I like to know what you guys think about buying inner city apartments in Perth? Developer are still building new apartments. One of them accross from QV1 is selling off plan now and they will manage rental etc?
What do you think the future on these apartments? They are not cheap but rent yield is usually good.
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I am also looking at Singleton beach new subdivision but not sure about building a house. Don’t have experience in building houses but I like the location.Not sure of the attitude now but a few years back when we looked at a unit with a 6000 postcode Banks would not lend usual percentage. I think they would only lend 60% but can’t quite remember. This tied up too much capital as did buying off the plan for too long so we forgot that idea in a hurry.
If I knew then what I know now……….you know how it goes
Hi Zen,
With all due respect it would appear that you are suffering from analysis paralysis. A lot of your posts are of the ‘what do you think about’ type.
I would suggest you go back to your drawing board and work out what you are trying to achieve through property. Then develop a list of property ‘must haves,’ ‘desirables’ and also a list of ‘must nots’ and ‘probably nots’.
This will then help you to eliminate and short list suburbs and areas and allow you to refine your search within a single or group of suburbs.
I would steer clear of managed apartments – they are hard to finance and as Actoday said some lenders are very wary of central Perth property.
By way of exampe CBA used to lend at 80% about 4 years ago. They then changed to ~65% on the same and when someone I know went to refinace they couldn’t utilise the extra equity because of the reduced LVR.
Banks do change policies – that is why I prefer more conventional properties in quality locations to reduce the likelihood of this happening to me.
Derek
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0409 882 958
Property investment advice and researched property in quality locations available.Hi Zen, I would also be concerned of oversupply, especially West Perth. Check the stats – downward trend at present.
APARTMENTS WHICH ARE MANAGED AND RENTAL GUARANTEES – Its all hype and spin, stay away from these.
Singleton is great as many have previously mentioned on this forum. However if you are purchasing House and Land packages you are looking at possibly 18 months to build, can you afford the interest during this period? Will it still be good buying, probably not. Housing approvals have decreased but apparently builders have an 18 month backlog.
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Hi Derek,
My colleague is looking at it, he thinks it will be a good investment with little down payment. I never really like the idea of investing in apartments but I thought I better ask some people here. I am trying to be open minded and will look into anything that will give good return in the future. As for analysis paralysis, yes I admit that. I don’t know much about IP beside is it time to be bullish now? For that reason I will keep looking and asking. I am sure once I get one, the next ones will be an easy decision.
It is a good point to have the list of “must have”, desirables, must not and probably not. I will do that.Thanks for the advise. Currently I am working based on yield and CG estimate. I can’t find any with good yield and near a beach/city.
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Marisa, I have been in contact with the agent. They don’t seem to sell very well? Still many of them are not sold. The update that they sent me still showing the same number of blocks not sold. I also asked about House and Land packages.
I’ll keep looking and sharpen my instinct. I’ll get there.
Thanks for the info about the oversupply and downtrend stats.Hi Zen,
As we went through the Capital Growth phase of late you could’ve done well on some OTP apartments (i’m thinking of 2 that i know of,on min deposit) times they are a changing though. Interest rises are coming and you have to be very careful of the oversupply of apartments in some areas.
I see that the area around the Sandringham etc is going apartment crazy and they are finally doing something with the old aprtments down the road.
Have you looked at buying something not so new?
do you currently own any IP’s?
+ geared is easy..just put in bigger deposits [biggrin][biggrin][biggrin]
Actually, keep looking and evaluating and wish you all the best“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorI know people bought apartments in East Perth, some people consider East Perth inner city too, and the values doubled in a matter of few years.
I spoken to a friend who bought an apartment few years ago off plan, now it is valued over half million.
if you don’t have a lot reserve to pay mortgage, then city apartments get higher rents, can help with mortgage.
Hi Zen.
I’ve a bit of an interest in the perth apartment market.
My PPOR at present is an East Perth apartment and in the short time I have owned it I am confident of it doing well. I have the sale history for the entire complex of 60 units since construction 7 years ago all charted, and the CG has to date been damn good.
If I leased my place now the return would be negative, but not too bad.I think the key is to buy something a bit unique, with some sort of aspect that the bulk of them don’t have, rather than some of the ever so similar mass developments that are being spawned.
Someone mentioned that the banks are looking at a low LVR ratio. I encountered this a year ago when I was looking for finance, but managed to get ‘mainstream’ finance at 80% no problem after a bit of shopping around.
~jo~
I’ll shelf the idea for now and I’ll also let my Colleague knows about the stats. Interesting time, property market is slowing and sharemarket is probably going through a correction. Maybe the economic clock is pointing toward 6 o’clock, signalling increase in IR.
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