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
Personally i thinj things are changing and there will be some good buying soon re units. I expect to see prices drop for subdividable lots as they've grown too much and margins are terrible.
Re units they've already started to drop and I can see some developers having to drop further just to get out of a project. Eg city of Belmont new 2x2s in small blockd will probably drop tp 400k and maybe a touch lower and that's pretty good buying imo. Admittedly I don't follow that market a hell of a lot though.
I would stay away from a good number of large blocks atm.
