EPISODE SEVENTEEN

THE WA PROPERTY Q&A PODCAST

Unveiling Ellenbrook: Exploring Investment Potential in WA’s Rising Property Market with - Prash Nayar

Unveiling Ellenbrook

In This Episode

In this episode of the WA Property Q&A Podcast, Prash Nayar from Real Estate Tribune joins us as we uncover the investment opportunities within Ellenbrook.

We explore the suburb’s growth potential, fueled by its strategic location near major freeways and the upcoming 2024 train line. Discover how Sikh and Hindu temples are shaping the area and influencing property trends. We also delve into the appeal of multi-generational homes and homes near the golf course that draw interstate investors.

This and more valuable topics await you in this episode including:

  • What makes Ellenbrook appealing to investors
  • High yields and investment opportunities in Ellenbrook
  • Realistic market values and price expectations
  • Different parts and features of Ellenbrook
  • The Promenade: Central hub for convenience in Ellenbrook
  • A quick look at Caversham and Brabham
  • And more…

Chapters:

0:00:01 Welcome to the WA Property Q&A, your property guide

0:00:49 Introducing Prash Nayar and his experience in the property industry

0:03:02 The appeal of Ellenbrook: proximity to the city and cultural amenities

0:04:59 Exploring the perception vs. reality of Ellenbrook’s appeal

0:07:01 Multi-generational homes and larger block sizes in Ellenbrook

0:09:02 High yields and investment opportunities in Ellenbrook properties.

0:11:07 Solving a key problem leads to high rental applications

0:13:32 Proximity to the city and comparisons to Sydney and Melbourne

0:16:23 Mash Brewery and its distance from Ellenbrook

0:20:28 Potential increase in property prices in Ellenbrook

0:27:13 Benefits of living in Caversham and Brabham

0:30:14 Fire zones

0:34:18 Road works and access in Ellenbrook

0:42:06 Wrapping up another episode with valuable property insights

Links and Resources:

Transcript

Peter Fletcher

[00:00:00] Peter Fletcher: Welcome to the WA Property Q& A, the podcast where I explore the ins and outs of buying property in Western Australia. I’m your host Peter Fletcher and each week I interview local property experts to help you to develop a deep understanding of the nuances of buying property in WA. From market trends to legal considerations, no topic is off limits.

But before we dive in, a friendly reminder. While we provide valuable information, it’s important to note that nothing discussed in this podcast should be construed as personal investment advice. Always remember to seek the appropriate professional advice for your specific circumstances. Now, let’s get started and unlock the secrets to successful property buying in WA.

Okay, welcome to another episode of the WA Property Q&A. Today it’s my privilege to have as a guest Prash. I’ll let Prash tell us a little bit more about him himself. But I’ve known Prash now for how long have we known each other? Good

[00:01:06] Prash Nayar: question, man. I think it’s probably a few years now.

Yeah. Yeah. Time has

[00:01:10] Peter Fletcher: flown. Yeah. And where, where did we met? I think first that property tribune function or something.

[00:01:17] Prash Nayar: That’s right. Yes. It was through Charlie Gunningham. This one. So it’s at the launch of the the Property Tribune, so yeah, roughly about three, three years now. And yeah, Property Tribune is going really well, so I was, fortunate enough to to write their first article and yeah, and how how they’ve been trans traveling along.

It’s been good to see their progress.

[00:01:35] Peter Fletcher: And they’ve done pretty good things, haven’t

[00:01:37] Prash Nayar: they? They truly have. And so have you Peter. So thank you for having me here, friend.

[00:01:42] Peter Fletcher: Oh, that’s okay. It’s my privilege. Interestingly on one of my very, like soon to be episodes, I’m having Charlie on, Charlie Gunnion.

We’re going to talk about tech and. The space of tech, where tech is going for the property industry.

[00:01:59] Prash Nayar: That will be a very interesting conversation, that one, I’m sure.

[00:02:02] Peter Fletcher: Yeah. Yeah. No, I’m looking forward to it. I’m looking forward to today because you’re working in some areas that I know that we do a lot of settlements out in Allenbrook and Cavisham.

Yes. And that’s, that’s where you’re now working.

[00:02:16] Prash Nayar: Absolutely. Yes. For the last six months, we’ve been focusing our business area towards the Swan Valley.

[00:02:21] Peter Fletcher: Yeah. And, and off air, I asked you this question and I’ll ask it to you again. What attracted you about Allenbrook? What’s the, what was the driver there?

[00:02:29] Prash Nayar: I think for the last decade, Peter, I’ve been operating in the the inner city apartment. And the residential home markets most of my buyers that were purchasing that will have purchased that we’re looking at investments, especially in this market with the rising interest rates. And they were looking at high yielding investments and the areas that they were focusing on it being, us being north of the river were towards where the train lines were going with the Ellenbrook line that was coming up or that was planned to come up in 2024 prices in around the area was slowly rising.

And turnover in the market was relatively high as well. So what we did was some, as we were expanding our team, we decided to, to look at areas where there was growth potential. And to serve our clients a lot better, we decided to look and study the market. So upon studying the the turnover understanding the homes that were built, back in 2006, seven and the prices now I decided that it will be a good opportunity for us to move in and see how we can capitalize on maximizing our clients portfolios.

