Deals and Don’ts – Woodvale, Leederville, Belmont
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: $581,000
Purchase date: May 2017
Block size: 729sqm
Specification: 4 bedroom, 2 bathroom, single garage, below ground pool, built in 1979, zoned R20/60.
Deal: This green-title property represents a deal because its split zoning means it has good development potential, and it is located just 500m to Whitfords train station. The property is also highly presentable with a good fit-out, meaning that it’s highly rentable and would attract quality tenants.
Purchase price: $776,800
Purchase date: June 2017
Block size: 243sqm
Specification: 4 bedroom, 2 bathroom townhouse, built in 2002, high specification finish.
Deal: This townhouse on a strata lot represents a deal because of its location and specification. Tucked away in a quiet street of a blue-chip suburb, it is situated within 3km of the CBD, 100m to the vibrant Leederville café strips and 600m from Leederville train station. The high-quality build, which features 3 living spaces, means the property should be easily leased at a yield close to 4%.
Purchase price: $491,000
Purchase date: May 2017
Block size: 713sqm
Specification: 3 bedroom, 1 bathroom, single garage, below ground pool, built in 1974, zoned R20/50/100.
Deal: This green-title property represents a deal because of its significant development potential. Located within 7km of the Perth CBD and within 2km of the Swan River, the property has good growth drivers for the future as well. Over 90% of the value exists in the land component yet the property is still in good rentable condition. It is also located within 500m of Belmont Forum Shopping Centre.
For sale price: $355,000
Block size: 680sqm
Specification: 3 bedroom, 1 bathroom house built in 1987, zoned R17.5.
Don’t: This property doesn’t represent a good investment because it’s located on a busy road (Forest Lakes Drive), which is a high frequency route for public transport buses. Although good for overall amenity, the bus and car traffic would frequently disrupt the property with noise and traffic pollution, restricting demand from tenants and buyers, and lowering its overall capital growth potential.