Has anyone on here been looking around in Perth for an investment?
Is waiting 12 months going to benefit me?
I’m looking for my first investment. I’ve been eyeing off East Cannington and Bentley for a 3 or 2 bedroom villa or house.
Just got a pre-approval today for $350k – with 70K deposit (I don’t intend to really use this, just thought I get one for the hell of it)
Managed to save $155k
People are telling me to buy either in Brisbane or the Goldcoast, I live in WA so I’m not sure what to do..
Will future interest rate hikes depress the market in Perth even more? Does Perth have a future without future Mining booms?What are your thoughts?
Hi Walter,
I am a buyers agent in Perth. In short, the market is going to remain flat for at least the next 8-12 months.
If you do not have any other investment properties, I would suggest buying within driving distance of home, the experience you will gain over a few years will steady you for when you do go interstate. If you are inexperienced, your risk of getting burnt rises significantly, when you cannot just go and check it out and deal with it.
Property investing is about capital growth, this is what gets you out of the game, yield keeps you in. Can I suggest that in the current Perth market, you look for an add value property, where you can take a property to a higher and better use to manufacture capital, rather than waiting for the market to rise. Whilst not impossible, it is more challenging to do with a unit. A house is typically better.
You have a significant deposit, and I think your pre approval may be under what you will service for. I’d talk to your mortgage broker to establish what the upper limit is. If you are comfortable with this, I would go for a higher budget to open up the options available to you.
The decision to purchase is about getting the best property you can over the next 6-12 months. Don’t rush it, make lots of offers, be very fussy.
If you have any questions, please feel free to PM me.
Agree with David Perth will be flat for the next year , so now is the best time to buy and add value by buying under market value or cosmetic Reno for instant equity to replicate with next property . Would also factor in interest rate rises in affordablty over the long term . This is my current strategy as I also live in Perth
Hi Walter
There is certainly no rush.
I am also from Perth and invest in many markets. I am a developer and investor and understand this market well.
Perth’s market is currently trending down, this basically means there is an oversupply of properties, in particular apartments. The market sentiment I negative because our economy is not looking great, unemployment figures, mining downturn.
My opinion is to watch and wait.
Well done, great deposit, but please done be in a hurry to lose money.
Adding value is great, however you still need to pick up the property at the right price and the figures need to stack up. While property is going south what you think is a bargain today could be a mistake tomorrow.
A tip, Beechboro zoning has just been ratified, have a look at properties (corner lots) selling around $400-450K, if you can buy with the view of cutting it up and building at a later date this may be a very good strategy, or find another area where the numbers stack up.
MTR:)
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