[00:03:31] Peter Fletcher: As a suburb, how old is Ellenbrook roughly?

[00:03:33] Prash Nayar: Yeah, I think 2002 is when they started getting their first their first homes built in. So roughly about 21 years now there are three parts, I would say three main parts of Ellenbrook. You have the part that’s closer towards the wines closer to that borders around Averley.

You’ve got the central part of Ellenbrook, which is the promenade. And I think that’s where a lot of the investments are currently being focused on due to the infrastructure. And the third part borders upon the new suburbs that have come out, which is Brebham, Dayton and of course, Kebhashan. So you’ve got private estates that surround Ellenbrook.

But yes, so those those are the three, three main parts of Ellenbrook that I’ve seen growth in.

[00:04:13] Peter Fletcher: Whenever I’ve thought of Ellenbrook, I always kind of picture it as a bit of a desert. Yes. It seems to be a long way away from the ocean. It doesn’t have a, a major waterway running through it.

It’s sort of, it’s a bit, like it seems to me to be, it’s got nothing going for it, but. Clearly there, it does have something going for it. So tell me about that. What is, what’s going on out there?

[00:04:38] Prash Nayar: Sure. I think you’re right about the proximity towards the ocean and also towards the city, there is none, however, because it has been built out in the outer ring of the city, you’re still within your 20 kilometers of most major freeways, of most connections that get you into the city.

I think that has been a huge pull for many of the clients or many homeowners that purchased out there when they started building these estates, they were reasonable prices to be close enough to the city. So this was young professionals that moved in into those areas. You had a huge cultural shift as well, and there was a large demographic that purchase in those areas due to the birth of of temples that came up.

And before that you had your Sikh temple and Hindu temple that was built out in Cannington. That was probably the closest temple that you’d find here to the city. But north of the river, there were very few, far and a few. And when that was built out in, in, in the desert, as they say.

[00:05:36] Peter Fletcher: So there’s a Sikh temple out there?

[00:05:37] Prash Nayar: There is a Sikh temple and a Hindu temple as well. Where abouts are they? So these are, these are actually in closer towards Khevasham. So this is out towards your Swan Valley area. And that’s why most of the demographic that moved in there was due to the pull off of having a place of worship.

That surrounded their homes, and

[00:05:55] Peter Fletcher: So that’s a driver of growth. Do you say,

[00:05:57] Prash Nayar: I would say so. Yes, it happened in, in Cannington and Canningwell. And that’s one of the reasons why a lot of people moved in there because when you’re closer towards a place of worship as it would be. In, in most cultures you would find that your purchases increase.

And not only that, more people will want to move in because, we generally with the Hindu culture, you’ve got a large number of family members and they move into the area just as you do.

[00:06:23] Peter Fletcher: Yeah. Yeah. Okay. Okay. So on that subject, is there a lot of shall we say multi generational homes in the area?

[00:06:32] Prash Nayar: Yes. Yes. Truly is. And I think one thing that has been or that I’ve noticed during my time, the last six months has been the largest size blocks that are available out there. And I’m talking about thousand square meter blocks that haven’t been subdivided. You’ve got 500 to 750 square meter blocks for very reasonable prices.

And the homes that have been built on that are built specifically for their children and grandchildren to stay on, so short answer is yes. The multi generation homes are quite a norm.

[00:07:00] Peter Fletcher: So when I’ve driven through Ellenbrook, the, it struck me that the block sizes were all fairly small, but you’re saying that there are blocks that, that are much bigger than that available, is that?

In sort of an outer part of Ellenbrook?

[00:07:15] Prash Nayar: Great question. I think if you move from the promenade and you drive your way, not towards the wine, so towards the golf course you’ll find three to four streets that are located in that area where they are massive blocks and these are stunning homes that have been built, right, that currently priced around the, your nine hundreds to a millions proximity to the golf course, of course, and the fact that you’ve got access towards the the promenade, so yeah, there are homes that are on those blocks or full size blocks that you find out there for very reasonable prices.

[00:07:47] Peter Fletcher: How far is Ellenbrook from the vines?

[00:07:49] Prash Nayar: Yep. So it is, it’s probably right neighbors, it depends on which part that you are looking at. Ellenbrook, of course, but the part that I’m discussing, so we, the promenade and that road along, it’s a kilometer away from the from the promenade, so you’re not very far from it.

And most people, of course, enjoy the lifestyle. They’ve built the wines extremely well. Actually, I was there a couple of weeks back and it was yeah, fantastic place. So it’s a beautiful little spot for those that are staying there and of course, utilizing the golf course. Mm. Hmm.

[00:08:18] Peter Fletcher: Yeah. It’s, and it’s not a bad place to be actually.

Yeah. Yeah. Okay. So what are the more popular homes out, sort of in that main section of Ellenbrook in that, the promenade area? What can you get in there?

[00:08:31] Prash Nayar: I think you’d be looking at three by two, four by twos that are sitting on about 500 to 650 square meters. And these are homes that are priced between your 500 and 600.

The greatest pool or the greatest highlight for a lot of our investors, and we’ve been getting a lot of as you would know, Peter inquiries from interstate investors was increased over the last two years. And most of them are looking at the high yields because. The rents that you’d be looking at for these properties anywhere between your 600 to 700 per week?

