I know I am a bit late coming in here re: perth property but I have to laugh at some of the theories as to why Perth is different to any other market in Australia.

In the last six months property listing have increased 300% (thats right 300%). In the last three months the average time to sell a property has increased to 65 days.

Some of the…[Read more]

QLDs007, I agree with you, the answer to the question is a flat out NO, and I think I would caution the extent on some of the advice that is given here, especially if the Dip FP is not followed up by an authorised rep status and a CFP. Superannuation especially SMSF is a complicated area and appropriate professional advice should always be sought…[Read more]

Well at last we have some serious intelligent conversation from various parties on this issue (the bigger issue), and by reading the comments I can see that like myself -you can take an objective view of the market and see the various economic factors that are affecting our great city of Perth. I hope people are taking note of what is being said…[Read more]

Hi GMH,

IT seems like a bit of dejavu for you.

Can I ask the reason for there being no words of wisdom or caution from other readers and contributors may be due to the fact that they are all agents or people who work in finance that make a buck out the property frenzy.

Because if thats the case – there really is no point in getting advice from…[Read more]

Hi Scokar,

No each loan would be separate and any rent you would more than likely use to pay the interest on the IP property.

The best way I can explain what security is – is that basically if you are unable to fund the interest repayments on your IP over a period of time then the bank or lending institution have the right to take possession of…[Read more]

Thanks for getting into the discussion Roodog. What you said in your last paragraph holds very true for alot of buyers (especially first time buyers) in that a property already has two offers and you are expected to make an offer higher than that so you dont miss out.

SO what are your choices – as you say you can hold out or you can join the…[Read more]

I see that in the last two days there have been almost 200 reads but only a couple of replies – I would have thought that this subject might have stirred up some emotion in you guys over east and that you might have words of wisdom for us perthites. Any takers?

Sorry, basically LVR means Loan to Value ratio. eg if your loan was 80,000 and your property was worth $100,000 then your LVR would be 80%. It is this LVR that banks use to work out how much they are going to lend you.

Therefore if the property increases in time to say $200,000 and your loan is still at $80,000, then your LVR is now 40%. This…[Read more]

If you use the equity in your own home to purchase an IP your PPOR will need to be held as security. Once the IP increase in value and the LVR gets below 80% then this security can be taken away.

For most people equity in their home will be the most accessible way unless you have a spare amount of cash sitting around to put a deposit down on the…[Read more]

Thats very interesting gmh.

I must admit that I have been reading these forums for about two months before i decided to join in.

I had a look at all the archives from 2002 and I couldnt believ the activity of forums over east – absolutely amazing – everyone wanted to put there 2 cents in. Then all of a sudden there seemed to be a huge gap in the…[Read more]

Yep – it sounds familiar.

What I find amazing is that people in Perth believe that they are so removed from the rest of Australia that what happens over east wont affect us.

Yes we have resources, increased migration from cashed up places like south Africa, and yes Perth is the greatest place to live in the world (biased) but these are cycles…[Read more]

its funny you say that gmh because from my persepctive in Perth the quality and choice (and price) of some of the properties in Sydney far outweigh that in Perth (especially some of the terrace houses in inner sydney).

I noticed that a couple of years ago here in Perth, people were busy renovating before they sold to increase value – now they…[Read more]

Thanks CRJ,

The difference is that in Perth, these prices are varying $100-$200,000. You also might have heard that agents now use an EOI (expressions of interest) which is basically an auction without having an auction.

Does anyone have a view on this?

I understand that as an investor the emotion is taken out (or should be taken out) but we are also all home owners as well.

Look fwd to a reply

Hi Shaun,

Well, I was close. I am sure things have changed a bit as you say.

But I am sure you will agree with me that a landlord can get a good deal by renting to a defence force person.

Cheers

I would strongly advise you to talk to a builder or developer that can help you with the numbers. A developer should also be able to discuss with you the pros and cons.
At the end of the day the figures have to add up for developers and you have to be able to make profit today as it is not wise to predict profit on what may happen to prices…[Read more]

Bought first at age 21, $150,000 10 years ago and neutrally geared.
Saved deposit.

Took six and a half years to increase $1 in value (yes – thought about selling it a hundred times).

in mean time slowly grew a portfolio of shares with savings.

When Property increased in value (3 years ago), immediately geared against equity and bought cheapest…[Read more]

Having prevoiusly been in the navy for six years, I can safely say you may be on a winner renting to defence force person.

1. The navy may subsidise up to 100% of the weekly rental. (Hint find out what the subsidy is and you may find you can upp your rent considerably).

2. There would be major repurcussions if the navy member defaulted in any…[Read more]