Perth - madness.

Kingbrown

Kingbrown

OK.

I am looking inner north for an apartment - preferably a reno job. This is for investment and lifestyle reasons, not purely investment.

EVERY property I have called about / visited lately is SELLING BEFORE the first home open (that is, sight unseen apart from internet photos or other knowledge). 5 apartments and one small block of land I have looked at have gone this way.

Well, I just found another apartment, just had the return call from the agent:

* First inspections are tomorrow.
* No, I cannot see it before tomorrow.
* She asked, would I like to put in an offer sight unseen? I said I would be interested.
* She then told me they were only going to look at offers TWENTY THOUSAND DOLLARS OVER THE ASKING PRICE.

So, it has got to the point where I need to make an offer twenty thousand dollars OVER the asking price, SIGHT UNSEEN, if I would like to buy an apartment in the area's I am looking (in this case, North Perth).

* I told her thanks but no thanks.

So, thats Perth at the moment.
 
It's happened over on the east side as well- thankfully not now.

Some of that activity was happening near the peak (as it turmrd out).

I went to a renovator open house in Canberra- half an hour past the exhibition time- it wasn't sold, but there would have been 50 cars outside, and there were alread four offers at the asking price. And the asking price was not that much different from a fully renovated place in the same area.

It's sounding much the same.
 
Kingbrown, I hear ya!

It just took me four months to buy in North Perth. I worked through a buyers agent and even with them dedicated to the job I made 5 offers on 5 properties - they all sold in two days on average each, for $10K more than the offers I made and even when I just offered the exact asking price I ended up losing out in a battle of eeny, meeny, miney, mo by the sellers. They had that many offers.

Ended up buying a one bedder in the lower price range in NP and that was slightly against my criteria however they were even selling for $10K less two months earlier. Whilst not my perfect choice, I will still make money at least in the next twelve months. Plus it's already tenanted.

It's banana's over there at the moment. I'm tempted to buy another property in WA - if I could get one - but I'm just not sure about the land tax threshold, high PM rates and high stamp duty! You guys are expensive! :)
 
goddessk said:
It's banana's over there at the moment. I'm tempted to buy another property in WA - if I could get one - but I'm just not sure about the land tax threshold, high PM rates and high stamp duty! You guys are expensive! :)
Click to expand...

I have to rely on massive depreciations on new homes (circa $7,500pa) plus the 15%-20% developers margin just to get it to a point where it costs about $2.5K pa to hold (on paper that is - I'm sure theres going to be teething problems with new homes). I don't know how people can now afford to buy older homes and not have a massive shortfall in re-payments with little help from tax man plus having to pay retail prices. But the trend is your friend as they say... :)
 
Kingbrown said:
OK.

I am looking inner north for an apartment - preferably a reno job. This is for investment and lifestyle reasons, not purely investment.

EVERY property I have called about / visited lately is SELLING BEFORE the first home open (that is, sight unseen apart from internet photos or other knowledge). 5 apartments and one small block of land I have looked at have gone this way.

Well, I just found another apartment, just had the return call from the agent:

* First inspections are tomorrow.
* No, I cannot see it before tomorrow.
* She asked, would I like to put in an offer sight unseen? I said I would be interested.
* She then told me they were only going to look at offers TWENTY THOUSAND DOLLARS OVER THE ASKING PRICE.

So, it has got to the point where I need to make an offer twenty thousand dollars OVER the asking price, SIGHT UNSEEN, if I would like to buy an apartment in the area's I am looking (in this case, North Perth).

* I told her thanks but no thanks.

So, thats Perth at the moment.
Click to expand...

If this is true (not saying it isn't BTW) then why the hell are they not auctioning or doing sealed bids. Sounds like an easy way to cream some extra money.
 
Auctions are not a common sales method in Perth. Though, as you suggest, why not?

And people are happy enough I guess to simply list & sell quickly. No mucking around as there would be with an auction - advertising, wait a few weeks, hold auction.

Vendors can instantly obtain a good price - within a day of listing. There is competition when there are multiple interested parties and their bids can be played off against each other.

Maybe there will be some more auctions?

regards,
 
Time to get creative guys and develop your own targets. Letter drops etc. Go knock on some doors. Its works!!!! Have got 4 houses that way in the past and if I was in a position to buy another thats the way Id be going. If you want to swim with the masses you go down with the titanic.

You might also want to find an agent who isnt too adverse to some cash money to put you onto places the moment he/her lists them. (Allegedly about $1000 CASH might be a suitable inducement). But i wouldnt know about using tactics like that.
 
