That is a good yield!
I like Rivervale but has gone up too. To get an old (rundown) single dwelling cost around 250-270k and rent around 130-150/week. Very close to the city though, has good potential. Maybe is the next Kensington. I think developers are building nice apartments around there so it should push the prices up. What do you think about…[Read more]

I live in Applecross and regularly check the real estate market. The problem with some of the areas mentioned on the list is that the yield on houses (excluding apartment, villa) is very low. Unless you have huge deposit you will find that the gearing will be quite high. I personally like Kensington, it’s a relatively small suburb very close to…[Read more]

Ausprop, you didn’t read my post correctly.

My feeling is the property prices in NSW can go down another 10% and will be flat for considerable length of time. WA too I think will have small correction. Personally I think the novelty of owning holiday homes or IP outside city that is not easily rented at reasonable price and costing money will wear off. Almost like sharemarket at the peak,…[Read more]

I think if commodity prices remain around this level (China still buying) stockmarket still have few years moderate growth. If commodity prices fall it will increase our inflation. We import so much and prices of imported goods remain low becuase of high Aussie dollar. On the other hand low Aussie dollar will also increase export. But if Aussie…[Read more]

Showmethemoney, do you think Mandurah is turning into a retirement village for Perth oldies?
$350/week for 825K apartment!!! Even in Sydney (which is one of the lowest yield???) you get $500-600/week for that price apartment.

Sound like a good buy. Sure to go up in the future. It has a nice mental picture in my head when you said the end of the road is water and only 400-500 meters away. Good size block too. I went to Golden Bay 2 – 3 weeks ago, a lot of development going there. Some blocks are 2000 sqm +.
How old is the building?

Goldenchild,
How far is it from the beach?
How much rental do you get from the property?

Some properties have double in the last two years. How much more growth do you think Mandurah have in the next couple of years? I am not that familiar with Mandurah. I stayed at Miami two weeks ago and I couldn’t believe the prices. Some make Perth inner city properties look undervalued.
People are drawn to the ocean, everyone want life on the…[Read more]

I like to know one too.

600/week on 825k brand new apartment? How much growth can you get from here till 2010?
Say she gets 600/week, that’s 31,200/year minus corp body, insurance etc.
You will have to top up a lot more than $15,000 a year. Probably more than double that amount. This is assuming she always get tenants.

Will you get 800/week rental on this quality apartment?

825k for two bedroom apartment. Must be very nice location in Sydney. In Perth you get excellent river and ocean view + close to the city for that kind of price.
Will she be able to get her money back if she sell it now?
How much rent you get for this type of apartment?

No I am not saying that it’s all luck. Lazyboy did well because he bought well and correct timing. He did something when he saw the opportunity and he is lucky. That’s what I am saying. Obviously he is not expecting that the market will be as good in the next few years otherwise he wouldn’t have sold his IP’s. Good for you lazyboy. You can only…[Read more]

Lazyboy, will you be able to do the same if you start now? Your timing was perfect but the boom is over.

Thanks for the input everyone. Yes, I think I will look around for something else. I am hoping to get a bigger block with older style 4×2. Since the block is expensive usually they only value older building 50-75K, while the replacement cost could be 200+K. People want nice new house on nice block, while I am quite happy with older style house. I…[Read more]

I have no experience with apartment and Brisbane property market, but why they have to advertise them overseas if they are consider as good value. People in Australia are property crazy, they will buy any good value property. I wonder if the developer have tried to sell them locally and they can’t find buyers?? Too expensive, too many??

The reason why I ask if Perth is still going up is because I have a look at a nice 1000 sqm block in Applecross with very old house (2 bedroom brick and tiles). But to get it I have to sell my 2 storey house on 600 sqm block. I have a comfortable home. Location of the property is very close to each other. But I will have to add 200K for the…[Read more]

First of all my instinct about property market has been wrong in the last 2 years. [blush2] I thought it would stopped going up 2 years ago. The slow down finally happened and I am concern on how soft/hard the landing would be. Someone said to me that property market moves like a big tanker once it decided to go to a certain direction it takes…[Read more]

Yes, I agree. In the future we will have wealthy young people from ‘old money’ more so than now. On the same time we will also have larger number of people that will rent and can afford to buy. I quess only time will tell how far the market will correct itself.