Perth Property

Reporter: Andrea Burns

Gavin Hegney says “our kids will be faced with paying 10 and 20 million dollars for their homes” Scott Watters says “it's not rocket science but it's not guess work either”

If you knew who was going to win the Grand Final..Or, say the Melbourne Cup...You'd put money on it, wouldn't you? After all, it could make you a fortune. But property, not punting is where the bucks are these days. Double, triple your money... buy well, live like a king. The real estate fairy tale is alive and well...Scott says “there's always a gem somewhere out there, you just have to do the research to find it” If you get it right.

“Every property decision is the same whether you're a trained expert or otherwise” Chairman of Hegney Property Advisers, Gavin Hegney says it's no gamble... the housing market might be booming, but picking the next big suburb comes down to logic, not luck. “With one informed decision, you can secure a home, you can secure a lifestyle and you can also ensure your retirement needs are taken care of, you can even have some money to play with, and that's the power of that one informed decision”

His logical choices soon, but first, do you remember what you were doing in January 1988? It was the bicentennial year - tall ships in Sydney Harbour... John Farnham named Australian of the year. Well, if you'd had around ninety thousand dollars back then - you could have bought a villa in Scarborough- or a house nearby- or this place in Marmion for just one hundred thousand. What are they worth now? We asked Scott Watters Marketing Director of Hegney Property Advisers, to crunch the numbers, those results also in a minute. First though, how to pick a suburb set to boom.

“I think it's a long way from luck a lot of people get a good performing property and almost look to the heavens and say thank you but it's a lot more than that it's research, it's knowing what drives the market, putting all those factors together will get you the result you're after” Scott says make a check list. The more ticks, the more likely the property will make you money, over time.

A high percentage land value - make sure the value of the property's in the land, not the building. Buying the worst house in the best street still makes good sense.

A coastal location - even if you don't go to the beach, people will pay a lot to live near it.

Development potential - what else could be done with the property to make it more valuable? Maybe subdividing?

What Infrastructure is nearby? Like shops, schools, sports clubs.

And access to transport is also key.

So how did our 1988 properties fare, long term? The villas gone from 90 000 in January 1988 to two-hundred-and-ninety thousand in June this year - six and a half per cent growth a year- not bad - but Scott's not thrilled. “The main deficiency is the lack of land content so for each of these villas you're looking at 130 plus square metres, the land appreciates and there hasn't been enough land appreciation here to drive growth”

Still in Scarborough - and if you'd bought this house instead with that 90-grand, if it went on the market in June this year, Hegney's estimate it could've sold for, for six hundred and fifty thousand dollars - an eleven point three per cent growth each year. “It's a triplex site so it has growth potential, similar distance from the coast but gee a massive difference in the value so making the right choice could mean making you a lot of money”

But an unassuming shack in Marmion was the best buy. Now Scott, I presume it's the ocean that makes that so valuable? Yeah it certainly gets a big tick in the coastal proximity box. Worth one hundred thousand dollars in 88, it sold at auction earlier this year for one-point-two-five - million dollars. That's an almost 15 per cent increase each year. The new owners' deposit was about what the sellers had paid for the property almost twenty years ago. “This has got great potential, it's a duplex site, over a thousand square metres of land here, so the value is in the land, the infrastructure around here is fantastic, great schools, cafes” and the beach at the end of your street. Gavin says “certainly the old location location location is alive and well” If you'd like to be making money, these experts say these are the suburbs that get their ticks.

Yanchep

Two Rocks

Clarkson

Quinns Rocks

Halls Head

Mandurah

Warnbro

Golden Bay

Spearwood

Hamilton Hill

Scott says “I don't think it's too late, property over long periods of time will always rise”

PerFor more information contact:

Hegney Property Group

08 9489 9489