Marissa,
He probably did mean $23 negative for all 5 and they were mos likely houses, especially if he bought over 12 months ago as Armadale had a bit of a jump then. We were lucky and bought one there prior to the jump in prices (they went up around 20-25% over the year), it is now neutral (if you include the tax return we get from it).
And the vacancy rate is great. When we first bought we had a choice of tenants and that was a very nice feeling.
ActToaday, Well DOne on having the foresight to get 5.
Regards
PKWe had been researching but procrastinating for years and were finally ready to jump in. One was a duplex site but with the new town plan we can now build four and one of the others we are subdividing right now and will build a new house on the new block. With this new house we will then have positive cash flow as being builders we do not have to pay for some other builders profit.
If I knew then what I know now……….you know how it goes
Gosnells also has a great ‘vacancy rate’.
Glad you’ve done well with the area, still can’t get myself to buy there though, doesn’t fit my criteria [fear]
Redwing
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorHas anyone looked at Exmouth – far north WA?? I’ve noticed alot of land releases happening up there…
Wayne Leech
*Below are links to my websites – any feedback, comments would be appreciated:)
http://www.landsearcher.com.au – List your land for FREE (Private sellers only)
http://www.homesearcher.com.au – List your property for FREE (Private sellers only)I bought an IP in Armadale about 3 months ago. The Agent managinging the property had four offers from tenants wanting to rent it within a week of advertising. While the property is slightly negatively geared I found that Armadale had a nice feel about it and the Govt is investing money there. It is one of the cheapest suburbs in Perth and has a much nicer feel (lots of parks / village centre and hills) to it than other suburbs such as Medina. After taking a few back roads in Medina I had a bad feeling about the place and couldn’t get out of there fast enough.
Any of you guys been looking at Padbury?
Sometimes lost in the forest, needing guidance.
Wanting to be wealthy, not rich.
I would say Padbury’s already had it’s jump in prices – quite a nice suburb, but the prices have gone up alot there recently…
Wayne Leech
*Below are links to my websites – any feedback, comments would be appreciated:)
http://www.landsearcher.com.au – List your land for FREE (Private sellers only)
http://www.homesearcher.com.au – List your property for FREE (Private sellers only)Guys,
After the initial discussion regarding Perth, around June 2004 I bought an IP in Westminster. I never looked back. It has appreciated almost by 15% in 6 months. I was told Westminstaer, Balga are the suburbs to watch for future growth too. I am planning to keep it for long term.
These areas are only 10km from the city and max of 15 minutes drive to beach.
Thanks for this forum for my pick.
Paul The Magnet
Guys,
Whilst I do not have a crystal ball, I have the next best thing. Lots of research!
I looked at the Perth real estate market recently and eventually purchased in Golden Bay due to its location equidistant between Mandurah and Rockingham. I also felt the lack of deep sewerage, at the moment, meant block sizes were still large. Once the sewer is put in block sizes will become smaller. The future train connection from Perth and freeway are all pieces of infrastructure that will make Golden Bay more attractive. Also the Rockingham Mandurah road hugs the coastline quite closely at Golden Bay and Singleton. This will cause prices to increase when subdivision of real estate occurs and blocks and houses go on sale on the other side.
My purchase plan is to buy and hold forever. Rental is quite low at the moment but escalating prices for the region are sure to have an impact here.BTW I am not from Perth and actually live in Melbourne. All this info was sourced from government sources and articles published on the internet. I bought sight unseen as I have previously in other states with much success.
Hope my prediction, through research, comes to fruition.
Cheers
Bruce
Hello all….rather long thread isn’t it…
Having spent the last good while reading all the comments on this one, I’m going to go against the trend and suggest the following IMHO;
Dalkeith
NedlandsBoth of the above are in “nice” family areas. Talk amongst the wives / they all either want to get in there or know someone in there and are a tad envious.
All infrastructure been there for yonks.
These suburbs are usually pretty average on the cashflow side of things, but no matter happens to the economy, there is always some sector within the overall picture that is doing particularly well…and the execs will always pay a premium to live there.
