Perth - Blue chip area or sub division?

[anchorman]

Hi guys,

Long time reader of the forum, looking forward to contributing as I learn more about the property journey.

Trying to make up my mind whether to get a R40 block around Balga and sub divide for about 500k or buy near the beach at around 650k and rely on CG.

If Balga or surrounds I need to live in the existing house while I build out the back and then possibly move into the back town house, knock down the existing and build two more.

The other option I'm thinking about is buy into somewhere around Hillarys (as PPOR) and getting in at the bottom end of the market and adding value though bathroom, kitchen, yard renos etc.

I realise these are two different very different strategies

What are peoples thoughts, is Hillarys an area that will continue to build CG due to its location? Also from a lifestyle perspective Hillarys would be a much nicer place to live.

Is there still money to be made with the triplex sub divisions? There is a lot of conflicting reports out there, some say the market is flooded with too many villas. I'm very keen to get some experience with sub division and build but totally torn between the two options I'm faced with.

Thanks in advance.

 

[sanj]

There is bugger all money in balga r40 blocks atm. I will always favour a value add approach where you can directly affect a result vs hoping for cg but it's a bit all over the place atm

 

[thatbum]

Is there still money to be made with the triplex sub divisions? There is a lot of conflicting reports out there, some say the market is flooded with too many villas. I'm very keen to get some experience with sub division and build but totally torn between the two options I'm faced with.

What feasibility have you done on the subdivision strategy? Do you have experience with that sort of thing?

A triplex in Balga right now isn't something I would tackle as a novice.

 

[anchorman]

What feasibility have you done on the subdivision strategy? Do you have experience with that sort of thing?

A triplex in Balga right now isn't something I would tackle as a novice.

Just in the initial stages of feasabilty, have been getting round number figures but haven't dialled down on a particular block yet, no subdivision experience per se. But i've worked in the industry and have a few contacts that have done multiple developments around that are willing to help.

 

[sanj]

Just in the initial stages of feasabilty, have been getting round number figures but haven't dialled down on a particular block yet, no subdivision experience per se. But i've worked in the industry and have a few contacts that have done multiple developments around that are willing to help.

Unless your contacts have a time machine to rake you back 2 years or you manage to find a block substantially under market value I would avoid balga r40 blocks. Waste of time and capital, you'd be lucky to make 10% profits if you sell

 

[westminster]

What if you could have beach and subdivision?

I agree Balga has been done. There is a lot of 3 x 2 villas there which are all pretty much same same. You'll build another 3 of them and they will compete with another 1000 of them.

I think Hillarys has over shot its valued due to spruiking of upcoming zoning changes. These changes have been a selling point for over a year now and still nowhere in sight.

If I cross the 2 suburbs I get Clarkson. And hey it used to be called Balga By the Sea so it really is a close choice Now a days it's doing a lot better and there is subdivisible blocks if you know what you are doing. For $5-550k total project you could do a duplex there

 

[anchorman]

Thanks for the feedback. Lots to think about, decisions, decisions....

 

[MTR]

There is bugger all money in balga r40 blocks atm. I will always favour a value add approach where you can directly affect a result vs hoping for cg but it's a bit all over the place atm

Agree
Not only this, its a falling market. Spoke to my chippy yesterday who happens to live in Balga, pretty much said the same, how low will prices go, catch a falling knife and all that. Developers off loading same stock, over supply........ risk, risk and more risk.

 

[MTR]

Hi guys,

Long time reader of the forum, looking forward to contributing as I learn more about the property journey.

Trying to make up my mind whether to get a R40 block around Balga and sub divide for about 500k or buy near the beach at around 650k and rely on CG.

If Balga or surrounds I need to live in the existing house while I build out the back and then possibly move into the back town house, knock down the existing and build two more.

The other option I'm thinking about is buy into somewhere around Hillarys (as PPOR) and getting in at the bottom end of the market and adding value though bathroom, kitchen, yard renos etc.

I realise these are two different very different strategies

What are peoples thoughts, is Hillarys an area that will continue to build CG due to its location? Also from a lifestyle perspective Hillarys would be a much nicer place to live.

Is there still money to be made with the triplex sub divisions? There is a lot of conflicting reports out there, some say the market is flooded with too many villas. I'm very keen to get some experience with sub division and build but totally torn between the two options I'm faced with.

Thanks in advance.

I already posted my thoughts on Balga, unfortunately you have missed the boat, you needed to buy 3 years ago to make money.

If you are looking at Hillarys for your primary residence I would basically research what is happening in the area at the moment, not all markets are equal, I have no idea what's happening.

Start researching number of listings, how long on the market, sales prices etc. Contact many agents to get a feel of what is happening in this market. Once you establish what this market is doing then you can strategize, ie if its falling going sideways then its time to watch and sit back as its a buyers market

I think adding value is a great way to go and picking it up at the right price will be key.

MTR

 

[boeman]

Why so far north on the coast?