Kamak said:
Time to get creative guys and develop your own targets. Letter drops etc. Go knock on some doors. Its works!!!! Have got 4 houses that way in the past and if I was in a position to buy another thats the way Id be going. If you want to swim with the masses you go down with the titanic.

You might also want to find an agent who isnt too adverse to some cash money to put you onto places the moment he/her lists them. (Allegedly about $1000 CASH might be a suitable inducement). But i wouldnt know about using tactics like that.
Click to expand...

Kamak,

Tell me more about these letter drops you speak of. Obviously you target the houses you want to buy, with a good idea of their value... do you offer a price in the letter or do you just mention that you are looking to buy in the area and want to negotiate? What's your hit rate?

Interesting technique and could be a good option in this market, with Real Estate agents having to do very little to sell a house at the moment, who wants to fork out their hard-earned in commissions?

Cheers,
Gooram
 
Did anyone get to the auctions of the 3 homes in Ashfield today?
I had to do some ip maintenance in Mandurah so l couldn,t make it.
Really keen to know the out come though.


cheers yadreamin
 
yep. went to the auction of the house on Ashfield Parade. Brilliant auction, lot's of last minute bids & a bit of a bidding war going on to. Auction lasted about an hour. Anyway, the house sold for $900,500!!! This is surely a sign of Perth's current madness. By the way the block is not sub-divideable.:eek:
 
900,500 is a high price - but this is for a house on the Swan river, 8km from CBD. Not saying the Perth market isnt over-hyped, but its not an outlandish price IMHO.

What did the 3 homeswest houses go for?

On a different note - anyone read the article in todays 'West?
Landlords warned: dont be greedy or unrealistic on rents
Warns landlords to not expect large increases in rent based purely on the hype. Fair advice - however the article based this on the usual emotive examples of 'battler family faces large rent rise'.

And the article below
Warning over WA housing frenzy
ANZ estimates WA market at 30% above 'fair value'. Article implies that Syd, Bris, Hob prices stalled when they got over the 30% mark and therefore WA is likely to also.

Whether you are a bull or bear on the WA market - you cant deny that it is very hot at the moment. Interesting times, my first property boom.

TB
 
Two of the homes west houses went for 345k the other one $335 this one not in a good spot[my opinion.]
Not sure if there were many bidders, maybe a forum member who attended and can fill us in.
cheers yadreamin
 
I only made it for the bidding of the french street property.

As far as I'm aware it was passed in at $345k. According to the sunday times the Maley st property was also passed in for $345k. The 4x1 on Maidos (sp?) went for $335k

From what I say there was about 4 different bidders involved, bidding STARTED at $300k which seemed to surprise many. Bidding was between 2 people from around $320.

I got the impression that mny potential buyers were FHB'ers and were there because its a cheap suburb, but maybe weren't aware of how much difference the position WITHIN the suburb would make.

There was maybe 40-50 people their, but i think many were locals interested in what they were sitting on. i had to laugh at the many people who thought these properties went for too much, but were going to hang around for the Ashfield Pde auction...

I knew it would fetch a good price but i nearly spat my tea all over the lounge this morning when i saw the $900,500 price...

I'd love to be selling in this market, don't think its much fun buying :)
 
I saw an article the other day - sorry cant remember the location effectively saying that Perth is now 20% above deemed affordability. Supposedly, this is where the eastern market was when it reached its peak and then slowed totally.

I agree that it is not much fun to buy at the moment - how would I know - I cant find anything to buy anyway!!

Cheers
Alanna
 
Wow! They were PASSED IN at $345k???

I think $345k might have been fair to good, passing it in at this price does not seem reasonable to me. After all this is Homeswest, selling off properties so that people who would otherwise rent can afford to buy!!??!!

I'm happy for myself - if Maidos can go for $335, what will my place go for?

French St is nice in parts, but Maley?? Pretty ugly stree (IMHO).

Viva la boom.

TB
 
I also noticed over the last 2/3 weeks more and more properties in the Mandurah area are now going to auction.
If l was selling l think l would definately try an auction in this market.
 
I'm with you TB,

I could imagine it being passed in when there's an emotional vendor involved, but in this case the vendor pretty much amounts to a government department.

The guy with the hammer did mention that the $345 was pretty close to the mark. $350 perhaps?

I wonder how much more they are going to get, and how much more its going to cost them to get those $$. Seems like a false economy to me..
 

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