Deals and Don’ts – Bassendean, South Perth, Greenwood
Here we take a look at just some of the different properties on the market and explain why they’re either deals (that represent a good investment) or don’ts (that should be carefully avoided by investors).
Purchase price: $530,000
Purchase date: August 2017
Block size: 878sqm corner block
Specification: 3 bedroom, 1 bathroom, lock up carport, built in 1971, zoned R20.
Deal: This property represents a good deal because of its corner block location. Under the Bassendean local planning scheme, corner blocks receive a density bonus, increasing this property’s zoning from R20 to R25 and giving it good development potential. Approximately 90% of its value exists in the land component yet the property is still in good rentable condition.
Purchase price: $677,500
Purchase date: April 2017
Block size: 227sqm
Specification: 3 bedroom, 2 bathroom, double garage, built in 1993, zoned R25/40.
Deal: This street-front townhouse in a small complex of three represents a deal because of its excellent location. Tucked away in a desirable pocket of a blue chip suburb, it is situated within 3km of the Perth CBD, and within walking distance to the South Perth foreshore and café strip. The townhouse is in good condition and will be easily leased at a yield close to 4%.
Purchase price: $538,000
Purchase date: July 2017
Block size: 689sqm
Specification: 4 bedroom, 2 bathroom, double car port, built in 1979, zoned R20/60
Deal: This green title home represents a deal because of its location within the suburb and its significant development potential. Situated in a quiet cul-de-sac the property is within 600m of the Greenwood Tran Station and just a short walk to a local park. Its zoning means the land can be developed into multiple lots in the future.
For sale price: Offers above $350,000
Block size: 716sqm
Specification: 4 bedroom, 1 bathroom, single garage, built in 1977, zoned R17.5
Don’t: This property doesn’t represent a good investment because it’s located on the busy Warton Road and would frequently be disrupted by noise and traffic pollution. The house is in original condition with no major improvements, so attracting quality tenants would be difficult. It has been on the market for over a year proving there is little demand from buyers.