Anyone else looking in Perth at the moment?

[DeanoC]

People who think Perth wont grow obviously dont live here. The skyline is growing by the day. Its a city of 1.5 million people and although it may be very reliant on resources it is starting to diversify a lot more. The population will be double the size it is now by about 2050. Perth will be a city of 2.5 million people by 2025 or so according to estimates.

http://origin-www.thewest.com.au/default.aspx?MenuID=77&ContentID=96203

There is also a lot of money coming into this state and FDI in WA is still ticking along. So while unemployment is rising (just like it is everywhere) it should be no worse here than everywhere else.

I think home prices are dropping in value mostly because the boom pushed them higher than they should have been. People were cashed up here. Which means a bigger correction now that work is drying up a bit. If I am not mistaken, about 40% of the homes being sold are first home buyers too which means the end of the grant could see further drops after that. Still, I dont think they will be that large.

If you are interested in Perth, perhaps I could suggest you look at Quinns Rocks too?

Its 35km's from the CBD, but its right on the coastline. Its next to Mindarie, which is a sought after area. It has a great beach. The have extended Marmion avenue all the way through to Yanchep which has been earmarked as one of Perths future "hubs". They are going to extend the railway line to Butler, giving Quinns access to both Clarkson and Butler railway station. Its close to Joondalup which is also growing. They are building the industrial park in Neerabup which is going to bring additional work to the area. Jindalee, which is right next door, is also seeing a lot of private investment. They are building shops and what looks like a small marina there. Eventually the Mitchell Freeway will extend past it too

There is quite a bit on offer under 400k. Not to sure what yields are like though. Still, beachside property at well under average city median when you are only 35km from the city and there is so much development around the area cant be a bad thing

http://www.realestate.com.au/cgi-bi...-Detached,House,Terrace,Villa,Warehouse&o=def

 

[nitrous]

that's still a yield under your holding costs = neg geared.

Is that good or bad?

 

[Ausprop]

If I am not mistaken, about 40% of the homes being sold are first home buyers too which means the end of the grant could see further drops after that.

this myth seems to perpetuate on this forum. if you remove a large number of low price sales from the statistics then prices should rise

 

[MTR]

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.

Hi Kim5
if you want to fast track the investing process start looking at Melb/Syd start researching this is the only way to find out as there are many opportunities and you may also find that the holding costs may be less.
Cheers, MTR

 

[nitrous]

Hi Kim5
if you want to fast track the investing process start looking at Melb and Syd there are many opportunities and you may find that the holding costs may be less.

Cheers, MTR

Any areas in particular to look at? Say range between $300k-$365k, maybe higher if necessary.

Cheers

 

[gooram]

People who think Perth wont grow obviously dont live here. The skyline is growing by the day. Its a city of 1.5 million people and although it may be very reliant on resources it is starting to diversify a lot more. The population will be double the size it is now by about 2050. Perth will be a city of 2.5 million people by 2025 or so according to estimates.

There is also a lot of money coming into this state and FDI in WA is still ticking along. So while unemployment is rising (just like it is everywhere) it should be no worse here than everywhere else.

I think home prices are dropping in value mostly because the boom pushed them higher than they should have been. People were cashed up here. Which means a bigger correction now that work is drying up a bit. If I am not mistaken, about 40% of the homes being sold are first home buyers too which means the end of the grant could see further drops after that. Still, I dont think they will be that large.

If you are interested in Perth, perhaps I could suggest you look at Quinns Rocks too?

Its 35km's from the CBD, but its right on the coastline. Its next to Mindarie, which is a sought after area. It has a great beach. The have extended Marmion avenue all the way through to Yanchep which has been earmarked as one of Perths future "hubs". They are going to extend the railway line to Butler, giving Quinns access to both Clarkson and Butler railway station. Its close to Joondalup which is also growing. They are building the industrial park in Neerabup which is going to bring additional work to the area. Jindalee, which is right next door, is also seeing a lot of private investment. They are building shops and what looks like a small marina there. Eventually the Mitchell Freeway will extend past it too

There is quite a bit on offer under 400k. Not to sure what yields are like though. Still, beachside property at well under average city median when you are only 35km from the city and there is so much development around the area cant be a bad thing

I don't think anyone is suggesting "perth won't grow". Like yourself, just suggesting that it may not grow over the next few years.

My biggest problem with the northern suburbs is the access. There's one way in and one way out. Until they sort out the bottlenecks on the freeway, I just couldn't live up there.

I agree that Quinns is nice, old quinns anyway. Still has that holiday shack atmosphere, new quinns is a bit of a dump though I reckon. A development block in old quinns would be a nice one for the portfolio. Have they put a sewerage system in there yet or it is all still septic tanks?

