Developing At The Anchorage Estate, Rockingham
- Thread starter Kennethkohsg
- Start date
Sounds good but only if you can afford to carry the land plus build cost for a year or more. At $400K just for land, I need a lot of spare $ to fund it. Yields don't look like its getting any better either. Projects are getting more difficult to fund. Perhaps just get that one beach front block, sink all your resources into it, build your mansion and be done with it.... Then I'd want to live in it, not rent it out for next to nothing.
Yes, asdf, yields are definitely low. However, yields are currently of secondary importance to me.
And the costs can be covered by the capital growth in other properties in the suburb, and others in nearby suburbs. So no need for spare funds; although there is an obvious opportunity cost and also a risk with regards to lack of diversification. All hypothetical because I am happy to sit out of the market; my most recent purchase was July last year. A beachfront place in Golden Bay.
Capital growth has been compounding at 18.2% p.a. for the last 5 years and grown 19.5% in the last 12 months - from REIWA web site just now, suburb Golden Bay.
My gut feel is that there is still plenty of growth in the short term for beachfront blocks at Golden Bay, within one hour of Perth and soon to be serviced by a new railway to Perth city. The real estate market and whole economy are very strong in WA now.
If a beachfront property keeps growing at 12% pa capital growth for the next generation, I would be happy to rent it out for low yields. I accept that there are many others who would not. There are many ways.
Regards,
And the costs can be covered by the capital growth in other properties in the suburb, and others in nearby suburbs. So no need for spare funds; although there is an obvious opportunity cost and also a risk with regards to lack of diversification. All hypothetical because I am happy to sit out of the market; my most recent purchase was July last year. A beachfront place in Golden Bay.
Capital growth has been compounding at 18.2% p.a. for the last 5 years and grown 19.5% in the last 12 months - from REIWA web site just now, suburb Golden Bay.
My gut feel is that there is still plenty of growth in the short term for beachfront blocks at Golden Bay, within one hour of Perth and soon to be serviced by a new railway to Perth city. The real estate market and whole economy are very strong in WA now.
If a beachfront property keeps growing at 12% pa capital growth for the next generation, I would be happy to rent it out for low yields. I accept that there are many others who would not. There are many ways.
Regards,
Funny you should mention Golden Bay - I myself have it on my short-list of suburbs to examine in the next 2 months.
I was also looking at doing a couple of properties in Wellard till I heard of a large Homeswest proposal moving into that area - kinda like the plague for investors really.
<KS>
I was also looking at doing a couple of properties in Wellard till I heard of a large Homeswest proposal moving into that area - kinda like the plague for investors really.
<KS>
I'm afraid horse might have bolted for me at Golden Bay. Perhaps other beach side estates are more affordable? None left that I can see. Singleton Beach maybe but developers there will be pricing the blocks accordingly at the front strip. At $400K prices, I might as well look at my own back yard - up and down NSW coast and Qld. WA beach side blocks used to be cheap but the 18.5% pa for the last 5 years sure is making it less affordable for the average punter like me.
I am with you Pete, I would not be too worried about rental yields, when you look at CG, double digit returns for WA, this certainly makes up for it.
If you have been in the Perth market for the last 4 years you are way ahead, and those who have not.... well a bit of shame......
If you have been in the Perth market for the last 4 years you are way ahead, and those who have not.... well a bit of shame......
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KS - I was looking at that Anchorage block too. pig of a block huh? there is very little else around on the resale market. the whole market is drastically short of all lisitngs in fact.
on the growth rates I think something has to give... either rents move up or price growth slows down. At this stage rents are definitely on the rise.
on the growth rates I think something has to give... either rents move up or price growth slows down. At this stage rents are definitely on the rise.
Your 400th post Ausprop! Yes, something has to give. Prices aren't slowing too much yet. So maybe they'll go too far and retreat in a few years? Then sit steady for a few years after that?
Booylicious, in April 2001 I started. (San Remo) A dream run, for sure.
