First post: new to IP and buying in Perth
- Thread starter Apex
- Start date
Stirling are all over the place. They began with a consultation exercise, and given that Dianella is largely much older people stuck in their ways and not wanting change, the overwhelming outcome was to REDUCE density! Could you imagine.. I don’t think this ever got legs but it was certainly the outcome of their consultation workshops. Then the light rail was introduced, with a station at Dianella Plaza and another one further along near Inglewood Pools, and the focus shifted to increasing densities and preparing an Activity Centre Structure Plan for the area around Dianella Plaza.
In the background Stirling are also proposing to amend their town planning scheme to prohibit multiple dwellings in areas coded less than R60, despite the WAPC encouraging MD's in all areas above R30, as seen in the new R-Codes. I can't see this getting approved by the WAPC, especially with Directions 2031 setting pretty ambitious housing targets for each local government, but the fact that Stirling would even propose such a thing is worrying!
And as others have said, take what REA's say with a grain of salt, they don’t have your best interests at heart. And FWIW, I believe Swan's plans to rezone Beechboro/Ballajura etc will get up though.
Hi Sanj
Balga is red hot at the moment, investors now paying just over 400K for triplex sites, units/villas selling at $350-360K. There really is nothing in it, perhaps 10%, I also believe there is an oversupply of units/villas as investors are offloading older stock.
As far as the future goes for Girrawheen I expect when zoning actually happens in perhaps 3 years time units/villas will have also risen, how much, who knows? Also, most of the blocks are around 698 sqm, realistically I think too small for a triplex deve, at this size I would maintain front, build at rear.
Regardless of rezoning, if you believe the stats Girrawheen has been a solid performer over many years, even with its negative stigma. Why, I think it ticks many boxes, many want to be close to the city this is affordable. I also look at areas like Lockridge, same story and investors have jumped in as they see an opportunity to landbank.
I have experienced a couple of boom/bust cycles in Perth now and interesting to note the properties that I have in woop woop are the ones that have taken much longer to recover.
MTR
Hi all,
Just a quick update. I purchased my first home/IP last month and am currently organising finance with Rolf (thanks!)
It was a quick decision on the day to buy with the help of my mum, it was only the second home open I've been to in my entire life (I probably deserve a few slaps for this) but I'm glad that I did it - hopefully it will prove to be a good decision in years to come.
I ended up steering away from the units in Dianella around the plaza as I couldn't justify the price that they were selling for. I thought I could get better value in other places with the same money.
The property I bought is a 2x1 duplex in Mirrabooka, ex-public house renovated interior and exterior by Satterley. Seeing as it was only available to FHB I will be living in it for 6 months or so, potentially with a share mate - can anyone tell me how income from sharemates are treated, is it taxable in WA? After that I will reassess my work/lifestyle/finance situation and go from there.
Thanks all for your kind advice and input, I hope to be around here for longer and would like to meet some of you one day.
A
Just a quick update. I purchased my first home/IP last month and am currently organising finance with Rolf (thanks!)
It was a quick decision on the day to buy with the help of my mum, it was only the second home open I've been to in my entire life (I probably deserve a few slaps for this) but I'm glad that I did it - hopefully it will prove to be a good decision in years to come.
I ended up steering away from the units in Dianella around the plaza as I couldn't justify the price that they were selling for. I thought I could get better value in other places with the same money.
The property I bought is a 2x1 duplex in Mirrabooka, ex-public house renovated interior and exterior by Satterley. Seeing as it was only available to FHB I will be living in it for 6 months or so, potentially with a share mate - can anyone tell me how income from sharemates are treated, is it taxable in WA? After that I will reassess my work/lifestyle/finance situation and go from there.
Thanks all for your kind advice and input, I hope to be around here for longer and would like to meet some of you one day.
A
Congrats Apex!!
To the best of my knowledge there are 2 ways with share house income:
1. you don't have to declare it, 100% PPOR and 100% CGT free when you sell
2. you declare it 50% IP, declare income from sharemate, claim 50% depreciation, 50% all other IP deducatables (interest, rates, etc etc), pay 50% of CGT consequences when you sell
I believe you can use either system and both are justifiable and allowable with ATO.
Thank you MTR and westminster
What are the pros and cons with options 1 & 2? I want to select the one which makes more financial sense but I think that would involve a lot of assumptions. Will be speaking to an accountant about that one.
