BE SELECTIVE FOR A WINNING BUY IN ROCKINGHAM

13th February 2007

When it comes to Rockingham, property experts say selective buying is the way to pick and choose your way to a solid performer.

Property Wizards Buyers' Agency's Liz Sterzel said Rockingham had experienced a surge in land and property growth in the past year, but warned not every property bought now would turn to gold.

"Much of the property growth in Rockingham has been driven by a very healthy increase in land value and even though it's in the tail end of a rapid growth spurt, there are still solid opportunities offering steady growth," she said.

"But successful investment will now depend on selective buying; investors willing to sort through all the properties on the market to find those with the best potential are most likely to come out with a winner.

Ms Sterzel said older-style homes on good size blocks, close to amenities and lifestyle benefits, would be solid performers in Rockingham, making them ideal for investors.

REIWA figures reveal the median house price in Rockingham in the year ending September 2006 was $350,550.

Property Wizards Buyers' Agency says the current median asking price of all houses on the Rockingham market is around $430,000 - a typical older style, three bedroom, one bathroom duplex a few blocks away from the beach.

But Ms Sterzel warned the prices in the area could be deceptive and advised investors to dig a little deeper to gain a clearer profile on each property.

"Investors should take care, because a lot of properties in the area could be over-priced and may have been on the market for a long time - if you choose an over-priced property you could wait a long time before your investment starts to perform well," she said.

"All that's needed to avoid over-pricing in any area is good research, and there are still many properties in Rockingham that can be picked up for the right price.

"Homes can still be found in the low $300,000's, and the right one could become a solid, long-term performer."

Ms Sterzel said the construction of the Perth to Mandurah rail line was also contributing to strong growth levels in Rockingham as it offered residents many lifestyle benefits.

"After the rail line is opened, which is now tipped for July, it's likely we'll see a steady demand for homes that are close to the new rail service and other lifestyle attractions," she said.

"The new rail line means traveling time from Rockingham to Perth will be just 33 minutes, which means people can easily live and enjoy lifestyle benefits of the southern coast and still work in the city."

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