Forum Replies Created
I guess Foundation, if most of the buyers were speculating on these blocks, by either, trying to flip before titles are issued, then what you say may be true.
However, if all these buyers are homeowners or first home buyers who want to build then I think you are being a bit alarmist.
It is possible that demand exceeds supply, and in Perth right now, this certainly seems to be the case.
I have been monitoring one such market ( not Perth)for over 12 months now, where this is exactly the case, and its worse now than it was back then.
Nett result is that prices have increased, in some cases up to 100% in that time.It is certainly not ‘ponzi’ in its makeup.
It is simply people needing a roof over their heads when there are no roofs to be had.
kp
I have always thought Northbridge was over rated.
Supposed to be the restaurant district….( joke)The signs were there when they tried to create a chinatown all those years ago.
Pretty much every capital city in Aus has a thriving chinatown.
Perth’s version in Northbridge is pretty disappointing.
Not a happening place at all.
Northbridge as a whole reflects this.Will it ever improve ???
What has to change for it to improve….
I mean, what is the attraction of the place ??People vote with their feet and their wallets.
Just compare Fremantle to Northbridge.
Its always busy.As far as apartments in Northbridge, what is their point of difference that will generate demand and hence some prospect of capital or rental growth ?
A far as I can tell, there are more and more being built, so there will not be a supply side problem.
And apart from ease of access to the city, who needs/wants to live there?Everyone is waiting for this long anticipated influx of the population who will desert their suburban blocks and want to ‘live in the city’.
There is so much competition against Northbridge, from new apartments on the Terrace, as well as East Perth and West Perth being marketed every day.
The only stuff that will really be in demand and hence have a more realisitc chance of growth, is the apartments that have a scarcer commodity, such as river views that cannot be built out.eg…Terrace Road on the Perth foreshore, South Perth Penisula, and West Perth/Crawley.If you wanted an opinionated opinion, I would say bale out, and invest as close to the coast as you can, either north or south of the river.
Buy in one of the new land subdivisions while the blocks are still affordable.kp
Hmmmmm….
Is this going to impact on Singelton or not ?I guess now there will be far more ppl visiting OUR beach in summer.
But in addition there will be far more infrastructure going into the local area, ie…they said MANY schools etc ?So you can bet there will be a big regional shopping centre as well.
And now maybe the train station will go ahead at Singleton as previously suggested.
Its all two yrs away before the land is released ….according to the news this evening.
I can just hear the advertising jingle now….’Is this the way to Amarillo?’
kp
Ok…sorry I guess that was not fair.
It was funny from my point of view but I don’t think he was too amused.
Its quite a long story that took place over a week and involved a few calls.
In short once I had clarified during the first call, that they could not organise a contract for at least 10 weeks, and then I could expect to wait a further 12 to 14 months for construction ( to be completed I assume), and that they were not taking any more orders for Sept or Oct, and that there were only 12 for Nov ( so I better get in quick !!!) I made an INSTANT decision not to use them.
When I conveyed this to him he was not too happy.Bottom line is he called me back and also gave my name to another rep to try and sell me an associate builders product.
Which part of NO didn’t he understand ??
My reasoning was simple. I had another builder that could build within a far more reasonable time frame albeit at a higher cost, so it was a trade off of extra cost vs holding costs and foregone rent. I chose to pay extra to get a house sooner.
The funny bit was the time, expense, and energy he wasted to in effect harass me because I said ‘NO’
I mean this was a full on argument mobile phone to mobile phone ( hence his expense)
He just could not accept that I could make that decision to build elsewhere because he was the ‘expert’ and I was the bunny customer that just has to accept that a waiting period of 12++ months is acceptable.In the end I actually did remind him that as a menmber of the public, I still had the right to decide who I built with, and that I had exercised that right.
Sad in a way, but funny too.
Not so short after all…. there you go.
kp
Fair ‘n uff
Originally posted by robo:Just out of interest KP if you don’t rent out R/E obviously you don’t own any IP’S? Why not?
Not quite Robo,
I own a swag of property…just no tenants.
Mostly its under construction.
‘Trapped’ equity you could call it.kp
coz the laws ison their side.
Its probably the same as ‘assult’ if you touch them.And then Ray Martin and the team will be onto you chasing you around the streets with a camera and a microphone.
Just curious…
There was a post recently on De***vex and it was locked immediately.
There was nothing offensive or personal in it……so why lock it down when someone was simply asking a question??kp
Oh by the way, I have a funny story to tell about the Celebrations sales rep. but its probably not fit to post on the forum….
The builders might be raking it in, but I fear the sales reps’ may be struggling.
kp
Hmmmmm……
I bring the sangers and beer.You need a tip ?????
Never be rude to yer mamma….
Theres a tip..
Hence why I don’t rent out property.
Don’t have to deal with tenants and PMs’.Ouch !!!
Isn’t it a leech ??
Not sure myself.Sounds like someone struck a raw nerve Ausprop?
LOL
Good stuff!
Technically, once you subdivide ( strata in this case) you need to apportion the land value to each property to use as a cost base for working out the cgt due when you sell.
Either way, you’re definitely on a winner when you can resell the original house for the same or more than the original purchase price of the whole property.This is exactly what I started doing in the 90s’ till it became more and more difficult to find such properties.
Effectively, you were getting the subdivided block for free.
If you can still find them, then you’re onto a winner…
Excellent stuff !!kp
Group buying – ill be into that!!!! [biggrin]
I’m absolutely fuming…. 6 weeks ago – I flew down to perth to buy at the village at wellard.
We were also looking for another block. Took marisa’s advice and went to look at S beach.
Had 2 contracts drawn up for a corner block $138k and lot 19 – $145k…. by the time I got back to Singapore – spoke to my husband – ginned around – we missed the boat… [angry2]Now the only 2 left in that stage are the elevated ones. Ausprop – i know your views on them – marisa wat do you think?? the elevated ones with the retaining wall for $169,000?
Mei
[/quote]Ummm…..that would be me I guess Meilin.
Anyway, you’ve done allright from your other property purchases….leave some for us poor folk.Greed is a terrible thing !!!
At this stage, we will have to have a forumite party once we have all built down there.
I vote we use Marisa’s place !!kp
I think that the $115khouse cost is a contract price and not a turnkey price.
Probably still requires floorcoverings, interior paint, etc.
Also, the initial purchase price @ $141500 may not include the stamp duty.Till all the costs ae accurately tabled, and the timeframe included ( to work out your holding costs )its is hard to work out a true profit return.
Also, there are tax implications that need to be included when you sell the first house, and if you sell the second one as well.
kp
Thats incredible Wayne,
Where did you get the map?
Its got the sewer run as well as the underground power domes on it. Great detail.kp
Errrrrr…Ausprop
This is the one that SOLD me…
Ooowwwwwwww !!!I have to make mention and give credit to Marisa who alerted me to this subdivision.
It shows clearly the value in networking with like minded investors.
I would not be able to get down to Singleton till late October and would have missed the boat by then.
But by exchanging views and idea with a handful of forumites, and by doing some due diligence in the area,I was able to come to a decision to buy with confidence.That to me is the beauty of this forum…the networking with like minded ppl.
Thanks to all for their input and help.
Looks like we’re on another winner with Singleton..
But I think that applies to most beachside area North and South of the river in Perth right now.
kp
Hmmmmm, a bit off topic but..
I reckon we need more active mods from Perth on this forum, and as Ausprop is both knowledgable and active, I vote him to be nominated as a Mod.
Anyone else agree with these sentiments ?Probably in the ‘Developing made Easy’ section as there do not appear to be any active mods with a development background over there….
kp
