Perth - madness.
- Thread starter Kingbrown
- Start date
My thoughts exactly.....
and GOD i hope we get daylight saving. The way it is now gives me the proverbial sh#ts!
Hi all
I went with Hubby to a Shares Seminar last night in Perth ran by an investment firm hubby uses for some of his share trading, they were flogging investment overseas - they apparently are shifting their portfolio's to a heavier international mix.
I do not have a clue what this means - in relation to what they think the economy is doing.
Any comments?
Celeste
I went with Hubby to a Shares Seminar last night in Perth ran by an investment firm hubby uses for some of his share trading, they were flogging investment overseas - they apparently are shifting their portfolio's to a heavier international mix.
I do not have a clue what this means - in relation to what they think the economy is doing.
Any comments?
Celeste
Daylight savings!! 
My god won't the curtains fad quicker with the extra light. Pun intended.
About time WA step into line with rest of the country although redwing may have a valid point ref up north.
I'm currently out of the country but will be back in Jan so am looking forward to the extra light in the afternoons to go kite surfing once I have finished work.
My god won't the curtains fad quicker with the extra light. Pun intended.About time WA step into line with rest of the country although redwing may have a valid point ref up north.
I'm currently out of the country but will be back in Jan so am looking forward to the extra light in the afternoons to go kite surfing once I have finished work.
Rivervale Area
Hi - just thought I would chime in (as usual!). We are looking at investing again in Perth when we get back from Overseas in a couple of years - currently own some IPs down in Rockingham/Shoalwater/Warnbro areas but would like to be closer to family - they are in Duncraig area - stumped for a solution - what does everyone think of Rivervale?
Bully
Hi - just thought I would chime in (as usual!). We are looking at investing again in Perth when we get back from Overseas in a couple of years - currently own some IPs down in Rockingham/Shoalwater/Warnbro areas but would like to be closer to family - they are in Duncraig area - stumped for a solution - what does everyone think of Rivervale?
Bully
Rivervale is very well located with close proximity to Perth CBD, River, Airports, and major arterial roads for quick access north & south.
Some parts are better than others..stay away from the Great Eastern Highway side.
Dear BullDog,
1. Mark8888, an Australian expatriate working in Singapore, has posted to say that he has recently sold out his Rivervale house in 2006 as the house price has peaked and there is some 70% rental properties there.
2. For your kind update, please.
3. Thank you.
regards,
Kenneth KOH
1. Mark8888, an Australian expatriate working in Singapore, has posted to say that he has recently sold out his Rivervale house in 2006 as the house price has peaked and there is some 70% rental properties there.
2. For your kind update, please.
3. Thank you.
regards,
Kenneth KOH
Kenneth
2 issues about your point:
"We are looking at investing again in Perth when we get back from Overseas in a couple of years"
and
"would like to be closer to family"
So I assume they want to live in the property, so the point on current property prices is probably not really valid, as they will likely keep it for a few years anyway.
2 issues about your point:
"We are looking at investing again in Perth when we get back from Overseas in a couple of years"
and
"would like to be closer to family"
So I assume they want to live in the property, so the point on current property prices is probably not really valid, as they will likely keep it for a few years anyway.
If you compare rivervale to suburbs of equivalent distance from the city centre, I think it's a little undervalued. Probably because of the direction from the city, i.e. east and toward the airport. It's practically inner city riverside suburb. Landcorp has some big plans for the area on the riverside of GE Hwy.
Prices have shot up over the last few years, and it's dragged belmont up with it. But lot's of large blocks are being turned into quite mediocre villas, so while the prices have skyrocketed, the quality of housing is not improving.
Prices have shot up over the last few years, and it's dragged belmont up with it. But lot's of large blocks are being turned into quite mediocre villas, so while the prices have skyrocketed, the quality of housing is not improving.
I like to know what you guys think the affect on the property prices in Perth if the IR increase next month eventuate. Will it be just a blip in the market?
Looks like very very likely it will go up. Will it be enough to stop the growth for a while especially if they are predicting another one early next year.
The increase next year is still too far away but it might change the way people think? Opinion please.
Looks like very very likely it will go up. Will it be enough to stop the growth for a while especially if they are predicting another one early next year.
The increase next year is still too far away but it might change the way people think? Opinion please.
I think it will not do too much because the rise of rates have been around for a long time. I remember someone put the post saying ask yourself : "Have the investmetn fundamentals changed"? NO. Employment, economy, resources, immigration so on. These are the driving force to a property market. The rise of interests could only further damage the Sydney and Melbourne and Canbarra market and the farmers.
tropic,
if there's another interest rate rise come Nov, i think it'll affect the eastern states more than WA (not too sure about NT). People (or investors) are still buying. But city apartments are not selling as they were months ago... remember the queue for those Domus apartments when they were released?
my 2cts.
if there's another interest rate rise come Nov, i think it'll affect the eastern states more than WA (not too sure about NT). People (or investors) are still buying. But city apartments are not selling as they were months ago... remember the queue for those Domus apartments when they were released?
my 2cts.
Do people believe that markets can turn very quickly? I was just thinking that there was plenty of queuing for high rises in Sydney back in '03 / '04, and the market suddenly turned. Business hasn't suddenly died in Sydney: unemployment is still low, bars, restaurants, etc are still doing good business. The interest rate rises, petrol and food price increases just started to bite.
