Umming and Aahing over where to build (WA)

[westminster]

I'm going around in circles at the moment trying to decide where to build a house and land package. I'm constrained to building due to stamp duty, I only want to pay stamp duty on the land, not the whole package as you would with established.
My budget is fairly tight at $350k finished and so I'm looking at a cottage block option. The advantages I see to building at the moment are the builders are throwing in some good freebies to get customers and the land people are also offering incentives as well.
Budget and packages means that I'm basically constrained to outer-outer suburbs like Bertram, Baldivis, Ellenbrook, Butler etc . I've narrowed it down to something like the Flutes terrace houses by HomeBuyers Centre which range from $300k in most of those areas for a 3 x 2 (rent is approx $330pw)
http://www.realestate.com.au/property-house-wa-baldivis-107530314?listingType=buy
or 4 x 2 for $350k (rent is approx $360 pw) like the one below
http://www.realestate.com.au/property-house-wa-baldivis-107530386?listingType=buy

I'm not going to be build and flip this will be a holding property for at least 5 years.

My other criteria is that is has to be high yield return, around 10%. This rules out many inner areas. Normally I don't mind a lower return but I have just demolished my IP in Westminster which I had for 4yrs and I'm building 3 x villas so I need to carry/support that until I can rent them out when they are finished in January.

Sooooooooo does anyone have any thoughts/opinions. Do you know any estates that have excellent incentives at the moment which fit my budget? Ideally it would be near some sort of train station (NOR or SOR) so that people can commute if they need to CBD.

 

[INVSTOR]

I'm not sure if you could do it in Eden Hill. It may be worth looking into? http://www.realestate.com.au/buy/in-eden+hill,+wa+6054/list-1 I'm not sure about 10% return

 

[boods99]

My other criteria is that is has to be high yield return, around 10%. This rules out many inner areas. This rules out the entire Perth metro area...

Sooooooooo does anyone have any thoughts/opinions. Do you know any estates that have excellent incentives at the moment which fit my budget? Ideally it would be near some sort of train station (NOR or SOR) so that people can commute if they need to CBD.

If you require a 10% yield, then you are going to have a hard time in the Perth metro area.

Try Port Hedland (or South Hedland)...it is (very)NOR and has a train line that goes all the way to Newman CBD. Resi is selling at between 10% and 11% gross.

15% is possible depending upon what sort of deposit you have...

Boods

 

[Doovalacky]

Can't make any suggestions about area but compare the homebuyers to others such as Content living. For 5k more I got a house that was 20m2 bigger and had better finishings.

 

[Belbo]

You're just trying to provoke BV again, aren't you Boods?

Duck and cover!!!

 

[jaycee]

Hmm..... do you ahve a rough estimate of your $ limits for building and for land ? perhaps start with the land budget in mind and working from there.


The exampes you've given, give you around a 5-6% yield

$350/wk for a $350k house is a 5.2% yield

Upwards of htat is what we all want.. I'dhae hoped you could build for cheaper than buying the same ready built, hence that could give you a bit more yield, but I've neer built...

Maybe some of those who have could answe,is that what someone should be looking for when building ?^^^^

 

[globaljat]

10 % return and with the kind of packages you spoke about ???? sounds impossible anywhere in perth metro

 

[westminster]

whoops that was a typo! My calcs were 6% and I have no idea why I wrote 10% oops!
So yes, I'd be happy with 5-7% lol!

Doovalacky - yes I'm exploring all builders.

Jaycee - in my experience it is cheaper to build than buy. Not just the stamp duty savings but good depreciation. There are bargains out there to be had in the established market but my requirements are pretty narrow.

So any thoughts on the southern areas like Baldivis, Bertram? Would you invest there for rental return?

 

[Ausprop]

check out Vasse... great yields, bargain prices, big potential

 

[gfreer]

Where to buy for 10% return

I'm going around in circles at the moment trying to decide where to build a house and land package. I'm constrained to building due to stamp duty, I only want to pay stamp duty on the land, not the whole package as you would with established.
My budget is fairly tight at $350k finished and so I'm looking at a cottage block option. The advantages I see to building at the moment are the builders are throwing in some good freebies to get customers and the land people are also offering incentives as well.
Budget and packages means that I'm basically constrained to outer-outer suburbs like Bertram, Baldivis, Ellenbrook, Butler etc . I've narrowed it down to something like the Flutes terrace houses by HomeBuyers Centre which range from $300k in most of those areas for a 3 x 2 (rent is approx $330pw)
http://www.realestate.com.au/property-house-wa-baldivis-107530314?listingType=buy
or 4 x 2 for $350k (rent is approx $360 pw) like the one below
http://www.realestate.com.au/property-house-wa-baldivis-107530386?listingType=buy

I'm not going to be build and flip this will be a holding property for at least 5 years.

My other criteria is that is has to be high yield return, around 10%. This rules out many inner areas. Normally I don't mind a lower return but I have just demolished my IP in Westminster which I had for 4yrs and I'm building 3 x villas so I need to carry/support that until I can rent them out when they are finished in January.

Sooooooooo does anyone have any thoughts/opinions. Do you know any estates that have excellent incentives at the moment which fit my budget? Ideally it would be near some sort of train station (NOR or SOR) so that people can commute if they need to CBD.

Why not look at eastern states with Homebuilder concessions for off-plan (stamp duty savings in VIC) under $600k in NSW (stamp duty savings until mid 2012) or QLD ($10k grant until 1.1.2012)