My original plan was to live in it for 6-12 months with a sharemate, then rent it out fully after purchasing a PPOR in 12-18 months. Circumstances may change in that time frame but that is the aim. I will be holding the property for long term though.
Uh this rings alarm bells for me. Are you on some sort of shared equity scheme with the Department?
Are you sure there isn't some sort of restrictive covenant or loan/purchase clause that says you can't rent it out after the 6 months?
No, there was the option of taking the shared equity scheme but I was able to afford it on my own. This means that I own it 100% as a FHB and have the same rights as any other FHB when it comes to renting it out.
Agreed Red Flags!
If you are receiving a Grant I wouldn't be having someone living with you and paying you rent, If you were to have someone with you I would set it up that they were "boarding" and paying towards costs/bills. Then reevaluate at a later stage, after grant period...
No this aspect of the grant is fine. You just have to live there for 6 months - OSR doesn't care who else is or isn't living there, or what their agreement is with you as the applicant homeowner.
I did this myself in somewhat even more "dodgier" circumstances and OSR was fine. (I bought a duplex pair on one title and rented out the other duplex while I lived there)
These Satterley places (eg Steedman Way Mirrabooka) all have to be lived in by the owner for the first 12 months post-settlement.
FHOG is 6 months but these places require you to be there for 12, as they're obviously trying to encourage owner-occupiers into these traditionally renter-oriented (or housing commission oriented) suburbs.
After the 12 months you can rent it out
The other conditions of buying these places is
A) pre-approval
B) fixed prices & no offers (so when Satterley renovate them, they know their profit margin from the start)
C) First home buyers get exclusive period for first 10 days of lissting, after that anyone can buy
These satterley places are in mirrabooka, girrawheen, koondoola, balga and more recently eden hill. There was actually a house for sale through this scheme in embleton availabe recently also.
FHOG is 6 months but these places require you to be there for 12, as they're obviously trying to encourage owner-occupiers into these traditionally renter-oriented (or housing commission oriented) suburbs.
After the 12 months you can rent it out
The other conditions of buying these places is
A) pre-approval
B) fixed prices & no offers (so when Satterley renovate them, they know their profit margin from the start)
C) First home buyers get exclusive period for first 10 days of lissting, after that anyone can buy
These satterley places are in mirrabooka, girrawheen, koondoola, balga and more recently eden hill. There was actually a house for sale through this scheme in embleton availabe recently also.
Yes this is what I meant... sorry share=board means the same thing to me (not the same as rent) should probably choose my words carefully
Hmm that's interesting, thanks for the info Beijos. I thought it was only for 6 months, but living in it for 12 months works for me too.
I didn't have my loan pre-approved, the contract was subject to finance but on the day I signed (we were first in on the first day) I wasn't knocked back because of lack of pre-approval.
Fixed price is correct. There are lots of these in Culloton Rd in Balga, going for a lot more than the ones in Mirrabooka but less nice looking imo.
I did suspect there would be something like this as a condition. Are you sure about this though?
Even if its true, I'm curious though how they enforce it legally though. Apex, I'd say its worth double checking on this issue.
Thanks I have contacted the RE agent to clarify
When you say huge amount what are we looking at?
I dont think they put a caveat over the property or anything but i assume itd be written in the contract.
Seeing as dept housing manage this scheme thru indicidual developers eg Satterley, they supposedly oversee the 12 moth rule
Recently a ripper 5 bed house in Girrawheen fully renod sold for 355 thru this schemw to a lucky woman (if rezoning goes thru this will be very hot.properrt with wide frontage and big block). I assumed she would have bought this house.for that reason, soon after i saw it for rent on gumtree stating "private rental contract for first 12 months".
Later i was told dept housing already saw this and were taking steps to stop it.
Seeing as dept housing manage this scheme thru indicidual developers eg Satterley, they supposedly oversee the 12 moth rule
Recently a ripper 5 bed house in Girrawheen fully renod sold for 355 thru this schemw to a lucky woman (if rezoning goes thru this will be very hot.properrt with wide frontage and big block). I assumed she would have bought this house.for that reason, soon after i saw it for rent on gumtree stating "private rental contract for first 12 months".
Later i was told dept housing already saw this and were taking steps to stop it.
