Hang on, the statement was 4×2 homes 800m from the beach for $350k. You have nominated property that is 40km from perth and is one suburb in from the coast. Its north of Merriwa for goodness sake (affectionately knownas Balga by the sea)
$350k for this area is crazy, like I have been saying.
Just take a look at Sydney pricing….its simply better value than Perth…but by all means go ahead…buy up large in Perth[biggrin]
I seem to recall a saying ‘go against the herd’. Buy in a buyers market. sell in a sellers market….Perth is an extreme sellers market.
Still, i only wish everyone the best of luck, and I am extremely willing to accept I could be way wrong about this.
Cheers,
JES
any chance of an example of what $350k could buy in Sydney? It’s nearly 20 years since I last went there so I wouldn’t even know which suburb to type into re.com!
40kms is part of the Perth sprawl now. Joondalup would be the relevant town centre there. Mandurah is 95kms!
go against the herd is def a good strategy and these days it’s hard to find a herd that isn”t a bunch of excited bulls. trend is your friend also comes to mind. I wouldn’t like to go against the herd and buy into a falling market – timing would be crucial and you are looking for the bottom in this case. I don’t recall seeing much saying that Sydney property is set to take off. I thought dockalnd apartments in melbourne could be a goer too – any thoughts?
one thing to bear in mind is we have a dichotomy of economies being governed by one central banking policy. theinterest rate distortions are causing big problems. you really do wonder if there is a justifiable reason for WA to splinter off from the commonwealth given the lack of integration and the arguments of tax distributions.
http://www.megapropertygroup.comINVESTMENT SALES * RENTAL SOLUTIONS * STRATA MANAGEMENT
“Just take a look at Sydney pricing….its simply better value than Perth.”
JVT I agree with AUSPROP, show us some Sydney properties of comparable value to our examples. Is there any???.
ned kelly
[biggrin]
Good luck finding a 4×2 in Syd for under $350K. Even homes up in Avalon, Newport and Palm Beach which is > an hour from CBD will go for >$800K with NO ocean views. $350K might buy you a 30 wait, maybe 40 year old 2 bed unit in the 7-20km CBD radius. Might be LUCKY to get $280p/wk rent for them with minimum $400 p/wk strata rates and yes, these are old buildings so expect the outgoings to increase more than CPI. A new development is selling OTP in Cammeray – just north of bridge. A couple of 2 bed townhomes are going for $800k+ and are only around the 70m2 mark. The highest 3 bedder was over $1.5M. Now, this is only a townhouse! No ocean views, nothing. The main attraction – 10mins into town. Big deal.
The properties you mentioned with harbour views for under $300K are probably studios. Good luck with the lender. No 2 bed apartment with decent harbour views go for less than $500K. In 03/04, I used to rent a nice apartment that had full view of the Harbour Bridge in Neutral Bay. Nice pad but small 2 bedder, only 75m2 but convenient to shops, buses to town, the Oaks..etc.. . We were paying $360p/wk. Two floors up, same condition sold for $680K in 04. This was a >30 yr old building. Probably worth the $620K mark now but hows ur rent return. Existing stock you see out there is pretty much cra*. The good ones will get snapped up and people will pay up for it too. SImply too many FHO to compete with. Since X’mas, they are out in hordes! In short, I live in Syd and do not own an IPs here…. yet.
I live in the Northside and grown up in the HIlls area so my views are biased. There are shi*ty areas of Syd I wouldn’t want to live in. Yes, you can probably get a piece of dirt with a house on it for <$500K about 15-20kms out of CBD but I prefer to not have morons and uneducated imbiciles roaming my streets at night.
I need to be clearer in my thoughts, I am not suggesting that you can buy 4×2 homes in Sydney within cooey of the beach for $350k, just that IMHO the value is getting better in Sydney and prices are falling. You have a wiiiide selection of property that is staying on the market. I have spoken with agents who are using the language “any reasonable offer” or “vendor wants it sold”, all ofers considered). What I am illuding to is that bargains exist. Sure you need to be wary of a falling market Vs a rising market (Perth) and make sure you are really aware of what represents value. Three R’s.
