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We’ve done it guys, WHEW.
Finally got there, far out.
“Wipes the sweat off my BROW”.
Another little addition to the real estate portfolio.
Much relieved I AM.
You see, it’s actually been about 12 months in the making…
Because on and off for the past year or so, I’ve been tracking one capital city in Australia which I’ve identified as the next component of our FIRE goals (read about the goals here).
Where?
Economically this capital has been in the doldrums, and consequently its real estate market is shot to bits.
Picture this, advertised asking prices dropping by the week, no one turning up to open inspections and selling agents DESPERATE for an offer.
Conditions like this attract the type of buyer who smell blood in the water, the type of buyer who knows they have the pick of the lot, and the type of buyer who runs a personal finance and development blog.
Of course, I am talking about… Perth.

Suffice to say, that when MrsFrugalSamurai had a work conference out that way late 2018… I eagerly tagged along, but not before shortlisting about a dozen properties to inspect over that long weekend.
It worked out quite well actually.
During the day whilst MrsFrugalSamurai was conferencing – I’d be zipping along in the hire car (Kia Rio – great little nipper from $16,990 drive-away) checking out properties…
No wait, I’d be checking out shopping centres first.
Shopping Centres?
Why shopping centres?
Because as a complete foreigner to the area, a shopping centre gives a great snapshot of the demographic in the immediate vicinity.
One of my quick hacks for filtering through the relevant areas if you’re not familiar with the area.
I must have gone through 13 or 14 shopping centres and malls with a trail of Mango, Banana and yogurt shakes, in my wake.
Good thing I did, because reading and researching about an area online is vastly different to seeing them in real-life, some places surprised and others… were completely accurate.
Of course interspersed between those shopping centres and sugar hits, were the inspections of the actual properties themselves.
There wasn’t anything particularly extraordinary or incredible about these properties – no, they were just the standard houses, townhouses and units (not apartments) you’d find in any neighbourhood.
I had them on the shortlist because I thought the advertised asking price was lower than what the actual value was based on prior research.
There are many things which I look out for when inspecting properties but the number one rule is location.
Location, Location, Location!
You’ve heard it all before right? Location, location, location when it comes to buying.
Things like, is it on a main road, are there power lines nearby, is it close to amenities like schools, shopping and transport etc.
That’s all fine and dandy – but you don’t need to spend hundreds of dollars on plane tickets, accomodation and car hire to work out the obvious when Google Maps can do it for you.
No, I’m talking about the intangibles when it comes to location.
Intangibles such as – next to a boarding house (1 was, insta-crossed out), or next to some fairly shonky looking neighbours (another 1 crossed out) or with huge overhang trees which look like they’re about to fall down (another 1 crossed out).

Pretty much on the second day, most of the properties were ruled out for one reason or another.
Until there was only 4 left…
The Shortlist
Here are the fab four with rough numbers:
Property 1
2 Bedroom, 1 Bathroom and 1 Car townhouse in a top-notch blue ribbon suburb just off the main road, in original (meaning unrenovated) condition.
Asking $399,000, probably need about $15,000 of cosmetic renovations to really bring it in line with market. Would assume rent around the $380-$390 per week mark.
Comparable properties had asking prices of $450,000-$500,000.
Property 2
3 Bedroom, 1 Bathroom, 1 Car villa in a good, middle-class suburb, 200m to the local primary school (best one in area) and 300m to shopping. Also in original condition.
Asking $359,000, and again would need about $10-15,000 worth of renovations to spruce it up. Probably rent for around $320-340 per week.
This one was the cheapest 3 bedroom dwelling in the area, with comparable 3 bedders going for low 400’s.
Property 3
2 Bedroom, 1 Bathroom, 1 Car unit in a very good suburb, 200m to water, 500m from the nearest train station. In decent condition but needing a quick paint and fix job.
Asking $298,000 and probably rent for $260-280.
1 bedroom units in the complex were asking $310-$320,000.
Property 4
2 Bedroom, 1 Bathroom, 1 car unit in a working-class neighbourhood, next suburb down from a local economic and tourist hub. Unit was in good condition, except for a large crack in a bedroom wall and leaking pipes in the kitchen (strata to fix).
This was a mortgagee-in-possession i.e. bank foreclosure sale. The previous owner sadly bought it at $280,000 at the top of the cycle, now asking $149,000 after a whooping TWO years on the market.
Probably get around $190-$200 rent.
Funny one this, the agent was desperate to offload it and advised me that the bank will probably “accept an offer $15k or $20k below”.
~~~
I know what you’re thinking!
WOW if they are so undervalued TheFrugalSamurai – why didn’t you just buy ALL of them?
In hindsight, I should have… I really should.
