$450 - $700 K Mt Lawley or Inglewood PPOR

I can't believe I'm going to say this but I think I have changed my mind again! I'm starting to think investing in Perth at this stage of Perths cycle (for a buy & hold) is a bad idea. I dont think ill see much growth in the next few years because i think Perth is nearing the top of the cycle. There ha been so much growth in the past 1-2 years! I need to have bought a year ago I think.

I've realised this by looking at the last couple of years of sales figures and talking to some agents on the weekend. One agent said properties are going out the door within a week & there are heaps of offers. I think a new ppor will have to wait.

I think I'm going to go with my other idea and invest in Brisbane. Somewhere that hasnt started moving yet!


Arggh.
 
Alex, it's great you're exploring options, am in the same boat as you. Also been looking in similar areas to you, and tossing up between Brisbane and Perth. I really think Brisbane is the way to go for IP, Perth prices are mad, crazy, it's just too hot everywhere here and I see a lot of overpriced rubbish. I've not been able to find anything that would be close to neutral gear in Perth, Brisbane. the sums add up nicely!
 
I Can easily believe you! At least you're exploring options.. Just don't explore them for the next 5 years. Good luck!

Thanks! It's ok, I've given myself a deadline to buy by June 1st! :D though I'll probably buy within the next 3 months! In saying that though, it'll have to be a good deal & the numbers will have to work.

I had severe analysis paralysis the first time too lol :p. It's cool, it means your spending a lot of time researching to see what your best option is. Better than to jump in willy nilly & buy the first thing you see having done no homework hey
 
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Alex, it's great you're exploring options, am in the same boat as you. Also been looking in similar areas to you, and tossing up between Brisbane and Perth. I really think Brisbane is the way to go for IP, Perth prices are mad, crazy, it's just too hot everywhere here and I see a lot of overpriced rubbish. I've not been able to find anything that would be close to neutral gear in Perth, Brisbane. the sums add up nicely!

Hi :)

I think one of the reasons I'm finding it difficult to decide is that some people think it's not worth investing in Perth anymore as its had a lot of growth already whereas you get the other camp who say Perth will continue to rise.

It's hard to know for sure about how Perth will go in the next 12-24 months without a crystal ball! It could have some more short/mid term growth but then again Perth could be nearing the top of the cycle & not much growth will be seen for a while if you buy. I bought in 2009 & Perth was flat for a good 3 and a half years before values rose. Thats too long to wait to see any growth.

If I want growth within 1-2 years so that I can invest sooner. I'll have to have the serviceability though to be able to afford to do this. So if I go down this route & buy something again in say 2 years time the ip will have to be nearing neutral. The other option is to buy something a bit more negatively geared and just wait for 4-5 years and buy again when ip is neutral cash flow. Yes so that's a decision I need to make.

Oh and the other reason for buying my next ppor is because whilst living here at mum and dads I can afford a larger loan. When I move back to my high gate unit. I won't be able to borrow as much. So I could buy a $400,000 - $450,000 villa & it will be ng. Actually I'm thinking this could be a good opportunity to upgrade my ppor by selling my Dianella ip. At this point in time though I'd only get around $40,000 profit for it. Maybe it'll be worth more in a years time.




I found an interesting website. Matusick in May 2013 said

According to Matusick Perth & Darwin were in the recovery/upturn phase (may 2013) of the Property Clock

Another interesting article about understanding the property cycle

I just remembered an old website I used to visit regularly. It's called Old listings.com. Not sure if you know about this site. It's really handy. It's got even more features than it did when I was researching for my 1st ip back in 2009

http://www.oldlistings.com.au/

Anyhow I'll be meeting with my mb soon & will know more. My desktop valuations will come back tomorrow
 
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THANKS FOR THOSE PROPERTY cycles links, according to the first one then e should be looking at Brisbane and Sydney right now, and then Hobart and Adelaide.

I am so over Perth, so much overpriced rubbish out there, things selling as soon as they're listed unless they are duds, then i look at the Brisbane market and lose this sense of angst I have when looking at Perth market.