And that, that’s net them about your 7% yields.

[00:09:02] Peter Fletcher: So six to $700 a week on a, how much of what value?

[00:09:06] Prash Nayar: So you’re looking at about 500,000 to five 50.

[00:09:09] Peter Fletcher: Righto. Yeah. Yeah. That’s a half decent return.

[00:09:11] Prash Nayar: Very much so friend. And the ages of this property you’re looking at anywhere between 2008 to 2012?

Yeah.

[00:09:17] Peter Fletcher: 2008 to 2012. Okay. Right. Yeah. So they’re around about 10, 12, 13 years of years old. Yeah. Right. Okay. Okay. So the demand, the rental demand out there, is it how strongly you calling that?

[00:09:32] Prash Nayar: Yep. So I think now because of the transport line that’s coming into Ellenbrook it has increased a lot over the last six months.

So we’re seeing a pull towards the area. It’s not only because of the fact that you’ve got the infrastructure that’s being built. Yep. Yep. That’s being grown in the area, but also because of the transport lines, so rental demand is pretty high. I’ll give you an example. We launched a property probably about seven days ago on the rental market.

This was for it to settle in line with a tenant in place. And a quick story, which happens to a lot of people in real estate, so I don’t mind sharing this. The key didn’t work in the day that we had the home open, right? Call the seller, seller sits in Bali enjoying their one week before the property settles.

And we had to go to Bunnings to have it, get it, get a tinner key to work, jump back to the properties. It was just my team that was out there. Gentleman rings me and he’s like, Prash, we are, we’re in a kerfuffle. What do we do? I say, we solve it, friend. That’s what we do in real estate, right?

Solve problems. He heads back. He can’t open the door. So there was about 12 groups of people that were out of the 12 people, the contact information was collected. And they were followed up over the weekend. This was Friday. On Sunday, four of them made rental applications and the highest one was a hundred dollars over the asking.

So obviously my team did the due diligence. We qualified them. We brought them back to view the property, inspect it, and then approved it. They made the applications, Peter, without.

[00:10:55] Peter Fletcher: So they made it, made an application, 100 a week above the ask, without seeing through.

[00:11:03] Prash Nayar: There you go, Fred. Wow. And I think that does, say a lot, not only about the demand of the area, but also the demand of our current supply and versus,

[00:11:12] Peter Fletcher: current lack of supply. Exactly. No supply.

[00:11:15] Prash Nayar: You said it exactly, Peter, in the rental market, which is forcing a lot of his family set out. That’s young family that’s moved in. Very happy for them and the property settled yesterday and the new owner has got a, return that’s that much more than what, he purchased the property at.

[00:11:31] Peter Fletcher: So where’s the demand coming from in Allenbrook?

[00:11:34] Prash Nayar: Yep. You’re referring to the types of people that the demographic that are moving in that I think a lot of young families that are moving into the area or can’t purchase in the inner city, I think due to the or can’t rent an inner city due to the increase in the weekly rents.

They’re now slowly looking in the outer skirts of, of the inner city, which I think Ellenbrook will in due course, when the train line comes in, will fall as the inner city. It’s a tough one to say, Peter. It’s a tough one to say. No, but if you think about it that’s where

[00:12:04] Peter Fletcher: How many kilometers from the city is?

It’s 25. 25. Yes. We’re calling 25 inner city.

[00:12:10] Prash Nayar: And when more suburbs come out. Further along that, Peter,

[00:12:14] Peter Fletcher: when we’re finally settling in, in South Geraldton, this is an inner city suburb. Well, and in your defense there’s, I hear a lot of Eastern suburbs, Eastern States buyers agents describing Yes. Oh my God.

It is so close to the city and as a Perthite, you’re going, wait a minute, it’s close to the city. Wow. Okay. Yeah. But they’re comparing it against Sydney and Melbourne and indeed a 25 kilometers from the city is. Well, it’s in a city

[00:12:53] Prash Nayar: And I’m, I come from Malaysia, Peter. So back in Malaysia, 25 kilometers takes you two hours to drive.

We’re talking about the traffic, we’re talking about just the way the roads are built. So, in that sense, me driving on 20 minutes to get to my area of business. Yeah. Yeah.

[00:13:09] Peter Fletcher: Yeah. It is a perspective that we in us in Perth, it’s a unique perspective because we’re so used to everything being like.

Five minutes away or 10 minutes away. And like, as soon as you, you go, Oh, well, it’s 15 kilometers from the city.

[00:13:28] Prash Nayar: Not driving there today. Yeah.

[00:13:31] Peter Fletcher: Now tell us about the train line that’s definitely coming. Correct.

[00:13:35] Prash Nayar: Yeah. Yeah. So 2024, I think December it’s when it is it started to open. Hopefully we know further delays but yes, that’s coming along well at the moment.

It’s built in line with the Metronet. So Metronet, that’s something that’s progressing at a rapid rate, which is great to see no pun intended. They’ve done extremely well with its progress and I believe Ellenbrook should have that. Coming along really well.

[00:13:59] Peter Fletcher: Okay. So that’s December 26th,

[00:14:02] Prash Nayar: you said?

