New Stockland development in Banjup, Perth

[4WD]

G'day guys,

I stumbled across this site a while back, and have been spending my smoko and lunch hours at work reading through the threads.

I've been considering purchasing an investment property for some time now, but have never gotten too serious about it. I built a 3x2 in Newhaven (Piara Waters) about a year and a half ago, and paid just over 400k. If my research is right it should be worth in between 450 - 520k now.

Stockland have just started developing a new subdivision in Banjup, called Calleya: http://www.stockland.com.au/residential/wa/calleya-living-at-calleya.aspx

It is going to be similar to Newhaven, except a fair bit closer to the freeway.

Positives:

- Very close to Kwinana Fwy/Roe Hwy
- Very close to various light industrial (bunnings/furniture/car part shops) shops
- 10 minute walk to Cockburn train station
- Close to Cockburn shopping center (the largest south of the river?)
- One of the last 'new' developments 'close' to Perth along the Kwinana Freeway
- Plenty of open land, and high landscaping quality (going off Newhaven)
- School + shops in the development
- Relatively close to the new Fiona Stanley hospital

Negatives:

- 300KVA powerlines running through the suburb
- Close to some of the light commercial that is not attractive to residents
- Possible aircraft noise from Jandakot

The blocks will be a similar price to Newhaven at the moment; around 270k for 420 square metres, or 340K for 550 square meters. Most of the block will be in between 300 - 600 square meters, and there are 1800 odd lots expected for development. These prices might seem up there, but they are selling very quickly in Newhaven. Stage 1 blocks are scheduled for release on November 25.

I know some of you will probably recommend an older house closer to the city, and I haven't ruled this out yet; just haven't seen the figures as to why buying an older house closer to the city is better.

One would assume that given its position it would make a good long term investment (especially seeing as how the rents and prices of property are at the moment in Newhaven). House and land packages should range between 450k - 600k.

I'd love to hear your more educated opinions!

Thanks
4WD

 

[MTR]

Call me cynical, this is your first post, are you associated/have a vested interest with this company - stockland??

 

[4WD]

Hey mate,

I will call you cynical. I have no association with Stockland, and nothing to gain by publicizing it. I nearly didn't post about the development, but wanted some more experienced opinions. I'm a 23 year old who is new to the whole property investment game and was looking in an area that is familiar to me.

You are right, this is my first post; I am surprised there is no introduction sub forum?

I look forward to learning more off this forum
4WD

 

[D.T.]

It could go alright, its sorta 'backfilling' since the suburbs around it are already established. Depends on how its priced, I guess.

Finished product would probably be similar value to neighboring Atwell?

 

[MTR]

Hey mate,

I will call you cynical. I have no association with Stockland, and nothing to gain by publicizing it. I nearly didn't post about the development, but wanted some more experienced opinions. I'm a 23 year old who is new to the whole property investment game and was looking in an area that is familiar to me.

You are right, this is my first post; I am surprised there is no introduction sub forum?

I look forward to learning more off this forum
Aaron

Hi Aaron

Fair enough.

As far as land and house packages go they can work very well in a rising market. I was building 4 per year in the last property boom making anywhere from 25-30% profit so there was lots of fat in the deal.

I have not looked closely at L & H in today's market, so not sure how much steam there is in it at the moment. I would suggest you don't get caught up in one area but start researching many areas of interest and work out which will provide the better profit margin, this way you can access more equity or sell and bring the money back to the table.

Read posts by those who are doing this already/today, one member is Sash but there are others. just do a search. Sash is now building in Wellard, Lakelands, he has a formula where he uses the cheapest builder Collier and then specs it up. The rent covers the loan.

The only thing I don't like that you posted is the entry point $450-600K, the higher IMO the more risk. I think its less risk if you go for the bread and butter entry level below $400K.

Also when researching look at how much stock is already on the market in a particular area, if I see too many listed this a worry, I prefer it to be very tight, more demand than supply.

As part of your research contact several RE agents in the various areas find out what is selling, what is in demand and most importantly what has sold and for how much.

Good luck
Marisa

 

[westminster]

I like building so I like some house and land packages providing the numbers stack up.
If you are looking at rental returns the rent on a 4 bedroom cottage block is often the same as a 4 bedroom full sized block. So in this case it's better to go for the cheaper/smaller block and provide the same structure. Low maintenance can also be a blessing if you are renting out.
Many of the cottage blocks in the new estates back/front onto a park and these ones are prime. Tenants have a place for the kids to play and they/you don't have to mow and maintain it.
Personally I don't think I would spend close to $600k, I would try and keep it lower.

