Western Australia’s Not So Secret Booming Hotspot!

Armadale has seen extraordinary growth over the past year, but as investments into suburbs of Western Australia continue to become more mainstream, is it still a good time to jump into the market or has the ship sailed?

Suburb Details:

Properties in Armadale are flying off the market with houses being snapped up almost instantly as they reach the sites of Domain & Realestate. This is partly being driven by first time investors, buyers agents and the massive push of purchasing investment properties in WA by social & mainstream media. However, generally speaking when a suburb has hit mainstream media it usually means the suburb has passed its ideal window of purchasing. Yet poorly informed investors are following trends without assessing the micro and macro data factors required and purchasing properties in Armadale without doing thorough due-diligence.

But Armadale has shown significant growth in the past year, skyrocketing almost 20% according to SQM Research and there hasn’t been many signs of it slowing down. But with prices rapidly rising many investors have missed the boat with this suburb however there still maybe some off-market opportunities if you have the right connections.

Key Data Metrics

Location & Infrastructure

With Armadale being only being only 35 minutes to the City CBD by car and only 45 minutes by public transport its like buying an equivalent property in Strathfield in New South Wales. Large freeways, train station and frequent bus stops make travelling too and from Armadale quite easy and accessible. There are a variety of primary and secondary schools widely available within a 5km radius of most properties. And you know a suburb is well built up when there is Bunnings close by to your house! Apart from that Armadale has a large shopping centre containing variety of different outlets like Kmart, Coles Target & JB-HI-FI meaning all your basic needs are within a 10 minute radius making it a highly accessible area. In addition there are Cinemas, skate parks and other attractive perfect for a growing family in a quiet suburb. Note there is also an Airport about 10 minutes away which can be great for accessibility!

Other Key Factors

Armadale has quite a few infrastructure projects occurring and about to occur with a number of projects currently on tender. Building approvals still remain quite low indicating that there will be a continued short supply of properties throughout the city keep demand & rental prices high. With great liveability & accessibility Armadale should remain an ideal suburb for renters, owner-occupiers meaning prices will remain high for the foreseeable future but that does not necessarily mean prices will continue to still grow at the rate it has in the past 12 months. Days on market is quite low indicating competition is fierce with properties being snapped up within 48-72 hours with above market offers being thrown at agents; this is both a good and bad indicator.

Things To Note:

• Armadale train station is undergoing revamp with a construction of an elevated train station as part of Metronet’s major project.

• There are quite a few dud properties that are overvalued and require renovation and maintenance that may not be picked up upon initial look.

Example Property:

_{*Note: These calculations are purely estimations, but overall numbers will vary depending on your deposit, interest rates and other factors.}

Pro’s Of Investing In Armadale

• Large train station project.

• Increasing population, low building approvals and rising demand by renters = capital growth.

• Decent rental yield even with P&I.

Con’s Of Investing In Armadale

• Demand > Supply driving prices skyhigh at the moment.

• The ideal buying moment has passed. Prices will peak soon.

• Incredible social media attention and hype fuelling “FOMO”!

Who Am I?

I am not a buyer’s agent, property guru or anything, just an individual playing the property game just like everyone else. I have a passion for identifying high growth investment suburbs where they you purchase property for $450K, why $450K you ask? Because it means you can enter the market with about $45,000 (10% deposit + LMI & Stamp Duty) and begin to reap the rewards of capital growth.

Remember Past Performance Is Not An Indication Of Future Performance. Do Your Due Diligence!

_{Disclaimer: The information provided in this article is for educational and informational purposes only. It is not intended as financial, legal, or professional advice. Always do your own research and consult with a qualified professional before making any decisions. The opinions expressed here are solely those of the speaker and do not reflect the opinions or views of any other organization. By using this information, you agree that the creator of this content is not responsible for any financial or other losses you might incur.}