Any thoughts on where Perth is heading?
- Thread starter Mummy bear
- Start date
I know 1 house in dalkeith recently sold, beautifully renovated large single storey for only $300-400k above land value.
ive seen other homes sell for say $1m over land value that would cost closer to $1.5m to build including holding costs etc
homes in hollywood estate still selling below replacement, a property sold recently there around 20% below replacement at a minimum which is significant
we sold a home in nedlands in 2009 and were recently told it would be worth at least 400k less today
i do agree that there is heaps more activity at entry level and all around there is more activity but id personally be surprised if you could buy a say $1.3m block, spend $1m on it, add holding costs and everything else and end up with a house worth over $2.5m. of course most new homes in nedlands are built for a fair bit more than $1m which would mean needing for it to be worth over $3m at completion in order to create equity. At the moment people can buy nice houses in Dalkeith for that money so it wont happen. i think it will take Dalkeith recovering it's massive losses before upper end Nedlands starts to move again, right now the gap is too small.
this will be a good gauge of state of market imo. it was on the market for a very long time (well over a year) a couple of few years ago and has just come back on. http://www.realestate.com.au/property-house-wa-nedlands-114014339
this home is a good example of what im referring to. from memory it came onto the market in the mid $5m although i could be wrong. it is close to 1000sqm which at $3.5k/sqm (around the price for this spec) is $3.5m
land value is around $2m so this owner would have spent close to $6m all up including stamps, holding etc. i would be surprised if it sold for more than $4.6m
http://www.realestate.com.au/property-house-wa-dalkeith-113657299
Am so grateful for all the advice and thoughts posted over the last 24 hours.
My decision has been made... we went unconditional on the property at 4pm. ANZ were great and we should have no problem releasing a property that was XCC'd (if that falls through we still have LOC to use). NAB have virtually signed it off (although I will breathe easily in 42 days time at settlent!)
I'm excited about securing a quarter acre block in a great location. Boy will I sleep well tonight now that my decision has been made
congrats! hope it all works out well
Am so grateful for all the advice and thoughts posted over the last 24 hours.
My decision has been made... we went unconditional on the property at 4pm. ANZ were great and we should have no problem releasing a property that was XCC'd (if that falls through we still have LOC to use). NAB have virtually signed it off (although I will breathe easily in 42 days time at settlent!)
I'm excited about securing a quarter acre block in a great location. Boy will I sleep well tonight now that my decision has been made
Congrats - I'm glad NAB is coming to the table too.
this is a great post because it highlights the markets even within markets. there are 2 products here that I agree just aren't working:
1) high density expensive builds. I copped a hammering on this sort of thing with subi centro also. you can still buy there very well. prices went from $600k to $2m to $1.3m in a matter of years. Hollywood has been a disaster for a long time and a few mates took a bath on that one.
2) high end stuff - no strong demand there so there is bound to be pain. Read an article on this recently, will see if I can recall what it was.
Market at high end is definitely still sluggish but entry level buoyant. I could not believe the activity around the properties
. Boy will I sleep well tonight now that my decision has been made
Congrats MB!
What happened to your concers of if the market crashes?
Thanks TF,
Still there but if I acted on all of my concerns I'd never do a thing.
Life's a gamble, I'd rather be saying "at least we had a go" than "we should have done it."
We did go through a worrying time post GFC but there were also a hell of alot of positives that came from it (for us personally as a family, it certainly brought us closer and made us realise what's really important when the chips are down).
I decided that now is the time to get back in the game-will be interesting to see where this takes me
I guess so much depends on what she paid for it. Here's hoping she got a great deal with bags of capital gain headed her way.
What you say is right MTR. There is a huge shortage of development sized blocks in Perth. All those old houses on large blocks have been snapped up and are no longer selling for a song.
Oh how I miss the glory days of the late 90s and early 00s.
Just have to throw the net out further, areas such as Hammy Hill, Spearwood, Hilton, I secured triplex 2 months ago for $530,000, I also know of another SS investor who got triplex for $540,000. They are still harder to source but they are around.
