Suggestions on Suburbs in Perth

[ledd]

Hi all,

I wanted to throw out a question regarding locations/suburbs in Perth. I'm going to buy a PPOR in Perth as my first property as opposed to an investment property in Brisbane.

The boom is over, of course, but after this correction phase I'm thinking that selected suburbs will still perform quite well even in the medium term.

I have a few ideas on what I think may be the best approaches but I know there are quite a few Somersoft contributors in WA who would have much more knowledge and experience than myself.

As well as putting all my energy into the Brisbane market, I have just moved from Sydney so I don't have the usual local knowledge.

My budget is approximately $360. I could go higher but I'd prefer to pay around $300K. I'm thinking a unit within 5km, a townhouse within 10-15km or a house a little further out (basic break down).

At this early stage these are just a starting point but rather than go down a whole lot of dead ends I thought some forumites might be able to point me in the right direction.

Any help would be really appreciated!

Cheers,

Mark

 

[West Coast-PI]

Perth

Ledd,
I am investing in Melb @ moment (just thought I should mention that as your post concerns Perth). However, I believe South Lake is a good investment area. ~Just for the record I have a 4x1 in South Lake (SL) on 700+sqm block - too small for subdivision but I think this suburb is a long way off that kind of urban living anyways...

Don't quote me on any of the facts...You have to hear one of my fishing stories to know that I sometimes (in my excitement) stretch the truth a little bit!@ However, SL is located just under 20km south of the CBD - directly along the rail line on the ocean side of the rail line (though many km from the ocean).

SL has new/old areas. The more est areas around the Rec Centre & SNR SCH offers good value ~$350k could get you a house similar to the one I purchased in 06 for $290k (I read in a recent MORTGAGE MAG that SL had ~40%+ median growth over the last 12mths).

Last week the West Australian newspaper listed the 10 MOST SOUGHT AFTER SUBURBS and the TEN SUBURBS TO AVOID....SL was on the AVOID list (just thought I should mention that also!!). The paper did not mention a reason for it's list??

I still think you should consider SL if you are investing in Perth though as unlike some suburbs which have definitely felt the crunch since the BOOM ended SL has continued to rise. Although I am sure there are many other suburbs which offer similar opportunities I believe SL is one of the few remaining suburbs close to the city that offers houses in the $300k.

Maybe it is because SL is surrounded by more expensive suburbs and is yet to benefit from the SOUTHERN RAIL LINE (it is still not complete!!).
The redevelopment of the beach in South Fremantle + the large shopping centre in Cockburn Central (still expanding but set to become one of the biggest in Perth) must have a flow on effect as these developments will just increase the values of SL neighbouring suburbs - thereby highlighting the value in investing in SL.

Anyways enough about SL. I think it offers pretty good value/ good infrastructure (rail + large commercial dist nearby) and quite handy rent. I will be interested to read where other investors suggest.

Good luck.
Cheers

 

[sebsez]

In the same position

Hi All,

Thought I would throw in my 2c as I am in a similar situation and am looking to buy a PPOR in Perth within the next couple of months. Now if I had a choice I would not be buying in Perth, I would be buying in the eastern states, but hey, I need somewhere to live!

Anyway I have been looking at Suburbs such as Ferndale, Wilson, Craigie.

Ferndale - Close to the river (Canning) & parks etc, close to Carousel shopping centre (I think this one is currently the biggest in Perth), it is only about 12km to the city. It is close to major roadways (Leach Hwy, Albany Hwy, Roe Hwy) It is also close to Curtin University and you can still buy a 3x1 on a 700m2 block for under $400K (No real redevelopment potential as the zoning is R17.5 throughout Ferndale). It is a green leafy suburb consisting of owner occupier families.

Wilson - Next to ferndale, so it has many of the same features as Ferndale. It is slightly more expensive, but it is surrounded by the even more expensive suburbs such as Waterford, Shelly & Riverton, so is undervalued compared to these other suburbs. It is also on a nice part of the river to what Ferndale is, and therefore a more appealing lifestyle suburb.

