perth, south aust or frankston - where is best investment

[mitchp]

Hi,

I'm looking to buy first IP in either hometown Perth (yeah yeah - things are slow at the moment in Perth but I guess near water ie Scarborough or thereabouts could negate the general slow pace of increase in property values, or have I got it wrong?), South Australia or Frankston. In terms of outlay somewhere around 300-400k, what do people think would be best value out of these three over the next 10-15 years? What are the costs/benefits of houses vs units in these areas? Further, being new to this, is a buyer's agent worth the money? I work f/t and don't have a lot of time/opportunity to look for property or to fly over (if it's SA/Victoria). It'd be good to hear a few opinions about these issues...

Cheers
Mitch

 

[TheCamel]

I'd say SA - Elizabeth Region, or Frankston.

check the threads - especially the one about frankston.

Also consider melton, roxburgh park, craigieburn

 

[Ausprop]

I think the answers to this thread will confuse you even more!

 

[alexlee]

How about one in each area?

 

[whynot?]

Perth Investment Properties

Hi, I am new to posting on this site, but I have been reading religiously for the past few weeks. We are an average family with a mortgage and 2 young children living in Perth. For the last few years we have put off buying an IP because we felt we couldnt afford it. Hindsight is a wonderful thing, we really could have and should have bought one a while ago! I am wondering why noone thinks Perth is a good place to buy property? Can someone please read through the following senario and tell me where I am going wrong in my line of thinking?
We are in Perth and are looking at buying a property that needs a little bit of work and renting it out. For example I have seen a house in Gosnells (where the median price is $330k) for $280k, that after purchasing for $280, plus $10k for fees, $15k for renovation we are hoping would fetch $280 a week rent and would be valued at around the $320k mark (making a hypothetical profit of $15k for a few weeks work). With an increase of possibly 5-10% growth each year. I know it isnt enought to retire on but is it still a bad investment?

 

[Harris]

Hi,

South Australia or Frankston. In terms of outlay somewhere around 300-400k, what do people think would be best value out of these three over the next 10-15 years? What are the costs/benefits of houses vs units in these areas? Further, being new to this, is a buyer's agent worth the money? I work f/t and don't have a lot of time/opportunity to look for property or to fly over (if it's SA/Victoria). It'd be good to hear a few opinions about these issues...

Cheers
Mitch

Hi Mitch,

I have invested aggressively in Frankston and would still buy there for the following reasons:

1- Demand is second to none in Frankston as compared to any other non-auction suburb I have looked at throughout Australia - including all major growth corridors. (You can view the Frankston thread to determine how I worked out the demand factor). Demand is a key determinant of rising prop values and such high demand levels there are pushing the price points up quite significantly.

2- Elizabeth in SA has similar level of demand factor along with good yields and plenty of mining driven infrastructure and investments for years to come. I will however wait for this quarter's figures on economic data for SA since the local economy there had 2 consecutive quarters of negative growth.

3- Frankston is a bayside suburb with significant new infrastructire going in along with a new freeway (tollway actually), $80 million update of Penninsula centre, proposed frankston marina, massive developers driven activity along the bay, good yields and a very buoyant market.

4- The massive investors driven activity in Frankston started from Jan/ Feb this year and hence I would consider the growth in value timeline being quite young. My expeirence with investing in Rockhampton, Cairns and inner melbourne suggests that when growth in values start occuring, the timeline is normally good 2 years or more before there are any signs of slowing down.

5- The crime level is high however the gentrification process is in full swing and is quite evident especially in places like North Frankston and Central Frankston.

Harris