PRIME 'ADD VALUE' HUNTING IN MANDURAH

8th November 2006

Mandurah provides prime hunting ground for investors searching for 'add value' properties in any market says Property Wizards Buyer's Agency.

Property Wizards managing director and buyers' agent Liz Sterzel said add value properties were those that had potential for increasing value through refurbishment, subdivision or other creative developments.

"Because of its progressive development, Mandurah is an ideal place to find add value properties - there's good rental demand, sub-division potential and strong growth drivers," she said.

"Many older homes in the Mandurah area have outstanding potential for renovation, sub-division or development to add value and maximise return on investment, but investors really have to know what they're looking for.

"Investors looking for add value buys need to make sure they have done their homework to avoid the duds - they need to know the area's potential and be very selective in their choices."

Ms Sterzel said looking for add value properties required a different approach to other buying, as well as a shift in thinking.

"The price and condition of add value properties varies immensely, and buyers should make sure they have expertise on their side to avoid paying too much," she said.

"An expert eye can also pluck out the properties with superior potential, often overlooked by less experienced buyers.

"The experience doesn't just stop at buying - best results often come when investors use professionals to refurbish or subdivide the property, which also saves themselves the hard work and elbow grease."

Ms Sterzel said add value and buy-and-hold strategies were well suited to the Mandurah area as it had strong, long-term growth drivers.

"Mandurah is really coming into its own with ongoing developments including the new railway line set to cut travel time into Perth city to just 48 minutes and the new marina which is boosting surrounding property values," she said.

"The council is upgrading many parts of the greater area and investments from private developers are lifting the standards of housing across the Mandurah region.

"A fast growing population means the demand for housing is ever increasing in Mandurah and it will be given a push over the next ten years as retirees and baby boomers head for the lifestyle benefits."

Ms Sterzel said recent 'add value' purchases in Mandurah revealed the area's real potential for maximising returns.

"We have recently found many winning opportunities in Mandurah for clients who have gone on to attract high returns because of improvements made to the property," she said.

"One property we secured for $432,500 underwent around $20,000 worth of refurbishments that included covering and painting bare brick walls, a new kitchen, revamping the ensuite and cleaning-up the garden.

"That property is now potentially worth $620,000 once subdivided - but the real value is expected to come from its superior capital growth."

Ms Sterzel said another client who had used the add value strategy successfully in the metro area had now targeted Mandurah for his next investment.

"The potential for these buys is ripe in Mandurah, so we snapped up a property on the market for $469,000 for a client who intends to renovate the home to increase its value and earn higher rental returns, then sell after he sub-divides the block," she said.

For more information, please contact
Mr Trevor Dunkley
Director
Property Wizards
trevor@propertywizards.com.au
Tel: (08) 9381 7450