortgage would freak him out, so I have to start small to keep him happy.

His only request was that we finish off our PPoR, which bar some mulch on the gardens, is done.
 
I doubt it would get the rents in Bassendean, it's pretty far out and for same price I can get a 2 bed unit/villa in Maylands, Inglewood, Mt Lawley.
 
Bassendean isnt far out in anyones language. Its along the river, has a train station, and has a shopping centre undergoing a major upgrade.
 
It does, and yes there is new shopping centre going in there, but Mt lawley already has this and the prices are around the same. I certainly won't count the area out, but I need to focus on one area at a time otherwise my brain fries!

Would love a house on a subdividable block in Bassendean - but too much for our first IP. :)
 
We were looking to buy and renovate in Mt Lawley in 2012 and have carried out extensive due diligence on the area.We did not proceed due to a change in strategy coupled with an estimated tight margin,however,I think Lawley is a superb place to buy and hold for long term gain.The council has placed many restrictions on future development with many areas being heritage listed.This should ensure that the area will retain its' unique 'leafy suburb' charm well into the future.Ticks all the right boxes,a certain capital growth area IMHO.
 
Thanks Mush, this is a longterm goal of hold, maybe a small reno, depends on what is available.

Westminster, am also checking out Highgate.
 
Hi Tula,

I respect people's choices to buy units and townhouses. Some want to buy because it is near the city and high yielding. Others want to buy new units and townhouses to get maximum depreciation on tax. It depends on their strategy.

Personally though, I only buy houses with land because 'buildings depreciate but land appreciates'. Also with units and townhouses, you have to be careful of body corporate costs, strata fees/levies etc. I know of body corporate costs that can blow out for a few years because of extensive termite treatment. I know of a friend who can't get the old copper pipes fixed in her apartment building because other owners simply refuse to bear or share the costs. Another friend has to ask permission from the body corporate to put in perspex glass in the balcony to cut the windiness and was refused.

Houses with land, I can pretty much do what I want with it. Subdivide it, build townhouses. Build a granny flat. Combine with my neighbours, sell it to a developer who will build six storey flats. The land component of a property generally goes up and is what makes it valuable, generally.

My PPOR (mortgage free) is in Melbourne but all my IPs are interstate, all houses with land, managed by Property Managers. I try to make them as cash flow positive as I can e.g. high yielding rent as compared to their price. e.g. 320K price, get 550 rent. 430K price, get 600 rent, 169K get 250 rent etc

With your high disposable income, I don't see why you can't get house with land in a capital city that will get good capital growth in the next 10 years.
Subdivide the land, build townhouses on it, sell off some, keep 2 for your kids!

This is only a suggestion of course. I just think you can do better than the Mount Lawley unit which costs 410K plus but only get $400 rent per month.
 
Hi Tulamalula
Have been living in this area for over 20 years.

This is what I have seen over the years -

Many younger couples moving into the area, units particularly popular as affordable entry level. With this demand there has been consistent growth, last 12-18 months unit market has been very strong as has been many areas in Perth.

I agree inner city units are still undervalued. However, I would not compare Perth to Sydney as Sydney has always had a higher median than Perth and I don't see this changing in the near future.

Try to buy in the hub of Mt Lawley, closer the better. Central Ave in my opinion is not close enough. If chasing growth and want better than average performance I would buy in the right location within the area.

There are also many units that I would absolutely not buy regardless as there are too many in the block, old/ugly and not a desirable location.

Art Deco units are rare but when they come on the market they fetch top $. One bedder recently sold for $425K on William Street, had its own lock up garage which could have been rented out separately. Needed a reno. As I said these units fly out the door and potentially provide the best growth due to scarcity and demand for this style.

There are some great pockets in Mt Lawley where there are smaller number of units in the block and in the very best streets. This would be something that I would purchase as a long term hold. Also, I would not go for communal laundry.
http://www.realestate.com.au/property-apartment-wa-mount+lawley-114755351

Here is another, location good, can walk to the city, small block, only 6
http://www.realestateview.com.au/Re...Property-Details-buy-residential-6371567.html

These townhouses in Clotilde Street rarely hit the market, but when they do sold immediately, once again great for growth as tree lined street, next to $2M+ properties, city views from the top of the street.
http://uxcel.com.au/wa/mount-lawley/161525/

As mentioned look at surrounding areas such as Highgate.

If you can find a unit where you can add value that would be great, but units that need a reno don't seem to come on the market that often, they are generally renovated or at least tidied up.

MTR:)
 
Love the art deco houses and units, our PPoR has deco lead lights pulled out of a 1920s house - best part of the house. Was salivating over a deco unit at Bondi Junction.

Those links are good, good prices, the third one looks a bit weird.

i would prefer something that is in good condition but needs at least a new bathroom somewhere down the track. After owner building this place I have a good team who do things well under price, our bathroom was a complete strip and change around of plumbing - cost $12K including fittings and a $2000 spa bath) when we were quoted $20K by one of those "we'll do up your bathroom and take care of everything" type companies.

I also enjoy renovating.
 
Beanie Girl,

I have never been into units or townhouses, but want to start small with the first IP. I hear you re land appreciating not houses, but keep in mind units etc are also built on land, and they do appreciate in value.

Very mindful of the strata fees; have factored in all that. The numbers I have crunched thus far leave me with $400 month to add to the cost of a unit, but with a house what i have to take from my own pocket is much more as rents aren't equivalent to mortgages - from what I have seen anyway.

Eg 2 bed house in Perth inner city cost to buy approx $600, but only attracts $400 rent at most.

But maybe I will buy 5 Ips in 2014, getting greedy now :)
 
I was looking to invest in Mount Lawley, Maylands, yokine and houses beechboro 18 months ago. I ended up purchasing in Yokine, current value $430,000, rent $480. It has had the least growth though, so possibly undervalued?
Your post regarding Bassendean being far from the city bought back memories. 20 years ago I moved from Mount Gravatt area where I grew up to a two bedroom unit I purchased in Greenslopes. During the settlement process I met a guy that lasted about 1-2 dates that was questioning why I'd choose to live so far from the city. I guess not everyone wants to live close to the city!
 
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