I haven’t managed to find any CF+ properties yet around Perth. Maybe I’m not working hard enough at it. But how long can prices keep going up? Are any of you finding opportunities around Perth or is now the time to wait for the bubble to burst? And what other areas are there – the stock market is pretty high as well? I’d appreciate others views or ideas on whether there are opportunities in Perth that I’m just missing and whether nows the time to invest in a different asset class to property.
Look at the history of Silicon Valley
Are you suggesting Perth is similar to Silicon Valley?
positive cash flow propertiss are almost impossible to find in Perth these days. You best be going for capital growth anyway.
Originally posted by clairem:I haven’t managed to find any CF+ properties yet around Perth. Maybe I’m not working hard enough at it. But how long can prices keep going up? Are any of you finding opportunities around Perth or is now the time to wait for the bubble to burst? And what other areas are there – the stock market is pretty high as well? I’d appreciate others views or ideas on whether there are opportunities in Perth that I’m just missing and whether nows the time to invest in a different asset class to property.
I suggest that Perth is still booming for two reasons.
Firstly the resources demand is high and Perth is at the fore of that.
Secondly, we have just had the mother of all booms in Australia. Perth naturally lags the East Coast. If this is true then we can expect the boom to finish as it has done on the East Coast.
If my ideas are correct then the first growth in the market will be seen in Sydney and Melb. Many buyers are buying now in expectation. Others will wait for it to start then buy in Bris, Hobart, Adelaide and Perth in expectation of the ripple effect. Regional centres too.
So what does this mean?
I suggest that Perth prices are high. They may correct soon in the order of 5-15%. Any subsequent growth will be signalled by renewed strength in Syd and mel markets.
Of course this is just my thoughts as an investor and not financial advice.
Happy to discuss it with anyone.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Perth naturally lags the East Coast.OK Simon, I’ll take the bait on that one.
I’m not convinced about all this cycle waffle, but if it is true, then by it’s very nature, how does one tell that we over here in Perth are following the East Coast, that is Sydney….the centre of the Universe, and the ripple effect from action central outwards.
Maybe, just maybe, Perth is 2 years ahead of Sydney et al and whilst we are just ramping up and heading into our boom, you guys over the other side of the paddock are very slowly catching up….but it might take 2 or 3 years for our ripple effect to reach you.
Our depressed years back in 01 and 02, you guys are having now in 04 – 06. One could easily argue that the East Coast is at least 3 years behind the West Coast.
Why does everyone assume that everything needs to originate over there ??
Another parochial Western Australian [blush2] I remember that you are either a West Aussie or from Over East. Tip of Cape York or Southern Tassie matters not. You are from Over East and not to be trusted [blink]
Still talking secession? I was told once that during Federation there was some loophole where the Perth Colony was invited to join rather than just join and it leaves a legal avenue by wich WA can easily secede.
I am from Perth too mate and love it there. Grew up in Lesmurdie but have also lived in Freo.
I guess that is the beauty of cycles. Your argument that Perth is now booming and hence the east coast will follow probably holds as much water. But either way – if you are looking for a residential IP I am thinking it more likely that you are buying closer to the top of the current cycle rather than at the bottom. But – like me – if you are a long term buy and holder (long term = 20+ years) then it matters not if you pick the cycle. It is more an issue for short term harvesting of equity to buy the next IP.
I haven’t the data to prove cycles but I still believe.
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
I tend to think Perth prices are high and as I’m not in it for the very long term I am thinking its not a good idea to invest at present – certianly not on the basis of hoping for capital growth. However, what are assets that are not property do you think are good or fair value at present.
I think Perth would probably be the worst place to look for easy CF+ property at the moment. It takes time for rents to increase after a rise in prices to improve yields.
On a good point I’ve noticed in Melbourne that after reaching the lowest yield levels in 10 years, rents are on the increase while prices have dropped further. I guess the same might be the case for most eastern states.
Chris
Hello,
Thought I would add my 5c worth. Finding positive geared props in Perth is difficult, but it depends how you look at it.
I remember a little while ago that when Steve was last in Perth he told everyone there that the ’11 sec solution’ is only a guide and that you generally don’t buy them positive, YOU MAKE THEM POSITIVE!
How true is that!
Currently our portfolio is positive geared and all we did was to read lots of books and try out the ideas that suited us. Believe it or not we have just recently bought a couple positive geared properties in
Perth (or should I say we turned them into positive).To give you an example of the two recent purchases;
1) A brand new display home and the builder pays the rent for 2yrs with 3x3x3mth option.
2) 5km from the city and we have 3 students renting each room out for $180pw each.So sometimes you need to think outside the square and anything is possible. And the most important thing to do is keep an open mind and keep learning.
(By the way, thanks Steve love reading the forums).
Hope that helps. (Sorry if it was too long etc)
[exhappy]
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