Hi All,
Really interested in feedback from ppls in Sydney, melb and Brissy. I really think its time Perth had a reality check.
Very difficult to buy a house in Perth in a middle class suburb for under $400k now. Even formerly run down, troubled areas selling houses for $250k for little more than a knowckdown. 1 Bed units (large numbers in blocks, unattractive buildings, circa 1960’s) selling for upto $175k. 2 bedroom units good luck if you can buy for under $200k, 2 bed Villas now fetching $250k +++.
Now, I was flicking around REalestate.com and was specifically looking at Sydney. Lower North Shore units / apartments. Property as cheap as $275k with harbour views!!! Many modern units for around $300k. Super trendy for just a bit more. Houses in very desirable areas for $500k! I must assume that property is even cheaper in Melb and Brissy.
Simply IMHO, Perth has gone mad, and a large correction must be coming soon.
By the way I live in Perth, I know all the hype about mining and Jobs etc, but seriously, its just gone silly[confused2]
Feedback?
Cheers,
JES
Hi JES,
I live on the Gold Coast and I would hve to probably agree with you in relation to Perth. It certainly needed a rise as it hadnt in a long time although I am sure you will see a correction I dont think it will be a huge one – but 8 – 10% may effect some people if they have bought a high priced property. I guess it all comes down to value and when and how much the individual bought at.
I know what you mean though!
Cheers
Fluffy
Yes Perth is Mad
Saturday offered 20 000 more then asking price on a ppor/reno, found out today that I missed out because the owner was more sympathetic to the solo mum with 3 kids who offered 5000 less
(but on other hand was nice to see the lady find a home for her and her kids too) Agent was acting dodgy by telling me how much other person was offering, which I know is illegal or unethical at least.So today I had a quick look on net and found a house that had been on market fro about 6 months in Perth and amazingly they had dropped the price cause they couldn’t see it. Problem was tenant would never let people come thru house so made it difficult for owner to sell. So actually put in an offer site unseen and got it for a good price. Thank goodness I just drove past the house and street looks nice which was a relief.
Originally posted by natwayne28707:Problem was tenant would never let people come thru house so made it difficult for owner to sell.
Do you want this tenant? Is vacant possession an option?
Derek
[email protected]
http://www.pis.theinvestorsclub.com.au
0409 882 958natwayne,
Derek’s question is pretty valid , if this looks like a problem tenant, put it in the contract that is to be vacant posession. It much easier to get rid of them now rather than later.JVT,
I’m from Sydney, and have an IP in Perth [biggrin]. I don’t think that Perth will come to a screaming halt just yet. And before there is any 8-10% correction, I think there will still be an increase of at least that much, this year alone. There may be areas that are at or near their peak but there is alway the ripple effect and that is where things are at the moment. The feeding frenzy causes more ripples.After things have slowed down a bit, that’s when you go and have your Perth places revalued, and borrow against the increased value.
Mal
Getting out of your comfort zone, can help you become comfortable
Hi JVT
according to the Hegney Outlook Report for 2006:Land supply, rising building costs, and demographics are all factors that will drive WA property markets in 2006 expecting somewhere between 15-20% growth.
Economist – St George (WA Market)
Low vacancy rates (lowest amongst the state capitals) and rising rental values support further gains in 2006.I have been riding the big wave here for 4 years now and I dont see any signs yet of the market slowing down.
There are still plenty of opportunites and while there is money to be made I will continue to invest.Goodluck
M(Hard work never killed anyone, buy hey why take a chance)
Yup, look I understand all the forecasts of continued growth, and all by people / organisations who have mountains of theories (and evidence) to back the claims. Its just that if we go up much more we will be as dear as Melbourne, and in some cases Sydney will offer better value for money when spending $400-$500k…to me thats just silly and when the penny drops we will be in for a major correction. Just my HO, and I could be really wrong…but right now i would ratrher look for bargains in Sydney and Melbourne —not Perth!
Having said that, well done to anyone who invested in Perth, or even regional WA in the last few years..well done indeed!
Cheers,
JES
And this hot of the press..see ‘in the news’ ..
“This means Australians are now more in debt for houses that are worth less than they were a year ago in Sydney and Melbourne, and for houses that have not increased in value in other capital cities.
But in Perth, the exception, house prices were now more expensive than those in both Melbourne and Brisbane following West Australia’s five-year resources-led property boom, according to research by Australian Property Monitors for the Reserve Bank.
The median price of a Perth house is now $363,000, behind only Sydney ($518,000) and Canberra ($409,500). “
Now tell me you still think Perth can offer much more growth..when its more expensive than Melbourne!
JES
I am not sure whether we need to be too concerned about median price of Melbourne etc., I think its irrelevant in terms of Perth market.
I am only interested in what is driving Perth/WA market up and whether I believe it is sound and reasonable to keep investing.
(Hard work never killed anyone, buy hey why take a chance)
I think I’d rather live in [sunny] Perth than Melbourne anyway regardless of the price of housing.
Mal
Getting out of your comfort zone, can help you become comfortable
And anyway the Mother-in-Law is in Melbourne that would be a really good reason to keep the prices lower than every other state!
