The cheapest Perth suburbs - Highest Yields

Hi

Does anyone know where I can find a map that shows the cheapest Perth suburbs? Or does anyone have a list of the cheapest Perth suburbs?

I'm after strong yields. neutral/positive cash flow ip

I'm thinking of investing in the middle to outer ring Perth suburbs
 
Hi

Does anyone know where I can find a map that shows the cheapest Perth suburbs? Or does anyone have a list of the cheapest Perth suburbs?

I'm after strong yields. neutral/positive cash flow ip

I'm thinking of investing in the middle to outer ring Perth suburbs

If this fits the budget, dual income properties, harder to find, but then you will possibly achieve growth and income

I think if you want to achieve higher yields/growth perhaps need to be more creative.


http://www.realestate.com.au/property-house-wa-embleton-115298223

Also, why not have a look at house and land packages, these are good in rising markets, timing could be right depending on the area you may achieve some growth and cash flow neutral. You would then be looking at smaller/cottage lots to maximise your returns.

Otherwise units I think will always provide better yields, however there are the strata fees. I think older units/duplex in Girrawheen would be close to neutral, if this fits your criteria, relatively close to city and some of these also have larger than normal land component.
 
Try a house and land Mandurah/Rockingham way...

Hi

Does anyone know where I can find a map that shows the cheapest Perth suburbs? Or does anyone have a list of the cheapest Perth suburbs?

I'm after strong yields. neutral/positive cash flow ip

I'm thinking of investing in the middle to outer ring Perth suburbs
 
I think I'd rather buy something brand new rather than h & l package. H & l sounds too stressful. Do you find it stressful? I'd have to look into what's involved in the process.

Do you think a brand new $400 k ip in Mandurah or Wellard could be close to neutral with the depreciation benefits? I should be able to afford a $400 k loan living with mum & dad right now. Ip has to be close to neutral though as when I move out I need to be able to afford to hold it.


What are small cottage lots, & how come there's a good chance of better returns? Thanks
 
Does anyone know where I can find a map that shows the cheapest Perth suburbs? Or does anyone have a list of the cheapest Perth suburbs?

There's this one updated regularly by REIWA
 

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Well here are the numbers...you could buy a cottage block of land today for 140k. Build for 178k...and add another 10k for stamps and interest. So for less than $330k you can build for 3x2x2 with a small study.

Rent on this would be aobut 20.5k per annum. Assuming 10% deposit and 300k in borrowings at current interest rates you pay aobut 15k interest, water and council rates would be 1.8k and agents fees would be about $2500 and insurance would be $650. So the property would be pretty much neutrally geared.

The depreciation is the icing on the cake first year it would be somewhere between 8-12k. My my marginal rate it would get back 4-6.5k back.

And here is the real bonus upon completion the homes will be worth about 370-400k depending on the finish and location. So you will equity of 40-70k easily.

I think I'd rather buy something brand new rather than h & l package. H & l sounds too stressful. Do you find it stressful? I'd have to look into what's involved in the process.

Do you think a brand new $400 k ip in Mandurah or Wellard could be close to neutral with the depreciation benefits? I should be able to afford a $400 k loan living with mum & dad right now. Ip has to be close to neutral though as when I move out I need to be able to afford to hold it.


What are small cottage lots, & how come there's a good chance of better returns? Thanks
 
If this fits the budget, dual income properties, harder to find, but then you will possibly achieve growth and income

I think if you want to achieve higher yields/growth perhaps need to be more creative.

MTR, just curious about your suggestion with the above? if the 2 dwellings were to be rented out to separate people, how does one handle the power and water for the smaller unit assuming there isn't a separate meter for it?
 
Well here are the numbers...you could buy a cottage block of land today for 140k. Build for 178k...and add another 10k for stamps and interest. So for less than $330k you can build for 3x2x2 with a small study.


Which areas of perth is this?

Up in butler/ridgewood, these cottage block (230 sqm~) house and lands are advertised at around 380k - turn key except for aircond, side and rear landscaping. the value of them currently is not much more, judging by comparable sales.
 
Which areas of perth is this?

Up in butler/ridgewood, these cottage block (230 sqm~) house and lands are advertised at around 380k - turn key except for aircond, side and rear landscaping. the value of them currently is not much more, judging by comparable sales.

Wellard in the southern
 
MTR, just curious about your suggestion with the above? if the 2 dwellings were to be rented out to separate people, how does one handle the power and water for the smaller unit assuming there isn't a separate meter for it?

The ideal would be meters, water and electricity and separate drive ways if possible and fencing off both properties for privacy.
 
Try lower price cottage blocks in Mandurah and maybe Golden Bay (Rockingham).

No way you will get it for this price in Butler. 380k for a 230 sqm block with a small house not fully finished.

I built a 200sqm 4x2x2 18 months ago on a 375sqm block for 358k fully complete and includes stamp duty and interest. it is now worth about 440k....well that was what the bank valued it at. :)

Which areas of perth is this?

Up in butler/ridgewood, these cottage block (230 sqm~) house and lands are advertised at around 380k - turn key except for aircond, side and rear landscaping. the value of them currently is not much more, judging by comparable sales.
 
I think I'd rather buy something brand new rather than h & l package. H & l sounds too stressful. Do you find it stressful? I'd have to look into what's involved in the process.

Do you think a brand new $400 k ip in Mandurah or Wellard could be close to neutral with the depreciation benefits? I should be able to afford a $400 k loan living with mum & dad right now. Ip has to be close to neutral though as when I move out I need to be able to afford to hold it.


What are small cottage lots, & how come there's a good chance of better returns? Thanks

You would also need to consider holding costs for perhaps as long as 12 months during the building process.

