I’ve been told WA is going through the roof at the moment. Anyone got a recent success story with the stats on that being true or false?
Any paticular parts of WA? Cheers!HappyHomes | HappyHomes
Email MeI’ve bought three properties in the Perth metro in the past eight months and have been pleased with the results.
1 – 2 bed apartment purchased Sep, 2005 in Vic Park, purchased for 184k valued last week at 240k
2 – 2 bed apartment purchased Dec, 2005 in East Fremantle for 220k, unsure of the value but an apartment in the same complex went for 265 just two months ago!
3 – purchased two weeks ago for 350k and looks to be possibly worth 380k.
I think that the market is overpriced but the trend is clearly up in the short term. When will it end???? I don’t know, I purchased these properties more as an insurance policy IN CASE the market moved not because I was convinced it would. And move they have.
Interestingly, my initial strategy was to create/purchase only CF+ deals but decided to switch to a negative gearing strategy instead. If I were to rent out the first property which is where I currently reside it would be CF+
Purchased 360 square metre cottage block in Butler (36km north of Perth) May 2005 for 100k. House just been completed on cottage block 100k (incl site costs). Other costs stamp duty fees etc, 10k. So total cost 210k. Current value 400k. Thats approx $3650.00 a week increase in value.
ned kelly
Just got a bank valuation on the fremantle property. They came in at 255k
Is there a boom going on in WA?? I must have missed the boat.
Hi there veryone,
Has the boat left? That’s an interesting question, depending on who talk to, you’ll get a different answer.
As a real agent agent and principal in Perth, I am if the opinion that the market is VERY heated. Anything we list under 400K is selling with 3 or 4 offers above asking price within a matter of days. First homebuyers are being priced out of the market by cashed up investors and there is not the properties needed to satisfy demand. I expect with the current shortage of available properties, there is NO immediate slow down in the next 2-3 years. It is still a great time to buy.
What I would recommend is looking at the regional areas of WA, especially areas like Geralton, Donnybrook and Kalgoorlie. You’ll get a good rental return and very good prospects of CG.
[grad]
Happy Hunting.Prakman
IMHO there is still money to be made in Perth buying blocks of land and building. Did some research on the weekend. Estimated if I bought a certain block, built on it, accounted for all other costs (incl interest) then there is a 60k profit based on todays prices. If values go up 20% in next year add another 70k to that. [biggrin]
ned kelly
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Totally agree Ned Kelly. We are able to sell off plans with block (duplex) barely settled and making $100K each 4×2. house. That buy was in Hocking. This frees us up to do it again, but the problem is finding more duplex blocks! Not an easy task.
So we also started looking at single residential. One particularly appealing subdivision (Burns Beach) has tied the screws down so tight to discourage investers you can’t make an offer on the blocks (presuming you win one in ballot) in company or trust names. {sigh}
Might have to look at those Armadale +CF after all.I’ve been searching high and low for decent titled blocks. Those selling for < and low $100s just 18 mths ago are now well into the mid $200s. And a complete turn key 4×2 with most basic builder costs min $200k. So its $450k+ in a decent estate incl stamps and holding costs. Will it be worth $550k in 18mths time? or will it below replacement cost as are some estates out East? Interested to find out if anyone is signing up for anymore H&Ls with minimum 12mths to completion. Who knows where commodity prices will be by then?
Geraldton is still good buying. The average property is about $40,000 to $50,000 below those in Bunbury or Albany. Try looking up Beachlands, Beresford, Bluff Point, Mt Tarcoola & Tarcoola. There’s heaps of work going up there. Go up there for the weekend & you’ll be amazed.
My townhouse in Mandurah has gone up $80,000 since December according to bank valuation and the 2 blocks of land I settled on in February (approx 8 months after paying a $1,000 deposit on each block) at the Anchorage are up approx $100,000 each.
Sparky
Lucky for me I have all my properties in WA – only cause I live here!
But since the Results programme I have purchased 3 properties in WA but I must admit the market is very competitive here. You have to be very quick with your decision and have finance approved and make as few conditions as possible if you want to stand a chance of your offer being accepted.
Purchased 4×1 in Feb in Kalgoorlie for $172,000 on cnr 1/4 acre, possibility to build 2 facing onto next street. Rented at $235pw. Not sure of value as is, perhaps $220,000. (OK for 4 mths)
Purchased 3×1 in March in Armadale for full price of $190,000 on subdivisable block, front house in great postion to build at rear. Value possibly $299,000 (Not bad for 3 mths).
The last 3×1 purchased in April (only 2 mths ago) in Armadale again is one that we didn’t really want as it has a pool. A R/E agents I had been talking to regarding properties under $200,000 called to say he had a property that he thought finance was going to fall thru. It did, so we took the opportunity to put in a low offer. It had been on for $215,000 but he was going to put it back on the market for $225,000. I know the previous accepted offer was around $207,000 so I offered $205,000. Hence we have now have it rented on a short term lease at $250pw until summer then we will on sell it to create some cash to do the previous subdivisions.
Still feel that there are lots of opportunities here though, some areas are increasing by $5000 per week!!!!
Good luck with your searching.
Anita[thumbsupanim]
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