Anyone else looking in Perth at the moment?

St John court - Rivervale ,Perth

Hi,
just bought 1 bedroom unit at 66 great eastern highway. This is my first investment in unit. more for long term investment, the land size is 16,000 sqm to share with about 150 owner. plenty of car park space too. near the river and also close to CBD.

something like this one but different unit at frist floor.
http://www.realestate.com.au/cgi-bi...r=&cc=&c=72482244&m=1&ph=0&s=wa&tm=1253288801

bought it at 195k and rent out at 210 per week.

It is a high density R80 zone.

any comment or sharing, pls.

cheers !
 
Ausprop said:
it may sound like a lot but that tin shed isn't really a tin shed... it's a very expensive cyclonic home with all the creature comforts... the cost of construction is staggering.
Click to expand...

Yeah, but is it going to be worth $1.3 million in the medium to long term?

The builder (CWD) charges cost plus 40%, which is a pretty steep margin but one that is appropriate in the Pilbara context.

So it's a $500,000K tin shed (because it's a cat 5 cyclone rated, yes, and it's got nice things inside, yes).

It's on a 200K block of land...

So I can get my head around it being worth $700K, plus a bit more. 800K, even 900K - my brain has adjusted to Pilbara prices. I even really like Colorbond construction now. If you offered me a new tin shed in Pretty Pool for $900K, I'd take two now, thankyou! When I move back to Melbourne, I'll probably want my house built out of Colorbond there too...all good!

But at $1.3M, my question is - do you really think that soemone is going to pay $1.5M, $1.6M in a couple of years time? My concern is that we're getting well out of line with intrinsic value at current prices. And whilst short term supply and demand mismatch MAY push prices up a bit in the short term, there must be a limit.

So ultimately, I'm arguing that whilst Port Hedland is all systems go from a business/resources point fo view, I'm unconvinced that it's a 'hot spot' for property investors looking for capital gains, because the economic boom times are already priced in.

From a positive cash flow point of view it's better, I suppose. Rentals are really thin on the ground. I think I mentioned in another thread that I was paying $2500K per week rent for a place in Cooke Point, and the owner hadn't given me the key (paperwork reasons). Well, we ended up burning 20K on rent and I never did get that key! Only in the Pilbara.
 
yes you are right... Karratha prices are a lot closer to intrinsic value. I don't follow PH in detail... are you saying the typical color bond home on the typical block is $1.3m? i was assuming the house your co. bought had a bit more fruit? (pool in particular)

note the block price - these are all about to be escalated by the govt and they are subsidised prices anyway. If you see a privte block go on the market in karratha they are more like $350k.

out of interest... what do you feel is the best investment decision for your co? should they have paid $2200pw+- rent or shelled out the capital?
 
those articles are 6 months old RW. Out of interest I think march was the low point for WA real estate. Why the govt is preferentially handing out blocks to companies is the big question. Blocks up there are like hens teeth now of course.
 
mingling said:
Hi,
just bought 1 bedroom unit at 66 great eastern highway. This is my first investment in unit. more for long term investment, the land size is 16,000 sqm to share with about 150 owner. plenty of car park space too. near the river and also close to CBD.

something like this one but different unit at frist floor.
http://www.realestate.com.au/cgi-bi...r=&cc=&c=72482244&m=1&ph=0&s=wa&tm=1253288801

bought it at 195k and rent out at 210 per week.

It is a high density R80 zone.

any comment or sharing, pls.

cheers !
Click to expand...

Congratulations on your purchase. Is it similar condition to the one on link? May be an opportunity to increase value through a little renovation and up your rent.

All the best
 
Hi Minx ,

thanks. different unit. They are 3 of us, each of us bought 1 unit at 7D/9C/11E respectively. So far the rent is 210 per week with original condition. yet to pump in more $$ to reno for higher rental. No plan to do it now.

We all bought it with the intention of future re-development due to good size of land.

Cheers !
 
Good for you.

I keep looking at 1 bed and 2 bed units in same area on the net, unfortunately our weekends have been hectic for the last few months (studying etc) so we haven't had a chance to go look at anything in the actual sense of the word.

But I'm sure eventually we'll get there.

All the best!
 
mingling said:
Hi Minx,

I think this is a good investment for 1 unit bedroom inview of especially land size and location. We bought it at 190K/192.5k/195K for 7D/11E/9C respectively. I think you should be able to get under 200K too.

you can use FHOG of 14K and free stamp duty if you needed it.

This project is near by fyi :
http://www.thespringscityliving.com.au/Structure-Plan/

cheers,
Ming
Click to expand...

Yes it does sound like a good buy, those apartments are pretty bad but they are on a huge parcel of land in between brand new developments.

The springs website doesn't have much detail, any idea of the timeframe for this project? On the backburner like most others atm?
 
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