Sparky
Originally posted by Marisa:I am not sure whether we need to be too concerned about median price of Melbourne etc., I think its irrelevant in terms of Perth market.
I’m not so sure about this. The average wage in Perth is still well behind Melbourne, despite rising 8.4 percent during 2005 (Melbourne around 6%).
I am only interested in what is driving Perth/WA market upBy which I assume you mean the ‘resources boom’? I dispute that this is the main driving factor. I would argue that, once again, it is past ‘capital gains’ enabling ‘investors’ to pay well over the odds for houses with the expectation of further capital gains in excess of holding costs. Yes, the rising cost of minerals has led to increased investment and development, leading to higher incomes and employment levels, but remember that once mines come ‘on-line’ the demand for labour is significantly reduced. Also, I can’t see that an 8% increase in wages, coupled with a 75,000 increase in population should lead to 20% increases in house prices.
So it looks like the same old story. Sure you can make money speculating, just be sure not to end up in the same position as thousands of Sydney & Melbourne folk (and very soon QLD) who are currently holding negative net portfolios (ie the value of their debt exceeds the value of their assets).Cheers, F.[cowboy2]
(Hard work never killed anyone, buy hey why take a chance)
[/quote]IMHO Perth is still good value for money. You can still buy a large near new 4×2 home 800 metres from the beach within the Perth metropolitan area for $350,000.00. Can you do that in Sydney & Melbourne?. With the lifestyle Perth has to offer I think a median price of $400,000 is not out of the question in the next 2-3 years.
ned kelly
what actually is the average wage of perth, sydney and melbourne? i read recently there was little diff between perth and sydney wages yet huge disparity in house prices.
hegneys reckon the price growth will ease from supply, but that is so far off that you will probably have another 30% cap gain under your wings by then.
resources boom is very important – it filters through the whole local economy and even underpins the underperforming eastern seaboard to some extent – a lot of orders are being redirected east as local capacity is at maximum. It’s not the first time perth median prices have exceeded melbournes (in fact different data gives a different picture of whehter it is indeed higher) and I don’t see it as any surprise that strong migration coupled with a booming economy should drag the median to a catch up postion.
http://www.megapropertygroup.comINVESTMENT SALES * RENTAL SOLUTIONS * STRATA MANAGEMENT
Please tell me where I can buy a 4×2 800m from the beach in Perth for $350k? You certainly cannot buy this type of beach front value within 20km of CBD if at all! I havn’t looked at the extreme north coast of Perth but even there I reckon you couldn’t go close to less than $500k. Dianella is now $400k minimum (with average block), Morley is $350-$370k for a knockdown. Balga is all $250k +, and Nollamara is more.
Also, the median price for Perth is already $363k, well above the affordability index.
Tell me, where are all these buyers going to come from who can stand $400k mortgages (unless you want to live in some pretty rough areas).
I am convinced Perth will go the same way as Sydney after the boom ended, prices dropping back by up to 20%.
But, time will tell[exhappy]
JES
Its not the perth oricing that worries me its the prth agents. Managing rules in WA are so pro tenat we just sold our 2 in the last 12 months to be rid of the hassle. Be aware they ofteh charge 8.8% then 2 weeks letting not one and then $66 initial inspection fee, $45 for a qtrly then have the cheek to charge a whopping 2.5%on top of any tradies that work through them.
A complete rip and something to be aware of.
Pricing will either go up or down either way you can make money.Happy Hunting
DD
Buyers Agent (Dip Financial Services(FP)
Don’t sweat the small stuff,and it’s all small stuff!!the tenant has periodic lease so would only need 30 days notice, so definitely won’t keep them, cause want to live in it. The amazing development is that the owner will not sell me his house and I offered the full askin price. I have an unconditional sale on my current ppor and finance is not an issue. Guy will only sell it to me now if i offer him an extra 5000 above the askin price just in case my sale falls over and he gets left with an untenanted house.
I always thought that if a house was on the market then the owner would be willing to sell if they got what they was askin for.
No wonder I usually build houses instead. Hopefully soon I can find someone who wants to sell there house in Perth under 300 000, i have 6 weeks until this house settle so am running out of time to get a simutaneous settlement on another house.
Please tell me where I can buy a 4×2 800m from the beach in Perth for $350k?
probably would have gone for around $350:
check out rockingam, safety bay, waikiki, madora, meadow springs
http://www.megapropertygroup.comINVESTMENT SALES * RENTAL SOLUTIONS * STRATA MANAGEMENT
Please tell me where I can buy a 4×2 800m from the beach in Perth for $350k?
Here’s three properties to the north of Perth for a start!!!!.
Like I wrote previously Perth still offers good value and lifestyle!!![biggrin]
ned kelly
Ned and Aus, let the cat out of the bag, we got nuff people chasing IPs over here…..
Hey DD
I would not be too worried about these petty fees, I can assure you the capital gains will more than cover this. 15-20% pa at present, we are cruising.Hi Foundation, as far as comparing wages – Melbourne versus Perth etc. etc. , I am really not interested.
You can analysis it to death and nothing wrong with that, but it aint gonna change a dam thing over here.(Hard work never killed anyone, buy hey why take a chance)
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