Anyone else looking in Perth at the moment?

G

gooram

I've been sniffing around certain areas of the perth market for a few months now looking for my next investment, and I kinda like what I see. Prices are going down, vendors sights are set a little too high I think, and they're starting to realise they need to be more competitive on price.

I've seen prices drop in the space of a fortnight and I've been to auctions for multiple properties and not a single bid was made.

Despite seeing some good value out there, i'm holding off as I expect other investors are because this will ultimately drive the price down.

With houses not selling they're going back on the rental market and this is increasing vacancy rates. So good time to buy, bad time to rent? But better times to buy still to come no doubt.

Out of interest, I've been looking at 1/4 acre blocks and older homes in Bassendean which are around 500k on the riverside of guildford rd. Bassendean is about 10km from the city. In comparison, somewhere like rivervale, you can buy development size blocks (a little smaller - 700-800sqm) with smaller houses for around the same price, but Rivervale is only 3-4kms from the city. Bassendean is perhaps a nicer area, while rivervale I think has more room for growth being closer to the city and more potential for improvements, or gentrification.

Any thoughts? :)
 
sash said:
Not just yet.......I think that Perth has a bot more to go down.....
Click to expand...

Hi Sash,

Trying to work out your typo...did you mean a bit or a lot? :)

Personally, I think maybe 5% more off from now in mid0range suburbs, then flat for quite a few years.

Rgds,

Chris
 
I am also not buying in Perth.
Even if it appears to be good value at present my concern is that you will not get any growth for quite a number of years.

Cheers, MTR
 
I thought that about Rivervale about 9 years ago! It is happening but slooooowly! And yet to happen at much of a faster rate than surrounding suburbs but its time may come yet! :rolleyes:

I'm keeping an eye on Perth CBD office space - some interesting opportunities out there but no deal that stacks up for us just yet - but we're still feeling our way in this pond. Seems to be some of the higher yields around are in that market ATM though which is a little counter-intuitive to my way of thinking. Hence keeping an eye out but there doesn't seem to be much reason to rush...
 
Sorry Chris....I think at least 5% if not 10% to go....so it was not "bot" but bit.......

Time will tell.....I see more value in Brissie and GC at the moment. Perhaps in 6 months when the dust settles....Perth has a boom to bust economy (similar to Sydney)...so that is why I am more selective. Whereas places like Adelaide or Hobart and Melbourne to some extent are more stable performers.

The only issue is now credit...I was shocked to learn I am now reaching my serviceability levels.....I only have another 500k to borrow for property so I need to make it count! Such is the world of finance....only 18 months ago I would have been able to squeeze another.

Chris.R_WA said:
Hi Sash,

Trying to work out your typo...did you mean a bit or a lot? :)

Personally, I think maybe 5% more off from now in mid0range suburbs, then flat for quite a few years.

Rgds,

Chris
Click to expand...
 
what yield you after BC? plenty of 5s out there but I admit that sucks. renters will have their comeuppance eventually - a free ride like that can't remain forever
 
The boom and bust thing could be what brings Perth out of the doldrums first right?

Surely resources and mining will be the first thing to pick up after this GFC clears. Mines re-open, expansion plans unshelved, a huge ramp up in jobs and activity.

Either way, 5% further to drop, maybe so, that's negligible in a long term hold investment, you've gotta get a decent yield to minimise the loss. But opportunity cost of investing elsewhere? Well that's the million dollar question... where else? I guess I only know the Perth market in any detail and so find it hard to speculate on other areas, but I see Perth, QLD and NT leading us out of this period as global demand for resources resumes.
 
i think it really depends on where the property is. as some would recall, i built my house in wilson on a street along leach highway last year. paid 380k all up for the whole thingy. wife and i doing something interstate, so had to use equity. valuation from the bank 447k! all this happened from 2008 Oct (when i moved in) till last week (when the valuation came in).

nice surprise for us :)
 
looks like we are settling on a old house in Belmont, 960m2 for future development.

