Anyone buying in Perth ??

mjinwa

mjinwa

I have purchased 2 properties in the last 6 months out of state (ie not WA) due to the poor sate of the WA market but continue to look for the opportunity to move back home. Recent informed commentary and some research indicates perhaps Perth is near the bottom of the downward trend in price and rentals are definitely going up with some properties within 10km of the city showing 5+% returns.
I have the ability to buy one more property up to 500K and would like to include Perth in the mix for consideration.
So -- any comments / suggestion from others considering or currently investing in Perth.

regards
Mike
 
It depends what your strategy is.
I've found plenty of properties in Perth that are close to cashflow positive at the lower end.
Parts of Ashfield, Bassendean, Eden Hill have been or will be rezoned. - I'd speak with Bassendean council first though for further details. You can buy my property that's going on the market soon in Eden Hill. ;) :( (only selling due to being a part-owner)
Shoalwater and surrounds looks like good value. Padbury and surrounds, Belmont and surrounds. Parts of Ellenbrook due to future train. Beechboro - close to swan valley
I've only been watching properties under $400,000 though and consider a lot of them to be close to the bottom.
Theirs heaps of suburbs really.
 
Most of the suburbs I watch (inner north 7-10km from CBD) moved downwards by 9-11% from late 2007 to late 2008.

In the last 3-4 months though, prices have not moved at all (up or down). So is this the bottom ?? I don't know, maybe...but it's starting to feel like it.

Maybe a couple more months of flat prices, before we start to see a slow recovery in 2H09. My opinion anyway...

Rgds, Chris
 
There are some good bargains around Warnbro, Safety Bay and Shoalwater. Prices - even beachside - have dropped since I bought in September :( though I'm still delighted with our purchase (CF Neutral with drops in IR).

There also seems to be some good value around Maylands, Burswood, Victoria Park, Mt Lawley for units - CF neutral or better.

In the last 2 weeks there seems to be some stablisation / increase in the prices of 3 bedders in Safety Bay area - probably due to FHOG'ers interest.

Just IMHO the lower end of the market around Rockingham seems to have stabilised. The higher end doesn't seem to have dropped since December, but isn't selling either.
 
Rixter said:
Too old and doesn't fit my purchasing criteria for maximising cash flow.
Click to expand...

Same for me Rixter....doesn't fit my purchasing criteria.

It's way too young, not enough land content, too much maintenance, rent is way too low and the laws governing it are the pits. :)

Ain't it great how we are all different - but at least come to the same conclusion.
 
TPFKAD said:
Same for me Rixter....doesn't fit my purchasing criteria.

It's way too young, not enough land content, too much maintenance, rent is way too low and the laws governing it are the pits. :)

Ain't it great how we are all different - but at least come to the same conclusion.
Click to expand...

Exactly Bobby Dazzla. No right or wrong ways, just different ways! Some conclude sooner than others :)
 
Thanks all for the comments, As Propertunity says, its not one market but many which is further modified by individual strategy.
I like the look of the Maylands / Vic Park / Burswood / Belmont area, so will do some more research and put it in the mix.

regards
Mike
 
G'day mjinwa,

It depends on your strategy.... By and hold long term is good in Perth but don't expect quick capital growth if you are looking to feed off the equity to buy more IPs. I'd be looking in parts of Sydney, Melbourne or even the Hunter Valley/Newcastle area. IMHO of course and with no concrete facts to back up this view
 
Pudestcon - I agree that growth prospects are not likely to be good in Perth on a straight buy & hold for the next few years. Hence my dilemma as I am really looking at how I get the equity for the next property +1. Buy & reno in Perth to leverage equity or look out side of Perth where potential for growth is better over the next couple of years for a buy & hold. Currently prefer Melbourne over Sydney but still researching.
 
RE: Cockburn Central.

Who are those people on the big poster near the shopping centre and train station? It bugs me every time I drive along the freeway!
 
I thought it might be the mother and son of the developer, but then I heard it was a photoshop composite and not any actual person.

I just like the idea that prime advertising space is being used for nothing more than a smilly face (sort of) :)
 
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