Perth IP - the beaches or 10 km radius

[heroine]

Hi everyone,

I'm new to this so please be gentle.

I am looking for my first IP in Perth. Strategy is buy and hold. Budget is 650k at the moment although 450-550 would be the sweet spot.

My issue is: looking at Sydney I feel like you can't go wrong with something close to a nice beach. But coastal here has been languishing for a while, possibly due to the very big houses and price tags. So I am thinking an older house on 600-700sqm in Padbury, possibly Hillary's, maybe Beldon or Hamilton Hill if it has views.

But people tell me to stay within 10 kms of the city and to look at villas in Belmont, Carlisle, Dianella. I'm worried they may be fads, Como and Subiaco are within 10km too and from the median prices I see they don't seem to be going nowhere fast (or am I misreading)?

What would you do?

 

[Ausprop]

I'm worried they may be fads, Como and Subiaco are within 10km too and from the median prices I see they don't seem to be going nowhere fast (or am I misreading)?

i think it is part of the longer cycle - lack of debt and mass destruction of wealth means people simply haven't had the money to buy in Subiaco. this has seen the cheaper areas bid up to the point where the price difference between suburbs has been flattened. I see this as an opportunity to move into western suburb locations. I am stunned as to the money some people lay out to live in pretty ordinary locations.

 

[MTR]

i think it is part of the longer cycle - lack of debt and mass destruction of wealth means people simply haven't had the money to buy in Subiaco. this has seen the cheaper areas bid up to the point where the price difference between suburbs has been flattened. I see this as an opportunity to move into western suburb locations. I am stunned as to the money some people lay out to live in pretty ordinary locations.

Hi Aus
I agree with you.
What do you get in the Western suburbs for $650,000???

 

[HotRod]

i think it is part of the longer cycle - lack of debt and mass destruction of wealth means people simply haven't had the money to buy in Subiaco. this has seen the cheaper areas bid up to the point where the price difference between suburbs has been flattened. I see this as an opportunity to move into western suburb locations. I am stunned as to the money some people lay out to live in pretty ordinary locations.

I'm not.

I cal them Wannabees.

Got them at my young son's school.

Thing is, these people have such a disconnect with the rest of society, it's scary. Think nothing of spending $1M on a property, bowling over the house and then spend at least another $750K on their dream home, only the show it off to raise their self esteem.

 

[westminster]

Hi everyone,

I'm new to this so please be gentle.

I am looking for my first IP in Perth. Strategy is buy and hold. Budget is 650k at the moment although 450-550 would be the sweet spot.

My issue is: looking at Sydney I feel like you can't go wrong with something close to a nice beach. But coastal here has been languishing for a while, possibly due to the very big houses and price tags. So I am thinking an older house on 600-700sqm in Padbury, possibly Hillary's, maybe Beldon or Hamilton Hill if it has views.

But people tell me to stay within 10 kms of the city and to look at villas in Belmont, Carlisle, Dianella. I'm worried they may be fads, Como and Subiaco are within 10km too and from the median prices I see they don't seem to be going nowhere fast (or am I misreading)?

What would you do?

I think you need to look at apples and apples.
For the $450-550 price range you need to look at an older large block in both areas. I wouldn't be comparing a villa in the sub 10km with a older house in the affordable coast suburbs when you can get a larger block with possible development potential in both.
I think either option is good - if you are talking coastal you probably need to be as close as possible - west of Marmion if you are talking NOR.

 

[Ausprop]

Hi Aus
I agree with you.
What do you get in the Western suburbs for $650,000???

and equally, what do you get in the eastern suburbs for $650k? a relly just flogged a bog standard project home on a standard block in lathlain for something like $1.1m... unbelievable. you can buy neddies for that sort of money (older house admittedly)

 

[Ausprop]

I'm not.

I cal them Wannabees.

Got them at my young son's school.

Thing is, these people have such a disconnect with the rest of society, it's scary. Think nothing of spending $1M on a property, bowling over the house and then spend at least another $750K on their dream home, only the show it off to raise their self esteem.

there should be a good $300-400k equity created tho? that could be leveraged into a comm property to cover the mortgage

 

[sanj]

and equally, what do you get in the eastern suburbs for $650k? a relly just flogged a bog standard project home on a standard block in lathlain for something like $1.1m... unbelievable. you can buy neddies for that sort of money (older house admittedly)

i have seen houses in yokine on the market for over $1.7m, madness

 

[westminster]

i have seen houses in yokine on the market for over $1.7m, madness

I find that better than the houses in Dianella for the same price - what does Dianella have going for it? It's not that close to the city and FAR from the beaches.

 

[MTR]

Hi everyone,

I'm new to this so please be gentle.

I am looking for my first IP in Perth. Strategy is buy and hold. Budget is 650k at the moment although 450-550 would be the sweet spot.

My issue is: looking at Sydney I feel like you can't go wrong with something close to a nice beach. But coastal here has been languishing for a while, possibly due to the very big houses and price tags. So I am thinking an older house on 600-700sqm in Padbury, possibly Hillary's, maybe Beldon or Hamilton Hill if it has views.

But people tell me to stay within 10 kms of the city and to look at villas in Belmont, Carlisle, Dianella. I'm worried they may be fads, Como and Subiaco are within 10km too and from the median prices I see they don't seem to be going nowhere fast (or am I misreading)?

What would you do?

I think North Beach has taken a little dip of late may be worth a look at. It would be nice to try to locate an area that has been flat for a while, bit tough in the Perth market at the moment.

My view is that Perth is turning into a vibrant city, we actually have a heart beat now, culture is changing and about time.

My gut tells me over the next 5 years this will have a huge impact on prices of inner city properties and anything within that 10 km, its already happening.

If I had $650,000 I would stick to as close to the city as possible, shame your budget does not suit a nice reno in Mt Hawthorn, North Perth or Maylands as they will just go from strength to strength.

MTR

 

[Aaron Sice]

I think you're on the money there, MTR. North Perth and Mt Hawthorn set to skyrocket.

 

[MTR]

I think you're on the money there, MTR. North Perth and Mt Hawthorn set to skyrocket.

I tried to help someone secure a property in Mt Hawthorn about 6 months ago it was very difficult, home opens were just a nightmare.

We ended up securing a fantastic property in North Perth, good bones, already extended. I would have to say they have already made around $80,000 by simply doing some cosmetic stuff. There are some amazing gems in North Perth with city views.

 

[natmarie73]

)

What would you do?

What would I do?

Totally the opposite to everyone else - buy as near to the airport as I can coz my target market is 90% of Perthites who FIFO (joke, it just seems like that on fly-out day - (actually, no joke I swear all of Perth and half the south west flies out on a Monday morning and holds up the security queue ))

Anyhoo, the point of this blather is to just say that everyone has a different strategy and only you can decide on what's best for you. Everyone will have a differing opinion on what suburbs are best and how to make more money than anyone else yada yada depending on their strategy but seriously whatever you decide you will be ahead of the 99.99% of people who don't do anything and with the market taking off again you won't go far wrong.

Decide on your target market and buy the type of dwelling in the area they want to live in.