[Perth] First time IP Buyer

[wrexter]

Hi,

Can anyone please point me in which direction to look for our first IP.

It seems as though demand is increasing in Perth and we really want to aquire our first IP without prices going up too much more than where they currently are.

Our budget is no more than aroudn 600k, ideally to purchase an average house in a good area that needs a little TLC to be good for tenants.

NOR or SOR doesnt matter,

areas i have been looking at have been Bicton, Maylands, Yokine, Palmyra etc

Thanks for any help guys,


A

 

[HD_ACE]

What sort of property are you looking for? House, townhouse villa?
What are you trying to achieve through property longterm?
And are you looking at positive, neutral or negative gearing?

Cheers

 

[avakilly]

What sort of property are you looking for? House, townhouse villa?
What are you trying to achieve through property longterm?
And are you looking at positive, neutral or negative gearing?

Cheers

Hi HD_ACE,

Thanks for your reply.

I dont have a real preference for house, townhouse or a villa but ideally i do prefer a house purely on the fact that i can attain a larger block for subdivision down the track.

We are aiming to achieve steady capital growth and good rental yield through the property.

Ideally we would prefer to be positive gearing but i understand that this is not very common with Perth metro properties, so more than likely starting out with negative gearing and head towards a positively geared scenario.


Cheers,

A

 

[HD_ACE]

Hi ya

To prevent confusion stick to just one profile. Ta


Now a development block changes things. You will need to find sites with the right zoning and pro development councils. Also they are very hot atm in perth.
Some councils that come to mind

City of bayswater
City of swan
City of belmont
City of cockburn
City of stirling

These ones come to mind as councils that are changing zoning and therefore pro development.
Would you be looking at retain and build, knockdown, triplex, multi dwelling?

You will need to know all the regulations like set backs, street fronts, zoning,plot ratio etc and also all the costs involved to make sure it will be worthwhile.

By developing and holding you can turn a negativly geared property into a positive one.

Some food for thought

Cheers

 

[WesternRat]

LOL same guy, two handles.

For $600k, a largish block with an old house near the city would be great for land banking. Subdivide and develop when your finances are in order in a couple of years time.

 

[avakilly]

Oh crap, sorry guys, must of created that account ages ago and stayed logged in on this computer.

Embarrased!

Thanks for the tips so far

 

[westminster]

If you want to subdivide down the track you can:
- buy something that is subdividable now but has a decent house on it and rent it out, wait for some more CG then divide later.
- buy something that is likely to be rezoned (check Council plans) and wait for it to be rezoned. Some risk but you get to buy it cheaper.

I would look in the 5-10km radius around the city.