December 2024. Sorry. Yeah. 2026. Yeah. With the current landscape. I just got you there. It took me a few seconds.

[00:14:12] Peter Fletcher: Okay. So they’re anticipating December 24 and do you think that will have an impact on property values or has that impact on property values already happened in anticipation?

[00:14:23] Prash Nayar: I believe it is the latter, Peter.

Okay. A lot of people that are buying into the suburb right now they are quoting that. Train line that’s coming along and how that will assist with, reaching out towards the desert. Of course, for many of them and also the invested investors that are investing into it look at it from a point of view of capital growth and how that’s going to grow the area.

[00:14:46] Peter Fletcher: Do people buy an Ellenbrook because of its proximity to the Swan Valley?

[00:14:51] Prash Nayar: Yes, they do more, more so into the surrounding suburbs with Kavisham. For example, Kavisham is so much closer towards the Swan Valley from Kavisham. You’re about 15 minutes drive into the main area of Ellenbrook. But to answer your question, yes, they do.

So a lot of them do like the lifestyle, you’ve got a vineyards that are 15, 20 minutes away.

[00:15:13] Peter Fletcher: Yeah, well, I looked at a horse property in Millenden yesterday, as I was telling you off air and we looked around at this property. It was lovely. It wasn’t what my client was after, but that’s okay.

And we said, well, it’d be rude not to go and have a beer. And we headed to. MASH Brewery.

[00:15:34] Prash Nayar: Good spot, friend. A very good spot. And they’ve got mini golf there.

[00:15:39] Peter Fletcher: They do. I’ve played mini golf there. I fancy myself. Yes.

[00:15:43] Prash Nayar: Have you tried the giant golfs? I don’t know what they’re actually called.

That’s the one with the big, yes, with the massive golf balls. Very, very unique. And yeah, it’s they’ve done well with improving the I guess the hospitality scene.

[00:15:55] Peter Fletcher: How far is like, like the MASH Brewery from. From Allen Brook.

[00:15:59] Prash Nayar: So it’s a straight road down. You would drive through Khem, but you’re looking at about 15 to 17 minutes drive.

[00:16:04] Peter Fletcher: Yeah. Okay. Yeah. Mm-Hmm? . Mm-Hmm? . Okay. About 30 Ks? Yeah. , . Joking. Okay. So you, you’re saying that you back to what you can get for your money in, in Abrook. Yes. Five to five to 600,000. Three by two. Four by two. Correct. They, they’re your, basically, your cookie cutter kind of homes, aren’t they? Correct, yes. Let’s say you had a client with 700 to spend.

Yes. What did they get for size 700 or what they’re about?

[00:16:37] Prash Nayar: Sure. So we just appraised the property. This was close to to the Ellenbrook primary school. It’s in a, it’s in great location, right opposite a park. It’s sitting on 633 square meters. It’s a four by two plus theater and a swimming pool at the back.

We’ve appraised that at the low seven hundreds. So I think that’s what you’ll be getting. It’s a, got a fair, decent square meter with a swimming pool on there and you’re close to your, to your amenities.

[00:17:02] Peter Fletcher: Now, when you say that you appraised it for the low 700s where’s it realistically going to sit in the market?

Great question. Because so often you go, well, we’re expecting the low 700s and ends up being 800 which is the usual thing. Is it, is that going to happen here or are you saying that that, that property actually could sell for. Let’s say

[00:17:25] Prash Nayar: 720. I think it’s an absolute brilliant question Peter, in our current market, especially allow me to take us back to 2013, for example.
So we were talking about a market. This is a while back. Yes.

[00:17:36] Peter Fletcher: I’m a bit older than you, so I might not remember this far.

[00:17:41] Prash Nayar: That’s all right. We’ll take you there, Fred. I’ll send a picture on the supply and demand. Right. So the numbers, this is when I just joined the market. I’ll never forget it because everyone told me, fresh, get into real estate. Fantastic. It’s the mining boom, you’ll be, you’ll do well. And that year the mining boom went the opposite direction. So, the market was sitting at 15, 000 homes and obviously the the demand wasn’t as high as it is today. And properties that were being appraised then were selling for a lot less than what you would appraise it for.

Now what’s driving that as you would notice, and the reason why you’re asking this is the competition and the demand. That outweighs our supply. So, I’m an auctioneer by trade. I’ve been auctioneering since 2014. It’s my absolute passion. And one of the reasons why we auction properties is because we want transparency with the price.

I’m no one to price a property. I’m pricing it based on statistics, on numbers. So what I do is I tell my clients, I think it’s best that we leave it to the market to decide that I’m not buying a property tomorrow. You’re not buying a property tomorrow. So it’s an expected price and emotional price.

It’s always a statistical price, but what’s more important is the market price. So. To answer your question, the best thing we should be doing is to take price out of the equation. We should be leaving it to the market to tell us where the property sits.

[00:18:52] Peter Fletcher: You’ve given me the politician’s answer or the real estate agent’s answer that I hear so often.

[00:18:58] Prash Nayar: It’s something that I think is not happening a lot in the marketplace. But

[00:19:01] Peter Fletcher: What’s your gut feel on this? The short answer is. I just want to gnaw you down on this. When you’re looking at this, this low sevens, are you thinking in the back of your mind, it could run to 775?