Saw some initial posters from 1914 when Dalkeith was first openend up. Quarter acre blocks for 24 pounds, 1 pound deposit and a couple of shillings?? per month repayment…no interest component at all…WOW…they are all over 1MM now. That’s a steady 11% CG for the past 90 years on the dirt – house immaterial…
Only downside is there is alot of lawyers living there…
Cheers,
Dazzling
“Go hard or go home”
Hi Dazzling,
Noticed last night that Mark Rosen (sp?) REIWA President believes much like you that the prima growth areas now have reverted towards the prime areas of Churchlands, Dalkieth and Nedlands which are classic ‘blue chip’ suburbs.
I am sure the ripple effect of the growth has largely broken on the outlying suburbs and is now reforming in the central areas. Obviously access to major infrastruture and localised developments can distort this simplistic statement.
Derek
[email protected]Property Investment Support Available.
Derek,
His name is Greg Rossen. “Mr Nedlands” to the great unwashed amongst us.
He’s constantly banging on about Nedlands, but then with his business base there, you can’t really blame the guy for beating up business – like all REA do I suppose.
Cheers,
Dazzling
“Go hard or go home”
Forget Perth…
Go to Geraldton!
GERALDTON, GERALDTON, GERALDTON, GERALDTON!!!
_____________________________________________
[withstupid]
The forumite formally known as Big RobHi Rob,
You’re not pumping and dumping are you?[biggrin]
Derek
[email protected]Property Investment Support Available.
Hi Yarwood,
I believe a good prospect at the moment is Kallaroo, A sleeper suburb, bit like Edgewater was a few years ago. Some yery cheap properties there at the moment. I’m actually buying in Kalgoorlie, commercial. Excellent cashflow (up to 18% net) and appreciation, the thing to watch is vacancy rates, you need to buy properties with good long term leases.
AndrewPhew!!! This is a long thread[blink], but some interesting comments. Does anyone have anything interesting to say about Midvale and Forrestfield?
SQ.
Hi Derek..
beinteresting to seewhat the blocks at ECU Churchlands eventaully go for $
GoldenChild buying in Golden bay[blink]
Actually I was in Rockingham the other day and mandurah the week before..quiet a few apartment complexes going up and both areas were ‘very’ busy (still school holidays though)
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorRead article today in paper – “with current market changes – house buyers should apply a 30 year rule to their property investments”.
Looking at areas which have achieved an average annual increase of 11.8%.
10 suburbs listed as favourable locations:
%
Mt Pleasant – 12.7
Applecross – 12.6
East Fremantle – 12.5
Brentwood – 12
Nedlands – 11.9
South Perth 11.8
Mt Lawley – 11.8
Attadale – 11.8
Kenningston – 11.6
Como – 11.1Another option to purchase in these areas would be villa/unit.
I guess that means all new areas have just been written off. [blink]
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 the city. Not too many apartments/units. But rental is very low in comparison to the going prices. I wonder if it’s better to stay around median price suburb (higher cash flow) than more expensive ones at present market? What do you think?
I like the idea of buying at or around median house price.
I have done on both my Perth properties, and both seem to be performing in line with median over time. For example, IP in redcliffe originally bought as PPOR. Bought at median house price then, is still bang on median house price now. Lived in it for 1 year, then achieved a rental return of 7.5%. Looking at a return of ~8.5% after the next rent increase, and it will still be a fairly cheap rental for the area.
I still like the Belmont Redcliffe Cloverdale area, even along towards Rivervale. and even though it has seen some decent capital gains in the last few years, I believe that this is in a great part due to the bigger, new, higher quality house and townhouse developments, and there is still alot of room to move. It is 10kms from the city, and, I see the airport as an advantage. The area for the most part is not in a flight path, it never bothered me at all living there, the main flight paths run parallel. There is a good rental demand with the very high number of Fly-in Fly-out mine workers who want to live near the airport. (I was one of them)Also, someone mentioned Exmouth a few posts back…. Yes the area is “going off”, alot of new developments. A relative purchased 2 CF+ properties there less than a year ago, and has seen a 20%++ growth since. And still growing. As an aside, I have heard that local indiginous persons avoid Exmouth as it has some sort of bad vibe for them or something, but I don’t know the story!
~jo~
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