My Purchase - Bassendean... Thoughts

[Craig-G]

Hi guys,

An avid reader but infrequent poster, I have finally bitten the bullet and purchased my second property (first one being an IP in Woody Point, QLD). After much debate over a second IP interstate or 1st PPOR locally in Perth, I opted for the PPOR option. Drivers behind this decision was a tightening rental market, ability to cash in on FHOG and no stamp duty concession, opportunity to live in while we renovate to add value, and option of keeping CGT at bay when/if we sell.

The first couple of pictures are attached and more will follow. Hoping to get the opinions of fellow SS'ers if this is a good buy.

Details:
2 bedroom plus sleepout, 1 bathroom 2 toilets (1 being outside)
Deceased estate first listed at $350-370k
Couple of price drops later and picked it up for $315k
Location - Bassendean, 11km from Perth CBD
Block size - just over 600m2
Con - on a semi busy single lane road (Lord Street)
Pro - Corner block so has access off side street
100m (3 houses) to Success Hill Reserve on the Swan River
Under a km to Success Hill train station

Obviously there is a hell of allot of work to go into it but we have no kids or other restrictions so time is one thing we do have.

Keen to get the thoughts on the purchase, the location etc.

Craig

 

[Craig-G]

More photos...

Some more photos

 

[Craig-G]

and more

And some more

 

[INVSTOR]

Yer I know the house by driving past it. I didn't realise block was 600m2, it looked smaller.

Good room sizes.

A lot of Eden Hill, Success Hill, and Parts of Bassendean have either been rezoned, or will be rezoned. I think if your block isn't one of them it will be considered huge in the future.

Labour had plans on opening Pyrton site to the public and turning into parklands, etc. The part of the river there is really nice and natural.

Success Hill Reserve is nice also.

Local school - Eden Hill is a really good school and good reputation.

I think you got a good buy.

 

[Aaron Sice]

congratu-freakin-lations!

great price for a very well placed property.

i'll bet the yield is pretty impressive? i would be very happy with such a purchase.

why did you pick Bassendean out if interest?

 

[Craig-G]

congratu-freakin-lations!

great price for a very well placed property.

i'll bet the yield is pretty impressive? i would be very happy with such a purchase.

why did you pick Bassendean out if interest?

Thanks for the prompt response Guys,

As for why I chose Bassendean, well...

Obviously Perth saw a rapid rise in prices recently (2006), however I do still see great value in specific areas. Specifically the area that is most attractive to me is the Highgate or inner north area of Perth (walking distance to CBD). For example I think the below property is an example of what I would love to get a hold of:

http://www.realestate.com.au/cgi-bi...er=&cc=&c=10632353&s=wa&snf=ras&tm=1222254868

Unfortunately we are unable to service this loan at the moment so we set out searching for an area that we could pick up for close to land value, add value and help us get closer to our ideal. Bassendean was chosen as I feel it has great appeal with a bit of a country feel, still closish to the City and has proximity to the river and transport. Also if we do hold onto it as an IP (options open) then the continued redevelopment of Midland et al. will only help the situation. Above all else Bassendean was chosen as the house presented was secured at a price we can comfortably handle, well below the medium for the area and when looking at comparable renovated properties in the area at a great price.

Lets just hope if the crazy fools in parliament do decide to put the train line up Lord Street to Ellenbrook then they take it directly through my lounge room so I can be compensated...Not that I think I will be there when this all comes together.

Anyway, more thoughts the better. We settle in early October and I will follow up with heaps of questions on the forum being our first reno job. Also if any SS'ers are out that way and feel like popping in for a nosy or some advice to offer then send me a PM in a couple of weeks - it would be appreciated.

Cheers - Craig

 

[TheBacon]

Congrats!

$315 is a nice price. Whilst being on Lord St might put some people off, it probably will have little or no impact to the amount of rent you would get.

Also - I've read elsewhere (here and in API magazine) that houses on main roads, although they sell at a discount to quieter streets, tend to have the same percentage growth as the rest of the suburb.

Yes, it needs some work inside, but thats what you get for houses in that price range. What you do get though is a house with some nice street appeal; it has a nice traditional, almost a 'Queenslander' look from the front.

I think your good block size and street appeal will hod you in good stead; other home buyers will be interested when (if) you sell.

Nice work.

TB

 

[INVSTOR]

How's the reno's going Craig?