[00:19:16] Prash Nayar: I think a 5 percent increase is definitely possible. Yes. And that’s.

[00:19:20] Peter Fletcher: So you’re thinking it could run to as high as. Seven 50 ish.

[00:19:25] Prash Nayar: The last 12 months has proven so correct. Yes. I think that’s where it would sit if we take price outta the equation.

[00:19:31] Peter Fletcher: So then why wouldn’t you have said from the start?

I think we’re gonna be at seven 50 to 7, 7 5

[00:19:37] Prash Nayar: I think if I was the owner of the property. Yes. And an agent is to come to me and this is based on my experience. And tell me that we are gonna aim for 7 75 then I would be expecting an $800,000 return on my property. I think it’s really important that we look.

[00:19:51] Peter Fletcher: There’s still that thing where the appraisal price and the seller’s expectation, there’s a difference. Absolutely. Yes. Because you see it go the other way sometimes.

[00:20:02] Prash Nayar: As in go lower than.

[00:20:03] Peter Fletcher: As in where you go in at at let’s say 7. 25, where you say low sevens and the seller’s thinking 6. 80. Yes. And it ends up selling for seven, seven 60.

[00:20:16] Prash Nayar: Absolutely. Yes. Does that happen? Absolutely. Yes. And there are, there’s a select group of, of, of homeowners, which is our perfect clientele who are realistic about the prices. And I always go back to statistics, Peter, numbers matter, right? Mathematics is everywhere.

And, hopefully this is not a politician’s answer, but we base it on the last six months, as last three months of sales. But that there,

[00:20:38] Peter Fletcher: that’s really difficult, isn’t it? Because. You base the, and Ellenbrook and places like Beldivers, all those newer suburbs, they were all kind of three by two or four by two on 600 square meters, so they’re reasonably easy to appraise. It’s unlike. In the inner city areas where it’s, you’ve got difference in zoning and different in, variations, sizes, and all sorts of problems there, but so you’re appraising stuff that is, is nice and cookie cutter. Yeah. It’s just easier.

[00:21:15] Prash Nayar: You’re not wrong. Again, it’s based on what are the similar properties that have sold. Yes. But last week’s statistics, as we’ve known in the market may not be this week’s results. Yeah.

[00:21:23] Peter Fletcher: You’re comparing sales, whereas what the buyers are looking at is what’s on the market. And if there’s nothing on the market, then you’re, how far forward do I go with this price?

[00:21:38] Prash Nayar: And then it comes down to your presentation. It comes down to the street appeal. There are a lot of state housing commission homes that are in Ellenbrook. Which has affected, it’s, it’s, it’s it’s crime rate, which I’m sure a lot of people who are listening would would be attuned to.

So it’s important that those come into play as well when you win a buyer’s interest is involved, but yeah, presentation, price, and prosh, the three P’s that I say you got to have. Oh my god. You’re happy with that answer? Oh my god. I knew you’re going to like that, Peter. Oh my god. That’s why I brought that in.

I was waiting for that reaction.

[00:22:08] Peter Fletcher: Okay. So, Holmes West is a factor in Allenbrook. Yes. Can you tell me a bit of a bit more about that?

[00:22:14] Prash Nayar: Sure. So there are some streets where you have a large number of Holmes West and in some cases, not all of them that does affect the rate of crime.
That has happened all over the last few years, I think in any suburb, as we would know, Peter you would have an X amount of crime, a percentage of crime has been higher in Ellenbrook. I think of course the distance from, from the city has caused that as well. But yeah, so the, that does impact, unfortunately, not only the presentation of the homes that we sell, but the quality of living on the streets.

Off those. So more often than not, you will find homes that have been battened down true to his head, to his hedges with with security alarms and obviously with with patrols that go around the area. But yes, so that’s something that we have been noticing a lot. And we put that as part of, we are completely transparent with our investors who purchase into it.

[00:23:07] Peter Fletcher: In in any suburb and if, any street for that matter, there’s the good end and the bad end. Yes. There’s the good part and the bad part. Yeah. Is that the case with Ellenbrook?

[00:23:17] Prash Nayar: Indeed. Yeah. Yes, indeed. And that’s why when I mentioned we even started about Ellenbrook, I mentioned that three Three parts, I separated the three parts not only based on the proximity to the main main drag of of Ellenbrook, but also due to estate state housing and its impacts on its relevant prices.

Because in some of those parts, the prices may not reach as much as the other aspects of Ellenbrook.

[00:23:41] Peter Fletcher: So where should somebody be looking if they want to. A great lifestyle and just have a good lifestyle.

[00:23:47] Prash Nayar: I think along the promenade would be a good idea to start from and then you base your way out, outwards towards towards the wines and the Averley border.

[00:23:55] Peter Fletcher: So you, you go from the promenade and you go North, is that right?

[00:24:00] Prash Nayar: Correct. Yes. That’s one, one place that I would be recommending if you prefer heading and popping along to the to grab a glass of wine on the weekends, then. Closer towards the south of Ellenbrook, where you’re reaching Cavisham, where you’re reaching Brebham.

