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Deals and Don’ts – November 2016

Tuesday, 1st Nov 2016
Categories: Market News, Newsletter

In this section 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).

Deals

Edgewater

Purchase price: $570,000
Purchase date: September 2016
Block size: 710sqm
Specification: 4 bedroom, 2 bathroom, 2 car bay house built in 1983, zoned R20/40.

Deal: This property represents a deal because of its close proximity to Edgewater train station, being just 800 metres away, in conjunction with its development potential. The property is also on a corner block and the large house is in a very rentable condition and features a pool.

Joondalup

Purchase price: $515,000
Purchase date: August 2016
Block size: 810sqm
Specification: 4 bedroom, 2 bathroom house built in 1990, zoned R20/60.

Deal: The property features a well-built 1990 brick and tile house, and although it remains in original condition it is well presented with good rental capabilities. The 165sqm house sits on a large block, which has significant development potential and is located just 375 metres from Currambine train station.

Kallaroo

Purchase price: $510,000
Purchase date: August 2016
Block size: 683sqm
Specification: 4 bedroom, 1 bathroom house built in 1972, zoned R20/40.

Deal: This property was purchased for a great price in a highly sought-after area that is close to the coast and Whitfords Shopping Centre.  It also offers significant development potential and the house is in good condition to rent, meaning little money would need to be outlaid by the owner for leasing. It also features a pool.

Don’ts

Bibra Lake

For sale price: $499,000
Specification: 3 bed, 1 bathroom house built in 1985, zoned R20 (draft R30).

Don’t: Although this property is located on a 700sqm corner lot and is a draft R30 zoning that could provide significant development potential, the major fault with this property is that it sits directly opposite land that has been earmarked for the Roe Highway extension, which forms part of the Perth Freight Link. This new piece of road infrastructure is likely to lead to increased traffic in the area, additional noise pollution and be an eyesore for nearby residents. This will likely be unappealing for future tenants or buyers, requiring discounting when leasing and restricting capital growth.