 

[heroine]

Keep in mind there will be alot of infill between cockburn and the new aubin grove station until 2016. Anyone who wants to save 50-100k off yours just need to go 5mins further south to get the same cookie cutter new thing.

 

[sanj]

Keep in mind there will be alot of infill between cockburn and the new aubin grove station until 2016. Anyone who wants to save 50-100k off yours just need to go 5mins further south to get the same cookie cutter new thing.

were you not recently advocating buying in wellard? that would have the same cookie cutter problem you listed above

 

[4WD]

Thank you all. Your advice is greatly appreciated. I will do some further research; nothing is set in concrete yet.

The blocks selling at Honeywood have been extremely expensive, and that is a good 7km south.

I would prefer sub 400's, but we will see.

Thanks again
4WD

 

[kero]

Hi 4wd,

Welcome to the forum.

May I correct the time to walk to the Cockburn station. It's more like 30mins. 10 mins is probably the time to drive there instead.

With this budget, have you considered those cottage blocks in aubin grove, adjacent to the train station? Apparently there is going to be a woolies in the proximity. You can check that with the council.

K

 

[heroine]

were you not recently advocating buying in wellard? that would have the same cookie cutter problem you listed above

I don't recall advocating anywhere, just sharing what I know about the southern corridor for all it's worth From what I see prices are u shaped at the moment. Cockburn and Mandurah are the high points of the u, kwinana the low point.

This is in contrast to a commonly applied price driver, which is "proximity to CBD". That's all I'm saying.

And there is significant infill happening in the space between.

 

[heroine]

The blocks selling at Honeywood have been extremely expensive, and that is a good 7km south.

I totally agree. Same fir some other new developments. I don't know why that is I can only guess there is a perception that the older areas may be populated by bad neighbors so people pay a premium for being in a new estate? Or not to have certain suburbs in their address? Only a guess though. I struggle to make sense of it.

 

[4WD]

Thanks Kero for mentioning that. I didn't even double check; just went off what the stockland website said. I will look into the cottage lots in Aubin Grove.

As for Honeywood, I've not actually driven through the subdivision; is there anything special about it? I'm glad I don't live that far south

Aaron

 

[Ideo]

Call me cynical, this is your first post, are you associated/have a vested interest with this company - stockland??

I don't think a company like Stockland would need to mess around doing posts like that on a small forum like this

 

[MTR]

I don't think a company like Stockland would need to mess around doing posts like that on a small forum like this

Sales people get commissions on what they sell regardless of how big a company is, its irrelevant.

No harm in asking the question and if you read my post, I think you will see we have moved on

 

[akmirror]

Hi there,

I am looking for land plus home package in Aubin Grove but I am hearing that land is no longer available in Aubin Grove ( I am happy with not more than 300m2). Can any one here have an idea about this?

I really liked this suburb, suitable to my family needs and future growth. I am still hoping to get some news about land plus package. My total budget is 470k.

Shout out to ya all!!

 

[kero]

Armirror, there is a new sub division along Hammond road (in Cockburn) opposite the Emmanuel catholic college. A friend and I are dropping into the sales office coming weekend to look see look see. I think the development is call success lakes. It was use as caravan park. On the billboard, apparently there are only 2 lots available in stage 1.

 

[kero]

to 4WD

hi 4WD,

the location is along Armadale Road, opposite Aubin Grove. it is next to some big retailers e.g Bunnings and Good Guys. Its like a business park.

went to the website last night and it would be handy if Stockland underlines 'aerial photo'.

I have attached the aerial photo here.

note: I have no vested interest in this development.

 

[akmirror]

Yes I am aware of Calleya. But I am not too sure when they start selling the lots. Must be expensive lots as so close to cockburn central and banjup either sides. I have my heart set out for Aubin Grove but have been told only no lots available. May be I should be looking at some other places down South..Wellard ?? Looks like I will find it hard sticking with my budget.

 

[Sampo]

My sources tell me that Stockland are in financial strife and there is a very good chance this subdivision will be done on the cheap. Would give it a miss.