Those are newer, more private estates stunning homes that have been built there over the last three, four years. We were fortunate to sell a home in 2016 in Dayton. It’s a display home. And that is, very much in a private estate. So,

[00:24:27] Peter Fletcher: so what’s Kevisham tell me, cause I, I do not know much about Kevisham apart from that it has a wildlife park.

[00:24:33] Prash Nayar: I was just about to say that. So that’s one thing that’s really popular was the is the wildlife park and there have been many private estates that have been built surrounding that wildlife park. So you’ve got homes. That are sitting between your 600 to 750 in price range.

And they are on smaller blocks because when they were built as a private estate and they were cut up as such. But there are some relatively new homes that are being built there at the moment. So you’re talking about ages between 2015. So less than 10 years, that’s what you’d be looking at in Kavisham.

You are hopping a skip away from the main drag off of Swan Valley. So you drive out of Kavisham and within two minutes, you’ll reach Sandalford, for example, you take that same road and you drive towards the city within five minutes, you are at the Besant Dean hotel, or that’s a direction to Lord street, take a lot street from Besant Dean, take a left.

In five minutes, you drive down the road, you reach Cavisham. So that’s one of the advantages of buying in Cavisham. So you’re much closer towards your Guilford road that reaches you into the city.

[00:25:38] Peter Fletcher: So is Kham an older suburb with redevelopment that has happened to it?

[00:25:42] Prash Nayar: That would be Allen Brook. That would be the element of an older suburb with the redevelopment. Kham was built after. , and then came B Braman with the us. Righto. So that was the progression of the builds of the suburbs.

Okay.

[00:25:55] Peter Fletcher: And what about Brabham? What’s that got going for it?

[00:25:58] Prash Nayar: Yep. So very similar to Cavisham in a sense that they are private estates. So there’s a lot of newer homes that have come up in the last three years, I would say three to four years. A lot of display homes were sold in that area.

So you get a 7 percent leases, nice suburb to live in a very much as leafy as you wouldn’t expect it out there, but they’ve built the estates as such.

[00:26:17] Peter Fletcher: Do Brabham and Cavisham benefit from the train station, from the train line?

[00:26:21] Prash Nayar: Yes, they do. They do? So there would be a train line that connects down from Ellenbrook past these suburbs as well.

[00:26:27] Peter Fletcher: Right, okay. Yes. And conceivably there’ll be a train stop there or something? I believe so. Yes, to be honest.

[00:26:34] Prash Nayar: It goes

[00:26:34] Peter Fletcher: straight past and

[00:26:35] Prash Nayar: people just. Yeah, jump on, grab a bus and turn back after. From my understanding, yes, Peter.

[00:26:43] Peter Fletcher: Okay. If you had five or 600, 000 to invest, where would you invest in those areas?

Yeah.
[00:26:51] Prash Nayar: Great question. I think. Firstly, I’ll be looking at, as I mentioned earlier, the closest you can be, and this is for purely for investment purposes. I’ll be looking at the, at where the train line is coming through. So within a kilometer out of the train station is where I’ll be investing in with 500, 000 today.

I’ll be looking at homes that are newer than 10 years simply for maintenance and depreciation purpose. I’ll be looking at rental yields that are above your six to 7%, which is very much likely and probable in this market. I’ll be avoiding areas that are close to the fire zones which is.

[00:27:23] Peter Fletcher: So fire zones are a problem out there.

[00:27:25] Prash Nayar: It is. Yes. So as you mentioned, because of it’s office distance, when it was built out, those were, those were threes that it will cut down to, to build these areas. So, there are a large part of, there is a large part of of Ellenbrook that’s covered under the fire protection zone.

So when they were building the homes, obviously they had taken this into consideration which may add. To the insurance premiums for those that are listening and IST, it wouldn’t be, this would be, this would form part of your investment breakdown, but yes, so I would be,

[00:27:53] Peter Fletcher: what other impacts does a fire zone have on.

[00:27:56] Prash Nayar: I think it’s not as, as much as we would think it is to be honest there are multiple things you can do with the home, adding on sprinkler systems on top of your roof is one of the most extensive thing you can do to it the closest that and again, correct me if I’m wrong on this for those that are listening, but the closest that a fire had ever gotten close, gotten to a neighborhood was in 2014 and they were put out.

Yeah. Fairly quickly. So we’ve got an incredibly good service department in WA is one thing I’m realizing the police ambulance and the fire department are fantastic. So I think they, they do the rest assured that when you’re buying homes, that your quality of life is governed by their expertise.

[00:28:35] Peter Fletcher: How are these suburbs in terms of shopping and amenities?

[00:28:40] Prash Nayar: Yes. They have improved in the last three years, I think prior to that they were fine a few in between but most of them in Ellenbrook, for example, you’ve got the promenade you’ve got. Bunnings.

[00:28:50] Peter Fletcher: So what’s in the, on the promenade?

Yeah. You’ve got Bunnings. Correct. That’s a very important essential. Yes. Yes.

[00:28:55] Prash Nayar: It’s a Toys R’Us for us adults, . And you’ve got Yeah, absolutely, friend. Yes. Always get lost. I enjoy myself whenever I’m in there. You’ve got your entire set of your auto bonds. You’ve got your fuel stations that are there.

You’ve got your coal, you’ve got a Woolworths as part of as part of the promenade.