A quick search around Dee Why alone buys you a large 2 bed possibly 2 bathroom ‘large’ top floor apartment with Pool and Gym and LUG for around $400k and thats asking, probably buyable at much less maybe $360-$380k if you find the right vendor. This in my mind represennts substantially better value a suburb 40km north of Perth slightly inland of a rather desolate coast that blows like the clappers in Summer and is a demographically challenged area (streets at night stuff).
Anyway, its all about strategies I guess, we’ll either get this right or wrong, or perhaps somewhere in between. Who really knows….not me thats for sure.
By the way, i love Perth, but again IMHO much more than 10kms inland and 20Kms north or south (except Mandurah which is its own hi quality hub) Perth becomes less ‘nice’ and less of a lifestyle.
Cheers.
JES
“a suburb 40km north of Perth slightly inland of a rather desolate coast that blows like the clappers in Summer and is a demographically challenged area (streets at night stuff).”
Yep you can tell from the following link it’s the last place you would want to live or buy an investment property. Would you walk these streets at night!!! or want to live near a desolate coast like this!!!.
http://www.movetoperth.com/info/suburbs/suburb_pages/butler.html
ned kelly
Originally posted by JVT:A quick search around Dee Why
Don’t you just love the red bricks?
Given the choice, Dee Why would be one of the last suburbs most Northern Beaches folks would choose to live. Have always been and will continue to be pitsville, no matter how much they try to gentrify it. But only my biased opinion.
Originally posted by Marisa:Hi Foundation, as far as comparing wages – Melbourne versus Perth etc. etc. , I am really not interested.
You can analysis it to death and nothing wrong with that, but it aint gonna change a dam thing over here.So do you believe that:
a) Wage rises are not the primary driver of property prices over the long term (if not wages then what? How are people paying for these houses?)
or
b) Wage rises are the primary driver of property price increases over the long term, but are currently irrellevent because of the minerals boom. (BHP buying up all the houses?)
or
c) Wages are irrellevant because currently people are able to finance housing investment from capital gains on existing houses. (That sounds a little like a pyramid…)I know which one I’m betting on. And you’re right, it aint gonna change a damn thing. When the froth blows off Perth’s bubble, it’ll be the people with the highest debt as a proportion of their wage who will bleed the worst.
Cheers, F.[cowboy2]If you are going to make suburb comparisons, Dee Why would probably more relate to Scarborough rather than somewhere like Quinns or Butler.
JES mentioned above the “high quality hub” of Manduarah. Can someone inform what the attraction is? Apart from the pie shop, I can’t see anything really going for it. Investment wise it may be of interest but I simply cannot see what all the hype has been about. Sorry to offend any Manduraites out there!
Have got to agree with Ned, why would anyone want to live on such a desolate coastline, particularly the Perth coastline? Still think anywhere from Padbury to Butler can represent good value considering proximity to the city, beaches, transport and shopping.
” know which one I’m betting on. And you’re right, it aint gonna change a damn thing. When the froth blows off Perth’s bubble, it’ll be the people with the highest debt as a proportion of their wage who will bleed the worst.”
you first have to have a bubble to blow the froth off it. by the time the perth market catches up to levels commensurate with other markets, current buyers will pick up another 20% cap growth. Unless you are on a serious spending binge I can’t see many people being hurt by that. This is particularly in light of the fact that the demand is not distorted (on a percentage basis) by investors . It’s a two sided squeeze – supply constraint and strong demand.
http://www.megapropertygroup.comINVESTMENT SALES * RENTAL SOLUTIONS * STRATA MANAGEMENT
“JES mentioned above the “high quality hub” of Manduarah. Can someone inform what the attraction is? Apart from the pie shop, I can’t see anything really going for it.”
