Hi There everyone,
I'm wondering if anyone can tell me where all the buyers have gone in Perth?
We have 2 houses on the market at the moment – both beautiful homes. One is a well looked after, neat-as-a-pin 4×2 in Stratton and the other is a brand new home in Aveley (Ellenbrook), and we are getting hardly anyone through at our home opens. I don't know if it's the fault of the agent and their marketing strategies or if there's simply no-one out there. I understand people are waiting for the budget to be handed down but surely there must be some buyers out there?
Hope someone can shed some light.HI Bonnie,
Guess I was one on the lucky ones. I have just recently sold my own home (went under offer 4 weeks ago). It sold first home open at basically a record price for the area (Heathridge). Property was 100% renovated with nothing for the purchasers to do so Im not sure if that had much to do with it.
Im holding out on the May budget in the hope that stamp duty concessions will be lifted to $400k or higher for First Home Buyers as I also have a property under this bracket which I hope will have a sharp price rise.
Perth is definately not the same market it was 6-12 months ago, however I believe there are still some good buys to be had now given its more of a buyers market.
Cheers
ROReturn on investment isn't very good right now. If rents increase dramatically it will bring investors back. Affordability is probably an issue for first home buyers in your areas also. Lots of investors selling now to cash in creating more choice for purchasers.
All the Perth investors are in South East Queenland.
And all those Perth people were warned that booms never last … also medium price too high now and ROI shot out the doors …
D
Bonnie,
Not unusual for properties to sit on the market for 6 months in Perth these days. Hopefully stamp duty concessions will come into play and create more opportunities for sales.
We've had a couple of blocks of land on the market since before xmas (very competitively priced) with very few enquiries so its a waiting game. The agents are doing there best in most cases.
good luck
sq
I worked out my yield on Shoalwater IP (near Rockingham) to be 2.5%! Not to worry though, first of many and I believe I will catch the next wave easily as someone once told me…
Not a good time to sell there. Can you hold them for a while and wait?
Had a Similar problem myself with some townhouses I had in ACT. Agent had for 6 months – not one sale. Took it into my own hands and sold 6 in one weekend. It's all dependant on effort in vs results out and the agents are always the ones who will focus on your property.
Try some "creative" strategies to promote – what are you prepared to give or do for propsective purchasers. Also, lots of marketing – it's a numbers game.
Good luck.
Megan
May be worth it to see if that anticipated stamp duty relief creates more buying activity temporarily?
In response to LA Aussie
Thanks everyone for your replies.
I realise the market has really dulled here in the last 6 months but hopefully as some of you mentioned it may pick up again once the stamp duty issue comes into play.Gafama, I've been seriously considering selling the properties privately. Is it easy to do? and do you find that people shy away from private sales or are they willing to purchase from a private seller?
millions wrote:Return on investment isn't very good right now. If rents increase dramatically it will bring investors back.How dramatically would they have to rise? 2.5% is pretty normal in Perth right now, so if rents triple while house prices languish, you'd have 7.5% yield. Problem is, around 50% of renters are currently paying >30% of their income in rent. Even doubling rents over a short period of time would be impossible.
FOUNDATION – NOT EVERYONE IS A CASHFLOW INVESTOR. MY PROPERTIES I PURCHASED IN PERTH 2&3 YEARS AGO WHICH WERE HEAVILY NEG GEARED HAVE JUST TURNED POSITIVE. THE RENTS HAVE ALMOST DOUBLED IN 2 YEARS. I PLAN ON PURCHASING ANOTHER PROPERTY IN PERTH SOON, BUT MY STRATEGY HAS COMPLETELY CHANGED. MOST OF MY RETURN IS IN GROWTH. yOUR STATS ARE INTERESTING THOUGH F. MILLIONS
There's still some hope for Perth! There's another wave happening in Bassendean. Properties are selling within a few days in some cases. There is virtually nothing to rent as well. A couple of my friends have actually purchased new houses to live in while they demolish there existing houses and build as there are not enough rentals and they love living in the area. Linda
Note – comments above relate to second / third homebuyers, not first homebuyers. Linda
Many of the Perth buyer's are here! In Adelaide
Unless you have a waterfront at Mindarie Quays, WA. My eldest Brother hesitated over buying a waterfront block here approx 9 years ago for $230,000!!……..Well, after much goading from my old man he bought the waterfront and sold his house in Shelley. He plonked a pretty average project house on it for less than than $200,000. Well last month, straight out of the blue he was offered $3.15 million for it. At first he could not believe it, as he is currently working in China. But in subsequent weeks, it was the real deal……………………… It was not even listed! Thats almost 25% per annum for 9 years. Good thing the old man talked him into it though. I remember having a look see at it when I was over there at the time. Beats the hell out of 10% pa I've made on my ppor for the last 24 years. Anyone know of any cheap waterfronts out there, in a developing area where demand is still low? Silly question I guess!
Anyway, he has agreed to the sale (DOH!!!), and is looking for another waterfront in NSW around Nelson Bay. I don't recall too many waterfronts in this area, and if anyone knows of one please let me know.pendo
Hi Bonnie,
I think you will find differing levels of activity in different areas.Top end still doing very nicely. REA's on coastal strip run off their feet.Other areas empty. Some buyers waiting still hoping that Mr Ripper might actually give the first home owners some tax relief.Yes, some open homes have no one going through them. The auction clearance lists make for interesting reading.We listed a block of land in November that has just sold. And that was after changing agent when we realised how little the first one was doing! The second agent was far more pro-active and had an offer for us in three weeksWe now have a house for sale in the same area. So we are using our proactive agent again and we are getting a good level of enquiry (tho'no actual offers yet)jebroHi Pendo, are you looking for specifically waterfront or will 360 views a few streets back be Ok . I know of one that may have potential. Price is around $1mill.What is your price bracket? I've found some blocks around $300k also.
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