Investing in the Anchorage Estate at Rockingham-Shoalwaters Suburb

[stockt12]

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2. Perhaps, you should ask those people whom you are presently comfortable with or/and personally know them as being highly knowledgeable, to advise you accordingly on how to seek out these relevant investment opportunities for yourself.


regards,
Kenneth KOH

Already made the move, thanks Kenneth.

 

[Kennethkohsg]

Dear All,

1. My neighbour has just informed me that the house at 30, Brindabella Way, Rockingham, WA 6168 has been "unsuccessfully sold" for the third time for $525,000, with the buyers' finance falling through each time.

2. The house is now back in the market again, with the same $525,000 asking price.

regards,
Kenneth KOH

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Dear All,

1. Having been back in Perth only two days ago, I went driving around the Anchorage Estate yesterday afternoon.

2. After driving around, I have observed the following:

a. the house at 30 Brindebella Way is reported as "sold" again. Can anyone confirm if the sale has been successfully completed to date? I've done a search on the realestate.com.au but was unable to locate this particular house sale.

b. the 4x 2 house at 48, Liechardt Loop, which was being advertised for
A$489,000, is now reportedly "under contract" too.

c. a new listing of a non-waterfront 4x2 house at 26 Brindabella Way, is being advertised for A$589,000 asking price on the realestate.com.au. I believe this is the house in the Anchorage Estate with the highest asking price now!

d. A 4x2 lakefront house at 8 Rothbury Parade, Rockingham is being advertised at the realestate.com.au for A$539,500 despite being presently under construction.

2. Subject to further available sale data confirmation, it seems that lakefront/waterfront single residential house in the Anchorage Estate is now fast breaking through the A$525,000 selling price mark and racing towards its price resistance at A$540,000 whereas most of the non-waterfront 4x 2 houses are still asking between A$445,000-A$490,000 price range.

3. For your kind update and further comments/discussion, please.

4. Thank you.


regards,
Kenneth KOH

 

[paulie]

G'day all and Kenneth,

REIWA info for 30 Brinabella suggests it has sold for $517,500 plus a pic attached for you all


30 Brindabella Ave Rockingham H N/A 3 / 2 D F S A/C K K/D L sqm 2522/964 $525,000 $517,500 01-07-06

48, Liechardt Loop = No idea as no info is available


The only four out of 29 homes that have sold in rockingham in the last 4 weeks over $500K are as follows

2113434 3 Reda Court Rockingham H N/A 4 / 2 2WCS 1STRYS 2CP D F GM A/C B R K L LDY sqm $519,000 $515,000 07-08-06
2114398 30 Brindabella Ave Rockingham H N/A 3 / 2 D F S A/C K K/D L sqm 2522/964 $525,000 $517,500 01-07-06
2144767 2 Properjohn Drive Rockingham H B / T 3 / 2 2WCS 1STRYS 2G D F A/C B R GHWS GC SC INS P EH K L LDY sqm 2003 $539,000 $539,000 07-08-06
2144901 52 Houston Street Rockingham H B / T 6 / 2 3G D F GM B R GHWS EH K L LDY 926sqm $769,000 - $799,000 $786,000 09-08-06

GLA


Paulie

 

[Kennethkohsg]

Dear Paulie,

1. Thanks for the sale confirmation at 30 Brindabella Way, that it was last sold for A$517,000 on 1st July 2006, being a lakefront 4x2 house.

2. it is interesting to note that the 4 x 2 house at 2 ProperJohn Drive was being sold for $539,000 on 7th August 2006. This was despite it being not a lakefront house. I would drive down to check out on this house for myself.

3. Thank you.

Cheers,
Kenneth KOH

 

[Kennethkohsg]

Dear All,

I am wondering if anyone has bought off-the-plan, one of the lakefront townhouses at the Anchorage, which was being sold by Australand.

Looks to me that it is likely to be a good investment given this latest development that single residential houses in the Anchorage Estate have now penetrated through the $517,000-$539,000 price range.

For your kind update and further comments/discussion, please.

Thank you.

Cheers,
Kenneth KOH

 

[regrow]

Hi Kenneth

From the info Paulie posted the house at 30 Brindabella is a 3 x 2 not a 4 x 2 as you posted above.

