What is the Bidwill of Perth?

Gentle_Chief

Gentle_Chief

Hiya Guys,

Two weeks back we had asked our bank to do a revaluation on three of our IPs (two in QLD and the other in VIC) and they have come back with a good performance. As a result I am loking to draw about 90-100K in the short term for propshopping.

Thinking of Perth this time.
I have just about reached the Land Tax thresholds in NSW, VIC & QLD. So no go zones for my situation.

I am mainly looking at Value purchases. Like low 300s purchase & rent for high 300s. I guess that it is achievable?

Like in Bidwill, Shalvey of Western Sydney you can look at a house for 260-270s and get a rent for 360 pwk. Anyone cares to share a few words of wisdom here on Perth?!

GC.
 
Perth - land of low yields and sh_t tenants to boot.

those sorts of yields are achievable in landlocked suburbs. but there's a lot to rent in perth at the moment, so yields are low.

Bunbury has some good yields at the moment, along with Canarvon, Geraldton, Kalgoorlie and Albany.

The way i see it, is you need to target middle australia for higher yields. and regional middle australia is even better. why? not as many can afford a house due to income levels or their transient work natures, but they can afford to pay a little more rent. So look where housing affordability is lower and the rents are naturally higher.

nowehere is this scenario more prevalent than regional WA - values are skyrocketing and older existing stock only needs a cosmetic reno to bring the rent back up to your 5-6%. the time you spend dithering around repainting etc your yield just keeps growing.
 
Thanks Aaronsice for your reply.

As you said, the lower socio-economic area gives the better yields. This is well illustrated through a Normal distribution in Statistics (Bell shaped curve) where the Rents in a city range from lets say 300 to 1000 pwk. And house prices in the same city may range from 200K to 2 mill. So a 200K house returning a 300 pwk rent yileds 7% plus return, wheras a house worth 2 million will return only 1000 pwk in rent resulting in a 2.6% Yield.

Hence my Question - What is the Bidwill, Shalvey, Leithbridge Park, Whalan (western Syd) equivalent in Perth & surrounds.

P.S: Your web-site is quite good. My first time. BTW I have a development in draft stage in VIC. Would you be able to help?!
 
ahhhhh, I thought Skater will be here soon. Western Sydney is her stomping ground afterall!

Skater, were you the one who was buying up all the properties in the Dept of Housing Auction the other day at RootyHill RSL??!

I was gobsmacked with this guy, tall Russian looking well built bloke with an Asian chick, he was bidding and buying everything up. They had picked up 4 houses that night!
 
Gentle_Chief said:
This is well illustrated through a Normal distribution in Statistics (Bell shaped curve) where the Rents in a city range from lets say 300 to 1000 pwk. And house prices in the same city may range from 200K to 2 mill. So a 200K house returning a 300 pwk rent yileds 7% plus return, wheras a house worth 2 million will return only 1000 pwk in rent resulting in a 2.6% Yield.

Hence my Question - What is the Bidwill, Shalvey, Leithbridge Park, Whalan (western Syd) equivalent in Perth & surrounds.
Click to expand...

Gee GC if you could gross 7% over here there wouldn't be so many of us purchasing over east!

I was looking in Rockingham recently - seemed 5% yields were around. Watch out for vacancies and stalling prices though.

I'd be giving P town a few years yet.
 
hmmm

Try Maddington and Armadale but as mentioned high yields over here are often still lower than western suburbs of Sydney and PM fee rapage abounds.

If you'd asked a few years ago I would have said Balga/Nollamarra areas as well but they've had something of a spike lately (still crap but more expensive lower yielding crap atm).
 
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Have the highest Perth yields always been lower than the equivalent Bidwill/Shalvey/Willmot house in Sydney? Can someone paint a picture of Perth pre the last boom yield-wise?
 
Gentle_Chief said:
Skater, were you the one who was buying up all the properties in the Dept of Housing Auction the other day at RootyHill RSL??!

I was gobsmacked with this guy, tall Russian looking well built bloke with an Asian chick, he was bidding and buying everything up. They had picked up 4 houses that night!
Click to expand...

I'm a girl. :confused:

No, wasn't me. I wasn't even there. It was probably a buyers agent from either Property Secrets, The Chat Club or one of the others that abound. I prefer auctions where I have little competition. :D
 
Gentle_Chief said:
I was gobsmacked with this guy, tall Russian looking well built bloke with an Asian chick, he was bidding and buying everything up. They had picked up 4 houses that night!
Click to expand...

I'll have to let Svetlana know you think she is Asian. Well, technically we all are, but she is actually an Uzbek, with west Mongolian grandparents.
 
hegney reckons that the positioning of Per/Syd/Mel is back to where it was in 2004 in relative terms and that Perth is being set up for it's next boom phase. you may be looking for somehting like thornlie (rezoning) gosnells, kenwick, armadale, parmelia, maddington?
 
Dazz said:
I'll have to let Svetlana know you think she is Asian. Well, technically we all are, but she is actually an Uzbek, with west Mongolian grandparents.
Click to expand...

Svetlana :confused:

You seem to know them Dazz?!
They both took the front seat at the auction with their backs to all other bidders and did not even care to see who's who in the zoo - they just kept bidding up by 1000s each time till they got it. Made a pretty sight! The REA guys just loved this couple as they were crawling all over these two :D
 
Try 9.35% plus $50 per quarterly inspections, $5.00 per month for sundries, 2 weeks rent for new let, $75 for outgoing condition report.................and most of them are second rate.

Cheers.

Chris
 
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