Perth Suburbs to Invest In

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From: Paul Sheldon


I have done some research on growth rates both in the last 12 months and annual avg over the last 5 years, and in Perth the obvious suburbs are those along the coast north of the river, Trigg, Cottesloe, City Beach, Sorrento and the sleeper seems to be Scarborough (last 12 months only 5% but over 5 years nearly 10%). However, the cost of property in these areas is somewhat higher than in other areas relative to average rental property costs around Perth. Most of the reading I have been doing has indicated that expensive IPs are not necessarily a good thing due to there being a small market of renters capable of paying the rent.

I am interested in opinions from those investing in Perth. Another area I am interested in is Wembley as the cost of units and townhouses is cheaper than the coastal subs, but growth is still good, although not quite as good as the others.

This will be my first rental purchase (I have recently sold a spec home I built) so I am keen for some comments!

Thanks
Paul.

 

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Reply: 1
From: Nigel Laubsch


Hi Paul

You are correct in observing that the beachside suburbs are performing well, which of course explains the high prices (sorry about the obvious). Are you sure you are looking for a property solely for investment and not subconsciously something that you would like to live in yourself ?

There are a number of suburbs well within 10kms of the city that have good performance histories, where you can still buy a perfectly seviceable 3 br house on 600 sqm for under $200,000. Bayswater and Morley are two that come to mind straight away (I do not have an IP in either of these suburbs).

The REIWA site suburb profile page is a good tool for honing in before examining the papers for specific properties.

Hope that helps

Nigel

 

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Reply: 1.1
From: Paul Sheldon


Thanks for that Nigel, REIWA was actually where I got the data from. I would really like to see some 10 year data too but it isn't on the REIWA site. Bayswater is certainly somewhere I have also been looking but only 7.1% pa avg over 5 years, but not Morley...only 5.9% avg pa growth in the last 5 years. As for subconsciously wanting to live there I already have a house in Padbury and we are looking to move to Hillarys, but this is a separate issue altogether so the answer to that one is no, but it was a good question!

What I am really after is something close to 10% avg growth, but they are all the expensive coastal suburbs based on the last 5 years growth figures. Wembley is one of the less expensive close to city ones I have looked at favourably at 7.9% growth over the last 5 years. Of course, avg growth figures aren't everything, but I need a place to start to do further research.

Anyone else have any Perth suburbs they favour for a good combination of affordability, low vacancy and good growth?

Thanks
Paul.

 

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Reply: 1.1.1
From: F. F.


The following suburbs have averaged 10+% over the past 15 years; Alfred Cove, Applecross, Attadale, Bicton, Churchlands, City Beach, Claremont, Coolbinia, Cottesloe, Doubleview, East Fremantle, Floreat, Fremantle, Gwelup, Highgate, Hillarys, Inglewood, Jolimont, Kensington, Leederville, Marmion, Maylands, Menora, Mosman Park, Mt Hawthorn, Mt Pleasant, Nedlands, North Beach, North Fremantle, North Perth, Peppermint Grove, Perth, REdcliffe, Rivervale, Rossmoyne, Shenton Park, Shenton Park, South Fremantle, South Perth, Subiaco, Swanbourne, Trigg, Waterman, Wembley, West Perth, White Gum Valley, Woodlands and Yokine. Source West Australian (21/4/01 based on REIWA figures. Hope this helps however bear in mind most suburbs have little gems in them somewhere - the challenge is to find them.

Derek

 

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Reply: 1.1.1.1
From: Paul Sheldon


Thanks heaps for that Derek, very useful. I note you said REIWA figures, did you get these from their web site or did you have to speak to them directly? I would like to get the 10, 15 and 25 year figures for all of Perth in electronic format. Very interesting to note Perth is in the list, it has only managed 5% or so in the last 5 years.

Thanks
Paul.

 

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Reply: 1.1.1.1.1
From: F. F.


I kept a broadsheet copy of the West Australian April 2001. It details all Perth metro suburbs for past 1,5 and 15 years. Th esheet also detailed median prices for listed suburbs. Remember these stats are only a guide.

Derek

 

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Reply: 1.1.1.1.1.1
From: Paul Sheldon


I emailed REIWA to ask about the data but I haven't had a reply yet. As for it being a guide only, you are certainly right there, but it does help to narrow down prospective suburbs. Trying to do detailed research on every suburb is just too much.

Cheers
Paul.

 

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Reply: 2
From: Ayesha Todd


Hi, We have just entered into a contract to purchase a two bedroom unit in Orelia, Perth for $68000 and predicted to receive $130 per week rent. We went for Orelia as it is a suburb that seems to have low vacancy rates, places can be positively geared and seems to be on the increase as even though it was slow in 2001 already this year places are going like hot cakes, places we were discussing with agents a week before going over there to view were already sold before we had a chance. It's not the flashiest of suburbs so people may not be too keen though for people that know Perth, the railway line is heading south (down to Rockingham) so the southern sleepy suburbs will be on the increase very soon (though this is only my thoughts after watching the market there for 12 months.)