people still need to live somewhere – I just see a value re-weighting from outer areas to inner city areas. I think we have all seen this coming for a very long time.

http://www.megainvestments.com.au

John Carroll

I reckon Karratha will surpass Sydney before too long [blink]

http://www.megainvestments.com.au

John Carroll

what is not sustainable is high levels of immigration and the strongest state economy in conjunction with the lowest median price.

the interview that i referred to above discussed the ramifications of the above factors and the added probem that the builders are at maximum capacity (to the point where they have virtually given up and said ‘enough…[Read more]

I am skeptical of that approach. the exposure to the cyclical nature of the economy is huge. it works great at the moment as the housing boom is funding the consumer spending that is boosting business activity and resulting in great LPT returns, but if/when the boom eases you will have a double edged sword of easing cap growth and lower LPT…[Read more]

“A lot of listings on the market for more than 7 months”

WOW – that’s highly unusual…. where is that?

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John Carroll

“We do not go for the home and land packages because you pay stamp duty on the Land plus the House if you do a package.”

A home and land package only has stamp duty applicable to the land but you have to pay interest during construction. An off the plan house purchase has stamp duty on the full value but you have no holding costs, however there…[Read more]

I am still out on an opinion on this interesting discussion, but some of my thoughts would be:

“$100K (5% capital growth on share). The shares are liquid so you can use the growth as an income.”

if you use the growth that means your real value of the shares is declining. I also wouldn’t want to rely on shares to consistently grow 5% per annum.…[Read more]

did anyone hear the residex interview on ABC this morning? I didn’t, but a friend said that they believe Perth median house prices will in the medium term catch up to the Sydney median.Apparently they said WA property has a long long way to go. I would be interested in listening to it… it isn’t on the ABC websote as…[Read more]

not only that but 12 months is not a stipulated time for a PPOR exemption… it all comes down to reasonable and making sure you are not in ‘the business’ of doing it

http://www.megainvestments.com.au

John Carroll

The growth south of Perth will absorb Mandurah such that it is just another suburb, albeit a very nice suburb! There isn’t much undeveloped land from Baldivis to Mandurah that hasn’t got plans for major development… schools, subdivision and shops etc. I think the prices are still very cheap – take madora bay with ocean side blocks for $130k, or…[Read more]

Wayne what sort of prices are the first release blocks going for do you know?

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John Carroll

ha ha – where do I sign up Wayne?

http://www.megainvestments.com.au

John Carroll

perhaps it was just a friendly dig – that was the way I read it.

http://www.megainvestments.com.au

John Carroll

If you are chasing capital growth you need to consider demand AND supply. Take Mandurah for example… the projected growth there is astronomical, yet there is also plenty of land around it to match the demand. I don’t know much about SE Qld but I figure it’s probably similar… a big place which has plenty of land? Or is it all locked up with…[Read more]

presumably hospitals and infrastructure will follow… I know it was the deciding factor for my parents chosing Rockingham over Yanchep. Can’t go wrong with the price tho.

http://www.megainvestments.com.au

John Carroll

I see an article in saturdays west re process train 5 at Karratha. work commences next month, with first shipments expected in late 2008. interestingly this project is $2bn, yet there are $45bn worth of projects on the table. will be interesting to see what they manage to get thru

http://www.megainvestments.com.au

John Carroll

I would go for central mandurah… it still looks cheap compared to the new surrounding suburbs. the extra dwellings that are forecast to be built around them will make them even more scarce over the long term. buy something with rezoning potential and you may get a pleasant bonus.

http://www.megainvestments.com.au

John Carroll

“I would also include an expiry date for the offer if submitting it on the contract.”

I hear this often but it really isn’t necessary. You can quite legally (in WA) verbally withdraw any written offer up until the point that acceptance has been communicated to you. The only benefit I can see is that the Seller may get a psychological kick up the…[Read more]

a fax would be acceptable. it is correct that if it is not on paper it is not an offer.

http://www.megainvestments.com.au

John Carroll

and for a completely opposing opinion

https://www.propertyinvesting.com/forum/topic/17913.html

http://www.megainvestments.com.au

John Carroll