Is Mandurah still in free fall?

T

Tulamalula

Been looking at potential sites around Mandurah - for development later down the track. Anyone know how things are going down there? from the charts I've seen there was a huge peek around 2006 then everything fell away, with a rise starting around end of last year?

Anyone purchased in the area? population growth seems to be increasing. The few properties I've seen are in our price range.
 
Going for a nice drive and fish and chips for lunch with the kids next weekend :) Still going with the BA in Brisbane, am greedy, going to buy 2 :D
 
Tulamalula said:
Going for a nice drive and fish and chips for lunch with the kids next weekend :) Still going with the BA in Brisbane, am greedy, going to buy 2 :D
Click to expand...

Went on a boat through the mandurah canals today ( with fish and chips and a coldie :D) can say theres alot of for sale signs through there and a few vacant blocks still.

Should look into those;)

Cheers
 
HD I have actually gone through most suburbs of Brisbane and Perth, and narrowed things down according to price and planned development. It is called due diligence.

If I had the money to buy one in every suburb I wouldn't because some suburbs are not worth my - rather, the bank's - money.
 
Phone Lee Perry, Harcourts Mandurah he is a real estate agent and also a developer. I think he just completed a 10 unit site. I used him to sell a property recently, he knows the market inside out and a nice guy.

What has been happening is the development blocks close to central Mandurah have started to rise and developers are buying these. Not sure whether you could still purchase around $500K range.

As far as properties go the high end stuff has still not recovered, with some areas dropping back as much as 40%.

FHB/Investors have been buying $500K range and below, however the market is still price sensitive, in other words if the property is overpriced it will not sell. I would not say it has risen that much, certainly no where near what we have experienced in Perth over the last 2 years. IMO it is at the bottom of the cycle, starting to recover. How long you will wait for growth, I can not say, I still believe some time off yet.

Also, properties in Mandurah do not rent as high as in Perth.
There are a couple of ways to achieve a higher yield, look at house and land packages, perhaps Lakelands as there is the rail, on cottage lots, perhaps $360K, rents for $420pw ??

If you like this market do lots more research, you have time on your side. Have a look at posts by "Of The Vulture", she purchased a cheap property, on very large block and I think currently building a new home at rear. Possibly will end up cash flow positive, she may be prepared to share the numbers.

Cheers
MTR:)
 
Thanks so much MTR, I will get in touch with him. YOu can still buy arund the $450K mark in Mandurah itself, some have horrible unrentable houses some have ones a bit better. Clearly the better the house the more rentable and the higher the price.

I would do a really cheap cosmetic reno on any existing house and sit on it, maybe for a few years?

Oh don't get me started on H and L packages, that is one product I've not investigated, I would drive you all crazy!

Off to go look at Lakelands now, ... can't help myself.
 
MTR - wouldn't you be better off in SIngelton in an established property so you're closer to the beach? I see all that land around Lakelands, and it will all be developed in time. So Lakelands would be older and not as desirable as a new estate?

Do you get what I mean?
 
There are quite a few development sites in the mandurah city precinct 1000m2 R60 for around $350k. Crappy houses, but the value is in the land. Problem is to develop them requires commercial finance, so makes it harder (and shuts out a portion of the market).

I've heard also city of mandurah does not allow underdevelopment in relation to the zoning.
 
Thanks Mr D, had a couple of those saved. Problem for us with land only is that hubby is really nervous about this IP thing, and if we get a loan to buy land and start having to pay interest back, then costs for subdividing and start bleeding money here there and everywhere with nothing coming in, he will have a fit.

So we need a cruddy rental on it to bring in some $ until he's more comfortable with the idea of be spending gazillions.
 
Tulamalula said:
MTR - wouldn't you be better off in SIngelton in an established property so you're closer to the beach? I see all that land around Lakelands, and it will all be developed in time. So Lakelands would be older and not as desirable as a new estate?

Do you get what I mean?
Click to expand...

Singleton is older than Lakelands, there are 2 pockets. There are other beachside pockets in Mandurah for land and house such as Madora Bay but I don't think you will achieve the cash flow required to hold. Need to decide what you actually want, if its growth and now, its not Mandurah, so be prepared to wait, how long, who knows??.

I just sold a property in Singleton area, it started to move about 9 months ago, but we were discussing Mandurah. Singleton comes under City of Rockingham.

Personally, I think Mandurah is not an area to jump into unless you have a contact which I gave you, need someone who knows the ins and out, there are just so many pockets and different price points etc.

There are development sites and there are development sites. You may find sites that are cheap for a reason, location, proximity to the city is everything and the right side of Mandurah.

Also you must build what the locals want, I have no clue what they want. Lee believes there is a demand for units at the moment but in 2 years he believes oversupply? How he has come to this conclusion I don't know, but as mentioned he is also a developer with a track record in the area and a gun at selling. I would consider he knows/understand this market, don't reinvent the wheel, just phone him it would be easier and you get the right advice.

Cheers
MTR
 
I was speaking with someone late last year who had bought a couple of fibro houses to retain and build behind. He said the sites were rising in price. His typical tenant was on Centrelink and he'd arrange to havE rent come directly from their payment. He was really comfortable that tenant would have steady income and no rent default.
 
for some low social economical housing, I prefer my tenant's employer to be Centrelink. At least if unemployment is on the rise, I know my tenant's job is safe.
 
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