I think Innaloo is good buying. There are the Stirling Apartments going in (which in themselves are a good buy at $456k for a 2x2), as well as development around the cinemas, proximity to train/beach/CBD. Have a look at what properties are worth their compared to surrounding Yokine/Doubleview/Woodlands/Karrinyup/Gwelup...

 

[sanj]

I personally am not a fan of those Stirling apartments.

Isn't it 2x1s at the price you mentioned and not 2x2s? Also the only thing it is near is the train station, apart from that it is not in any way walkable to anything so for similar money I'd be looking around maylands.

Innaloo in general is a good spot though.

Sorry for the thread high jack. ..

 

[westminster]

Why so far north on the coast?

I think Innaloo is good buying. There are the Stirling Apartments going in (which in themselves are a good buy at $456k for a 2x2), as well as development around the cinemas, proximity to train/beach/CBD. Have a look at what properties are worth their compared to surrounding Yokine/Doubleview/Woodlands/Karrinyup/Gwelup...

I suspect his budget is a lot lower than any of those suburbs.

 

[boeman]

I personally am not a fan of those Stirling apartments.

Isn't it 2x1s at the price you mentioned and not 2x2s? Also the only thing it is near is the train station, apart from that it is not in any way walkable to anything so for similar money I'd be looking around maylands.

Innaloo in general is a good spot though.

Sorry for the thread high jack. ..

Nope, 2x2s starting at $456k I am fairly certain... Probably underground with views of sewer lines but still...

Shops walkable, Spud Shed across the road is 24hr. Around Ikea is pharmacy & gym. I see the appeal. Plus most of the low rise ones are more than that in the area.

But yes, thread jack.

@Westminster, I meant Innaloo is in the ballpark. Won't get a development block but for living and CG in the future I think it will out perform Hillarys. Surrounding areas are all >$100k more for similar product.

 

[sanj]

Just checked, you're right re price

It isn't a bad development imo, I just think there are better options out there. Also, if I lived in an apartment I'd hope there would be more nearby amenity than a solitary supermarket, ikea, a pharmacy and a middling sushi train restaurant.

Most of the low rise ones would also likely outperform this and have lower strata fees...

 

[Tano]

Just checked, you're right re price

It isn't a bad development imo, I just think there are better options out there. Also, if I lived in an apartment I'd hope there would be more nearby amenity than a solitary supermarket, ikea, a pharmacy and a middling sushi train restaurant.

Most of the low rise ones would also likely outperform this and have lower strata fees...

Im next door (Big black building) and it seems like an Okay buy (nice large courtyard). Street Parking for visitors will be a big problem since Ikea chew up alot of space and the City of Striling Rangers are the biggest bunch of w*nkers in Australia.

 

[boeman]

Just checked, you're right re price

It isn't a bad development imo, I just think there are better options out there. Also, if I lived in an apartment I'd hope there would be more nearby amenity than a solitary supermarket, ikea, a pharmacy and a middling sushi train restaurant.

Most of the low rise ones would also likely outperform this and have lower strata fees...

Train line though will surely be the biggest factor?

As Tano mentioned, parking and traffic will be the biggest qualms. Ikea as it is already causes chaos. Add in 200 odd people living within that development and it will be carnage.

Oh and don't forget you could eat for $3 a day if Ikea hotdogs are your thing.

 

[sanj]

Train line though will surely be the biggest factor?

As Tano mentioned, parking and traffic will be the biggest qualms. Ikea as it is already causes chaos. Add in 200 odd people living within that development and it will be carnage.

Oh and don't forget you could eat for $3 a day if Ikea hotdogs are your thing.

Train line is the biggest asset here for sure but other areas have the train too. I just don't see any reason whatsoever for someone to invest here vs say unison by finbar if they are looking at a larger apartment development as that is larger, around the same price or cheaper, closer to the city and closer to a lot more local amenity. I'm generally not a big finbar fan though

 

[westminster]

Train line is the biggest asset here for sure but other areas have the train too. I just don't see any reason whatsoever for someone to invest here vs say unison by finbar if they are looking at a larger apartment development as that is larger, around the same price or cheaper, closer to the city and closer to a lot more local amenity. I'm generally not a big finbar fan though

I think you might be finbar allergic

 

[boeman]

Train line is the biggest asset here for sure but other areas have the train too. I just don't see any reason whatsoever for someone to invest here vs say unison by finbar if they are looking at a larger apartment development as that is larger, around the same price or cheaper, closer to the city and closer to a lot more local amenity. I'm generally not a big finbar fan though

I am probably a bit bias since I love that stretch from Innaloo heading west to Scarborough.

Also I love the spudshed.

 

[westminster]

I am probably a bit bias since I love that stretch from Innaloo heading west to Scarborough.

Also I love the spudshed.

I didn't realise that the spudshed was 24hrs. I haven't checked out the Inaloo one - I shall have to do it soon