Paradise comes at a price in Cottesloe
With surf, sand and a sunset into the sea, Cottesloe is a slice of paradise, but it comes at a price.
Property Wizards Managing Director, Elizabeth Sterzel, contributed to API Magazine’s profile on Cottesloe in their November 2014 issue. Read some highlights below, and pick up API Magazine to get the complete picture.
What sort of homebuyers are attracted to Cottesloe and what sorts of property do they buy? Why do they like it?
Cottesloe Beach is consistently named one of the best beaches in Australia, and the café culture that has sprung up along the foreshore has created a mecca for tourists and locals alike.
Beachside living is a popular goal for almost every Australian, and with a median price of $1.7million, Cottesloe is very attractive to homebuyers who are willing and able to pay for the privilege of living near the most recognisable beach in Perth.
Additionally, Cottesloe benefits by being only 12km from the Perth CBD, with easy access to the city via Stirling Highway or train.
Are there options for investors in Cottesloe? If so, what sort of property and what’s the price point?
The biggest obstacle for investors looking towards Cottesloe is the price point. Cottesloe will have opportunities, but these opportunities are geared towards investors with deep pockets and a high tolerance for risk.
The most common opportunity available in Cottesloe is buying an existing older house on its own block; these properties will be priced around the median of $1.7m. There is some scope to add value to these with renovations, however rental yield is likely to be low. This is not generally a strategy that would fit most investors’ goals.
Another readily available option is to purchase one of the apartments available around the foreshore precinct. These apartments can be priced anywhere upwards of $500,000, making them a more accessible option to most investors. However, there are risks inherent in these properties, which have little land value and can be subject to seasonal fluctuations in rent and vacancies.
Investors would get the most value if they were able to find one of the very rare subdividable lots, or an existing group of villas or units with the potential to be redeveloped, however these most desirable options are out of reach of most investors. These properties are tightly held, and an investor looking to take advantage would need a high budget.
To get the full picture on the suburb of Cottesloe, read the November 2014 issue of API Magazine or visit our Media Page.
If you have an interest in building your wealth through property, then call us on (08) 9381-7450, or request a FREE Starter Pack.