Research plan(session 21 researching an area)

Hi Tycho,

I didnt watch the webinar for session 21, I'm going to do all the webinars after I finish the course and 'jog' my memory on it all. I am doing the mod 3 RA's though, and RA 4 is the area expert one. RA 5 is then a follow on from there, which in my case has a lot more specific information e.g. population growth, unemployment, statistics from the ATO and ABS etc.

As you mentioned session 21, I'll put in the RA 4 assignment that I've submitted (yet to get feedback). Again, RA 5 is the one with the statistics.

Module 3 Research Assignment 4: Area Expert

Area chosen: Swanbourne, WA 6010 (my local).

The best street in the area is Marine Parade/Odern Crescent. These two streets are really one, they corner around a bend in Swanbourne’s Southwest, closest to the beach. Properties on this stretch have unobstructed views of the ocean, and depending on position, have views North up the beach, across Swanbourne Oval as well as West out over the beach and the Indian Ocean. Properties in this street are close to recreational facilities and parks, surf life saving clubs, cafes and restaurants. The closest public transport are buses that run along North Street, which is only a couple of hundred metres walk, and continue onto Claremont Train Station and eventually into the city (approximately a 20 min ride). Properties along this strip are almost all owner occupiers, with properties closer to the beach reaching a higher sale price - the highest sale price for FY 14/15 was $6.9 million (source REIWA). Swanbourne has a high suburb median value at $1.35 million, and is considered the 5th most expensive suburb in Perth. See photos attached - Marine Parade and Odern Crescent.

The worst area in Swanbourne would be along Servetus Street. This Street parallels West Coast Highway, and is also on the East side of the highway - that is the side furthest away from the beach and ocean. West Coast Highway runs North - South and cuts Swanbourne in half, properties further East are further away from the beach, and typically have a lesser value. Servetus Street (SS) has a high volume of traffic relative to the rest of Swanbourne, and also has the traffic noise from West Coast Highway (WCH), which effectively takes all traffic North-South along the coast. The bridge that crosses over WCH is Langoulant Road, and this joins into SS, taking all traffic from West Swanbourne to Swanbourne shops, Claremont Shopping Centre, Swanbourne Train Station and also any traffic East (typically connecting with Stirling Highway running East-West). SS to the South also has a traffic light intersection with WCH. It is not desireable to living near that intersection. Between WCH and SS, there is much traffic and a fair amount of noise along the long road that is SS. There is also a bus that runs along SS, and although it's great to have public transport close by, no one really wants a bus stop right out the front of their house - it's always better to be “just down the road”. Footpaths are cracked and in need of repair, cars routinely park on the verge and on the footpath, and very large trees hang precariously over fences and houses. See photos of Servetus Street attached.

Median house pricing trends
Currently - $1,350,000
One year ago - $1,560,000
Five years ago - $1,580,000
Ten years ago - $1,300,000

Swanbourne is a suburb that has a beach and ‘Western Suburbs’ feel about it. People are attracted to its proximity to the beach and ocean, its lifestyle, recreational activities and many parks and ovals. Cafes, restaurants, bars and bistros litter the beachfront, with Cottesloe Beach effectively being the institution of beach goers in Perth. Swanbourne is also on the doorstep of Fremantle, with good access to West Coast Highway and Stirling Highway, along with the Fremantle train line. This gives good rail and road access in all directions. Neighbouring suburbs, like Claremont and Cottesloe, enjoy a ‘trendy’ status, with coffee and plenty of shopping all the go. Claremont Quarter recently underwent a major redevelopment and now boasts a David Jones, Coles, Jacks, along with numerous restaurants, specialty stores, and ranges from middle class right up to high end shopping. Cottesloe also has a shopping centre including a Woolworths and Bunnings. There are many schools, including Scotch College, Methodist Ladies College, Christ Church Grammar School, Swanbourne Primary School, Mount Claremont Primary School, North Cottesloe Primary School and Presbyterian Ladies College all within 10 minutes drive of Swanbourne. Some of these schools are highly acclaimed and typically require students to reside within catchment areas. There are private and public hospitals close to Swanbourne, and the University of WA is about a 10 minute drive East along Stirling Highway. Swanbourne is also close to the Swan River, physically separated by only one or two small suburbs.

Swanbourne does have its setbacks. It is incredibly expensive in both terms of the cost of living as well as land; there are blocks of land for the best part of a million dollars that are about as far East as you can get in the suburb - so although ‘close’ to the beach by car the price is still very high considering its lack of proximity by foot. A pint of beer at the Ocean Beach Hotel won't give you change from a $10 note, and a coffee from the beachfront cafe will cost you $5 for a takeaway flat white. Current shopping centres don't cater for everyone - you won’t find a Best and Less for at least a 20 minute drive, as well as any household good stores for the average punter. IKEA is about 25 minutes away, along with other stores like the Good Guys and family specialty stores. There are also no cinemas in the area. There are no state high schools in the area, the closest is a 15 minute drive towards the city at Harvey Senior State High School. There is an average level of crime, mainly expected (burglary) due to the high value items expected in the 5th most expensive suburb in Perth. Swanbourne is also ‘shared’ among two councils - Nedlands and Claremont which makes things a little more complicated.

Tenants in Swanbourne are few and far between. Those that you will find will prefer to be as close to the beach as possible, as renting in the area is very expensive, and the beachside lifestyle is what attracts tenants. A property close to the beach, cafes, restaurants, the Surf Life Saving Clubs, recreational areas (ovals/parks) and if possible, a quieter part of the neighborhood with the ability to keep pets would be beneficial.

A median 3 bedroom house will rent for -
Swanbourne: $738 week
Western Australia: $650 week
(source realestate.com.au)

I have lived in the area for 5 years, however there was much information that I needed to gather. Council websites (Nedlands and Claremont) to confirm zoning in the area, google maps for estimates of travel time to different areas, realestate.com.au for medians of rent and sales, REIWA website for further information, and of course, walking the streets and getting a feel for the suburb. Please see attached photos, but also some maps I used and some figures I put into a spreadsheet to assist with understanding the area. I feel I’ll submit some of these in assignments down the track, but they help with this as well.

Good luck Tycho, and if you were more after the RA 5 with the statistics and the such, just let me know.

Happy investing,

BS