Hi John,
from what I have heard and read building approvals in Perth have decreased and it may take 12 months but there are obvious signs of a softer market, it definately is not what it was 12 months ago??? What do you think?Zen, no need to worry about softer market if you are buying in Applecross.
However, I believe lifestyle is important. If you do not have the funds required to build right development (probably require $300,000 each unit) then what is the point.I also have young children and would not want to be living in a dump and sacrifice a comfortable lifestyle.
What about other options that wont affect your current lifestyle without adding additional stress.
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 think you guys are right it’s just unworkable staying in an old 2 bedrooms house with 2 kids. It is actually older and smaller than our first house 15 years ago when we had no kids. I think I am trying to justify myself getting into a bigger block. I feel if I don’t get it now I will never be able to afford one in the future if the prices keep on going up like this. I think I need to get my priority right.
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We had an office Christmas party today and I talked to an old friend that invests in property. He buy and also develop properties. He said being in the business he knows the market is going down in Perth. I said the market is still strong according to various sources but he insisted that it is going down and he is not buying anything now. His brother that I know for a long time also has stopped building houses now.Originally posted by Marisa:Hi John,
from what I have heard and read building approvals in Perth have decreased and it may take 12 months but there are obvious signs of a softer market, it definately is not what it was 12 months ago??? What do you think?well we can only hope. I had drinks with a builder last night and we discussed how we could do business next year. it’s tough – we can write the business but they have a full order book and can’t deliver as it is. what can you do when you are offering volumes of business and they just say sorry come back in 2006 and we’ll chat?
Zen – going down – where? I would like to buy some of his property! Well we wouldn’t have a market without buyers and sellers, so it’s all healthy. The only reason why I could imagine anyone stopping building is out of sheer frustration of not being able to get anything actually built. As per last weeks article on Mandurah, people are paying $50k over the odds just to get a completed house. Anywhere on the coast, and from atwell to mandurah, and gosnells, maddington, queens park, kenwick and surrounds; they are all taking off.
Extensive list of ‘Off The Plan’ property available for sale in Perth.John – 0419 198 856
Ausprop
Look forward to your web-site going “Live”
All the Best
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorZen
I live around the corner from you. My wife and I are currently renting in Attadale, we bought an investment property in Alfred Cove. I believe what Steve says in his last book relating to the Perth / WA market showing no direct signs that the market is slowing down. However I do feel that the WA media are giving conflicting signals to the current market economic indicators.Whilst unemployment is low CPI is high the interst rates are still low Auction clearance rates are low(even though WA is not that big on auctions) The aussie dollar is still too high, Gov have altered the stamp duties to keep the consumer momentum going.There has been a terrible Sunami wave killing thousands just up the coast. Any negative Media snetiment will alter consumerism. In my opinion it is very important to keep in mind, that when the market turns heavily in NSW and Vic that the negative sentiment even though the WA market is “9%” upwards this side will feel that pressure from the east.I believe only those who are cashed up will benefit from any downturn and it will be difficult to get finance from banking institutions. That way Zen, if you purchase in Applecross a two bedroom house and have to sell your own comfort zone and still have to input another 200k; to me then your strategy is capital Gains and not pos cashflow. What is your worst case if interest rates start climbing?
If you have read Steves book it is very important that you know what you want prior to investing. What plan do you have or forsee??? What is the worst case scenario if interest rates go up and you decide to renovate and there are building problems because of builder availability? As you know there is a massive shgortage of skilled labour here.
Zen you could consider renting. I have a house which is vacant it has 3 bedrooms double carport and an extra office close to garden City shopping centre, close to schools and kindergartens and the freeway to the city. It is right next to wireless hill natural reserve and is 3 blocks from the river and parks. The house isnt brand new but it is definitely liveable. IDEA: you could cash up from your comfort zone and be ready to pounce the market and make a great buy when the market does turn ? If Applecross is where you want to live you will be right next door and be ready.
This is no sales pitch either. I have had the place vacant for 4 months whilst i have been doing renovations to it and having such fun. This is one of my pet projects but if you are stuck you could consider my proposition. My wife and I dont have children so I wouldnt know the pressure regarding space for them.
Your Wife and two kids are very important it is very unsettling to buy, relocate and build.
I am looking at purchasing pos cashflow commercial property in Maddington next as I know that there is less emotion in commercial real estate. Dont fall in love with Applecross, it is a beautiful place but I dont believe it is the right time to buy.
Anyone else feel differently please let me know as i am very keen to soak up advice from like minded individuals.
All the best mate
Milzy
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