CHOKE…
what pie shop are you referring to?
the mandurah area is stunning, to argue the emotional merits of an area would not be productive though.
http://www.megapropertygroup.comINVESTMENT SALES * RENTAL SOLUTIONS * STRATA MANAGEMENT
Always stop at the Miami Bakehouse on the way through!
Sorry Ausprop, didn’t mean to make you choke like that. I am genuinely interested as I donot see the attraction. The beaches of Perth are streets ahead, accessibility, while being improved by the rail is still limited, if you are into the canals (so to speak), the houses are pretty much on top of each other. Just don’t see it myself!
About Mandurah,
I went for a drive to Port Bouvard last Saturday. Nice suburb. My friend than saw a house on the canal with a big for sale sign. Land 700+sqm and the house only a couple years old. He then called the agent and asked about the price, asking 1.1 m. Then asked if the house will be open for inspection to public. The agent said it’s tenanted so won’t be opened to public. My friend than ask him about the rent. …………It’s 270/week[ohno][ohno]. The agent said it’s too low the tenants should have paid 350/week.
We were shocked at the yield. 1 minute drive from the canal we saw an ocean front 550sqm block asking for $950k.
I wonder how much rent they get with $700K house on it.Sounds like a few sour grapers who ‘think’ they have missed the boat on this one! We came over from the East side to check out the land we were buying at the Anchorage sight unseen before settlement & loved Mandurah so much that we also picked up a townhouse.
Mandurah Rocks!
Sparky
Hi sparky,
Can you share the details of your townhouse? Size, location, age and rents?
I Still think Warnbro area has a lot more growth in it. Bought a 4 bed house there in 2002 on 725 m2 , 800m from the beach, and 800m from the new train station (due to complete in December 2006 or early 2007) for $153,000. Now worth approximately $270,000 but I think over $300,000 is possible within 12 months.
Warnbro/Waikiki beach is regularly voted one of the top beaches in Oz and with the transport infrastructure going in (35 min train ride to Perth CBD) this area can only rise. Have sister who has just moved over from Sydney and bought a house. She is loving the lifestyle for her and her kids. I’m sure many more people will discover this area as a nice place to live that is still close to Perth.
Anyway my prediction is for this area to continue to rise. Get in before the train station is built.
“Most people operate under a false ceiling which is 3 feet high” Stuart G Goldsmith
Where is Perth?
I am currently living in Rockingham in the Anchorage Estate, and in my opinion the market on the Rocky foreshore is over heated.
For the money you’ll spend down there, you would be better off buying the same closer to the city.
My recommendations are buying anything around the $230,000-$280,000 mark in the surronding streets of this estate (The Anchorage Estate). It’s beach side of Read St which is the better side to buy on. Render and do up the properties for a good captial gain.
Also, trying looking at http://www.rdo.wa.gov.au
Here you will find the 3 options for the Cape Peron Redevelopment plan due to start in 5yrs time ( A very exciting development, if it gets the go ahead).
And stage 2 of the Rockingham Waterfront village development plan (Flinders Lane,Kent, Wanliss Streets), which is the next block up from the waterfront and behind the big appartments being built.
Rockingham infrastructure is continuing to grow.
Areas of Cooloongup and Leda are still showing low prices even though there near the new rail network.
Rare but still around are good priced house and land packages in Goldern Bay,Singleton and Madora Bay (Half way between Rockingham and Mandurah.
Hope this info helps someone.[smiling]
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?Originally posted by mk2r:Rare but still around are good priced house and land packages in Goldern Bay,Singleton and Madora Bay (Half way between Rockingham and Mandurah.
How much is good priced? Madora Bay blocks are going for over $250K. By the time you whack a house on it, it’ll easily cost over $450K. Possibly on higher side of $400s depending on the finish too. Thats a lot of $ for <$300 p/wk rent.
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