Hi,
What is your opinion, will Perth house prices drop in 2007?
I would like to buy one house in the near future and tossing
between buying in Perth and Sydney.Cheers
alto55
I have the majority of my portfolio in WA, but i feel that prices can not be sustained at the rate that they are currently moving. I would think that there would be a few burnt investors should the market slow or turn.
I believe that there are better oportunities on the east coast at the moment, and have recently returned from QLD where there seems to be areas that would be less risky than WA.
I was suprised in the quality of home that you can buy for your money, compared with WA. With all the skills base jumping in to mining, it is very costily to get anything built or maintained at the moment.
Thats only my thoughts, then again i could be entirely wrong.
Regards
Wayne
Hi There,
I am a settlement agent in Perth. Word over here is that the market is still in a boom. I think the prices are starting to become more realistic as the market has been flooded with homes. In the boom homes were in short supply and therefore pushed the prices up and people just bought everything without doing the homework. Now that the supply has increased the crazy demand and unrealistic housing prices seem to be going down to a more normal level. Buyers are now taking their time looking. Some houses are priced realistic in this current market and are been snapped up like hot cakes. If you take the time to look and do your homework on the property you will make the right buy for an investment.
I have a Broker friend who, up until now has not been wrong (but remember there is always a first) regarding the interest rates and property appriciation. He thinks that the market will flatten and may drop in price but only slightly. The Perth market is still going strong according to a Settlement Agents point of view. The number of deals that are currently coming in are still the same as it was 6 months go. It will flatten out at some stage but I think (personally) that we may not see a drop in prices and / or a slow in the market for a while.
Natalie[rolleyesanim]
Thanks for your thoughts.
I guess I will just have to wait and see. My preference would be to buy in WA but the prices are just too high at the moment. If I buy now and
the value of houses will drop like they did in NSW I would kick myself .I can see though that those houses which are good value for the asking price are snapped up quickly.
Thanks
alto55
alto55
I have been investing in WA market for over 5 years now and the market has now changed, as others have mentioned more houses on the market. I actually believe it is now a buyers market, unless you have a unique property, ie development potential, ocean views, well located inner city property etc.I think it was not very long algo that it took under 30 days to sell a property now I believe it is over 60 days. Some pockets in the south west have already dropped back.
Depends what you read over here, some experts state that we will not have a correction and average 10% CG in 2007 while others stating prices will fall back.
I am noticing prices in some areas have already dropped off and my valuer has basically stated same.
As far as purchasing in WA, if this is your preference over buying property East I would just sit back and watch what happens over the next 6 months as IMO there may be some good opportunities.
One thing to keep in mind in WA at the moment is that rents/yields are not very good, however there have many reports that rents are on the rise.
Cheers
(Hard work never killed anyone, buy hey why take a chance)
You must be logged in to reply to this topic. If you don't have an account, you can register here.
