Home' API Magazine : December 2014 Contents DECEMBER 2014 n APIMAGAZINE.COM.AU n 75
Smith Street Mall in 15 minutes. This is a relatively new
development and there aren’t too many units in the complex.
Also, the unit size is great compared to some of the new ones
nWHAT ARE ITS CONS AS AN INVESTMENT PROPERTY?
HB: Return is good, location close to the city is great. It’s
modern and in a great block that attracts great tenants, so
there are no obvious cons, but for future tenant searching, the
location so close to the mangroves could deter them. It’s not
something that would stop me from buying a property, but
you just need to keep it in mind when searching for tenants
that if they can source something very similar, away from the
mangroves, they may consider that first.
TP: It’s a ground floor unit, which may be of concern to some
regarding security. The street may also be considered very
congested and that could mean noise problems. Units of this
calibre do carry hefty body corporate fees too.
nHOW HAS THE MARKET BEEN PERFORMING IN THIS
SUBURB AND FOR THIS PROPERTY TYPE?
HB: The RELM (Real Estate Local Market analysis supplied by
REINT June quarter 2014) states there has been 33 apartments
sold in Stuart Park in the past quarter. The median price for a
unit was $550,000 with a 5.2 per cent decrease in the quarter,
but over the past 12 months it was a 10.3 per cent rise. So all
things look good for Stuart Park and apartment buying.
TP: Stuart Park continues to see continued demand from
investors. It caters to not only permanent tenants, but also
short-stay and corporate tenancies.
nWHAT IS THE MARKET OUTLOOK IN THIS SUBURB
AND FOR THIS PROPERTY TYPE?
HB: Currently there’s only one other apartment for sale in
Stuart Park in the $550,000 to $650,000 price range, which is
great news. It means they’re hard to come by.
TP: There’s continued development going on for land, but
unit and townhouse development sites are becoming scarce.
The market outlook still seems positive although there may be
some small hiccups along the way with initial oversupply. You
must be selective when buying.
nAT ITS PRICE POINT/RANGE, WOULD YOU LOOK TO
TALK TO THE AGENT OR WALK AWAY?
HB: Definitely talk. Stuart Park is a fantastic suburb. It has
a lot of mixed usage – commercial, units and houses, big
and small blocks. This brings with it diversity in buyers
TP: This property would be of interest, if secured at the right
price. Although returns have decreased of late, Darwin still
outperforms other capital cities. If I secured this property I’d
furnish it and set it up as a short-stay or corporate rental.
$640,000 - $670,000
Western Australia has been a solid market and coastal suburbs
ping loudly on the radar of desirable real estate. Scarborough
is a location that has a lot going for it according to many
experts. It’s accessible and picturesque. The chosen listing
provides for a two-bedroom, one-bathroom unit located
opposite the water and with attractive views from its balcony.
It has a modern finish and is located in a reasonably large
complex. No rental estimate was supplied in the listing.
nWHAT WOULD BE THE APPROXIMATE RENTAL
RETURN PER WEEK?
LS: Scarborough’s broad range of rental options, from luxury
beachfront apartments to older, rundown units, means there’s
plenty of competition among rental properties in the area and
a wide range in the potential rents. Over the last financial year,
apartments and units in Scarborough attracted a median rent
of $450 per week, only slightly higher than the $445 the Perth
metropolitan area attracted overall, according to the Real Estate
Institute of Western Australia (REIWA). This apartment has the
benefit of being centrally located on Scarborough’s foreshore,
which will increase its potential rent. Realestate.com.au shows
other two-bedroom, one-bathroom beachfront apartments are
currently available for rent from $550 per week to $675 per
week – a similar weekly rental rate achieved on this apartment
would result in a rental yield around 5 per cent.
RW: This property would suit short-term accommodation,
being beachfront on one of the best surfing beaches in the
Perth metro area. In peak season you could expect a very high
occupancy and would estimate $400 per night (gross) on the
short-term market. However, in off-peak this would drop to
$200 a night (gross), but lengthy vacancy periods are likely.
Alternatively the property could be rented out on a fixed lease
for around $650 per week (gross). If locking in a fixed lease, it
would be advisable to do so in the summer months.
nWHAT ARE ITS PROS AS AN INVESTMENT PROPERTY?
LS: The most critical advantage for this property is the
beachfront location, coupled with the proximity to the
Scarborough Beach Reserve and abundance of restaurants,
cafés and other entertainment venues in the area, which make
it highly desirable to tenants.
“Return is good, location close to the city is great. It’s
modern and in a great block that attracts great tenants,
so there are no obvious cons.”
Stuart Park, NT and Scarborough, WA n OPEN FOR INSPECTION
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