Perth Madness- new thread

[yadreamin]

That increase is just incredible for 6 months sparky. Well done on your purchase there. I cant keep up with the Mandurah vals anymore.
Sure glad l am not on the sidelines wishing l had bought
I am getting our PPOR in Perth Valued this week so l hope to be in for a very big surprise.
cheers yadreamin

 

[Celeste]

Hi all

Just put my lastest reno in Myaland - Perth,on the market (coming soon!! listing - totally finished next week), 1 bed apartment. complex has pool, tennis, security. The apartment has views from the hills to the city, 5 min walk from train, cafe strip, day care across the road and 7min train from the city.

I had one in a complex one block closer to the train in the same street, no pool or tennis, sold in one week for 20k more than my research predicted, 3 months ago. Will keep you posted on how long and $ above or below my research suggests

Celeste

 

[yadreamin]

Good Luck with the sale Celeste, and do let us know how you go.

 

[yadreamin]

just lettin ya know R/E val today from a agent l have known for many years so there is not a lot of B/S in this
Warwick 4x2
2 car garage nothin special but the area and proximity to everthing is good $580k min start for maketeting plan
gotta be happy with that.
cheers yadreamin

 

[flatout]

Mandurah slowed but still kicking along nicely

I obviously have a pretty keen interest in the Mandurah property market. No doubt in the last few months things have slowed a bit with prices steadying and longer time on the market etc. But I noticed 2-3 weeks ago that prices seem to have kicked along again. Some suburbs such as Greenfields (where we have 2 IP's) are apparently still selling strongly according to a REA freind. However, my feeling is that this is the last gasp of the boom. Rents are very low considering property prices and I think investors (us included) are starting to baulk as the huge capital gains of the last 2 years can't be sustained.

Coincidently, I have also noticed a definite surge in rents over the last 2 months or so. Investors are obviously trying to get yields up and pass on recent interest rate hikes. Good to see but it confirms my suspicions that the market is peaking as my understanding is that this period of rent "catch-up" is usually seen on the downside of a boom peak.

What a ride it has been though - has done great things for our equity . However, I think we'll be looking to NSW or Vic for our next couple of IP's (unless one particular project I'm keeping an eye on in WA gets the green light )

Flatout

 

[Rixter]

just lettin ya know R/E val today from a agent l have known for many years so there is not a lot of B/S in this
Warwick 4x2
2 car garage nothin special but the area and proximity to everthing is good $580k min start for maketeting plan
gotta be happy with that.
cheers yadreamin

Yada, whats your banks valuation come in at?

 

[yadreamin]

Actually Rixter l had that done a couple of months ago and they wouldnt part with that info then but l will give the mortgage centre a ring tomorrow and see what they say. Should be interesting.
cheers yadreamin

By the way paid 170k for the property Feb 1999

 

[Rixter]

Actually Rixter l had that done a couple of months ago and they wouldnt part with that info then but l will give the mortgage centre a ring tomorrow and see what they say.

Sorry Im not following. You got the bank to value your property months ago but they didnt give you the valuation?

What was the purpose of that?

Was the Valuation bank intiated?

 

[yadreamin]

Rixter we had the bank val done to increase our LOC against our PPOR.At the time of the val they wouldnt say their val but l got the increased LOC.
I have always found the bank doesnt like disclosing their vals. I always wait a few months then ring the mortgage centre and l get some very helpful person on the phone who loves to tell me all.
It is different when you are buying a property and they do their val for borrowing purposes.
cheers yadreamin

 

[redwing]

I did what Rixter said some time back to see what Val's they hld against theIP's by asking them and stating I was looking to move some securities around so wanted to see what Valuations they held against the IP's..turned out to be the approximations I had given them for each one..

 

[flatout]

Rixter we had the bank val done to increase our LOC against our PPOR.At the time of the val they wouldnt say their val but l got the increased LOC.
I have always found the bank doesnt like disclosing their vals. I always wait a few months then ring the mortgage centre and l get some very helpful person on the phone who loves to tell me all.
It is different when you are buying a property and they do their val for borrowing purposes.
cheers yadreamin

We've had the same experience when dealing with banks but if you're using a mortgage broker they will be able to find out for you. Our broker always rings me with the vals as soon as they are in.

