The cheapest Perth suburbs - Highest Yields

[Alex P Keaton]

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, 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

Good news is I can afford the holding costs whilst living here at mum and dads. So if I were to do this I'd need to do this early in 2014 and have the house completed by the time i move out back to my ppor mid 2015.

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.

By spec builder do you mean a special builder where you have to do a lot of customisation and added work and research, or did you mean spec as in specific builder. I'm a little confused on what you meant here.

Is it still possible though to get a reasonable deal if I buy H & L and go for one of reputable builders. I think this would be simpler for me and less work.

Building land and house packages is a walk in the park in Perth, we are spoilt for choice

Would you be able to expand on this please? thanks Do you mean spoilt for choice in the large amount of good builders out there with good deals going ?

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, that's right its boom... forgot

All this talk is new to me. By variations what exactly do you mean? Do you mean lots of various different quotes being offered?

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,

Care to elaborate more on this please. I have a lot to learn

 

[westminster]

Most builder will offer a service for those who don't want to undertake the nitty gritty of choosing tiles etc and will either choose for you or show you a few colour sets ( carpet, tiles, benches) which are already coordinated and you can choose easily from that.

I like choosing colours etc but I also employ the tactic of choosing from a reduced set so that I don't get overwhelmed by it. I don't have time to go to tile shops etc so I choose from a selection at my builders office.

 

[sash]

I typically buy the land and then select builder.

The stamp duty is the same. But when you select the builder you can get a better return.

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?

 

[sash]

If don't put in the hard yards for a H&L you are buying retail. Potentially a profit of 50-80k forgone.

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

 

[woodridge]

If don't put in the hard yards for a H&L you are buying retail. Potentially a profit of 50-80k forgone.

In Alkimos at the moment there is a cottage block available at around 190k and a house can be built for 145k, with another 10k for finishing touches (paint, air cond, soakwells). I have been trying to investigate this, it seems itd be a total cost of around 345k and it would rent for around 420/week (6.3% yield).

Judging by whats on the market/sold recently itd prob sell for around 400k if it were on the market today , so its only a 15% increase in equity at the end.

It can only have a single garage - so what does everyone reckon - single garage on a 300sqm block (3x2) in a new estate, is it a killer of value and yield? (cos most have double).

Think something similar in looks (from the front) to this:
http://www.realestate.com.au/property-house-wa-alkimos-411719627

 

[D.T.]

In Alkimos at the moment there is a cottage block available at around 190k and a house can be built for 145k, with another 10k for finishing touches (paint, air cond, soakwells). I have been trying to investigate this, it seems itd be a total cost of around 345k and it would rent for around 420/week (6.3% yield).

Judging by whats on the market/sold recently itd prob sell for around 400k if it were on the market today , so its only a 15% increase in equity at the end.

It can only have a single garage - so what does everyone reckon - single garage on a 300sqm block (3x2) in a new estate, is it a killer of value and yield? (cos most have double).

Think something similar in looks (from the front) to this:
http://www.realestate.com.au/property-house-wa-alkimos-411719627

My block is 300 and i have double garage - why cant that one have one?

 

[woodridge]

Its a development covenenant or whatever its called. I think its because its a 10metre frontage and they said garage cant be more than 40% of the frontage to preserve the look of the place.
So theres about 5 houses in a row on that street which this applies to.


Edit: Just realised 40% would be 4 metres which is around a double garage? so im not sure.

 

[woodridge]

Here we go, "garage doors on single storey dwellings on lots less than 10m shall not exceed 3m" (if 2 doors its treated as 1 door so no getting around it that way )

 

[westminster]

In Alkimos at the moment there is a cottage block available at around 190k and a house can be built for 145k, with another 10k for finishing touches (paint, air cond, soakwells). I have been trying to investigate this, it seems itd be a total cost of around 345k and it would rent for around 420/week (6.3% yield).

Judging by whats on the market/sold recently itd prob sell for around 400k if it were on the market today , so its only a 15% increase in equity at the end.

It can only have a single garage - so what does everyone reckon - single garage on a 300sqm block (3x2) in a new estate, is it a killer of value and yield? (cos most have double).

Think something similar in looks (from the front) to this:
http://www.realestate.com.au/property-house-wa-alkimos-411719627

$145k plus $10k seems pretty low. Who is that with?

 

[HD_ACE]

Do people really pay 420pw to live all the way up there?

Cheers

 

[woodridge]

That is with home buyers centre and collier is about 8000 more with alfresco.

 

[Jake D]

In Alkimos at the moment there is a cottage block available at around 190k and a house can be built for 145k, with another 10k for finishing touches (paint, air cond, soakwells). I have been trying to investigate this, it seems itd be a total cost of around 345k and it would rent for around 420/week (6.3% yield).

Judging by whats on the market/sold recently itd prob sell for around 400k if it were on the market today , so its only a 15% increase in equity at the end.

It can only have a single garage - so what does everyone reckon - single garage on a 300sqm block (3x2) in a new estate, is it a killer of value and yield? (cos most have double).

Think something similar in looks (from the front) to this:
http://www.realestate.com.au/property-house-wa-alkimos-411719627

You should buy this instead.
http://www.realestate.com.au/property-house-wa-clarkson-115774603

Do people really pay 420pw to live all the way up there?

Cheers

Yes, but not in 3 bedroom, 1 garage boxes on 300 sqm cottage blocks.

 

[woodridge]

Actually there are plenty of 300sqm blocks with rent over 400/week - but double garage.

Yeah that looks alright, Dewar Mews, but backs directly onto a busy street with only a timber fence, there are a lot of hoon drivers in the area to worry about.

 

[Jake D]

Some time late last year there was giant speed humps installed all along victorsen parade, There's one directly behind the boundary of 7 & 9.

 

[Jake D]

Actually there are plenty of 300sqm blocks with rent over 400/week - but double garage.

 

[woodridge]

Some time late last year there was giant speed humps installed all along victorsen parade, There's one directly behind the boundary of 7 & 9.

thanks, did not realise.

 

[woodridge]

Heres some thats listed currently. These in butler are all about 10 p/w more still.

http://www.realestate.com.au/property-house-wa-alkimos-407634153 $405
http://www.realestate.com.au/property-house-wa-alkimos-412119115 $450
http://www.realestate.com.au/property-house-wa-alkimos-412004883 $400 (2 bed, more like 220 sqm)
http://www.realestate.com.au/property-house-wa-alkimos-412004459 $430
http://www.realestate.com.au/property-house-wa-alkimos-410509819 $410 (more like 220 sqm)
http://www.realestate.com.au/property-house-wa-alkimos-411875631 $400

I know youll say they might not reach that rent but I think most are reaching it. The only one ive seen discounted is the single garage one (on a 220sqm block) which was listed at 400 and got rented at 380 p/w in the end.

 

[sash]

Do people really pay 420pw to live all the way up there?
Yes...people will $420 and more....you should take a drive sometime..after all you live in Perth...... The reason is because a lot of British expats with money love it there....and also lots of FIFO.


Cheers

Would definitely choose Collier over HB....much better product....

That is with home buyers centre and collier is about 8000 more with alfresco.

 

[D.T.]

Prob get 6% yield on the place I'm currently looking at. That's better than most here these days lol

 

[Aaron Sice]

Here we go, "garage doors on single storey dwellings on lots less than 10m shall not exceed 3m" (if 2 doors its treated as 1 door so no getting around it that way )

But 10m isnt "less than 10m".

I do double garages on 10m front loaders as per the R Codes every day of the week.