The numbers stack up well too in Brisbane, and I can even look at long term dev blocks which bring in good rent, so i can hold and land bank for the future. Can't find anything within 20k if Perth where I can do the same, yet can find multiple properties within 7 k of Brisbane CBD.
 
THANKS FOR THOSE PROPERTY cycles links, according to the first one then we should be looking at Brisbane and Sydney right now, and then Hobart and Adelaide.

Your welcome! :)

I still havent decided 100% on where to buy/my strategy but I think because i'm living with mum and dad and can afford a larger loan its a great opportunity for me to buy my future ppor. I dont want the loan to be too large though so I wont be going crazy. I'll sit with mb and accountant soon and have a chat. I think I should invest in that pia software too.

Hey guess what I was doing the last couple of hours. I drove around the Inglewood streets. Checked out where all the villas and units are. I'm becoming more and more familiar with the street names. The streets that are close to Beaufort street. East and West of Beaufort. I'm thinking I might also look into the areas of bedford. Bedford is also close to Beaufort.
 
I am so over Perth, so much overpriced rubbish out there, things selling as soon as they're listed unless they are duds, then i look at the Brisbane market and lose this sense of angst I have when looking at Perth market.

The numbers stack up well too in Brisbane, and I can even look at long term dev blocks which bring in good rent, so i can hold and land bank for the future. Can't find anything within 20k if Perth where I can do the same, yet can find multiple properties within 7 k of Brisbane CBD.

How well do you know Brisbane though? There's all kinds of research that you would need to undertake. Would you do all the legwork yourself or employ a buyers agent? If you wanted to do it yourself I'm thinking it would probably be best to focus on 2 suburbs as there is so much research involved. I wouldn't be confident investing over east myself. I'd prefer a buyers agent to buy for me. Do you think its a wise move for your first investment to buy over east. I think most people buy in their own city for their first ip and usually not too far from home, just so as to get their feet wet, to jump in.

I need to go re-read some of my old threads from 2008. :D
 
I'm over in Maylands, along the river (river view :) for now until the $4million dollar block of land across the street remains undeveloped.)

We couldn't afford Mt Lawley or Inglewood when we bought PPoR (height of the boom, but we wanted our own home) so went to the next suburb, Maylands. Do consider over this way, though its done pretty well and prices are up there. The Inglewood side of Maylands is better in terms of public transport and cafe strip; we've with the family end down by the river, the "nice" "gentrified area". YOu could buy for $350K in Maylands, even 2 bed unit.

I've been looking in Bedford, something on a large block, very pricey.
 
Somersoft is an interesting place... people on 92k salaries considering themselves underdogs.

92k is all income - 2 rentals incomes in that I think.

Her salary/PAYE income is well below that so probably why she sees herself as low income.

I think most people view it that way until a time where their LVR are low enough or rents high enough that the rental income is viewed as disposable income.
 
Yes, but I think she also said as she is living with her parents they will take rental income into consideration until she moved into one.

Even taking that into consideration, based on the figures Alex has given, the numbers don't add up.

Taking from another thread (this post is only from last month):

http://somersoft.com/forums/showpost.php?p=1110655&postcount=79

PPOR loan $175 K - * Valued at minimum $360 K - Rented out for $330 per week
IP loan $200 K - * Valued at minimum $250 K - Rented out for $290 per week

...

My payg is $60 K as a permanent substantive government employee

The rents minus the interest don't come close to making up the 32k difference between a 60k salary and 92k income. The 92k figure could only be possible if Alex wasn't paying any interest whatsoever on her properties.

I'm very confused.
 
Im pretty sure it was a gross figure Fifth. The MB was just filling her full of confidence I'd say. Don't worry, she's changed her mind another 3 times since then :p
 
whoever the MB is either needs to be fired or he/she has not received all the info. how can you add rental income into the calcs without taking into account mortgage payts??
 
Im pretty sure it was a gross figure Fifth. The MB was just filling her full of confidence I'd say. Don't worry, she's changed her mind another 3 times since then :p

Ahh... it all makes sense... the mortgage broker is on goofballs.

I apologise. Continue as you were.
 
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