Hi All,
I'm new to property investment so any comments would be appreciated.
I have two lines of thought:
One is to get into the property market asap.
The other is that there couldn't be a worse time to buy a property in Perth as, according to a number of reports, it's all over in terms of capital growth for the short and the medium term.
Therefore, my conclusion is: If I'm going to buy in the Perth region I think I'm better off waiting quite some time or buying interstate (which I'm reluctant to do). I just read a book by Michael Yardney. He advocates buying reasonably local and that makes sense to me.
Would love to hear people's thoughts on buying in the Perth region in relation to the current property market!
Cheers,
Mark
Hi Mark,
You will find allot of people more knowledgeable and experienced than me on here, but thought i would post my ideas all the same. I am from Perth and up until recently had no properties to my name. I would have loved to have bought my PPOR in Perth, however with the boom, I was priced out of the market. After considerable thought I decided to purchase in SEQ in fear that if other states follow Perth's lead I may miss the property boat all together for the foreseeable future. This obviously involved allot of reading and research and if you go this way I would recommend making a trip to your chosen region to check out the suburbs. I did this at Easter and it really helped.
If you are looking for a property investment, I believe that there allot of areas that will outperform Perth in the short to medium term and if you use a property manager the practicalities of the property being so far away should be some what reduced (also from my understanding property manager are allot cheaper over east – we get robbed here).
Anyway – All the best with what ever you choose.
Agree with above
Thanks Glasco! Great to get some feedback.
I think you're right. Investing in SEQ (or perhaps even other areas on the east coast) could be a great idea. I've been eying off a few areas over that way as that's where the current potential seems to lie according to a number of sources. Will just have to make the trip.
However, I've been reading about people who buy a lot of property sight unseen. They simply get the appropriate reports and do some number crunching. Whether they like it or not, or any other emotional response, is therefore eliminated. If the numbers point to a good deal they go ahead. Not sure I could do that! Did you end up buying in SEQ?
Good luck!
SEQ, many are now telling the story of prices on the rise by $10,000 a month. I can say that prices are starting to catch similar suburbs to Perth.
3 Bedroom brick and tiled 600m2 30km from CBD $285,000 under-contract in one day without the buyers inspecting the property.
4 Bedroom brick and tiled well presented house sold in one hour $350,000+.
Two bedroom on 450m2 loads of work to do 500m from the water $277,500 Auction over 10 competitive bidders.
Anything good wont stick around longer then a week. It's a mixed bag but in the Under $400,000 the market is red hot or warming up in many suburbs. Rental returns are without a doubt better too in SEQ compared to Perth which has some of the highest management fees and close on the lowest returns.
hi Ledd
I've bought several properties sight-unseen, and I would definitely recommend buying interstate! I live in Sydney so buying here is pretty much out of the question for me – instead I own 3 properties in QLD, and I have only physically seen one of them.
I would generally prefer to view the property before I buy it, but if the property is interstate and I get good enough images from the agent and building inspector – it doesn't bother me too much, as it's an investment. If I see the scum in the bathroom, the ugly kitchen cupboards, the oil stains in the driveway…. the unattractive qualities might cloud my judgement and turn me off buying, but these things can be easily fixed.
In one house we renovated a couple of years ago, we ripped out all of the kitchen shelves because they were a hideous peachy-mustard colour, and replaced them with sleek glass shelves – the whole kitchen was refurbished to a shmick standard. We ended up selling it to an elderly couple who spied the shelves in the garage (they were on their way to the dump) and asked if they could have them – they reattach them to the kitchen, as they loved the warm colour!
Everyone has different tastes, etc – so try to make the decision based on facts and figures, and whether the numbers all add up, not your personal reaction to the property.
Hope that helps!
Thanks for all the advice and feedback!
Really appreciate you all taking the time to offer your experience and knowledge.
Cheers,
Mark
Hi Mark
I do recommend investing in you own back yard – becuase you can become an expert in your own "patch"
But I also recommend taking advantage of the property cycle- so I believe its the wrong time to invest in Perth. But the next wave of the proeprty cycle has already started on the east coast of Australia. So if you want to make the types of profits that WA investors made over the last 3 years – you need to look elsewhere.
I'll be discussing exactly where at my upcoming catch the Next Property Wave Seminars in July and August – find out more here
Hi Michael,
Thanks for the reply!
I'm already signed up to come along to the Perth seminar so I'm looking forward to that
I've narrowed down the search to 4 suburbs in Brisbane so I'm raring to go. The seminar will be quite timely for me but I'm hoping to buy before then as Spring may bring out a lot more buyers?
See you there,
Mark
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