Yes, asdf, the affordability of these blocks has changed considerably in a few years. I know I'm biased; I believe they are still good value. Also the now much-less-affordable canal blocks in Mandurah which have also seen large price growth in recent years.
regards,
Booylicious, in April 2001 I started. (San Remo) A dream run, for sure.
Yes, asdf, the affordability of these blocks has changed considerably in a few years. I know I'm biased; I believe they are still good value. Also the now much-less-affordable canal blocks in Mandurah which have also seen large price growth in recent years.
regards,
@Ausprop - yer pig of a block for sure!! In fact I was very unimpressed with that whole section of the street. I like the Shoalwater side of the Anchorage much better myself - I am just a snob at heart....j/k
IMHO rents are already well up on the last 2 years. I tell family I will get $300/week for my property when I rent it out in January and they scoff at me - yet I know of many houses in the anchorage with a lesser location renting for $280/wk with incredibly low vacancy rates. Hell the tiler on my house is paying $260/wk for a small 3x2 in secret harbour - and he had to agree to it sight unseen in order not to miss-out. I think S/H is also another slightly undervalued area atm.
@Pete - Ever since I went into that Port Bouvard office I have been bombarded with release advertising - just wish I could afford to play in that league!! Oh and I changed my sig just for you!!
<KS>
IMHO rents are already well up on the last 2 years. I tell family I will get $300/week for my property when I rent it out in January and they scoff at me - yet I know of many houses in the anchorage with a lesser location renting for $280/wk with incredibly low vacancy rates. Hell the tiler on my house is paying $260/wk for a small 3x2 in secret harbour - and he had to agree to it sight unseen in order not to miss-out. I think S/H is also another slightly undervalued area atm.
@Pete - Ever since I went into that Port Bouvard office I have been bombarded with release advertising - just wish I could afford to play in that league!! Oh and I changed my sig just for you!!
<KS>
KS,
Port Bouvard is only a small step from where you are. Especially if we see another 2 years of half reasonable growth. Me, I prefer north of Mandurah. Port Bouvard is just a bit too far for my liking. (I think I'd rather the coast north of Perth.) Or am I put off by the big prices people have paid for tiny lots? Ralph Sarich's development. He must be doing VERY well in current property boom. Has some great holdings. Smart cookie.
regards,
Port Bouvard is only a small step from where you are. Especially if we see another 2 years of half reasonable growth. Me, I prefer north of Mandurah. Port Bouvard is just a bit too far for my liking. (I think I'd rather the coast north of Perth.) Or am I put off by the big prices people have paid for tiny lots? Ralph Sarich's development. He must be doing VERY well in current property boom. Has some great holdings. Smart cookie.
regards,
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Hi Bryn
My appologies for not catching up last time home but was very busy finishing the house. We HAVE finally finished and it has been rented out within a week for $280 p/w. So I think you will be in the ball park for rent on yours. Now the fun begins for the next one, although as you know it is hard to get land. I was to camp out for a friend at the last wellard release and we got there Thursday morn and all the blocks were gone. People were camped out since Tuesday. Looks like it is now at least a week camp out just to get land.
Regards
Regrow
My appologies for not catching up last time home but was very busy finishing the house. We HAVE finally finished and it has been rented out within a week for $280 p/w. So I think you will be in the ball park for rent on yours. Now the fun begins for the next one, although as you know it is hard to get land. I was to camp out for a friend at the last wellard release and we got there Thursday morn and all the blocks were gone. People were camped out since Tuesday. Looks like it is now at least a week camp out just to get land.
Regards
Regrow
+++++++++++++++++++++++++++++++++++++<KS> said:
Dear KS,
1. It will be interesting to know how your house valuation actually comes out.
2. Niger Sayers from Ventura informed me that his clients is selling the lake-front land and house packages for about A$385,000. The lake-front Ventura built houses were small though at about 160-180 m2 (living).
3. According to Niger, Ventura is also presently selling some land and house packages off-the-plan at A$399,000-$414,000 around the last lake release i.e. around Stage Land Release 15-17. The house size is about 200 m2 living.
