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“JES mentioned above the “high quality hub” of Manduarah. Can someone inform what the attraction is? Apart from the pie shop, I can’t see anything really going for it.”
CHOKE…
what pie shop are you referring to?
the mandurah area is stunning, to argue the emotional merits of an area would not be productive though.
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” know which one I’m betting on. And you’re right, it aint gonna change a damn thing. When the froth blows off Perth’s bubble, it’ll be the people with the highest debt as a proportion of their wage who will bleed the worst.”
you first have to have a bubble to blow the froth off it. by the time the perth market catches up to levels commensurate with other markets, current buyers will pick up another 20% cap growth. Unless you are on a serious spending binge I can’t see many people being hurt by that. This is particularly in light of the fact that the demand is not distorted (on a percentage basis) by investors . It’s a two sided squeeze – supply constraint and strong demand.
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Boiler Room… great movie:
“people who say money doesn’t buy happiness don’t have it. Look at me – grinning from ear to ear baby!”
mind you he did go on to presumably get arrested. would have wiped the smile off his face.
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one of the most respected valuers in town predicted up to 20% growth in the Perth market this year and tipped mandurah as an area of continuing captial growth (a lifestyle hot spot basically). it is also the fastest growing region in australia. it is also very nice!
many would argue that significant capital growth to date means you are buying into a market that has already had a good run (the ol’ how far can it go theory), so it depends….
check your rental yields too, whilst they are growing rapidly they are still likely to be highly negative
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any chance of an example of what $350k could buy in Sydney? It’s nearly 20 years since I last went there so I wouldn’t even know which suburb to type into re.com!
40kms is part of the Perth sprawl now. Joondalup would be the relevant town centre there. Mandurah is 95kms!
go against the herd is def a good strategy and these days it’s hard to find a herd that isn”t a bunch of excited bulls. trend is your friend also comes to mind. I wouldn’t like to go against the herd and buy into a falling market – timing would be crucial and you are looking for the bottom in this case. I don’t recall seeing much saying that Sydney property is set to take off. I thought dockalnd apartments in melbourne could be a goer too – any thoughts?
one thing to bear in mind is we have a dichotomy of economies being governed by one central banking policy. theinterest rate distortions are causing big problems. you really do wonder if there is a justifiable reason for WA to splinter off from the commonwealth given the lack of integration and the arguments of tax distributions.
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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
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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.
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do they generally need council approval?
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yes you woud need 20% as a minimum as there is always somehting you miss! on the other hand, cap growth on a delayed project usually compensates cost over runs – in fact a bigger development over a few years can result in most of the profit being just cap growth. the tax implictions of this really bite tho – there is no 50% CGT reduction and you are stung for GST, meaning you would have been better just to buy a dev site, focus on your day job and then flick the block off to an ambitious developer to suffer all the headaches [grad]
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MTHawthorn – cheap cheap cheap. And yes I believe the market has been led toward the coast and overlooked many prime inner city areas (that are only 5 minutes from the beach anyway).
-CF… 26% increase in rents over the last year and similar predicted this year. long suffering landlords are finally get just reward.
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my sister owns a 1 bed that is across the piazza from a 2 bed that she owns as well. the 1 bed has beaten the 2 bed hands down. the rent difference has proven to be minimal with the occupancy levels of the 1 bed much higher, plus the 1 bed cost a lot less in the first place.
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Originally posted by asdf:Originally posted by kingdavid:because it is a new home, duty is only paid on the value of the land… not the building…
so when Mirvac built the property, they have only paid duty on the land. when they sell the property to us, they will pass on the savings to us, which we will negotiate by how much…
[blush2]
If they are selling OTP new homes, I can’t see how you are only paying duty on the land. Are you settling the land first and then choosing your own builder or do you have to use Mirvacs? I would’ve thought there would be 3rd line forcing issues at play here but might be wrong. I digress. If you buy OTP, the developer has to factor in the cost of GST which is included in their sale price so you ultimately pay for the tradies and construction GST component. Similarly if you built a home yourself, you’d be paying GST on the construction material plus labour..etc.. which is considerably more than paying stamp duty on an established home. Plus you can’t claim the input tax credits for the GST paid.
Hence I’m not quite sure where the passing on of savings comes from. Perhaps I have analysed incorrectly all this building stuff.
i think 3rd line enforcing only applies when the seller isn’t the one enforcing. i.e. 3rd line enforcing involves one party forcing the buyer to build with x and buy the land from y.
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“Secondly, has any one had any experience with a contract that has a ‘Sunset clause’ in it?”
It can be more than just the offer period. It is not possible to create an eternal contract, so when there is a contract drawn up that is conditional on an event that may never happen, a sunset clause needs to be added. E.g. “settlement to be within 30 days of the property being rezoned resdiential R20” the sunset element may be somethign like “should this rezoning not have occurred by clos of business 30th June 2007, this contract shall be at an end without penalty to either party”. soemthing like that anyway…
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Success would be very much a personal opinion – it really depends where you are going to work and what you are after. You may be better renting for your forst 6 months to et a feelfor Perth first.
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my Mandurah properties have been going up $1000+ a week for 3 years now. I feel I owe the place something now.
actually in an earlier thread I was saying how I went to busselton for Christmas for a combined holiday and vacation home hunt and the flies drove me nuts. We stopped in at dome on the mandurah estuary there on the way back and it dawned on me that what I was after was actually much closer to home. It’s not quite as picturesque as eagle bay but it is way closer, heaps more affordable, more to do, better cap growth and less flies!
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From what i have seen of Mirvac developments they do seem to employ excellent design and that translates thru to resales. East Cove in East Perth has done really well. Burswood is shaping up really well and Bunker Bay is very impressive. Old or new? tough call… there is more at stake here than finances as you need to enjoy what you are living in. of course if you do rent a room that will be a decent contribution to your repayments as well.
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check out The Grove at Ashby – blocks ther for around $155-160k.
I was never a fan of it but… Byford Central. have heard that Alcoa are expanding and the workforce may commute from there. blocks are cheap.
Capricorn – see thread under development. no secret that I think it has long term potential (i have bought in there).
some opportunites in and around Falcon – new town centre upgrade has been earmarked.
Singleton – Bayshore are taking $500 expressions of interest on the next release, no idea what prices will be like.
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beautiful beach – pity the flies are so dreadful during summer! I did want to buy a beach house down there until I visited over the Christmas break… I think I will leave future visits to the south west to off peak. Slighlty further around Isee a very nice block for sale at Bunker Bay for $2.6m. now as nice as the view is am I alone in thinking this is insane? when developed we are talking about a $4-5m house – imagine what that money would buy you at a Perth beach
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gees turn the knife a little asdf! If you delve behind the glossy exteriors of a lot of agencies you will find a stressed out licencee with a busines teetering on the edge. I know there are some high flyers making the big bucks, but it’s a far cry from your average REA. in a tight market like now (in WA) where turnover is being strangled you will see more and more REAs closing their doors.
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Steve you are about to embark on a project with building/site costs alone around the $500k. I wouldn’t be swinging the whole deal around on the basis of the stamp duty as it is almost immaterial.
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