Developing At The Anchorage Estate, Rockingham

[<KS>]

You misunderstand me Kenneth - I am not trying to ram my property value opinions down everyones throat.

My main point is that developers usually go for top gains and profits and that if the land is worth 180k (2 for sale in Realestate.com for 199k) they wont make near as much as they could.

With your average quality 4x2 atm costing the public 170k (includes budget for landscaping etc) thats a total of $350k in costs. If they sell these premium packages for 400k in a fully built up area with a train line imminent then they are basically only slugging the public for 50k for the priviledge of a premium block in a nice fully built up area with all the hard work done for them.

I am not saying your wrong about current values etc - I am just agreeing with Ausprop that if you were one to want a PPOR and no headaches, you would be getting a great deal at that price since you would not have to part with a big chunk of your money for several more months to come.

To be honest I am very greatfull that Ventura bought those blocks, as a result the proportion of PPOR residents will increase in the Anchorage - which is already very high in the Shoalwater side of the development.

<KS>

 

[<KS>]

I have not confirmed it yet but I have now been told by 2 people that the 3x2 townhouses being developed and sold on the last stage of the Anchorage lake area are actually selling for $490k!! The last person I spoke to told me that he knows 2 have sold so far.

My hand over is just before Xmas and I should get my bank valuation done very soon.

I will then get another valuation done in January once all the finishing touches are complete.

<KS>

 

[Ausprop]

says a lot for the 2nd hand stock in surrounding areas

 

[Keen]

Guys,

I couldn't afford to buy into the Anchorage. So I targeted the Northern culdersacs of Rocky Park. Having missed a good 3 x 1 on Andromedia (an investors company got an offer in before I could - asking 219k sold for 210k), I kept patiently waiting for another buy - in 4 mths there was next to nothing. In that time prices rose by around $20k.

Having decided not to wait any longer for a seller to pop up - I did a letter drop. 6 weeks ago a signed a contract for a private sale at $240k. This week I had it valued. With not a single thing done to it - it came in at $265k.

Whilst I seem to have bought it at under market price (probably $250 - $255k). I'm very happy with myself to have seen a 25k equity in 6 weeks - with 10 - 15k coming in "natural" capital growth.

My point is that Rockingham is very hot. Not just the Anchorage. These places are being snapped up within a week of being put on the market. Rents are also rising and vacancy remain very low.

There are areas in Shoalwater (at least there was when I researched it 5mths ago) that I believe are heavily undervalued. It may be worth buying into a ground level small number of unit complex. If the Marina goes in this area will go off even more (I understand that such units are going very quickly).

I believe the old Rocky Park image will fade very quickly as prices and rents continue to rise sharply so the quality of tennant / home owner will improve. There are many renovations happening in this area. A physical sign of the area undergoing change and improvement.

If any Eastern Staters are wondering where I believe you should be buying for Capital Growth - I feel extremely sure of anywhere between Rockingham and Mandurah. Just look at the prices on the Northern Coastal strip and you'll see what I'm getting at.

Regards

Keen

 

[<KS>]

I know of a nice 3x1 quadrplex seling I could nab for 215k - still thinking about it.

Locked in rocky park.

Only thing stopping me was that even though its basically its own house it has the label on it.

But in general I agree with all you just said Keen.

(I have lived in Rockingham for 14 years)

<KS>

 

[Bulldog]

Rocky is going off?

Hi all - havent been in here for a while. I moved from Warnbro to Canberra in Jan 05 - sigh! Miss the water, the lifestyle and the real estate! Anyway before I left I was into it heavily and was astonded when i returned last month that the market has moved so much! Example a 2 bedroom unit in Palm Beach for sale for 140K in Jan 2004 was now on the market again for 265K!!!!

Anyway got our slice of paradise at Warnbro Beach (which we will move back to one day) as well as a couple of investment properties in Shoalwater and Rockingham Beach!! Will sit back and watch the fun!!! Followed the rule as close to the water as possible without a view and subdividable if possible - Ohhhh how I laugh at all those people who mocked me for investing south of the Freo train line in Oct 2000!!!!

Merry Xmas.

Bully

 

[<KS>]

Just had my bare bones 4x2 valued at $348,000

This is before carpets, paving, painting, aircon, patio, timber floors - etc.

The valuer said it would easily exceed 400k upon completion....YAY

I will have it finished with all landscaping done in about 3-4 weeks - will put photos up then. Total finished construction cost: $267,000.

<KS>

 

[Kennethkohsg]

Dear All,

1. I write to update you that according to PRP Valuers, the bank valuation for my house at 26, Properjohn Drive (built by Dale Alcock Homes in Dec 2003) amounjted to A$370,000 while the other house at 17 Broughton Way was being valued for A$325,000 (built by Don Russell Homes Pty Ltd).

2. For your kind update, please.

3. Thank you.


regards,
Kenneth KOH

 

[Ausprop]

given that land in the estate is now selling at $180k a block and to construct is around $180 to $190k for a fully finished turn key home, it comes as no surprise that the values would have to come in at over $400k.

