Hi guys, wat do you think about investment properties in Perth?
What’s the main difference between WA rules and NSW/Queensland/Victoria?
Thanx.
Financially Independent = Gateway to FastTrack
Originally posted by PenguinJr:Hi guys, wat do you think about investment properties in Perth?
What’s the main difference between WA rules and NSW/Queensland/Victoria?
Thanx.
Financially Independent = Gateway to FastTrack
I think about it, I want to know the difference as well>[strum][strum]
[worried][whistle][worried]
THERE IS ALWAYS A BETTER WAY!
Interestingly enough, Perth is one of the areas I’m interested in as well. I’d be interested to know. I know the property values are more affordable and the rent is reasonable.
Elvis Sinosic
http://www.ElvisSinosic.com
http://www.SinosicPerosh.com.auProperty median range is around $234K.
Considering in 1998 it was $140K it has been on the move quite a bit. Even in the crappier suburbs (And I say that lightly) the prices have gone through the roof.
Not to say investors have missed the boat, but Perth isn’t cheap as people think. Rents are too fab either.
For example, Morley is where I grew up and my parents own tow houses right next to each other right across the road from the Galleria. (A major shopping centre) I rented the house next door 4 years ago for $150 p/week then moved out. The next tenants pay $175p/week for the past 4 years with the rent only just being upped recently to $185p/week.
The house is worth around $270K probably more. I dunno what else to say about Perth. It is a gorgeous city with lots of potential, but for residential 11 second solutions, the pickings are slim. I am sure if someone worked really hard at it, they might be able to find something, but chances are a bit lower…
Needless to say, Hubby and I have actually moved out of PErth and have bought our first place for under $100K in a great location. NOt to knock my home-town but investing would be for the lovers of negative gearing…
My 2c.
Steph.Success is 1% inspiration and 99% perspiration.
oh if you want any info on suburbs of PErth I can give you a bit of a perspective if you want.
Success is 1% inspiration and 99% perspiration.
The great thing about the Perth market is that its cycles are usually different to those of the Eastern States, which adds to potential investment strategies.
The prices are cheaper, rent is generally stable, and there are some great areas to profit from capital growth. If your looking for Cash flow positive properties, the regional areas of WA are the best places to search.
David Femia
http://www.femiapropertygroup.com.auI live here so it’s got to be good! Kidding, LOL.
Perth suburbs are no longer cash flow positive, like any other state you need to look regional. One of the disadvantages our our state is it’s so big, places are so far apart. Ask Recoveryman about his trip from Perth to Geraldton, I seem to recall him saying it was 5 hours of “nothing to see”! Having said that, people over here are used to it and don’t think much of doing a 5 hour trip to Perth to see specialists etc.
So it all depends on what you’re after and what size town you’re looking for and whether you’re willing to travel the distances to check our state out.
Regards
PKAlso..
The regional towns are ‘much’ smaller than Eastern States regional towns, remember this when looking at IP’s because of your tenant base.
With the Mining Industries going great guns again, some of the mining towns are achieving great rentals due to the influx of workers, and new building approvals are still going through..
Great State though, just a long distance between towns, especially the further north you go
REDWING“Money is a currency, like electricity and it requires momentum to make it Effective”
Hi Penguin,
Property management fees are higher than Queensland – 8.5% w/o GST is not unusual and then there is a little pocket in Perth that charges 9.5% for a management fee.
Letting fees vary considerably from one week to 9% (yes you read correctly) 9% – needless to say these guys get very little business from people I know.
Strata management fees are generally less than Q primarily because unit complexes do not include some of the ‘fruit’ seen in Q. I can recommend some good strata managers if you like.
Water rates and city rates are levied by separate bodies over here whereas in Q they are levied by the city council.
Real Estate fees are deregulated here – but expensive.
Property settlements are usually conducted by conveyancers in WA.
Land tax kicks in at a very low level (around $10K from memory) whereas Q kicks in at $270K (also from memory).
Derek
[email protected]Read my comments? Think I can help you? PM or email me.
Originally posted by Derek:
[Land tax kicks in at a very low level (around $10K from memory) whereas Q kicks in at $270K (also from memory).Just to make it accurate,
Land tax kicks in at $50,000 in WA and $275,000 in QLD. These are for a person owning property not a trust. In QLD, if you have property in a trust you pay land tax from the first $.
‘Eat rich food, barbeque a yuppie’ [greedy]
HHhmmMmMm.. so.. help me out here…
Queensland would be a much better place to look for positive cash flow IP yes?
and whats that about land tax? letting fee?
Thanx, i’m still a newbie.
Financially Independent = Gateway to FastTrack
Hi Penguin,
Many (all?) property managers will charge you a letting free when they first set up the lease with the new tenant. In some instances they will also endeavour to charge a full letting free for a lease renewal.
In W.A. it is fairly common practice for the property managers to collect the equivalent of one weeks rent from you and another weeks rent from the tenant for a 12 month lease. in some instances I have also seen property managers attempting to collect a total of three weeks rent as a letting fee.
The reasoning behind the fee is loosely described as being costs incurred in setting up the lease.
Ultimately all property management fees are negotiable and generally speaking how much you end up paying is determined by your negotiation skills.
Derek
[email protected]Read my comments? Think I can help you? PM or email me.
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