Flatout

 

[sparky23]

Hi Rixter

I have a block up at Yanchep on Capricorn so will be building up there and have just gone for a second duplex block on a new estate here in NSW, plans are just out of council for the first one I picked up earlier in the year so should be ready to build the second one as the first one is finished. Land settlement is not until November next year so helps with holding costs.

Sparky

 

[Rixter]

Hi Yada,

Here's a pro-active tip when getting valuations done on property for purchase or valuation purposes.

There's no point in getting any licensed valuer in to value your property as this person may or may not be on the approved list of valuers for your bank. Find out which valuers are on your banks panel and appoint one of those.

Tell them you want a valuation done of the property based on a Fair and Open Market Value. You will find it will come in alot different to a valuation done for lending purposes ( which is very conservative).

Take this valuation to your bank and show them that this is the valuation done on it. Then if they dont like it kindly remind them that it was done by one of their Approved License bank valuers and it therefore must be a realistic representive of the true market value of the property, isn't it?

Well, what more can they say??

Not only that, but more importantly it gives you a hardcopy valuation you can refer back to in time as your documented proof to the bank of past valuation in determination and support for future portfolio financing and purchasing.

Hope this helps.

 

[Tizzy]

Its good to see not everyone is convinced that WA will experience a negative over correction of current house prices. I thought the following article made good sense.

http://www.thewest.com.au/default.aspx?MenuID=77&ContentID=16407

 

[Ausprop]

Rixter you would need to get the valuer to extend the scope of the valuation.. not a major point but you would need to ask that to be done (have experienced this myself a bit, especially when changing banks)

 

[Kamak]

Did you ask the valuer at the time? I did and he was cool as and asked me what I thought it was worth, I was conservative, he smiled and said no worries and said thats what he would write up.

 

[Lucyinthesky]

Went to some home opens on the weekend. Was the only person at some of them. Agents saying boom is definately over and correction is now in force. However, some vendors in denial and still wanting top dollar and expecting their house to be sold at first home open. Have noticed houses on the market a lot longer in some areas that were selling before home opens. Price reductions are occurring and more realisitc prices being asked. Interesting times, I think houses now have to have that little something extra to compete against many of the others on the market in their area. I am waiting until new year for my next purchase as I believe that there will be even more properties listed after christmas and would like to see how this affects prices.

 

[Pete]

Interesting to read in Saturday's paper that for November Perth prices (median?) rose by 3.51%. Residex's Edwards quoted in same article. If that growth is confirmed, the price growth has some legs still! What a boom.

Driving in the Baldivis to Mandurah region on the weekend I noticed many new land subdivisions which will be on the market soon. It is hard to imagine that the land supply is now not keeping up with demand. Lots of new homes being built. Again, it would be a surprise if demand is not close to being met. And if not, that supply won't catch up soon...

Even if prices stabilise, I guess there will still be large population growth in the Rockingham-Mandurah region over the next ten years with the new rail line. This will maintain/support a strong demand for rental properties.

 

[yadreamin]

Yada, whats your banks valuation come in at?

I rang the mortgage centre and was informed l could only have the bank val if it was marked an open valuation.I havent come across this before, l quess "open "means open for all to know/see.
Anyway mine was marked "open" and the bank val in August was 560k, at the time they[the valuer] asked me what l thought the val was and l said 570k. So Bank
560k, me 570k ,R/E 580k, for those who are interested l bought this place in Feb 1999 for 170k, probqbly spent 50k on it over the time.
cheers yadreamin

 

[yadreamin]

Hi Yada,

Here's a pro-active tip when getting valuations done on property for purchase or valuation purposes.

There's no point in getting any licensed valuer in to value your property as this person may or may not be on the approved list of valuers for your bank. Find out which valuers are on your banks panel and appoint one of those.

Tell them you want a valuation done of the property based on a Fair and Open Market Value. You will find it will come in alot different to a valuation done for lending purposes ( which is very conservative).

Take this valuation to your bank and show them that this is the valuation done on it. Then if they dont like it kindly remind them that it was done by one of their Approved License bank valuers and it therefore must be a realistic representive of the true market value of the property, isn't it?

Well, what more can they say??

Not only that, but more importantly it gives you a hardcopy valuation you can refer back to in time as your documented proof to the bank of past valuation in determination and support for future portfolio financing and purchasing.

Hope this helps.

Thanks Rixter and l have done exactly the above in the past.