[00:29:13] Peter Fletcher: Okay. And what about, so that’s Ellenbrook. Yes. This is. Is Cavisham, does that have its own shopping center?

[00:29:19] Prash Nayar: It has a mini shopping center is what I would say. So it’s got a course in there. It’s got it’s got the essentials.

You’ve got your pharmacy. You’ve got, of course, the liquor store that was kept open over COVID. So that’s important. Yes. Yes. And yeah. Yeah.

[00:29:32] Peter Fletcher: Okay. So if somebody wanted to be within walking distance of shops and train station, where would they be?

[00:29:40] Prash Nayar: Absolutely in the promenade. In the promenade. Yes. That will be the central part of Ellenbrook.

And you drive through the promenade and you’ll know exactly what I mean by it. And the houses that surround them are actually in a pretty decent spot. They’ve done extremely well with with the parks, with the schools that are surrounding it. And I think that’s where you should be buying.

[00:30:00] Peter Fletcher: On the subject of parks and schools, how’s Allenbrook for parks and

[00:30:04] Prash Nayar: schools? Yeah, I think again, over the last last three to five years, they have truly invested a lot of money in maintaining the parks. I’m just stunning, Peter. Like I was fairly surprised the first time that I drove out there and, and seeing these homes that are surrounded by it.

And I did two things. I went and spent a few hours. In those areas, in the evenings, just attending the parks and I’m seeing how the lifestyle was, but they’ve done extremely well in maintaining the cleanliness. The safety is paramount in those areas. And so the schools are in top notch quality.

I’ve got a few friends who’ve got children they go to the schools and they’ve been fairly impressed with what they’ve done out there.

[00:30:40] Peter Fletcher: Okay. Are Ellenbrook, Cavisham, Brabham, are they places where you would feel safe enough to go out for a run at night after dark or run early in the morning before sunup?

Short

[00:30:53] Prash Nayar: answer is yes, I’ve seen people doing that. So lifestyle wise. With bright ones, with guns. Yeah, yeah, absolutely. A little bit of a, of an ice at the back of their head. So, at the same time, I think that, that alas. 12 to 18 months safety has really been something that’s been focused on.

I think by the local council, correct. So they’ve increased the the community watch, they’ve got multiple new patrols that are, they’re moving around the area. So just like you mentioned earlier, in every street, it’s going to be the good and the bad in this one, and I think there are parts to it where you wouldn’t be comfortable doing so.

And there are parts where you would, and at the same time with the focus on safety, the last 12 to 18 months, I think that’s been something that people have been more comfortable doing.

[00:31:34] Peter Fletcher: There’s is it the Rowe highway? I always get confused between Rowe and Tonkin. Yes. Is it Rowe that goes up there?

[00:31:41] Prash Nayar: Both, both. So Tonkin and Rowe heads up towards, yep, towards Kavisham and Ullambrook. Yes.

[00:31:47] Peter Fletcher: Has the works there, has that had any sort of impact on?

[00:31:51] Prash Nayar: Yes, now the roads are are much better when you’re driving out there. So the, they’ve completed relative 80 percent of the works have been done prior to that.

You had a lot of roadblocks and obviously. Oh, it was terrible. Yeah, man. So, now you’ve got three lanes that drive you out there and you reach the promenade section. So there’s two, again, two parts as I mentioned, you’ve got Nungara Road. That gets into the older part of Ellenbrook.

And if you travel another five kilometers, there’s an left turn that gets you towards the promenade. They’ve been built relatively well, so it’s safe. And it’s also a road that takes you there in no time.

[00:32:27] Peter Fletcher: So it sounds like the train station is a pretty crucial. Piece of the puzzle.

[00:32:35] Prash Nayar: Absolutely. They better deliver on the on the timeline and as we know. Yeah.

[00:32:39] Peter Fletcher: Yeah. Okay. In terms of land supply out there, because what my, my sense is that land supply can impact on values of established residential.
Are there new suburbs springing up out that way? Is there? Expansion?

[00:32:57] Prash Nayar: I think in the next two years, there will be, from my understanding, from my radar at the moment, I’m unaware of any, but just based on how quickly Brabham and Dayton grew through the private estates. And as you mentioned, the supply of land that’s out there, there would be new suburbs that would be coming up in the coming years.

And the demand will drive it, demand that we are witnessing right now will drive that.

[00:33:22] Peter Fletcher: Okay. All right. Interesting. Well, is there anything else that we should know about Ellenbrook and Cavisham? Ellenbrook, Cavisham and Brabham. Sure.

[00:33:34] Prash Nayar: Well, the, the three suburbs I think one thing that, that a lot of people are not looking at right now is the fact that you should be looking at your 25 kilometers and above.

[00:33:44] Peter Fletcher: Inner city folks, inner city,

[00:33:45] Prash Nayar: Which is what’s going to be happening to, to the, to that term when when the new suburbs come up, but those Yeah. It’s all about relative to price and square meter when you’re investing into real estate. I think when you’re investing the property, square meter matters and looking at value to the square meter these areas are delivering in spades and capital growth will be, off.

When you’re investing into the suburbs, I think that’s what the listener should be looking at.

[00:34:13] Peter Fletcher: Presh, where do you see the Ellenbrook, Cavisham, Brabham values going from here?

