I have been investing in the WA property market for a few years now. The margins in and around Perth and the SouthWest have been great over the last year or so mainly fueled by the resource boom. It seems like the ride is coming to it’s peak with capital growth far outstripping the affordability aspect. Investors are now getting a return of about 3%. This scares me!
I know of a few people investing in places in outlying areas such as Kalgoorlie/Kambalda. The out look there seems to be bright for the next few years at any rate according to local businesses and companies. Rental returns seem to be at 10% plus and the price boom has not reached there yet? When you look at replacement value in these places they are selling housing at about a quarter of the cost (according to local building prices etc..).
Does anyone know any more on this type of investment? I know its risky but then there are no guarantees with any investment..buying houses rented with these sorts of returns for $100,000 seems a good thing?Hi Mikey,
Suggest you do a search on the forum as Kal and Kambalda do come up from time to time.
Search facility is located under the forums button at the top of the page (left hand side).
Give me the security of large cities any day – even if I have to put a little bit in.
Derek
[email protected]
http://www.pis.theinvestorsclub.com.au
0409 882 958
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