 

[Kennethkohsg]

J
ust had my bare bones 4x2 valued at $348,000

This is before carpets, paving, painting, aircon, patio, timber floors - etc.

The valuer said it would easily exceed 400k upon completion....YAY

I will have it finished with all landscaping done in about 3-4 weeks - will put photos up then. Total finished construction cost: $267,000.

<KS>

************************************************
Dear KS,

1. Any new update for us, on your house valuation upon its final completion?

2. Thank you.

regards,
Kenneth KOH

 

[Kennethkohsg]

Dear All,

1. I was told that the non-lakefront 4x2 bedroom house at 38, Boyle Avenue, Rockingahm WA 6268, in the Anchorage Estate was recently sold for A$399,000.

2. Can anyone help to confirm/disconfirm it with the relevant supportingle data details?

3. Thank you.

regards,
Kenneth KOH

 

[Ausprop]

that sale hasn't come thru yet but I note that an earlier owner of this land was the State Housing commission - are you sure it is the Anchorage?

 

[regrow]

Ausprop

You are correct Boyle Ave is not part of the Anchorage Estate. It is the next street North of Seawind Drive and Antuka Road. Seawind Drive and Antuka Road being the boundary of Anchorage Estate.

Regards

Regrow

 

[<KS>]

I have not yet had the final valuation done on my recent Anchorage property as the landscaping etc is not finished for another 2 weeks due to the land developer using a very tardy landscaping company who seem in no rush to get things done.

I did however finally get my fences up last week and the property is looking great.

Willl et you know as soon as I get the valuation.

<KS>

 

[TheAnalyst]

Hi, All,

All your guys talking about "valuation". Are you talking a real estate reps "********" or you talking about the bank's vlauer?

If you talk bank's valution, apart from the refinance (I suppose you got to pay the application fee, stamp duty, mortgage insurance, value's fee... it would coust you $1500 at least), you only get an update by wasting $300-500 to get an "independant" valuer's opinion.

Can you guys clarify what you talk about?

 

[Ausprop]

the discussion has generally covered bank valuations. they may cost $300 - $500 but they are a necessary evil for managing your cash flow.

 

[Kennethkohsg]

Dear theAnalyst,

1. As John FritzGerald says, it is important for property investors to know exactly how the lending banks value our properties as they have a tendency to "undervalue" them, and ultimately possesses more than enough collateral security at our expense base don the usual 80% LVR, as its loan borrowers.

2. Consequently, we may not able to free up as much of the available house equity for further re-investment and re-financng purposes so as to quickly build up our own property portofolio.

3. If we are not not careful, our own property values might be unknowingly be lost as a result of this "deliberate undervaluation" by the lending bank as their bank-appointed valuation outcome tend to be on the conservative side to safegaurd their own client banks who have appointed them to do the valuation.

4. I myself, once have a bank valuation done on one of my properties in the Anchorage Estate, which came in lower than expected by some A$40,000 below its market value.

5. Consequently, beside providing the relevant comparable sale data and engaging another independant valuer to do a market valuation of the same property and using the valuation outcome to change the lending bank's valuation outcome as reported by its own bank-appointed valuers, fortunately, I was able to convince the lending bank to review its own valuation outcome and to get it to increase its valuation outcome and market value for my property as well as to increase its loan to me.

5. Thus, by investing in $300-$500 bank valuation fee, and if I can better safegaurd my house values by some A$40,000 again, I will have no hestitation investing such small monies to get the bank valuation as soon as one of my houses under construction is newly completed.

6. Likewise, this is also what KS is trying to do when he has achieved the Final Completion Status for his 2 houses which have recently achieved the Practical Completion Stage.

7. For your kind update and further comments, if any, please.

8. Thank you.

regards,
Kenneth KOH

 

[TheAnalyst]

Thanks Guys for the valuable points.

 

[Kennethkohsg]

Dear All,

According to RealEstate.com.au, the 4 x 2 bedroom house at 28, Boyle Street was recently sold for A$355,000 on 20th Jan 2006.

Another 4 x 2 bedroom house (196m2 living) located at 54 Seawind Drive (Land size= 576m2) was also reportedly sold between A$365,000-$425,000 price range during 30th Jan 2006 through Mr Alan Tanner/Ray White Rockingham.

The 4 x 2 house at 13, Dominion Way, is presently reportedly under offer now for A$409,500through Summit Realty-Waikiki whereas the lakefront 3 x 2 house (200m2 lving) at 1 Highland Parade is also reportedly under offer too, at only A$373,500.

For your kind update, please.

Thank you.

regards,
Kenneth KOH

 

[Ausprop]

will keep an eye on it Kenneth. These sale prices are very cheap for investors getting in - below replacement cost. I would expect prices to push well into the $400's when the stage 15+ houses are completed and put to market.