My wife has been in this house and although it looks big she said the rooms were smallish and not much back yard.

Regards

Regrow

 

[Kennethkohsg]

Dear Regrow,

Thanks for the update and correction, please.


regards,
Kenneth KOH

 

[Kennethkohsg]

it is interesting to note that the 4 x 2 house at 2 ProperJohn Drive was being sold for $539,000 on 7th August 2006. This was despite it being not a lakefront house. I would drive down to check out on this house for myself.

Cheers,
Kenneth KOH

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Dear All,

1. Have inspected the house at 2 Properjohn Drive today, I still do not quite understand the buyer's perspective and his willingness to pay $539,000 for this house concerned.

2. My Perth associate jokingly mentioned that the high price was "earned" due to its good "feng shui" position.

3. We then drove down to check out on the house at 26 Brindabella Way, whose owners are asking for $589,000 sale price. Still cannot understand why the house should be commanding such a high sale price, myself at this point in time.

4. For your kind update and further comments/discussion, please.

5. Thank you.

regards,
Kenneth KOH

 

[stockt12]

Supply and Demand Kenneth.

I spoke to a couple of agents[trying to locate one or two agents who I can 'trust' and be loyal with for the 10-15 years] and still getting a lot of the "hot pocket" feedback. People are just jumping and the seller is laughing daily all throughout Perth.

 

[Kennethkohsg]

Supply and Demand Kenneth.

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Dear Stock12,

1. As far as I am concerned, the number of properties being listed for sale in the Anchorage Estate have been on the increase over the last few months and many of them are selling well below $500,000 mark with some still in the low $400,000s mark.

2. More properties will soon be completing in the Anchorage Estate towards the end of this year and with many of them being sold off the plan while under construction in the price range of A$440,000-$450,000.

3. Rental properties are reportedly not getting rented out as fast as they used to be, though rental for new properties in the Anchorage Estate is still on the increase between $280-$320 per week rental level.

4. Demand for properties in the Anchorage Estate has remained strong though, as the properties still appear to be "undervalued" as compared to those being listed for sale in the Secret Harbour, Baldivis, Harrington Waters Estate, Port Kennedy areas.

5. Overall, with the Perth property market, it has been reported that due to the tight supply of vacant lands and hence limited number of new building contracts to be signed, the building time for new houses has generally dropped from 24 months to 18 months. Some of the builders are now reportedly offering 14 months house construction completion time for their new building contracts. Tradesmen are known to be competing for jobs now with some of them starting to lower their asking prices for their labour too.

6. For your kind update and further comments/discussion, please.

7. Thank you.

regards,
Kenneth KOH

 

[Kennethkohsg]

Dear All,

1. Today, the West Australian Newspapers' front page headline read as "WA Housing boom starts to stumble".

2. The same report goes on to say,

a. ...the sector is slowing.
b. ... that the market is (now) on the turn.
c. ... REIWA figures for August shows property listings surge 60% to 6,500 since April.
d. ... slipping demand for rental properties.
e ... And house prices in some regional areas, including Busselton, Northam and Bridgetown-Greenbushes and the greter Fremantle area had dropped in the June quarter.

2. For your kind update and further comments/discussions, please.

3. Thank you.

regards,
Kenneth KOH

 

[Kennethkohsg]

Dear All,

1. According to REIWA figures, the number of property listing was apparently the lowest during April 2006.

2. It happened to co-incide with the same period when I sold off 3 of my properties, at well above my own asking price.

3. Although the housing price has still been increasing since then, it gives me great satisfaction to know at hindsight that I have actually sold my properties when the market supply was at its lowest point and at the time that the Perth property market has already peaked by then, more or less, as I have believed it to be so before then.

4. This has been an educational, very profitable and enriching experience for myself, having successfully invested into the Perth property market at the Anchorage Estate at the Rockingham-Shoalwaters coastal suburbs and having successfully exited out from it, at its market peak period, unknowingly.

5. From my own investing experience, I have personally seen that the land price at the Anchorage Estate grown at an unbelievable and non-sustainable growth rate of 100%p.a or at more than 300% cumulatively over the last 3 years since I have first invested into this area.

