Buying within 15k's of Perth CBD

[infinity]

Hi Guys,
Thoughts on buying a 4 x 2 family home within 15k's of Perth CBD, North of the river for 1.25m - Are these prices there asking over the top or as history shows in years to come they will be asking 2.25m?
Rents are pretty good in this area - up to $1500pw for a good size family home.
Cheers - any input would be great

 

[spanna]

Hey, Im in the same boat slightly lower price point... Looking in the Wembley/Wembleydown, Churchlands, Woodlands, Doubleview area... not alot on the ground. but i think good for some CG in the next 3-5 years in these areas. I would look for value add potential. JMO

 

[sanj]

Hi Guys,
Thoughts on buying a 4 x 2 family home within 15k's of Perth CBD, North of the river for 1.25m - Are these prices there asking over the top or as history shows in years to come they will be asking 2.25m?
Rents are pretty good in this area - up to $1500pw for a good size family home.
Cheers - any input would be great

it is impossible for anyone to answer that question accurately without more info.

what area is it? block size? what is the condition of the house? if new what is replacement value, what is median price for the suburb etc

15km NOR could be a lot of different suburbs with entirely different price points.

 

[infinity]

Its in general sanj - not about the actual house or size its more the price range in Perth as a whole. Is this a bubble we are seeing or the start of something bigger.
Is the property market in Perth going to continue to grow. On the East coast is a very different story.

 

[thatbum]

Its in general sanj - not about the actual house or size its more the price range in Perth as a whole. Is this a bubble we are seeing or the start of something bigger.
Is the property market in Perth going to continue to grow. On the East coast is a very different story.

I wish 15km NOR was generally 1.25 million and $1,500/week rent.

Barring some of the western suburbs, I don't think that's even close to an average or median price point around that area.

 

[Rixter]

Hi Guys,
Thoughts on buying a 4 x 2 family home within 15k's of Perth CBD, North of the river for 1.25m - Are these prices there asking over the top or as history shows in years to come they will be asking 2.25m?
Rents are pretty good in this area - up to $1500pw for a good size family home.
Cheers - any input would be great

Its in general sanj - not about the actual house or size its more the price range in Perth as a whole. Is this a bubble we are seeing or the start of something bigger.
Is the property market in Perth going to continue to grow. On the East coast is a very different story.

Halve it at least. The whole (as you are asking for) of Perth median price ending June 2013 quarter is $515k (source: reiwa). All things being equal, yes the long term trend will continue to double.

 

[sanj]

Its in general sanj - not about the actual house or size its more the price range in Perth as a whole. Is this a bubble we are seeing or the start of something bigger.
Is the property market in Perth going to continue to grow. On the East coast is a very different story.

no one can answer that question though. Eg 15km from perth might be say a nice house on the waterfront on marmion/west coast or it could be a run down house on a triplex site in girrawheen or wherever 15km is.

for the first one $1.2m would be fantastic value but the second property would be terrible value.


or, to use less extreme examples for say city beach (prob not 15km) a 4x2 in reasonable shape for $1.2m might be good value but if it was say karrinyup or stirling you might argue it isnt.
Without context a premise like 15km from CBD for a 4x2 doesnt have a lot of meaning.

 

[westminster]

Hi Guys,
Thoughts on buying a 4 x 2 family home within 15k's of Perth CBD, North of the river for 1.25m - Are these prices there asking over the top or as history shows in years to come they will be asking 2.25m?
Rents are pretty good in this area - up to $1500pw for a good size family home.
Cheers - any input would be great

Look I think it would be a massive cash drain. I think most 1.25m houses rent for around $1000.
http://www.realestate.com.au/property-house-wa-gwelup-410561923

Example - new 4 x 2 in Gwelup. My estimated value around 1.25. It is not a development block and not a block worth 1.25 with a house sitting on, its pretty much just a house on a block in a good location.

This end of the rental market is tough, you are hoping to catch an executive family