Craigie - This is north of the river, this one is mainly of interest because it is close to the ocean and is surrounded by the much more expensive coastal suburbs of Hillarys, Mullaloo & Woodvale. And once again you can get a 3x1 on a large block for under $400K.

Now I am not an expert and these are the suburbs I am toying with. You can get cheaper places further away from the CBD, but for lifestyle reasons I perfer to stay as close to the CBD as possible.

Cheers


Seb

 

[Ausprop]

there are heaps of options, including huntingdale, kenwick, midland, midvale. I am pretty big on vic park and east vic park over the longer term, inner city cafe lifestyle suburbs that are possibly diamonds in the rough. If you wanted to go furhter out you can get bargains in some of the newer suburbs of baldivis onwards. You can buy in the anchorage estate at rockingham/shoalwater for around the $400k... brand new houses about 1km from the beach, inherent land value of $280-300k, trains about to start rolling, ridiculously cheap and cannot stay like that. Waikiki is another one, also Singleton is undervalued IMO compared to madora, lakelands and meadow springs.

the boom days of 30-40% may be over but the predicted growth is pretty healthy and should sit around the 10%. over the longer term this resources boom will continue to push prices so it should prove a good investment for you.

 

[kero]

just beware that some of the suburbs have 'not so desired ' tenants. Just like many suburbs, there have the good homes and the 'not so good' homes. i'm always paranoid about security... i wouldn't stay too close to some potential break in locations even though it might be in the same suburb.

my two cents.

 

[Dazz]

My budget is approximately $360. I could go higher but I'd prefer to pay around $300K. I'm thinking a unit within 5km, a townhouse within 10-15km or a house a little further out (basic break down).

Mark,

These three options are completely different for a PPoR.

What type of things shall be happening in your life over the next 5 or 10 years ?? Marriage / kids etc.....

Buying a swisho unit close to the CBD for that money is definitely possible, but would it be suitable as a PPoR in the long run ??

 

[ledd]

Thanks so much for the responses!

I've been looking in South Lake and it certainly seems to have potential as you pointed out with a number of good reasons, West Coast PI. I've also been looking around Spearwood and Coolbellup. Seems like I really need to spend at least $350k to get anything worthwhile land wise. On the plus side (for me) the asking price has come down by $10-20k on almost every property I've seen (in my sample of one weekend looking).

Sezbez, I'll chase up those areas. I haven't heard of some of those, particularly on the north side. I've just started researching close to Ferndale. Specifically in Lanford and Maddington. I particularly like Maddington as it is on the train line. Any thoughts on either of those?

Kez, I'm not sure which are the less desirable suburbs as I'm not a true local so it's a bit of hit and miss in that respect. I do find out eventually but it may be after a bit of research.

Ausprop, I agree, I think CG will remain relatively healthy. Thanks for those suggestions. API also pointed out a number of those areas as potentially good. A few of the others I haven't heard of so will chase them up.

Dazzling, my aim is to live in it for around 12 months and then re-evaluate the situation. This may mean renting it out. I'm therefore looking for a place that would rent easily. I'm wondering if the suburbs in the 15-20km from the CBD will be as easily rented with a reasonable yield and good tenants. I'd definitely prefer to get a house and land.

Thanks again for the responses!

Mark

 

[MTR]

Hi Ledd
As mentioned it really depends on your circumstances, family, lifestyle etc.

In August there will be a property report in Saturday's West Australian which may help (not sure on date), it will provide stats/details on Perth suburbs.

You would be able to purchase a unit in inner city location for around $300K+. Areas such as North Perth, Highgate, Inglewood, Mt Lawley, Como, Victoria Park.

Alternatively if you decide to purchase in outer suburbs it may be wise to stick to coastal areas, south and north. Older houses in coastal areas can still represent good value such as Yanchep, Rockingham, Secret Harbour, Singleton, Golden Bay.

All the best.

 

[twhurl]

Ledd,

Last week the West Australian newspaper listed the 10 MOST SOUGHT AFTER SUBURBS and the TEN SUBURBS TO AVOID....SL was on the AVOID list (just thought I should mention that also!!). The paper did not mention a reason for it's list??

s

Hi . First time poster here. Have been thoroughly impressed with browsing the content for the last year. Would anyone be able to post those suburbs as I can't see it online.

