Outskirts vs nestled suburbs

[goponcho]

Hi,

Looking at buying a PPOR in the southern suburbs of Perth.
I know it will be a cash drain, but will enjoy the intangibles of home ownership.

Got a few options

1. An established suburb with little land available, good schools, facilities - like one of the subrubs near the freeway
2. An outskirts suburb which is just being built up now with a lot of building activity but still lots of cheap land about - like Coolbellup.
3. Or a suburb on the border of establishment.... with suburbs being built up just outside of it.


So we obv are looking at cap growth, but the sacrifice is the quality of the suburb we enjoy. Not looking for a flash house, but something in reasonable nick.

Thoughts????

 

[thatbum]

Well if its a PPOR, its very much personal preference, so its hard to say.

I prefer renting in areas where that I want to live in, so really the intangibles don't mean much to me.

I guess it depends how much it means to you?

 

[goponcho]

Well if its a PPOR, its very much personal preference, so its hard to say.

I prefer renting in areas where that I want to live in, so really the intangibles don't mean much to me.

I guess it depends how much it means to you?

Any thoughts on which of my options will have the greatest capital growth per $ invested?

The comfort hit can be accounted for separately

 

[tobe]

go back and determine your priorities. Are you buying this for the 'intangibles' or for capital growth.

Dont say both, If you have to, perhaps assign a percentage to each.

The established 'wisdom' is that the more established suburbs closer to the centre and facilities increase in capital growth faster than those on the outskirts, however the rental yield is reversed.