PPoR for young professional in Perth

Hi WA gurus,

One of my close friends is looking to buy his first home in WA and he would like to stay close to the city. He is thinking of getting a house and land package because he likes to leave in a new house and also save of stamp duty. He would like to live in between the city and the beach.

http://www.realestate.com.au/property-villa-wa-scarborough-115021295

He found this one but it is under contract but the agent is replied with the email:

"Hi thanks for your email, COMING SOON in Ozone Parade, Trigg and Pearl Parade, Scarborough, They are house and land packages, so check out the location and then we can show you the plans, specifications and tile boards, the homes are turn key and have street frontage and a lock up garage.

With house and land packages you settle the block first and after the settlement of the block, the building starts and you pay for the building with progress payments, which is over the time of the construction. You would not draw all the money for the home until the homes are completely finished approx 14- 16 months down the track.

The best part is you are settling the block and you only pay stamp duty on that amount, rather than at the total finished amount of $749k. Also while you build it, if it was for an investment property, then your interest on the land while building may also be deductible.

As you can see its a great deal for a brand new beach side villa/townhouse, Let me know if want meet up and I can show you all the info, including specifications, tile boards and finishes."


I know this is not your typical big block and buy and hold investment but he would like to see some capital growth in the next 5-10 years. Please give me your thoughts on this.
 
Lots of commercial redev going on in Scarborough, more restaurants, pubs, etc , which should definitely help. I'd live there.

Anything near the beach is going to do well in the long term because its a limited supply.

In the short term I'm not too confident.
 
What's his budget, how many bedrooms etc needed and what else is she looking for?

I think solely focusing on new because he likes the idea of it is a bit of a fools errand but I guess emotion is a valid factor when looking at PPOR
 
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