Thanks !

 

[TheAnalyst]

Hi All,

Thought I would throw in my 2c as I am in a similar situation and am looking to buy a PPOR in Perth within the next couple of months. Now if I had a choice I would not be buying in Perth, I would be buying in the eastern states, but hey, I need somewhere to live!

Anyway I have been looking at Suburbs such as Ferndale, Wilson, Craigie.

Ferndale - Close to the river (Canning) & parks etc, close to Carousel shopping centre (I think this one is currently the biggest in Perth), it is only about 12km to the city. It is close to major roadways (Leach Hwy, Albany Hwy, Roe Hwy) It is also close to Curtin University and you can still buy a 3x1 on a 700m2 block for under $400K (No real redevelopment potential as the zoning is R17.5 throughout Ferndale). It is a green leafy suburb consisting of owner occupier families.

Wilson - Next to ferndale, so it has many of the same features as Ferndale. It is slightly more expensive, but it is surrounded by the even more expensive suburbs such as Waterford, Shelly & Riverton, so is undervalued compared to these other suburbs. It is also on a nice part of the river to what Ferndale is, and therefore a more appealing lifestyle suburb.

Craigie - This is north of the river, this one is mainly of interest because it is close to the ocean and is surrounded by the much more expensive coastal suburbs of Hillarys, Mullaloo & Woodvale. And once again you can get a 3x1 on a large block for under $400K.

Now I am not an expert and these are the suburbs I am toying with. You can get cheaper places further away from the CBD, but for lifestyle reasons I perfer to stay as close to the CBD as possible.

Cheers


Seb

Seb, i would agree Craigie, Beldon, Hethridge are the best of all --- cheap, among expensive surburbs, close to beach, freewy and rail.

 

[suzieq]

I personally think Joondalup South is a great place to invest, particularly if your looking for growth over the next 12 months. The yet to be completed shopping centre and freeway extension will boost things along some more and there are pockets which still have the odd 3 bedroom on decent size blocks for around the $400k mark.

sq

 

[thedon]

Hi, My 2 cents - I'd avoid craigie unless you can get a real run down bargain as the suburb is generally smaller/older 1970's houses. Heathridge & beldon would be a good option as you may be able to pick up something ok for under $400k. Woodvale, Edgewater and definatly Joondalup have potential but more pricey!

Don

 

[kero]

don,
how about wilson?

i haven't heard much about this suburb for a while. Some agents are saying that its a growth area. I quite like the part of Wilson near the centeneria park. Its quite central to universities, shopping centers, freeways & the highways.

opinions anyone?

 

[Lucyinthesky]

Hi Ledd,

Lots of big power lines in South Lakes and Success. Spearwood is a good area, I like Wilson too. I would have a good drive around each of the areas you are interested in to get a feel for them. Depends really on what you want, close to the city, block size, redevelopment potential, close to water, that sort of thing. Good luck in your search.

Lucy

 

[gooram]

I like the hills long term. Large semi-rural blocks within 45 mins of the city. Places like Parkerville and Stoneville are in the process of redevelopment with some rezoning and development going on.

Some areas are still R2 so you would be speculating a bit on that to change. However you could still cash in on the "tree change" down the track when all the retired and cashed up miners decide to escape the "big smoke".

 

[West Coast-PI]

Hi Ledd,

Lots of big power lines in South Lakes and Success. Spearwood is a good area, I like Wilson too.
Lucy

Yes "LucyintheSky" is right about the powerlines. Though if you use GOOGLE EARTH you should be able to spot them. They start in Bibra Lake and run south along down the freeway direction towards Success. They are one of many things to watch out for. The property I purchased in 06' is not located near one but I am glad LinSky pointed that out - WELL DONE! (There are heaps of things I didn't mention in my post but hopefully it gave you a start - whilst I remember stay away from the rail near Bibra Lake it is an industrial line and not used for residence...quite noisy!)

