Hey Mods,
Folioinvestau happened to spam a thread that was 2 years old. Now we have help from macraig for a poster who was last active in Apr 2012…..
Might be worth culling these last few posts to let it settle back down again….
Your call,
Benny
Benny
The Perth market has been moving over the last 2 years, there has already been substantial growth, in particular development sites.What may be worth looking at are areas that are currently earmarked for rezoning ie Girrawheen, Koondoola, Beechboro, there is lots of competition for these as once zoning comes through then you can add value. Of course do your homework, contact councils.
Also one area which has gone under the radar is Mirrabooka, close to the city and still as cheap as chips, while surrounding areas are much higher.
WI:)
It funny when people talk about ‘growth areas’. There are two distinctly different types of growth which aren’t related – despite the spruikers trying to make you believe otherwise. When most people think growth, they think of areas which are having a huge amount of properties being built and guess that this ‘growth in dwellings’ will translate to growth in property prices. The second type of growth, as just mentioned, is price growth. Interestingly, the factors which lead to the former growth (increase in dwellings) often contradict the fundamentals which translate to price growth.
This is due to the level of supply increasing and putting downward pressure on property price. Our research suggests, with the exception of zoning changes, the ‘supply fundamentals’ will play a bigger impact on property prices in Perth over the next 10 years than ‘demand fundamentals’.
The Demand Fundamentals are; infrastructure, transport, schools etc.
Supply Fundamentals are; supply on market, geographic bottlenecks, green fields supply etc.
So to make sure you buy well in Perth my advice is to target areas which have little to no future supply and modestly growing demand drivers.
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