where is the bargains in Perth

[Magnum9]

So, reviving an old thread for the new year, first post for me.

I am looking for my first IP, due to location and familiarity in or around Heathridge. I have also recently been considering Quinns Rocks. Budget is under 400k. The way rents are at the moment it would be possible to come close to neutral.

Our PPOR is worth around 660k, with a LOC with a 398k limit, currently with a balance of 298k. Combined income of 150k. Would I be better off pulling out some of the equity as a deposit and get a standalone loan for the IP or finance the total using PPOR as security?

I don't have a strategy as yet, just want to get started, although I would be looking for CG over ten years then potentially selling to pay off PPOR early. This may change once I get my feet wet.

 

[jaycee]

So, reviving an old thread for the new year, first post for me.

I am looking for my first IP, due to location and familiarity in or around Heathridge. I have also recently been considering Quinns Rocks. Budget is under 400k. The way rents are at the moment it would be possible to come close to neutral.

Our PPOR is worth around 660k, with a LOC with a 398k limit, currently with a balance of 298k. Combined income of 150k. Would I be better off pulling out some of the equity as a deposit and get a standalone loan for the IP or finance the total using PPOR as security?

I don't have a strategy as yet, just want to get started, although I would be looking for CG over ten years then potentially selling to pay off PPOR early. This may change once I get my feet wet.

The first option

This way you do not cross collateralise your properties & loans.

 

[Kent Cliffe]

Rents are crazy at the moment with a Perth wide vacancy of about 2.3%. Yes it is possible to come close to positive geared but at the same time you don't want to be buy in a sub prime area for the rental yield.

With many of my clients I have still be sticking to some suburbs inner city (within 10ks of the CBD) and looking at properties with small cosmetic renovations to bump up rents. In this market people will rent anything but for something nice they will pay a lot more.

 

[tropic]

You can also look into Craigie for houses < 400k.
4 Km from the beach, next to the railway and freeway.

 

[Magnum9]

Yeah I was looking at either Craigie or Heathridge. The quality is not as good in Craigie plus it is older. They are both the same distance from the beach but Heathridge is closer to Joondalup.

Just looking at an apartment in Subiaco, $419k for $500 a week rent.

 

[Ausprop]

I like a comment that I think I read from Hegney yesterday - buy a property, don't buy the market.