[00:34:19] Prash Nayar: It has increased about 13 percent in the last 12 months. So I believe that will double when the train line comes true.

And the reason why I’m saying that.

[00:34:28] Peter Fletcher: So you think in the next. Let’s say 12 months, because that will take us through to basically December 24th, that we will see another 13%.

[00:34:38] Prash Nayar: Good question. It’s always never easy to answer these questions, but I think yes, I think confidently based on me being on the ground, there will be an increase of prices at that amount.

It’s like our market will continue to progress in a positive trajectory. And with the demand that we’re seeing in those areas, we should be looking at that when the train line comes through.

[00:35:00] Peter Fletcher: Ellenbrook is a very much a mortgage belt suburb. Has it been impacted by the mortgage cliff?

[00:35:08] Prash Nayar: So far with the discussions that we’re having with a lot of homeowners, I think they’re holding steady, which is a good thing to see.

The latest interest rate hike, I think will have an impact on a few more people than we’d like it to have. We will be seeing that over the next three months, but we keep in close contact with a lot of the homeowners. And for those that are listening out there, you’re always welcome to give us a call.

Yeah. To help.

[00:35:33] Peter Fletcher: Yeah. It’s a, it’s an interesting it’s an interesting issue. Tell me where the people that live in Allenbrook, where do they work?

[00:35:40] Prash Nayar: A lot of them work in the city.

[00:35:43] Peter Fletcher: Yeah. So you’re driving. It’s inner city. That’s right. It’s inner city.

[00:35:45] Prash Nayar: So you’re driving. Keep forgetting. Such a stupid question.

Not at all. I think a lot of them do work in the inner city. Right. And yes, for them that were not being able to afford the prices, not only of the rentals, you referring to homeowners having quality of life and a quiet Quality of life. You move into the city, you’ve got the noise and the hustle that comes along with it.

But when you take that out of the equation you find yourself in Ellenbrook. And that quality of life is what a lot of the homeowners are after.

[00:36:14] Peter Fletcher: Presh, for those people who are Living in Ellenbrook and working in the city at the moment, the commute would be pretty horrendous, would, I would imagine.

[00:36:23] Prash Nayar: It takes 20 minutes and now with the,

[00:36:25] Peter Fletcher: 20 minutes to get 25 kilometers, fresh,

[00:36:28] Prash Nayar: Not that bad. Don’t be under the speed limit. We’re making sure we’re under the speed limit. So I live in Mount Lolly at the moment and from my home to the promenade. At a decent speed that we are driving.

[00:36:40] Peter Fletcher: I’m not sure I want to hear this because you might be

[00:36:42] Prash Nayar: Incriminating yourself.

A friend, it’s always below the speed limit. So we make sure that we drive that safe and sound and it’s 20 minutes friend. So you’re taking yourself out due to the roads that have been built right now. You take the traffic out of the equation, obviously at. Yeah, you’ll be a busy periods of the early mornings and the evenings.

I’m sure you’ll add an extra 10 to 15 minutes on top of it. But otherwise the roads that have been built now has really shortened the commute. And while it may seem far, if you think about it on the map and you look at Swan Valley, for example. That reaching Swan Valley used to be a 20 minute commute, so now with that extension of the freeway with the row and Tonkin that has been built that has shortened the commute for a lot of people there is a small number of of homeowners, of course, who are, who work FIFO so they like the the lockup and leaves and they are the ones mostly that, that also own property in the Ellenbrook and surrounds.

[00:37:38] Peter Fletcher: Yeah, I could certainly see that because they have reasonably good access to the airport. Indeed. Well, this has been this has been fascinating, Presh. Thank you for having me on Peter. I really appreciate your time and the insights that you’ve shown you’ve given us.

[00:37:57] Prash Nayar: And I appreciate your time as well, Peter.

Thanks for having me.

[00:38:00] Peter Fletcher: So for people that want to know more about investing or buying or selling in. Allenbrook, Cavisham, Brabham, out that way? Yes. How would they get hold of you?

[00:38:13] Prash Nayar: Feel free to reach out to me if this, I believe this is going to be on social. So you reach out to me on the Real Estate Times.

I’m on Instagram. I’m on Facebook. My name is Prash. You can reach out to to me online and I’m more than happy to assist.

[00:38:27] Peter Fletcher: Are you doing anything as old fashioned as people calling you on the mobile? Absolutely.

[00:38:31] Prash Nayar: My phone number will be right below friends. So more than happy to help. More than happy to help,

[00:38:36] Peter Fletcher: All right. Fresh, this has been great. Thank you and that’s all we’ve got time for today. So until next time, happy house hunting.

[00:38:45] Prash Nayar: To all out there, all the best.

[00:38:49] Peter Fletcher: And that wraps up another episode of the WA Property Q& A. We hope you found our discussion valuable and gained some valuable insights.

into the world of property buying in Western Australia. Remember, while we strive to provide useful information, it’s crucial to consult with the appropriate professionals before making any investment decisions. Don’t forget to tune in next week for another exciting episode where we continue to unravel the mysteries of the WA property market.

If you have any questions or topic suggestions, feel free to reach out to us. Until then. Happy property hunting and remember to seek the right advice for your personal circumstances.

Thank you for listening.