Could another boom in WA?

[mr_taco]

http://au.news.yahoo.com/thewest/a/-/newshome/6383201/fears-of-housing-bubble-growing/

Hi, a lot of reports say another boom in property is underway in WA. Please read the link. My feet are really itchy and think of playing the game again. But from the other economic factors, I can not see there would be a boom. Too hard to judge this time

Any comments?

I am currently selling up in Perth .

There are alot of new projects up North , and alot of excitement in the mining industry , but what WA investors should be happy about is sustaining the last boom , before thinking about a new one coming . The likes of the 2004 -2006 Perth boom could not be repeated for a very very long time . I feel quite lucky that it has been sustained for this long , but now it 's time to cash in my chips and take a little holiday .

 

[gooram]

The one bed unit Kim was referrering to is $210k now --- could it get to $420 in 5-7 years time. I do not believe.

Absolutely it can! Think big mate. Granted it may not get there, but it can, that's the point. It's all relative to the local economy, If the demand is there and people can afford it, especially at the bottom end of the market, over that time frame, prices can certainly double. I bought a house in 2002 for 300k, 5 years later it sold for 670k.

 

[Aaron Sice]

i think TheAnalyst is pointing to the one off boom "not counting" in some of those figures.

however, it's very likely we may see another in a few years' time.

 

[TheAnalyst]

I am currently selling up in Perth .

There are alot of new projects up North , and alot of excitement in the mining industry , but what WA investors should be happy about is sustaining the last boom , before thinking about a new one coming . The likes of the 2004 -2006 Perth boom could not be repeated for a very very long time . I feel quite lucky that it has been sustained for this long , but now it 's time to cash in my chips and take a little holiday .

I sold 5 of my 6. Another is on the market. But still weigh up my options. Certainly, you will not see another boom like last few years. I saw one guy bought a property for $600k in 2003, put back on market for 1.8m in 2006, 2.2m in 2007, 2.8m in 2008, now on the market for "offers" ---- nobody even makes enquiries

 

[TheAnalyst]

i think TheAnalyst is pointing to the one off boom "not counting" in some of those figures.

however, it's very likely we may see another in a few years' time.

Many factors Mate. For buyers, you got to have income to support for buying this 2bed unit for $420k; for investors, you have found the gap, apart from your wages are roaring. Last boom - low rate, easy money (no doc, low doc) and low price.

 

[TheAnalyst]

Absolutely it can! Think big mate. Granted it may not get there, but it can, that's the point. It's all relative to the local economy, If the demand is there and people can afford it, especially at the bottom end of the market, over that time frame, prices can certainly double. I bought a house in 2002 for 300k, 5 years later it sold for 670k.

Good luck.

 

[Aaron Sice]

another factor holding back a boom is the 4 big'uns holding over 85% of all mortgages. all they want is the good mortgages - anything that smells even remotely "off" is being binned.

VERY different to the lo-doc boom of 2003-2007.

 

[TheAnalyst]

another factor holding back a boom is the 4 big'uns holding over 85% of all mortgages. all they want is the good mortgages - anything that smells even remotely "off" is being binned.

VERY different to the lo-doc boom of 2003-2007.

I experienced a lot on what you were saying. Recently, I tried to discharge one property --- without valuation, the bank automatically, revalued my property by 15% on their previous valuation and then apply - 75% LVR. Another one QBE - do not insure - even their own mistake. Just say sorry - we do not insure --- I only borrowed 80%.