But hey, at the time – I didn’t want to just pull the trigger on a million bucks worth of property – that’d be too much risk for me to handle. Bearing in mind the real estate market is still very much in the pits!
So which properties did we buy?
Come back next time to find out more!
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38 Comments
Hugzy
Firstly, amazing post… I can see a lot of value in your thought process for some beginner buyers like myself and Jimmy the Jay.
Secondly, that avatar looks NOTHING like u sir… here is a more appropriate depiction:
https://i.dailymail.co.uk/i/pix/2014/10/06/1412611557792_wps_8_Manchester_United_V_Manch.jpg
The Frugal Samurai
Thank you for saying so sir… also that link you sent me, reminds me of a guy I used to play soccer with on Sundays, name was Mike something…Dao? Sao? Yao? Can’t remember…
Amber
It is an adventure buying a house, that’s for sure. I look forward to seeing what you guys ended up purchasing.
The Frugal Samurai
Sure is one heck of an adventure! You gotta wait for the next post then, thanks for reading!
crisshex88
A purchase that seems really interesting as well as producing!
The Frugal Samurai
It sure is, thanks for reading!
Joan
We’re also planning on purchasing a home this year. We have been viewing so many during the weekends and still not sure which is which.
The Frugal Samurai
I know right, the process can be REALLY overwhelming right! Good luck with it!
Tara Pittman (@momknowsbest15)
I like the option that just needs paint and is close to the train. That way people can get on the train for site seeing.
The Frugal Samurai
Ah yeah, transport links are an absolute must!
Joanna
Very interesting to learn about the property market in Perth. And wow, you did see quite a lot of houses. I am looking forward to seeing which one you bought and hopefully you will show us photos.
The Frugal Samurai
Yeah hopefully aye! I’ll get onto those photos pronto!
AnotherFoodBlogger
Congrats on buying some more property!! Looking forward to finding out which one and what happens next
The Frugal Samurai
Thanks for saying so, I’ll be sure to share so please be sure to follow!
Alexandra Cook
Wow, you know quite a bit about this buying thing! I’m nervous to be buying myself and don’t think I could do what you do!
The Frugal Samurai
Aw thanks, I only know a little bit! I totally get ya, nerves are just part of the process! Thanks for reading.
Candace
That’s a tough decision. I always have such a hard time deciding what to pick when we are looking for real estates, cars or even clothing. But nothing is more complicated than real estate. I agree with you. Location is essential! Hope that you guys pick the one of your dreams.
XO
Candace
http://www.thebeautybeau.com
The Frugal Samurai
Thanks for that, although it is for an investment – but agree with you on the rest of the points!
Princess Quinn
Real estate is a different ball game. You have got to be smart when choosing location as they all say, Ypur points are accurate.
The Frugal Samurai
Thanks for saying so, yep location is key!
TheSuperMomLife
Congrats on your new purchase! How many does this make?
The Frugal Samurai
Thank you! Ummm, depending on how you look at it… almost double digits at the moment, gotta keep going!
Devyani Ray
I want to know what you bought!! Waiting for the next post 😊
The Frugal Samurai
Thanks for saying so! Good things come to those who wait… and the next post is out already!
kumamonjeng
Well, when it comes to buying a property it is alway location first. With a good location, the price goes up so well. I should have gotten my home at a good location, and then I will be making a lot of profit already. You have great list of good tips for people who wanted to invest in property.
The Frugal Samurai
Yep, they say location does 80% of the hard work for you when it comes to $$$. How’d you guys go with your location search?
kumamonjeng
We bought our current place just because it is closer to my office and I do not want to travel too long. LOL.
The Frugal Samurai
HAHAHA, nice one, and very clever too! Time saved on those trips makes A LOT of sense!
Chelle Dizon
Yes you have a good point and I agree with you. There are really a lot of consideration that needs to be double check first before choosing a specific place.
The Frugal Samurai
Thanks for saying so and for reading!
knockingonfortysdoor
This is a really helpful post! I really appreciate how you take us through your entire thought process, it was a really helpful read as we start to think about buying!
The Frugal Samurai
Thank you for reading! I aim to please 🙂
GladysNava
That is interesting! All the information that we need to know is in there. Please update me to the next post ☺
The Frugal Samurai
Next post is out! Glad you find it interesting, thanks for reading!
Melissa Richards
Wow! It was great seeing your thought process on buying property. I would have never thought to hang out in shopping malls to get an idea of who the locals are.
The Frugal Samurai
Danke, danke – I agree, shopping centres are the ULTIMATE hack if you are time-poor! Thanks for reading.
Bindu Thomas
We’re also planning on purchasing a home this year. I want to know what you bought!! Waiting for the next post 😊
The Frugal Samurai
Good luck with yours!!! Yep, yep will be continuing on shortly, don’t worry! Thank you for reading as always 🙂