The recent property boom highlighted a few things of interest to me. It seems people's attitudes have changed towards industial landmarks....like the cement works in Beeliar and powerlines in new suburbs like Success. I would not want to live next to either of these (powerlines/cement works) but strangely they don't seem to affect the values of properties in these suburbs.

On another note if you are looking to Spearwood I think that it may be one of the few suburbs in Perth not to be on the main sewerage line (I just remember seeing something on the ABC about this last year - You might want to check it out!).

Finally I will try to locate a paper from the Sat WEST which had the list of good/bad suburbs (unfortunately mine has long been recycled).

Cheer once again.

 

[sebsez]

Belga Anyone?

What does everyone think of Balga?

Pros
Large Blocks 700m2+
Can Get R40 Zoing
Close to City
Close to Reid Hwy & Freeway
Can get a redevelopment block for between $340K - $380K

Cons
Crime
Bad reputation


Now I have not done much research at all on Balga except for crunching a few figures, and they look good. So I would like to hear from other people on what they think, maybe add a few more "Cons" to the list as I'm sure I don't have them all.

Cheers

Seb.

 

[ledd]

Thanks for all the great advice! This website really is a fantastic resource. I thought it was Christmas when I discovered it.

I've had a look at a few places now. I think I'm leaning towards suburbs south of the river and nearer to Fremantle. It's as much a lifestyle choice as it is an investment at this stage. Somewhat surprisingly, research indicates predictions well in excess of 10% growth. I'm concerned the data is skewed due to massive recent growth.

I've read quite a few property books and have accessed a number of websites that have basic (free) data on the areas I'm interested in researching further. However, I'd like to go over these areas with a fine-tooth comb. Any suggestions on the who/what/where/when/why of property research specific to Perth? I'm thinking of buying a suburb report from RP Data but I'm not sure they go into a lot of detail in Perth suburbs.

I'm also concentrating on the negotiation of a property. A hell of a lot of properties are for sale in some areas (eg. East of Perth such as the Maddington area where it seems every second house is for sale). Some areas still seem to be increasing in value (eg. East Victoria Park). Overall, it seems to be much more of a buyer's market, definitely in comparison to last year when sellers basically named their price. I'm therefore wondering what kind of offers to make initially? No easy answer, I know.

Thanks for all the comments, they are all really helpful!

 

[Justkate]

What about Canningvale. I have been there but it was awhile ago and I thought it was nice and just wondering...I know its close to the river and not that far from the city, is that considered an expensive area and nice area of Perth?

Kate

 

[1974Angela]

I grew up in Perth and have lived all over. I also spent the last 18 months in the Midland area - a large amount of redevelopment just really starting there, it will hugely improve the area and pull up the surrounding suburbs. Like all areas under the $400k mark there are undesireables - you need to check out the proportion of state housing in any area you are investing in. I think Koongamia is well placed to pick up on the Midland redevelopment (great public transport and services in Midland including some of Perths best private schools) - basic 3x1 fibro and tiles, but large blocks - and it is surrounded by other pricier areas.
Balga has come a long way from its earlier days, I dont hear of it having a crime rate higher than anywhere else in Perth these days. However Balga/Mirrabooka and surrounding areas are now very "culturally diverse" to the point where if you go to Mirrabooka shopping centre you can play "spot the Australian" - you probably wont find any, and at one smaller shopping centre in Mirrabooka you cannot even read the signs on the shops, you just have to guess which shop is the chemist, pizza etc - none of the words are in English. Please dont take this as a racist remark, but I know of many families leaving these areas because their kids will complain that they cant understand the other kids (often with 5 different languages being spoken at once in the class). Several people I have spoken to, have also complained that these areas are overun with rats etc, as new immigrants do not understand/care to put their wheelie bins out, prefering to let the rubbish rot in the backyard - I have seen this first hand!
My father lives in South Lakes and they like the area, it has had a bad rep in the past but I think it is outgrowing this, and is surrounded by other better priced areas. The train line will make a difference and a lot of the houses are no that old, and it is on the right side of the freeway.
I think coastal areas south and north are the safest bet.