Anyone else looking in Perth at the moment?
- Thread starter gooram
- Start date
We are looking for a reno. Hope to fix it up and put it back on the market within three months but it hasn't been easy at all. I haven't seen anything with sufficient margin in it to develop and sell again within this market. Frustrating!Anyway, the search continues.
May I ask what areas you are looking for a reno Tizzy? What do you normally do when the numbers don't stack up? Buy and hold or wait until they do? I assume you move in, reno, then sell to avoid CGT?
Always good to see a news article that backs up your theory, despite the fact that almost every day, one person or another is saying the perth housing market has recovered already.
http://www.watoday.com.au/wa-news/wa-economy-will-soon-turn-the-corner-20090715-dldl.html
well... the world population is expanding at an exponential rate and well beyond the rate of what the planet can sustain. if you look to the growth states of WA Qld and SA, they are blessed with pretty much everything. Compare this to say the UK, where intellect is probably the greatest asset. there are limited natural resources in all forms.
in a world gone mad where money is just printed and everyone is clamouring for food, water, energy, land etc, would you really choose to be anywhere else? And would you want your money invested anywhere else?
you don't have to buy woodside shares to get resources exposure - just look at how the darwin property market is reportedly going now.
in a world gone mad where money is just printed and everyone is clamouring for food, water, energy, land etc, would you really choose to be anywhere else? And would you want your money invested anywhere else?
you don't have to buy woodside shares to get resources exposure - just look at how the darwin property market is reportedly going now.
So market yield is 3.02% gross, and you are receiving 3.93% gross.
What does a property worth $ 465,000.00 look like that commands a rent of $ 270 per week ??
Youre not from Perth are you? Rental yields arent all that hot here...
The house itself is nothing to write home about- 1960s 3 bed, falling apart a bit, but the land is close to 1000m2 duplex block 7km from the city. The house doesn't matter anyway, as I will be knocking it down in a couple of years and building two new ones on it.
My other 2-bed townhouse 20 years newer and worth $330k is getting $300pw, what do you think the rental should be?
So your saying WA is a good place to invest.
I'm not sure Perth will grow much though in the next couple of years. I'm wandering if I should be investing over east or wait a couple of years until Perth moves again.Jebb,
TPFKAD...aka....Dazzling hails from WA...still living in Perth in believe....
He is just being his usual smart Alec self........
Again....he is angling on Commercial Property.
TPFKAD...aka....Dazzling hails from WA...still living in Perth in believe....
He is just being his usual smart Alec self........
Again....he is angling on Commercial Property.
So your saying WA is a good place to invest.
I would say alot of people are wondering the same thing. If you think the market will be slow for a couple of years, maybe look for something with higher yield to minimise holding costs. That way you can afford a few years of no growth. If you need to invest for growth to gain equity to speed things up a bit, you could be struggling no matter where you invest. I'm sure there will be pockets in perth that will achieve that. If you can pick 'em, let me know.
the other thing i could do is buy well, buy below value and renovate to create the equity myself.
lol Leederville went up 29% or something in a year. Too bad I didnt buy there.
that's still a yield under your holding costs = neg geared.
Hi Gooram
From my personal experience this is not correct. I am from Perth but stopped buying when it peaked some years back. Have been investing in the Melb market, started 18 months ago, got a mini boom, was able to access $100,000 equity. Jumped in again 3 months ago purchasing within 15-20 km from Melb, development sites, to date have been able to access another $140,000 equity.
Auctions I believe are at 80% clearance rate. Lack of stock is driving prices up and now I can not find suitable properties due to the amount of developers/builders in the market who seem to be happy to pay the extra $ for suitable property. It reminds me of the good old days in Perth.
I am sure there are others who have been experiencing same scenario.
Cheers, MTR
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