6. Like many Perthrites, I was "lucky" to be caught in the present resource boom and was thus, able to enjoy this "super-normal" investing profits, by God's Grace.

7. I'm now ready to move on to next consider investing into Melbourne and Sydney property markets.

8. Thank you.

Cheers,
Kenneth KOH

 

[Kennethkohsg]

Dear Stock12,

5. Overall, with the Perth property market, it has been reported that due to the tight supply of vacant lands and hence limited number of new building contracts to be signed, the building time for new houses has generally dropped from 24 months to 18 months. Some of the builders are now reportedly offering 14 months house construction completion time for their new building contracts.

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Dale Alcock Homes has further openly advertised in today's West Australian Newspapers that it will guarantee that a 7 months construction time is only required to build a new house, failing which it is prepared to pay A$300 per week to its own clientele, for every additional week run over.

For your kind update and due considerations, please.

Thank you.


regards,
Kenneth KOH

 

[Kennethkohsg]

Dear All,

1. Vacant lands in the Anchorage Estate are now being advertised for resale from $270,000 -$335,000 per block.

2. With these much higher asking prices, I will think that vacant lands in the Anchorage Estate are no longer considered "undervalued" vis-a-vis those vacant lands available and similarly advertised for sale at Harrington Waters Estate, Point Kennedy, Secret Habour and Baldivis.

3. A month ago, these same vacant lands in the Anchorage Estate, were last being advertised for sale within the $235,000-$255,000 price range.

4. For your kind update and further comments/discussion, please.

5. Thank you.

regards,
Kenneth KOH

 

[<KS>]

HI Kenneth,

Yes you did indeed do well in your anchorage ventures but I think your exit was not quite as well timed as you believe.

Since the sale of your properties has already gone through then I presume you have missed out on the last quarters growth.....the biggest in West Australian history.

In your case its no big deal as you are moving onto other well researched projects, but for those less empowered to be full time investors I would advocate caution as buying and selling is expensive and complex.

Kudos for doing so well however, and many thanks once again for pointing me in the right direction

<KS>

 

[Kennethkohsg]

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Dear KS,

1. I think objectively speaking, it is still too early to come to a proper conclusion as to whether the market has indeed "peaked" or not, at this point in time.

2. You may think that I have actually "missed" out on the huge "last quarters growth". Personally, I do not think so as all my properties were sold well above their respective market valuation prices.

3. The so-called last quarter growth are mere figures and make no real difference to me/us actually until we are able to finally realise our true profits and measure the actual wealth created (not projected personal nett worth) during this boom.

4. Do people go "bankrupt" during a boom? Yes, I think they do if they fail to curb their own GREED during a boom and continually chase after more/faster growth at the top of the booming cycle or/and FEAR that they may miss out maximising their profits during a boom or/and unknowingly bought at the market peak AND fail to notice that the real market has actually turned on a real time basis.

5. While I am personally happy for you and want to congratulate you for having done well on your present investments in the Anchorage Estate, please do tread carefully with your own (expanding) property portfolio from this day forth and over the next few years.

6. Look at what is presently happening in the Sydney property market today.

7. While the median housing price in Sydney has been officially reported to have only dropped by some 12% off their market peak in 2003, on the ground, some unfortunate investors are actually seeing their house values as having fallen by some 42% when they eventually have to re-sell it as forced by their own circumstances.

8. Is the Perth property market presently booming towards its peak the way the Sydney property market was last incorrectly perceived to be booming towards its market peak during November 2003 then, as you and other more bullish members would like to believe now? Will it suffer the same fate as the present Sydney property market is in now, come this 2008/2009 period?...

9. Right, Only TIME will actually tell in due course!

10. I further wish to share with you that my own investing experience/knowledge tells me that when we experience that biggest growth within the shortest time given, somewhere closely near to / at the top of a booming market, that particular party is actually "(already) over" on a real time basis;- that we have actually over-shot through its market peak and into its excess time given before the actual dust settles down and we truly find ourselves at the beginning stage of the Slump Phase already. This is similar to what some investors have realised for themselves regarding the Sydney property market during 2004-2005 period.

