WA - Where to buy for cap growth + reasonable rental

Hi,

I'm new to this forum and would appreciate any advice or opinions.

I got my 1st investment property (established house) during the boosted home owner grant period. Now it has enough equity to allow me to get full loan up to 450k.

I am planning to build a house (home+land package) as I thought it would give me more value after completion. I'm looking for options such as

Wellard (direct train station, parks/schools although there are public housings in 1 every 12 houses or so)
Baldivis (larger estate, seems to be hotspots (landgate) and almost everyone knows about this)
Hilbert (Sienna wood estate - Armadale shire, probably long term investment near roe highway , cheaper but rental income not as good)

How about wattle grove or forrestfield?

So basically, I can't seem to make a decision as I'm afraid of choosing the wrong suburb. I know Wellard and Baldivis median price has been declining over the past few years.

Any opinions would be great, including whether I should buy established or build new.

Thanks!
 
I would prefer to do house and land outside of an estate to reduce the risk of too much competition. High availability generally leads to less CG, less rent.

Look at vacant land anywhere 15km or less from CBD or along train lines.
 
Hi

I moved to North Orelia a year ago and it worked out well for me in terms of quick cg due to the kwinana marketplace getting ready which drove prices (15% for mine, based on recent kerbside by ANZ).

I would probably recommend some of the established houses in a cul de sac or similar. The reason being you get the same rental yield to reduce holding costs and far more land for your buck.

however, from here on these areas are long term plays IMHO. i would say 7-10 years. As has been said, there is just too much supply all around (aubin grove, Eden green, Wellard, niche living kwinana, ...) to drive too much cg soon.

So if you want to build your portfolio by relevering and you need cg in the next 3-5 years my recommendation would be to save a little while longer and look at something closer to the city.

My 2c.
 
Hi,

I'm new to this forum and would appreciate any advice or opinions.

I got my 1st investment property (established house) during the boosted home owner grant period. Now it has enough equity to allow me to get full loan up to 450k.

I am planning to build a house (home+land package) as I thought it would give me more value after completion. I'm looking for options such as

Wellard (direct train station, parks/schools although there are public housings in 1 every 12 houses or so)
Baldivis (larger estate, seems to be hotspots (landgate) and almost everyone knows about this)
Hilbert (Sienna wood estate - Armadale shire, probably long term investment near roe highway , cheaper but rental income not as good)

How about wattle grove or forrestfield?

So basically, I can't seem to make a decision as I'm afraid of choosing the wrong suburb. I know Wellard and Baldivis median price has been declining over the past few years.

Any opinions would be great, including whether I should buy established or build new.

Thanks!

Sienna wood is a partnership between stockland and housing commission. The site work costs are minimal and the land is cheap for a reason. IIRC, there are a couple of lease-back lots if you want to landbank with low-to-no holding costs for a year or two and then build. Also, Hilbert is like 1500 hectares of available land. me thinks too much supply.

Wattle Grove is a good one,if you can find a decent sale. Stock is low and demand seems to be high. Compared to that, I would buy in Cloverdale (if budget allows)

I struggled with the "house-and-land" vs "established" and finally went established + development potential.

With H&L, I've seen some relatively new estates that went from 0 to $200k+ CG in just 2 years (Harrisdale, Southern River comes to mind). Don't know if they'll sustain in the long run though.

If I've to go with H&L I would do what others have suggested, save up and buy inner-city or coastal perhaps?
 
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