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I have a question that I can’t get an answer so far.
How is the affordability level in Perth? Is it historically at a very high level or still have a bit to go?
I quess China can go bust but can also pick up. I feel the prices have gone stupid but that could be because I am not used to it. But then again probably it has gone stupid. Personally I don’t know too many people buying property at the moment.You left something out.
Mr McNamara said the huge rises experienced by Perth were clearly unsustainable, with APM predicting the Perth and Darwin property markets will reach their peak in the December quarter 2006.http://www.news.com.au/business/story/0,23636,20694335-37037,00.html
I am not disputing 100K is not common simple saying newly grads salary. I personally wouldn’t call someone with 3 years experience a newly grad.
My wife works for a gas and oil exploration as an accountant for many years. i don’t think she will agree with “the newly” grads salary.Anyway, the issue I have is the level of affordabilty, low yield, increase IR, large increase in number of listing lately and the time taken to sell. Also prediction on China downturn in demand after 2008 Olympic but it’s 2 years away.
For example, I have just made an offer on a 850sqm block with house less than 6kms (about 10 minutes peak hour drive) from the CBD, less than 1 km from the Swan River, that is zoned triplex. Price – $380k.
It sounds like a very good deal. Can you tell us where after your offer been accepted?* Wages are now high across the board – situations such as recent accounting grads are now getting paid 100k, not just the “laborers and miners” you read about.I live in Perth and don’t think accounting grads are earning anywhere near 100K. It’s always an exception.
Another think that always makes me wonder. If the demand is so high why then the yield is so low? I am getting 3% which is pretty normal in Perth.
* Wages are now high across the board – situations such as recent accounting grads are now getting paid 100k, not just the “laborers and miners” you read about.I live in Perth and don’t think accounting grads are earning anywhere near 100K. It’s always an exception.
Another think that always makes me wonder. If the demand is so high why then the yield is so low? I am getting 3% which is pretty normal in Perth.
* Wages are now high across the board – situations such as recent accounting grads are now getting paid 100k, not just the “laborers and miners” you read about.I live in Perth and don’t think accounting grads are earning anywhere near 100K. It’s always an exception.
Another think that always makes me wonder. If the demand is so high why then the yield is so low? I am getting 3% which is pretty normal in Perth.
If it doesn’t then they will just keep coming.Does WA has that much impact on the RBA decision to increase IR? The property market in WA has gone silly but the inflation figure does not include property prices.
What do you think will happen to first home buyers if IR goes up again?
The theory is it will make it even harder for first time buyers. It does make sense. But do you think the IR increase will push the prices down to even it out? Now media even talking about double IR increase, next month and early next year.
I don’t know if it will have a lot of impact in WA though.Code:For example, he argued until he was blue in the face one night that if you insure your $200K house for $100K and it burns down, the insurance company will pay out the full $100K. I tried to explain about under-insurance but HE KNEW BEST. I worked for a bank at the time and my brother was in the insurance area of the bank, but what did I know? You get the picture….. He knew everything.Isn’t this correct? If you insure for 100K and it burns down you will get 100K pay out? But if your house is damage than you will get the proportion (50%) of the repair cost.
Can someone explain please.Hi detective gmh, maybe Jenman can provide you with details.
Let us know.Mikey,
If you offer the guy $2 mil he might take it. Not bad for few weeks work 600K gain.
Ouuchh.
I thought the top end is still booming.
Was it a mortgage auction?
Can you disclose the state/city?The news came from the head of the RBA last night not the media.
So it’s likely to go up. After all he is the one that decides on IR.
What the media says doesn’t matter.I still remembered paying 17% IR back in 1990. It was cheaper to rent and buy a house a few years later.
I quess that’s why I didn’t get into property market this time around (wrong decision) because I worried IR could go up again.
Where do we go from here I wonder? Will the market be flat for a long time? One thing about increase in value on my PPOR is that I can borrow more to invest.
I live in Perth where property prices I feel have gone silly. Very big difference between rental and interest cost. Usually high PE ratio indicate growth potential but more of us agree that’s unlikely in the next few years at least. Having to say that I have given up to put logic into it, been wrong too many years.
Many people in past always told me that mining is cyclical but I don’t know where we are in the cycle.I have never been to Queensland and don’t know how Deception bay is like. But according to the info, it’ 30 kms from Brisbane on a sheltered beach. You still can get a good 4×2 less than 10 years old for less than 300K.
This kind of price is just non existence in Perth for the same quality house.
Is Deception bay a good area and reasonable rental?Gmh454, thank you for sharing your experience.
I only have one IP in Perth and it’s heavily geared, rental is 3% gross. I don’t want to get into an IP with this kind of yield anymore but that’s the trend here in Perth.
From what you said, this is the time to observe and wait rather than buy. Is this correct? I woudln’t mind getting another IP if the yield is pretty good like 6%.
I feel that we will have an extended of flat period hence buying an IP that is heavily geared will be costly.
Please share your opinion. Thank you.In the current climate I feel that it is important to purchase an IP with good yield since the capital appreciation is uncertain (at least for the next few years).
What is your minimum requirement on the yield before you even consider buying the property.?Hi Andy,
Congrats with baby. I have 2 children and I know having a baby is an exciting time.
It can be costly to buy a baby bed, stroller, pram etc. What I can suggest is few months before the baby arrives to start collecting them, they are many second hand beds, prams etc that are in VGC. If you have friends they might be kind enough to give them to you or at a small cost. Anyway, good luck and I sincerely hope you will look back one day and laugh about it.Hi Roofarmer,
Warnbro is a good spot and for $270K is still reasonable. Can you tell me about the houses there for this price? How old etc.
How is the rent like?Hi sparky,
Can you share the details of your townhouse? Size, location, age and rents?
