Follow along with the video below to see how to install our site as a web app on your home screen.
Note: This feature may not be available in some browsers.
REIWA recently warned homebuyers there were too many high-density developments around Perth and they would be overvalued once on the market.
It said thousands of inner-city units were currently being constructed and there would be a huge oversupply once complete.
Should we be concerned?
Our property will be new. It's inner-city. It has equity built-in to the purchase price.
The end-result may not be as glossy as we first hoped, but we're hoping now that the pros will still outweigh the cons, especially in the long term. Similarly, we're hoping it doesn't cost us too much/anything to hold on to it, until the market picks-up again, it grows in value, rents increase and it becomes the positively geared investment we'd planned on from the outset!
Your thoughts?
By the way, we've experienced MORE delays ... with the build schedule 10 weeks behind so far. :O
Cheers,
Crido
We're a bit worried about what this news is going to do to the figures for our Perth investment ... the below turned-up on my FB feed from Hotspotting.com.au:
"Hotspotting on Safari - senior writer Bob Wilson reports: Perth is facing an over-supply of rental accommodation as WA?s economy slows. Almost 900 new apartments were added to the market in the June Quarter and many now under construction will be completed just as Perth?s once-booming economy slows. Online magazine WAtoday reports that while Perth has previously had a shortage of housing, a series of multi-residential developments under construction could force the city into over-supply. Real Estate Institute of Western Australia (REIWA) research manager Stewart Darby said the risk of oversupply by 2015/2016 is a real possibility, with new supply being completed but demand, particularly for rental stock, falling as population growth slows. Gavin Hegney of Hegney Property Group says there has been another wave of redundancies in Perth, most of them in the resources services sector. Hegney says some of the people who have lost their jobs came from the UK seeking work. If they leave the state or return home, this will further weaken demand for rental property. RP Data says that Perth inner city rents have dropped from a median of $640 a week in May 2013 to $575 in May 2014. Rents across greater Perth were flat over the same period."
Should we be concerned?
Our property will be new. It's inner-city. It has equity built-in to the purchase price.
The end-result may not be as glossy as we first hoped, but we're hoping now that the pros will still outweigh the cons, especially in the long term. Similarly, we're hoping it doesn't cost us too much/anything to hold on to it, until the market picks-up again, it grows in value, rents increase and it becomes the positively geared investment we'd planned on from the outset!
Your thoughts?
By the way, we've experienced MORE delays ... with the build schedule 10 weeks behind so far. :O
Cheers,
Crido
Almost three months since my last update ... and spurred-on to write another after the last two posts with worrying reports! :O
Anyway, ground floor walls are almost finished. First floor slab pour next week hopefully, and they might (but I'm not counting on it!) have the roof on by Chrissy!
We've been stuffed-around by one finance mob, so have had to stick with the more expensive option. This means each investor will more than likely have to inject further funds before the construction is complete!
Not great news, but at least there is action on site!
The original timeline estimate has almost doubled now - out to about 2.5 years!
Cheers,
Crido
Almost three months since my last update ... and spurred-on to write another after the last two posts with worrying reports! :O
Anyway, ground floor walls are almost finished. First floor slab pour next week hopefully, and they might (but I'm not counting on it!) have the roof on by Chrissy!
We've been stuffed-around by one finance mob, so have had to stick with the more expensive option. This means each investor will more than likely have to inject further funds before the construction is complete!
Not great news, but at least there is action on site!
The original timeline estimate has almost doubled now - out to about 2.5 years!
Cheers,
Crido
Push, sorry to hear. There certainly have been a lot of alarm bells re their projects.
How high were these interest rates??
17.95%pa . I predict cost blow outs to follow in the last 2 months.
17.95%pa . I predict cost blow outs to follow in the last 2 months.
OMG that's horrific