It looks like prices are going up and in the month since we have started looking at this place, the average duplex block seems to be edging towards the 500k range.

Old place, has current tenants at 330/pw, which is excellent return for the age.
 
Jebb said:
looks like we are settling on a old house in Belmont, 960m2 for future development.

It looks like prices are going up and in the month since we have started looking at this place, the average duplex block seems to be edging towards the 500k range.

Old place, has current tenants at 330/pw, which is excellent return for the age.
Click to expand...

Did you use a buyers agent for this Jebb? I only ask because I saw your signature has you in Tokyo, but also because I spoke with a buyers agent a few months ago who said they were targetting Belmont.

I think it's a stretch to call returns on any house in Perth at the moment excellent :) Especially old homes on big blocks near the city. But it sounds about as good as it gets I guess, assuming about ~450k purchase price?
 
Im looking to buy my first ip. I'm looking around Queens Park, Cannington + Beckenham. My reasoning is they are close to the city (within 13km) shopping centre, industrial area (work) public transport and freeways.
Q park is getting heaps of townhouses built and you can get decent sized blocks of land in Beckenham. Im from Melbourne so anywhere within 20km of the city commands decent prices. Mining will always be around, the worlds population is only getting bigger and so is our need for everything. The global economy ( aussie anyway) is getting better and another boom will come.
 
gooram said:
Did you use a buyers agent for this Jebb? I only ask because I saw your signature has you in Tokyo, but also because I spoke with a buyers agent a few months ago who said they were targetting Belmont.

I think it's a stretch to call returns on any house in Perth at the moment excellent :) Especially old homes on big blocks near the city. But it sounds about as good as it gets I guess, assuming about ~450k purchase price?
Click to expand...

Yes, buyer's agent for the purchase although I went to see them when I was back home in Feb. I am in Tokyo now though.

True, the returns arent "excellent" per say, but better than market returns at the moment. The market rent is about 270 for the same property.

The house itself was 436k, so a touch over 450k with fees and stamp duty etc. Market price is about 465k apparently.
 
I think Bassendean has heaps of potential. I prefer the serenity of Bassendean to Belmont area. I like it so much I planted native trees at one of the local parks today. :)
 
I am yet to buy my first property but have been sniffing around for some time now. I currently live in bassendean with my sister who just bought a rather nice place, she paid a fair amount for it though and I often wonder how good of an investment it was..? I see a couple of people on here like the Bassendean area, and I was just curious as to what you guys liked about it (beside it being relatively close to the city/river).
Her house is really one of the better 3x2 in the area, and arguably the best on the street, but wouldn't the run down houses around it bring it down at all?

I have been looking in the Ballajura area. It's not far from the city, plenty of schools/shops. And a half decent 4x2 will set you back 400-430. Having been a long time Ballajura resident I am aware that better parts of it sell much better than others, however rental return is rather good ($400p/w on above mentioned properties).
Being young, and my first property.. any advice on my initial purchase? I am hoping to nab something needing a bit of work for possibly $350k-$390k.

Might be the wrong thread, but I also want to know if there is any good ways of using my FHOG as well as my long term partners'. Is the trouble worth the $7k. (by the time I purchase, the FHOG will be $7k). Any advice is great advice.

Cheers.
 
I like it as an investment, but I also like it as a location.

Pro's
-----
Inner eastern suburbs generally cheaper than their western and northern counterparts, pound for pound.
Large block sizes.
Affordability will bring in new buyers and developers.
Huge multi-million dollar homes and blocks along the river (One of the few suburbs where you can own a piece of the river front).
Close to river, city, train station
Bassendean town centre, Guildford, Morley and Midland
Master plan for town centre (still going ahead?)
Catalano's fish market :)

Cons
-----
Next to Ashfield. (however this will also get better as state housing is sold off)
Close to light industrial area off collier rd.

It adds up to me.
 
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