4. For your kind update, please.
5. Thank you.
regards,
Kenneth KOH
@Kenneth - It depends on how long it took to build any houses in Stage 17, I very much doubt that with the continued growth in the market that they would sell any 200m2 quality built houses on land worth 180k+ for only 400k.
If they pull out all stops and have the area built up in less than 6 months then they would be mad to sell for under 450k - just my humble opinion.
<KS>
If they pull out all stops and have the area built up in less than 6 months then they would be mad to sell for under 450k - just my humble opinion.
<KS>
Yeah, I've seen their ads a few times in the Domain (property section) of the Sat edition of Syd Morning Herald. Now that WA is firmly on the radar screen for investors out East, there are more developers/promoters advertising H&L packages in the local papers. Perhaps a sign of caution and do your research on the estates before jumping on the band wagon. There is a lot of land out West.
@ASDF - Yes and No mate. Lots of land...YES. Lots of GOOD land currently available...NO.
There may be a lot of land out here but not a lot of it is developed and available for sale, especially anywhere near built up areas. 2 Years ago Rockingham had a lot fo land available, now there is 1 or 2 stages left in the Anchorage and Harrington Waters - but even so most of that is gone already to bigger developers. That was the last of the land in Rockingham.
But yes I agree - be wary of big developers, but like Ausprop said - Ventura selling those houses at the price Kenneth mentioned would be a good buy by those wishing to make one of those homes a PPOR.
<KS>
There may be a lot of land out here but not a lot of it is developed and available for sale, especially anywhere near built up areas. 2 Years ago Rockingham had a lot fo land available, now there is 1 or 2 stages left in the Anchorage and Harrington Waters - but even so most of that is gone already to bigger developers. That was the last of the land in Rockingham.
But yes I agree - be wary of big developers, but like Ausprop said - Ventura selling those houses at the price Kenneth mentioned would be a good buy by those wishing to make one of those homes a PPOR.
<KS>
********************************************Ausprop said:
Dear Ausprop,
2 of Ventura's land and house sale packages were sold off now if you happen to drive around the last lake area.
Cheers,
Kenneth KOH
Well then they obviously got the land at a VERY good price and at a guess are probably asking for a reasonable deposit to secure the deal? Would also be intersting to see who they sold to and exactly how much. The Severns are sly operators and probably had them sold to their family
Otherwise it just does not make sense to charge prices which are current in an appreciating market where the value can only go up - especially with the train coming in, in the next 12-18 months (we hope).
I had REA friend look at my place and he said once I put in the air-con and timber floors and full paving, it will have no problem being valued at 400k+
I will get some photos up ASAP
<KS>
Otherwise it just does not make sense to charge prices which are current in an appreciating market where the value can only go up - especially with the train coming in, in the next 12-18 months (we hope).
I had REA friend look at my place and he said once I put in the air-con and timber floors and full paving, it will have no problem being valued at 400k+
I will get some photos up ASAP
<KS>
********************************************8<KS> said:
Dear KS,
1. Please bear in mind that potential buyers have a lot more choices to choose from with a budget of A$450,000 and above and so I am not as "bullish" as you are about continued rising prices for properties in the Anchorage Estate. This is because some of the present water-front properties are being sold off at $385,000-$395,000 price range as compared to similar non-water front properties which are already being sold around $365,000-$375,000 price range.
2. Thus, there may be some sort of temprorary or/and artificial price glass ceiling being set for both water-front and non-water- front properties in the Anchorage Estate presently.
3. Provided that Australand has successfully or/and is able to sell off their land and townhouse packages at its targetted $475,000-$515,000 price range, (and this will indirectly confirms your bullish views), I will prefer to be conservative and "err" on the low side.
4. Morever, I think the Perth market will only likely to continue to grow over 18-24 months period ;- after that I am not sure how the Perth property market will eventually evolve after post 2008.
5. For your kind update, please.
6. Thank you.
regards,
Kenneth KOH
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