11. Having said this, I still remain optmistic regarding the overall long term prospects for the Perth property market.

12. For your kind update, please.

13. Thank you.


regards,
Kenneth KOH

 

[<KS>]

The main point I was stating was this:

Anchorage house value pre last quarter: $420,000
Anchorage house value post last quarter: $474,600 (13% last quarter)

So if you sold that house trying to pick the top of the market you are potentially costing yourself $54,000 in equity + selling costs + tax costs.

A total of maybe......$75,000?

You then face costs associated with re-investing your newfound capital.........maybe 10-20k?

So essentially the market would have to drop 20% in order for you to lose what it has cost you to relocate your interests in the above property.

So what I am saying is dont be so keen to shift your interests unless your setting yourself up like Kenneth is with well researched investment alternatives. Dont sell purely from fear of the 'bubble' bursting, because IMHO there is no real bubble anyway.

<KS>

 

[Kennethkohsg]

Dont sell purely from fear of the 'bubble' bursting, because IMHO there is no real bubble anyway.
<KS>

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Dear KS,

1. I am still open to whether there is a housing bubble within the Perth property market in the first place. That is why despite the huge price increases, I was still thinking that the land prices in the Anchorage Estate was still much "undervalued" then vis-a-vis its surrounding areas, a few weeks ago.

2. You may think that I have sold out purely from "FEAR" while I see my own actions as choosing to be pro-actively safe and prudent in my own investing.

Cheers,
Kenneth KOH

 

[Kennethkohsg]

The main point I was stating was this:

Anchorage house value pre last quarter: $420,000
Anchorage house value post last quarter: $474,600 (13% last quarter)

So if you sold that house trying to pick the top of the market you are potentially costing yourself $54,000 in equity + selling costs + tax costs.

A total of maybe......$75,000?

You then face costs associated with re-investing your newfound capital.........maybe 10-20k?

<KS>

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Dear KS,

1. I'm curious to know where you get the figures from and how accurate and reliable are they, as they are quite different from those given by REIWA, isn't it?

2. Sometimes statistics does not tell the whole truth.

3. Your point is however taken, strictly from the $$ perspective;- though for me, I will still personally value my eligbility to qualify for the Australian Permenant Residency Status as being far more valuable than the potential additional profits to be made by delaying my own house sales further.

4. We can all ask for a high selling price yet what matters most ultimately is whether or not, does the house sale actually take place or not eventually.

5. You already know my unsuccessful sale experience when we were trying to sell the house at 26 Properjohn Drive with a $20,000 price discount at $339,000 last year. Yet I was able to sell it for $380,000 this year even though the bank valuation price was only $370,000. Ausprop has suggested that I have "undersold" this house which he thinks, should be fetching a better sale price of around $400,000-$420,000 price range

6. To me, each house has its own "rightful" owner/buyer who is able to appreciate the house and its true value and willing to pay its market price, no more no less.

7. Thus, though the house at 2 Properjohn Drive has achieved the highest single residential house sale price at $539,000 in the Anchorage Estate, to date, I am still unable to truly appreciate/understand the buyer's perspective, myself.

8. Having said this, there are actually more houses on sale now in the Anchorage Estate than before, with many of them still asking around the $450,000s price range.

9. This is despite your claim that the median house price for the houses in the Anchorage Estate has risen from $420,000 to $474,000 over the last quarter.

10. For your kind update, please.

11. Thank you.


regards,
Kenneth KOH

 

[Kennethkohsg]

So what I am saying is dont be so keen to shift your interests unless your setting yourself up like Kenneth is with well researched investment alternatives. <KS>

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Dear KS,

1. You are right.

2. I still have a piece of vacant lakefront land at Lot 2012, 26 Eldon Street which I can now afford to safely build a double-storey townhouse, being cashed-up now. Being cashed-up now also allow me to further pursue other interests in the same Anchorage Estate such as considering off-the-plan investing.

3. Has it not for the FIRB regulations requiring my Australian company to build on the land within a 12 months holding period, I would have either held on to the land much longer before building on it or to sell it off profitably without building on it at all under today's peaking market conditions.

4. For your kind update, please.

5. Thank you.

Cheers,
Kenneth KOH