Building land and house packages is a walk in the park in Perth, we are spoilt for choice and it really comes down to doing your homework its a numbers game. I know investors in Syd and Brissy who are currently building and it can be a nightmare, not sure why but they seem to get hammered with variations from what I have been told. I can not even get someone to quote a job, :eek: that's right its boom... forgot

I always signed a fixed contract with builder, never had a problem whatsoever. I was helping a guy in Syd last Perth boom he came over at the end of each build and pretty much a dream run, except at this time it took 18 months to build one home due to the demand.

I was using Ventura and Celebrations, very competitive. However, there are cheaper builders you could use and just spec up which is what Sash is doing. There is really nothing difficult about the process, in fact the worst for me was picking the colours etc though there was an interior designer that helps with this, but what I found is you just get better at it and you work out a formula that works.

If interested start looking at land, don't buy land and house packages, buy the land yourself and then select the spec builder, this way you control the process and get the best possible deal.

Work out what the end value is of the selected area and what the actual sales figures are today, this is the only way to determine whether its a goer or not. So if build is $400K and sales figures, comparing apples with apples, same size house/block, similar location is 15-20% more then perhaps its time to consider this area.

I would be search all areas and would target the area that stacks up, greater profit so you can access the equity.

Cheapest block in Wellard, a tad on the small side
http://www.realestate.com.au/property-residential+land-wa-wellard-200771147
 
MTR....you are spot on....Perth builders and quality is light years ahead of Sydney and Brisbane.

Sydney builders are lazy at best.....the stuff I am building in Perth 3x2x2 aobut 170-180 sqm is costing me 175-178k fully complete. Would never happen in Sydney.

Saw your land ..I bought a 264 sqm block for 140k...144k for 203 sqm block wow!

You would also need to consider holding costs for perhaps as long as 12 months during the building process.

Building land and house packages is a walk in the park in Perth, we are spoilt for choice and it really comes down to doing your homework its a numbers game. I know investors in Syd and Brissy who are currently building and it can be a nightmare, not sure why but they seem to get hammered with variations from what I have been told. I can not even get someone to quote a job, :eek: that's right its boom... forgot

I always signed a fixed contract with builder, never had a problem whatsoever. I was helping a guy in Syd last Perth boom he came over at the end of each build and pretty much a dream run, except at this time it took 18 months to build one home due to the demand.

I was using Ventura and Celebrations, very competitive. However, there are cheaper builders you could use and just spec up which is what Sash is doing. There is really nothing difficult about the process, in fact the worst for me was picking the colours etc though there was an interior designer that helps with this, but what I found is you just get better at it and you work out a formula that works.

If interested start looking at land, don't buy land and house packages, buy the land yourself and then select the spec builder, this way you control the process and get the best possible deal.

Work out what the end value is of the selected area and what the actual sales figures are today, this is the only way to determine whether its a goer or not. So if build is $400K and sales figures, comparing apples with apples, same size house/block, similar location is 15-20% more then perhaps its time to consider this area.

I would be search all areas and would target the area that stacks up, greater profit so you can access the equity.

Cheapest block in Wellard, a tad on the small side
http://www.realestate.com.au/property-residential+land-wa-wellard-200771147
 
MTR....you are spot on....Perth builders and quality is light years ahead of Sydney and Brisbane.
I am building in Perth 3x2x2 aobut 170-180 sqm is costing me 175-178k fully complete.

hi sash,

would you confirm the 180sqm is including or excluding the garage?
and is the price full turnkey inclusive of floor coverings, window treatments, painting, tiling and air-cons?
who do you use for the builder?

TIA
Jerry
 
The house I am building in Wellard is $174.8k fully complete. Actual house cost is $169.8k. I have $5k in loan to cover the following - living area flooring $2k, antenna/clothes line $650, landscaping $1500 (very small area), blinds $1k.

As for turnkey it is except for provisions above. I only tiled the wet areas, bedrooms have carpets included by builder and have gone with vinyl wood look tiles for living areas/thoroughfare. Painting is included in builders contract. 10 vent ducted evaporative cooling included in contract. I have found a few blind places which does it cheaper than builder.

Builder is Collier Homes.

The house compromises 3 bedrooms, 2 bathrooms (1 ensuite), alfresco (11 sqm), and storeroom off garage (5 sqm).

The floor area is as follows:

Living area: 119.5
Storeroom : 5 sqm
Garage: 39.5 sqm
Alfresco: 11 sqm
Porch: 2 sqm

hi sash,

would you confirm the 180sqm is including or excluding the garage?
and is the price full turnkey inclusive of floor coverings, window treatments, painting, tiling and air-cons?
who do you use for the builder?

TIA
Jerry
 
hi Sash

thanks for sharing the info much appreciated. did you go with a land & house deal or did you buy the land then approach a builder?

is the former a better approach in saving on stamp duty?
 
How reliable are these turnkey packages? Is it better to organise all the finishings after handover, or more efficient to just get the builder to do it? What is the final quality like, as I would expect the builder to focus on just pumping out mass-produced units rather than providing quality to each.
 
The more I think about it the more I realise my personality wouldn't be suited to doing a h & l. It's a long drawn out process & I don't think my nerves would handle it. There is also the long period of holding costs, the risk that the area might not go up in value. Anyway at least I now know. I have to play to my strengths & weaknesses. Thanks for your help anyway.

What if I were to buy a brand new house in Wellard or North mandurah that someone has just built. Granted I would not make any equity growth once its built but would I be able to achieve close to neutral? How ng would it be? Is this worth pursuing as a 2nd alternative? :). Thanks
 
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