Where to buy next IP in Perth WA

Hi Guys,

I have been following numerous threads and have come across some very experienced and knowledgeable people on the forums, so thanks for sharing! :)

Me and my partner are looking to buy an investment in Perth but with what the market is doing, we are unsure what areas we should be focusing on...? Max spend we are looking at is $400k as we don't want to overstretch.

Were trying to employ Nathan B's philosophy, Under Val, Pos Cashflow, Cap growth. But to find these sort of properties are quite tough here in Perth... I'm reluctant to spend $10k and use a BA so were trying to put some time out researching and talking to people and do the work ourselves.

So some ideas on where to look next and some thoughts from the experienced ones will be great!

Look forward to responses.
 
Nathan B operates in markets that are very different stage of the cycle than Perth is. You can't apply that here, now. You may have been able to a few years ago.

If you want to operate that way, you have to find towns that are ripe for that, not make Perth fit to it. It doesn't work that way around.
 
I think its hard but not impossible to adopt that sort of strategy to buying in Perth. My own buying criteria is something similar (but not exactly the same) to Nathan's 3 points you listed.

You just have to be prepared to sift through a lot of crap. Personally I regularly go through thousands of listings, to give you an example.

Its especially hard in this current market in Perth. I had a lot more opportunities back in 2011/2012.
 
Dt reply

Hi DT, thanks for your advice...... what tools apart from realestate and reiwa are you using to keep a look out for property deals and what is your strategy?.
 
That bum & hd ace reply

:)
What areas are on your radar that would suit this strategy atm?
Yes that's the issue I am finding, I have looked through a good few hundred listings but its hard to establish if it ticks those boxes for me. I have looked in areas South such as Hamilton Hill, Spearwood.... and North...... Clarkson, Butler, Doubleview. I'm unsure if the "stellar deals" even hit these websites as the mass investors like Nathan B have access to them before we even get a look. That's why I have been quite interested in using his services.... but just don't want to get stung with a bad deal. Where are you looking and as you probably know the investors market better then I do, what strategy have you employed in today's market?. Look forward to your reply :)
 
Replied above

I think its hard but not impossible to adopt that sort of strategy to buying in Perth. My own buying criteria is something similar (but not exactly the same) to Nathan's 3 points you listed.

You just have to be prepared to sift through a lot of crap. Personally I regularly go through thousands of listings, to give you an example.

Its especially hard in this current market in Perth. I had a lot more opportunities back in 2011/2012.

What areas are on your radar that would suit this strategy atm?

Just replied above mate.
 
Hi DT, thanks for your advice...... what tools apart from realestate and reiwa are you using to keep a look out for property deals and what is your strategy?.

My criteria is pretty similar to what you wrote in your original post. I spent a year sifting thru crap in WA trying to find something that matched and gave up - plenty of opportunities in adelaide, brisbane and country nsw. Ive had houses in each under offer at one time or another but end up settling for a few in adelaide.
 
Options

My criteria is pretty similar to what you wrote in your original post. I spent a year sifting thru crap in WA trying to find something that matched and gave up - plenty of opportunities in adelaide, brisbane and country nsw. Ive had houses in each under offer at one time or another but end up settling for a few in adelaide.

OK, that makes sense then as that was the next thing I was considering to start looking at, but again as I dont know the areas well in Adelaide I have been reluctant which is why I was considering a reputable company like Binvested.

How do you manage your properties in different states?

Whats your opinion on using a BA like them? I had a MAP session with them about a year ago which I found interesting but it was just a chat with a few ideas thrown around... but gave me some good things to think about.
 
Actually I think most of the good deals actually do hit general advertising, but you just have to move very quickly for them. There are some occasional off market deals obviously, but I haven't relied on them for my strategy at all.

I actually check the listings every single day for the areas I am targeting.
 
:)
Yes that's the issue I am finding, I have looked through a good few hundred listings but its hard to establish if it ticks those boxes for me. I have looked in areas South such as Hamilton Hill, Spearwood.... and North...... Clarkson, Butler, Doubleview. I'm unsure if the "stellar deals" even hit these websites as the mass investors like Nathan B have access to them before we even get a look. That's why I have been quite interested in using his services.... but just don't want to get stung with a bad deal. Where are you looking and as you probably know the investors market better then I do, what strategy have you employed in today's market?. Look forward to your reply :)

Sometimes its an old listing that someone will accept a cheeky offer on, sometimes it's a listing that doesn't mention some potential (ie zoning), sometimes it's recognising a listing that has the potential to carve off another block and sometimes it's an out of area agent who doesn't know the value of a block.
 
:)
Yes that's the issue I am finding, I have looked through a good few hundred listings but its hard to establish if it ticks those boxes for me. I have looked in areas South such as Hamilton Hill, Spearwood.... and North...... Clarkson, Butler, Doubleview. I'm unsure if the "stellar deals" even hit these websites as the mass investors like Nathan B have access to them before we even get a look. That's why I have been quite interested in using his services.... but just don't want to get stung with a bad deal. Where are you looking and as you probably know the investors market better then I do, what strategy have you employed in today's market?. Look forward to your reply :)

Mine is just a simple value add strategy. Targeting >15km to the city or a major hub. I call it the 3R strategy.

*Retain
*Renovate
*Redevelop.

Usually an out of area agent, or one that has no clue on the zoning etc has the best pofential for a good deal and for the numbers to look workable.
 
The current flavour for perth is re-zoning and re-development areas. That means land component. Any houses sitting on >600m2 will have potential for cap growth. The apartment/units markets are in a slump as we are seeing some oversupply in Perth. What does this means?

1) A big risk if your investment strategy depends on Units cap growth in the short term
2) 400k will not be able to buy any decent place with good land component (perhaps south lake? even coolbelup has risen past 500k. Dont think you can get anything north of the river at that price)
3) these properties will have low yield (thus contradict your criteria)

It seems at the current perth market, you need a decent chunk of money to make money.

However, there is always exceptions, so if you do find a good deal, please share your experience :D;)
 
Hi Guys,

I have been following numerous threads and have come across some very experienced and knowledgeable people on the forums, so thanks for sharing! :)

Me and my partner are looking to buy an investment in Perth but with what the market is doing, we are unsure what areas we should be focusing on...? Max spend we are looking at is $400k as we don't want to overstretch.

Were trying to employ Nathan B's philosophy, Under Val, Pos Cashflow, Cap growth. But to find these sort of properties are quite tough here in Perth... I'm reluctant to spend $10k and use a BA so were trying to put some time out researching and talking to people and do the work ourselves.

So some ideas on where to look next and some thoughts from the experienced ones will be great!

Look forward to responses.

Nathan type IP areas, research & set your alerts for Medina, Orelia, Parmelia, Calista, Kwinana, Leda.
 
How do you manage your properties in different states?

You dont...that's what property managers are for.

You manage the property managers instead.

Its about leveraging others people's time as well as money, which frees up your time to work on building your portfolio instead of working in it.
 
I was looking at a development site in Parmelia. Could build 2 on the land. However trying to email the REA was very difficult .
 
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