Need some information on Kwinana

[godette]

Hello there...it's good to be back in this forum.

Can anyone help me determine how much I should be paying for a brand new 3x2 unit in Kwinana Town Centre?

It's part of a development of about 20 units and comes with NRAS certificate.

Location is excellent - literally walking distance to the town centre - supermarkets, libraries, cafes, etc etc

But I am not familiar with Kwinana, which unfortunately comes with some baggage and a reputation for being a rough city. However, I do know that the state govt is pouring money into it and it has really been developed a lot.

I'm also wondering how to assess capital growth potential as I am still very much a newbie in this whole property investment game. I know Kwinana is coming up, but I don't want to over pay and then find that it's hardly appreciated when I want to sell later.

Thank you so much everyone for your thoughts

 

[thatbum]

Unit in kwinana + seeking capital growth?

Yeah I'm a little sceptical. Do you really think people will be lining up to buy units there?

 

[godette]

Not sure...I know that it's being developed like crazy. Need to know where to go to find objective capital growth forecasts

 

[thatbum]

Not sure...I know that it's being developed like crazy. Need to know where to go to find objective capital growth forecasts

Forget forcasts, use your own brain and research. You're from Perth - would you or other people you know want to buy a unit in Kwinana?

 

[godette]

Forget forcasts, use your own brain and research. You're from Perth - would you or other people you know want to buy a unit in Kwinana?

I can't use myself as the yardstick. Just because I may not buy in Kwinana doesn't mean others won't. There is obviously demand for the suburb. But it's obviously tricky to try and forecast capital growth potential.

 

[sanj]

What are other similar sized new 3x2 selling for in the area?

 

[godette]

What are other similar sized new 3x2 selling for in the area?

between $360K and $420K. The one I'm looking at is right smack in the middle - $385K

 

[sanj]

between $360K and $420K. The one I'm looking at is right smack in the middle - $385K

How does that compare to prices of older homes on larger blocks? I believe you'd get better capital growth from that but naturally yield would be worse so you have to weight the 2 up

 

[mystery]

How does that compare to prices of older homes on larger blocks? I believe you'd get better capital growth from that but naturally yield would be worse so you have to weight the 2 up

Agree sanj, ... plus by the time they would have to pay body corp costs on the townhouse (presuming they will have body corp fees) it would probably bring the yield for the townhouse back to a house rental yield anyway, but minus the land content of a house.

Mystery

 

[vmay]

There are some older well built homes that would be better value IMHO.

 

[Aaron Sice]

Refinery dumped 70 permanent positions yesterday and 90 contractors.

I would pick an renovated older home on a larger block, personally - much better value as the majority of the purchase is the land.

Less depreciation - yes - but this area is earmarked to become a satellite CBD over the next 15 years.