South West WA

The Smartline Report – July Edition

The month in review: South West WA

By Herron Todd White
July 2015

Where would you park a lazy half million in the south west of Western Australia?

If you are looking for medium to long term capital growth in the region then a good option is along the coastal strip located on the northern side of Bussell Highway traversing the suburbs of Busselton, West Busselton, Broadwater and Abbey. This coastal strip is approximately 500 metres in width and runs for approximately 10 kilometres along Geographe Bay.

As the City of Busselton continues to grow at a strong rate this well located section of land will continue to grow in desirability and affluence, pushing the urban sprawl further away from the coast line. Consequently, this will result in good capital growth over the medium to long term as an increase in population will lead to stronger demand of a product that has limited scope to increase in supply. As such, this well positioned and limited coastal strip would represent a good option for a prospective purchaser looking to invest $500,000.

$500,000 is an entry point into this market and would secure a very basic residence with the vast majority of value being in the land. While the rental return of the investment would be weak, purchasing within this coastal strip would provide a strong opportunity for capital growth over the medium to long term.

Moving 50 kilometres north from the City of Busselton lands the prospective purchaser in Bunbury. Throughout South Bunbury and East Bunbury there have recently been some zoning changes which are encouraging higher development within these areas. 700 to 900 square metre properties which were previously single residential now have duplex or triplex potential. Property values are starting to gain momentum as these zoning changes are filtering through. Now would be a good opportunity to invest $500,000 for medium to long term capital growth.

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Please note that information in this publication is subject to change without notice. Smartline assumes no responsibility for any errors, omissions or mistakes in this document. © Smartline Home Loans P/L 1999 – 2015. Australian Credit Licence Number 385325

 

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DISCLAIMER: The information contained in this article is correct at the time of publishing and is subject to change. It is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, Smartline recommends that you consider whether it is appropriate for your circumstances. Smartline recommends that you seek independent legal, financial, and taxation advice before acting on any information in this article.