Perth Madness- new thread
- Thread starter geoffw
- Start date
Hi All
Many years ago I asked the big "C" for a copy of may valuation, they said yes but it would cost $160.00 and I could not use it for getting a loan else where etc. - I wonder if "open" means the same - you can look at it but not offically use it.
Celeste
Many years ago I asked the big "C" for a copy of may valuation, they said yes but it would cost $160.00 and I could not use it for getting a loan else where etc. - I wonder if "open" means the same - you can look at it but not offically use it.
Celeste
By my calculations... including the 50k, that's ~14.5% pa... very nice for a 7 year period.
FYI our perth props have had:
18.8% over 4 years
19.5% over 3 years
38% over 1 year
Even if the market does correct a little... everyone is still making out like bandits.
This article came out on 1 January 2007
http://www.optusnet.com.au/news/story/abc/20070101/09/business/1819955.inp
"Perth house prices set to outstrip Sydney
9:04 AM January 1
The Housing Industry Association says in the coming year Western Australia's average house price will overtake that of New South Wales.
The association says by the middle of the year it is likely houses in Perth will cost more than houses in Sydney.
The executive director of the association in Western Australia, John Dastlik, says the state's housing market is being driven by a growing population of people migrating to the state to work in the economic boom.
"Both interstate, those people we're attracting from the eastern states, and also those who are coming in to Western Australia from overseas," he said.
"They all need housing and that will continue to underpin our strong economy and the housing sector.
"I think by the middle quarter, or the June quarter 2007 there's a real possibility that property prices in Perth could overtake New South Wales and Sydney prices."
Source: ABC"
http://www.optusnet.com.au/news/story/abc/20070101/09/business/1819955.inp
"Perth house prices set to outstrip Sydney
9:04 AM January 1
The Housing Industry Association says in the coming year Western Australia's average house price will overtake that of New South Wales.
The association says by the middle of the year it is likely houses in Perth will cost more than houses in Sydney.
The executive director of the association in Western Australia, John Dastlik, says the state's housing market is being driven by a growing population of people migrating to the state to work in the economic boom.
"Both interstate, those people we're attracting from the eastern states, and also those who are coming in to Western Australia from overseas," he said.
"They all need housing and that will continue to underpin our strong economy and the housing sector.
"I think by the middle quarter, or the June quarter 2007 there's a real possibility that property prices in Perth could overtake New South Wales and Sydney prices."
Source: ABC"
Would be nice if the rent return caught up with the current market prices first!!!
Yields are still down around 2.5% to 3.5%..... an extremely poor return on your investment.
Not sure if the market will keep rising in Perth into 2007, but I am predicting that regional areas will continue to be strong on the back of resource development for the next few years.
Areas from Hopetoun and Esperance in the south, to the mid west around Dongara and Geraldton, to the Pilbara as well as the Kimberley around Broome.
Mostly these places are already major regional centres with stable economies, but will now ( already) have the added pressure of resource development thrown into the mix.
I especially like the mid west area as my personal pick, as it is logistically easier to deal with compared to the other more remote areas.
kp
Yields are still down around 2.5% to 3.5%..... an extremely poor return on your investment.
Not sure if the market will keep rising in Perth into 2007, but I am predicting that regional areas will continue to be strong on the back of resource development for the next few years.
Areas from Hopetoun and Esperance in the south, to the mid west around Dongara and Geraldton, to the Pilbara as well as the Kimberley around Broome.
Mostly these places are already major regional centres with stable economies, but will now ( already) have the added pressure of resource development thrown into the mix.
I especially like the mid west area as my personal pick, as it is logistically easier to deal with compared to the other more remote areas.
kp
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C'mon, kp. You can hardly grumble about the low yields when capital growth the last few years has been 30+% p.a.!!
Nah Pete,
Not grumbling...its been a great ride.
Just looking forward into 2007 and not planning on having anything like those sort of growth rates in Perth ( but I could be wrong!!), so the next contingency ( plan B) is to look elsewhere where I believe you will still get great returns...hence focus on regional areas.
Having said that, there are still a lot of bullish comments in the media by 'experts' who are still suggesting Perth is going to go well while the resource fuelled economy is still kicking along, and therefore property prices will soon rival Sidnee...etc..
I'm not going to bank on it, but I am going to bank on making good returns from regionals..
KEvin
Nyet Bill,
Never said rents had to pay for the property. Just expect a better yield for your investment, especially if it looks like the CG will not continue to flow.
ie...redeploy the funds elsewhere, for eg.. buy in BRis. where the yield ARE better for the investment.
For some reason, rents have always been and currently are *crap* in PErth, and something needs to change..
KEvin
Perth needs some serious rent adjustments (like 100% upwards)... even for properties that I have developed at half the cost of their current worth the 'build and hold' argument doesnt make sense. the only reason to hold is to avoid the huge tax slug, otherwise I would off load without hesitation
Sounds like Sydney in 2003......
I think that is too subtle for most...
it's interesting how sentiment swings around in the press from week to week.. todays paper had a few bullish articles, with the front page declaring WA economy will really start to take off now and grow about 6.5% this year and similar the year after. other articles are saying house price growth of between 7 and 20% and interest rate rises to temper the booming economy. a couple of weeks ago it was rates to be falling!!
I wish I was unemployed so I can start selling!!
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