If anything, I would imagine a 'sudden' increase in salary would drive people to buy properties that they can't really service (but they can't tell because they don't have the experience). How many people in Perth are mortgaged to the hilt even with their suddenly high salaries? It's always a gamble if your exit strategy when things go bad involves selling to a bigger idiot: when circumstances deteriorate for you, it probably will for others.
Shares for mining companies, for example, are off their highs. Why? Surely their fundamentals are great too. Just because the fundamentals are good doesn't mean prices can't overshoot (and vice versa). The biggest crashes occur when people both overestimate the fundamentals AND prices overshoot even those optimistic expectations. There's no shortage of ore in the world, but there is a current shortage of mines to extract them. How long before new mines come on line?
I still think the issue is growth expectations. Investors in Perth are looking for 20%, 30% growth that can't be sustained. If growth expecations 'cool' back to 8%, those investors are going to sell and go for something else, driving the price and growth down. Assuming the market is driven by people (both PPOR buyers and investors as that's the only way you can justify buying at 3% yields) who expect 30%, what are they going to do when growth winds back to 8%? It's like companies whose shares get pummelled when they miss earnings by a penny. Fundamentals may be perfectly fine but current prices are based on expectations of the future. If the expectation suddenly shifts.....
Alex
If anything, I would imagine a 'sudden' increase in salary would drive people to buy properties that they can't really service (but they can't tell because they don't have the experience). How many people in Perth are mortgaged to the hilt even with their suddenly high salaries? It's always a gamble if your exit strategy when things go bad involves selling to a bigger idiot: when circumstances deteriorate for you, it probably will for others.
Shares for mining companies, for example, are off their highs. Why? Surely their fundamentals are great too. Just because the fundamentals are good doesn't mean prices can't overshoot (and vice versa). The biggest crashes occur when people both overestimate the fundamentals AND prices overshoot even those optimistic expectations. There's no shortage of ore in the world, but there is a current shortage of mines to extract them. How long before new mines come on line?
I still think the issue is growth expectations. Investors in Perth are looking for 20%, 30% growth that can't be sustained. If growth expecations 'cool' back to 8%, those investors are going to sell and go for something else, driving the price and growth down. Assuming the market is driven by people (both PPOR buyers and investors as that's the only way you can justify buying at 3% yields) who expect 30%, what are they going to do when growth winds back to 8%? It's like companies whose shares get pummelled when they miss earnings by a penny. Fundamentals may be perfectly fine but current prices are based on expectations of the future. If the expectation suddenly shifts.....
Alex
What a great thread by the way...goes on forever and ever.....
What ever did happen to Kingbrown who started it ?
Regarding interest rates and the effect on the market, depends on what segment of the market you are focusing on.
Apartment sales may be slowing down, but anyone who purchased off the plan in the last 12 to 24 months is very much in front.
The best barometer for comparison is the cost psqm.
Rates have increased considerably based on latest sales figures.
I guess the only potential problem now, is if the developer is copping delays or cost increases and is unable to deliver a completed apartment for the buyer.
The other problem clogging up the courts atm is developers and buyers in dispute over the contract where the developer is trying to cancel.
Bit different from the alternative where the buyer is facing negative equity and is trying to get out of the contract.
Regarding the market overall, I still believe there is plenty of opportunities but specifically in regional areas. Mostly this is demand driven due to real shortages in accomodation, and as a result of the logisitcal difficulties in operating and building in these areas, this will remain the case for 2 or 3 yrs.
Hence a 2 to 3 yr window of opportunity.
Kevin
What ever did happen to Kingbrown who started it ?
Regarding interest rates and the effect on the market, depends on what segment of the market you are focusing on.
Apartment sales may be slowing down, but anyone who purchased off the plan in the last 12 to 24 months is very much in front.
The best barometer for comparison is the cost psqm.
Rates have increased considerably based on latest sales figures.
I guess the only potential problem now, is if the developer is copping delays or cost increases and is unable to deliver a completed apartment for the buyer.
The other problem clogging up the courts atm is developers and buyers in dispute over the contract where the developer is trying to cancel.
Bit different from the alternative where the buyer is facing negative equity and is trying to get out of the contract.
Regarding the market overall, I still believe there is plenty of opportunities but specifically in regional areas. Mostly this is demand driven due to real shortages in accomodation, and as a result of the logisitcal difficulties in operating and building in these areas, this will remain the case for 2 or 3 yrs.
Hence a 2 to 3 yr window of opportunity.
Kevin
Rivervale
Thanks for the information on Rivervale. Definately worth a look as it seems undervalued. We are going overseas (US) for a couple of years and so I figure that as we are in the market already we will just sit and see what eventuates. Rivervale is a seemingly good option.
The other options we will be keeping our eyes on are suburbs like Gwelup and Karrinyup - we really do not want ti build so we are looking for something to move straight into with a young family. Is the age of some of the dwellings in Rivervale going to make this hard to achieve seeing we really don't want a knock down job but rather a good value 4x2 or above?
Thanks for the information on Rivervale. Definately worth a look as it seems undervalued. We are going overseas (US) for a couple of years and so I figure that as we are in the market already we will just sit and see what eventuates. Rivervale is a seemingly good option.
The other options we will be keeping our eyes on are suburbs like Gwelup and Karrinyup - we really do not want ti build so we are looking for something to move straight into with a young family. Is the age of some of the dwellings in Rivervale going to make this hard to achieve seeing we really don't want a knock down job but rather a good value 4x2 or above?