 

[MTR]

Glenroy, Braysbrook, Broadmeadows, Dallas, Jacana.

Prices vary depending on size of block, zoning etc.


Cheers, MTR

 

[Aaron Sice]

Is that good or bad?

depends on your investing strategy and fiscal model.

 

[DeanoC]

I don't think anyone is suggesting "perth won't grow". Like yourself, just suggesting that it may not grow over the next few years.

My biggest problem with the northern suburbs is the access. There's one way in and one way out. Until they sort out the bottlenecks on the freeway, I just couldn't live up there.

I agree that Quinns is nice, old quinns anyway. Still has that holiday shack atmosphere, new quinns is a bit of a dump though I reckon. A development block in old quinns would be a nice one for the portfolio. Have they put a sewerage system in there yet or it is all still septic tanks?

Dunno when last you were in new Quinns, but I would hardly call it a dump now. There are some really nice homes there. There are pockets though, no doubt about it. Sewage is in, and would need to be with all the development in Butler, Jindalee, Ridgewood and Clarkson.

I live in Hillarys at the moment, and must say that access out here is not a problem at all? Freeways into the CBD are busy in the morning, but its pretty easy going most days

 

[Tizzy]

gooram I'm surprised you see the freeway north as bottle necked and a problem. I've always lived North and love it and I love my frreeway!!

I've always thought that the freeway south of Perth was bottle necked. I hate that road towards Mandurah.

At least freeway north is a prettier drive.

Have to agree about old Quinns, those blocks are great. Now that I've figured out how to use Real estate.com by placing the properties for sale on a map, it is much easier for me to pick which houses are in old Quinns.

 

[nitrous]

Hows the langford area? I was told it was a really good area for a IP

 

[Ausprop]

Hows the langford area? I was told it was a really good area for a IP

by who and what was their angle?

 

[nitrous]

by who and what was their angle?

By quite a few Real Estate agents

 

[Dazz]

Some of my ex-industrial bikie drug dealing thug tenants live in Langford. It's a top spot.

 

[willair]

By quite a few Real Estate agents

Well there you go it must be right,even the Qld outlaw mc clubs own freehold property in inner city brisbane,at least they did till the ATO starts asking about where did all the money from..imho..willair..

 

[Burbs]

Langford is an absolute first-class residential property investment suburb in Perth.

Reasons:
1. Surrounded by higher priced suburbs but has similar demographics/infrastructure (price lower due to historical connection to government housing which has now gone - similar to Lockridge).
2. Cheap entry point - basic 3x1's for $280-320k which will rent for $270-330pw.
3. High tenant demand - managing for the two largest land owners in Langford, I confirm that leasing is currently running at around 2 weeks.
4. Future subdivision potential - within 400m of shopping centre is duplex potential on the old 693m2 blocks; plus potential for corner blocks - note no premium is currently being priced in for this potential.
5. Large amount of recent construction in the suburb will tend to pull up the median price as that stock is sold in subsequent years.
6. Close to transport - Roe Hwy, Albany Hwy, Nicholson Rd.
7. Close to shops - Cannington Carousel around the corner.
8. Close to employment - Canning Vale area, Cannington, Welshpool.
9. One of the two private schools in the suburb is currently expanding - more demand for rental housing for students' families.
10. Relatively close to Perth CBD - about 13km out.
11. Good publish transport links - Nicholson Rd bus route, Thornlie train station.
12. Feeder area for Parkwood language school - strong rental demand from recent immigrants.
13. Nice pocket of housing on north of Spencer Rd alongside Canning River, undervalued if you ask me.
14. Large stock of ex-Homeswest housing begging for refurbishment - easy to develop a cookie-cutter plan.
15. New housing estate currently under construction on Nicholson Rd/Cameron St.
16. I am evicting any feral tenants I come across in a personal crusade to further lift the suburb.
17. Strong historic price growth - one of the top performers in the Perth metro area over a 10 year timeframe.

Probably a few more reasons I cant recall at present.

Burbs

 

[Perth Investor]

Burbs

Surely you can come up with more than just 17 lazy reasons? C'mon I'll buy you a donut if you can get to 20.

Although I must say, reason number 16 was worth a couple extra anyway...

 

[Aaron Sice]

number 1....lynwood,canningvale, thornlie, maddington...are not high priced suburbs.

 

[El Narros]

Bluecard, what are you talking about? Canning Vale is the most over rated and expensive suburb for what it is. Built on an tip, next to an industrial area and recycling plant. Under the flight path of Jandakot airport and in the middle of no where. And it costs 450k to buy there. Granted the rest are cheap $h&t holes.

 

[Dazz]

I am evicting any feral tenants I come across in a personal crusade to further lift the suburb.

Wonder where they are all going ??