Perth First Property Investment

I have been reading this forum for awhile, and I must say I have learn a great deal of thing here. This forum also give me inspiration to start my first PI.

Most members here seem to have lots of experience with PI so I thought I may ask a question.

I am looking to buy a PI in Girrawheen in Perth, and the house is 4 * 1 with 2WC, it has 698sqm for 340,000. The house is close to park, school and Girrawheen shopping centre.

The seller is willing to rent back immediately for the next 12 to 24 months at 340.00 per week for the first 12 months. The house is in good condition and a double brick house with evaporative aircond. All bedroom has built in wardrobe.

I am seeing Home Buyer Centre (Perth Home builder & develeper) selling house and land packages in Girrawheen for 300K+, this is triplex type of dwelling, so I think the rezoning from R20 to R40 may come very soon.

Could any one comment if this is a good deal or not? I am 29 and really look to have my first PI, any advise is greatly appreciated.
 
Girrawheen....oeeeer

You're about the same age as me. You weren't told to avoid the KGB area (Koondoola, Girrawheen, Balga) when you were younger?

Its probably picked up a bit now, but still not my cup of tea.
 
Make sure that the rental lease with the seller and the contract of sale are not linked in anyway. If they are the residential tenancies act does not apply. If there is a problem later down the track you will have to resolve it through the higher courts and the legal fee’s can be expensive.

I find it best to have the seller sign and accept the offer of sale without a lease back clause and at the same time have them sign a standard residential rental agreement and have the rental agreement dated 1 or 2 days after settlement.
 
Could any one comment if this is a good deal or not? I am 29 and really look to have my first PI, any advise is greatly appreciated.

1/ What is your chosen investment strategy?
2/ What are you wanting the said property to achieve for you in relation to your answer to Question 1?
3/ Do you think the said property will provide you with what your answer is to Question 2?

The property itself is merely the conduit or vehicle as to how you will be driving it ( the strategy). A lot of people dont realise it tho.

The majority of people (newbies) are too property (vehicle) focussed and dont even entertain the question of is it the right vehicle to use (the strategy) to get them to where they want to go.

Hope this provides food for thought.
 
R40 has been on the cards for Girrawheen for a long time with CofW - still nothing has eventuated.

there's also talk in the WAPC wings of making any block over 700sqm immediately R25 - or a duplex.

again - it's all heresay and conjecture. there's no policy, therefore it's speculation.

however, girrawheen has some absolutely ripper pockets, beautiful streets lined with manicured gardens full of OO's and not a car body in sight.

and then there's casserley ave....!

i have no problem with girrawheen. lots of young couples and families now. balga's still 50/50.

i do have a problem with koondoola though - awful suburb.
 
Thanks for all your advice, I am looking to purchase and hold it as long as I can remember because I am not particular after CG but I am after + cashflow. At the moment is negative but hopefully in a few years time I can turn them into a + cashflow.

When I invest I dont go for CG but rather think CG as a bonus. To me its to much of a gamble just to look CG. If only I can get it to the stage where I can get a positive cashflow then I dont have to worry if the market is going down or the market is going up.

I have made the offer so hopefully everything all goes well.

I am so excited about my first PI and can't wait until I have a second one.

The next one I will properly look around Queensland but that one will be a while away. I want to learn the good and bad experience of the first one and see how I go with my first PI.

Thank you for all the members here who have that got me inspired to started my first IP.
 
HOw much income p/a do you need these CF+ type properties to provide you and what time frame to you want it in?
And how many properties will provide it to you?
HOw long do you think these -ve properties you by will become CF+?


Thanks for all your advice, I am looking to purchase and hold it as long as I can remember because I am not particular after CG but I am after + cashflow. At the moment is negative but hopefully in a few years time I can turn them into a + cashflow.

When I invest I dont go for CG but rather think CG as a bonus. To me its to much of a gamble just to look CG. If only I can get it to the stage where I can get a positive cashflow then I dont have to worry if the market is going down or the market is going up.
 
I bought a property in Girrawheen in August 2005,

it was a 3br, 1bth on a 720m2 block, paid $190k for it and rented it out at $180pw

It now rents for $300pw, not sure what its now worth maybe $320k?

It has been by far my best property investment due mainly as a result of the Perth Property boom 05-06 etc.

I had selected Girrawheen as the suburb via a residex predictions report as well as the fact that I only had funds / approval to buy at around the $200k range. I was also considering Lockridge but chose to buy in Girrawheen instead.

The growth resulting from this 1 property alone allowed me to access its equity for deposits for 2 further purchases.

However in saying all of that, i am not sure of what the future prospects for Girrawheen are. Anyone like to comment?
 
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