Perth property listings - under 12,000.

[sanj]

Sanj, I agree with you but think the general public, who do not have such an interest in property as some of us are still not aware of what is happening out there. It will be when the penny drops with them that things will really start to move.

yes and no.

anyone out there looking at the moment knows that things are crazy. a property in vic park had 130 people through its home open last weekend. another in mt hawthorn had 8 offers in the first 24 hours of being listed.

most of these people are in fact the general public so while someoen who is not active at all at the moment and may not be buying or selling may not know it is certainly not the case where only those "in the know" can see what is happening anymore. it may have been the case up til late last year but no longer.

your alkimos purchase is looking good btw, well done!

 

[Rixter]

It's just a question of maximising your portfolio to enjoy the ride.....before the stampede starts (if it hasn't already).

I did that 10 years ago...all our Perth holdings have tripled in value since then until now. Nothing like getting on the elevator in the basement for the ride up the ever increasing scraper of CG!

 

[HotRod]

yes and no.

anyone out there looking at the moment knows that things are crazy. a property in vic park had 130 people through its home open last weekend. another in mt hawthorn had 8 offers in the first 24 hours of being listed.

most of these people are in fact the general public so while someoen who is not active at all at the moment and may not be buying or selling may not know it is certainly not the case where only those "in the know" can see what is happening anymore. it may have been the case up til late last year but no longer.

your alkimos purchase is looking good btw, well done!

It's probably a case of sellers and agents basing their pricing on what has happened in the past 3 months, not realising the market has jumped off.

Of course a property can be sold that quick if the pricing is based on old info, but is a good sign for the market.

 

[WesternRat]

it is no longer a case of will prices rise but how much they will rise by

Another answer I want from the crystal ball is...how long will prices keep rising for: how to identify the peak of this new boom. Is the WA mining boom meant to be "over" this year, which may drive down demand?

 

[tambourineman]

yes and no.

anyone out there looking at the moment knows that things are crazy. a property in vic park had 130 people through its home open last weekend. another in mt hawthorn had 8 offers in the first 24 hours of being listed.

most of these people are in fact the general public so while someoen who is not active at all at the moment and may not be buying or selling may not know it is certainly not the case where only those "in the know" can see what is happening anymore. it may have been the case up til late last year but no longer.

your alkimos purchase is looking good btw, well done!

I am interested on what people think about these areas north of Joondalup - are they worth a look for investment purposes? I have family who work in real estate in Perth and they assure us the closer to town the better eg. Mt lawley etc but its expensive so we have been looking at either units or land around bays water to build in later. I would have thought over the long.run the relatively cheaper areas out near alkimos have the best opportunity for future growth because you are starting at a reasonable purchase price - any thoughts ?

 

[NickZed]

There is an article in the property section of the AFR today saying - Perth stock sub 10,000...things are headed up!

I can't find an electronic link to post here - sorry

 

[Rixter]

I would have thought over the long.run the relatively cheaper areas out near alkimos have the best opportunity for future growth because you are starting at a reasonable purchase price - any thoughts ?

Everything is relative to the supply & demand ratio.

The more demand than whats available to purchase (supply) puts pressure on prices upward because people are competing against each other to secure a purchase.

In the outer areas there is lots of land thus the supply side of the equation is greater than the number of people looking to secure a purchase.

Prices remain lower and dont increase as much in an attempt to lure people to purchase.

I hope this helps.

 

[HotRod]

There is an article in the property section of the AFR today saying - Perth stock sub 10,000...things are headed up!

I can't find an electronic link to post here - sorry

That's, like, so 2012 news.

 

[MTR]

I am interested on what people think about these areas north of Joondalup - are they worth a look for investment purposes? I have family who work in real estate in Perth and they assure us the closer to town the better eg. Mt lawley etc but its expensive so we have been looking at either units or land around bays water to build in later. I would have thought over the long.run the relatively cheaper areas out near alkimos have the best opportunity for future growth because you are starting at a reasonable purchase price - any thoughts ?

I looked at Alkimos recently, land and house packages, problem is the figures do not stack up now, in other words on completion there is no upside now, too much stock, not to say that it wont in the future.

As far as buying property within 8 km of city, can not really argue with this, if you are looking for a buy and hold.

You can still buy very well sub $300K 1 bedders but they do get snapped up very quickly.

If Mt Lawley is too expensive then have a look at these areas, developers are snapping up land at the moment, very good sign.

Yokine*
Maylands*
Dianella
Joondanna
North Perth*
Inglewood*
Glendalough
Wembley

*My preferred areas

Cheers, MTR

 

[Aaron Sice]

Another answer I want from the crystal ball is...how long will prices keep rising for: how to identify the peak of this new boom. Is the WA mining boom meant to be "over" this year, which may drive down demand?

ease up tiger!

no one said anything about a boom, and WA certainly doesn't need one; nor want it.

a return to normal 3-4%pa growth is all that is needed and makes for a healthy market.

start talking boom again and we all know what follows.

 

[MTR]

We are definately not in boom times yet, though the market generally is looking good.

I would say what is really hot at the moment are any development sites.

I have been told that some 12 months ago there were plenty around, I don't know as I was not looking then, now a different story.

Developers are now jumping in a good sign.

Cheers, MTR

 

[sanj]

We are definately not in boom times yet, though the market generally is looking good.

I would say what is really hot at the moment are any development sites.

I have been told that some 12 months ago there were plenty around, I don't know as I was not looking then, now a different story.

Developers are now jumping in a good sign.

Cheers, MTR

2011 was fantastic for development sites, last year was good too but didnt have the absolute bargains of 2010 and 2011 imo. honestly at one stage i think i had 5 different extremely profitable deals i was weighing up, kicking myself now that we only bought 2 of them

 

[INXS]

I looked at Alkimos recently, land and house packages, problem is the figures do not stack up now, in other words on completion there is no upside now, too much stock, not to say that it wont in the future.

Disagree. If you buy the land yourself and then get a builder there is a big upside. That's why I had to go in a ballot to buy land at Alkimos Beach that has titles in May. The ballot was required because over 400 people had applied for the 33 blocks available. Looking to buy some more land straight away. There is a shortage of titled land in the northern coastal corridor at the moment, believe it or not. And existing housing stock in places like Butler is selling like hot cakes. Also a major rental squeeze. I must add you need to select certain size blocks to maximise your profits and rental yields and I would not touch Shorehaven Estate at Alkimos which is overpriced. If you concentrate on Amberton Estate, Eglington and Alkimos Beach Estate, Alkimos. These subdivisions are both the coastal side of Marmion and you can pick up land cheaper than what the same size blocks are selling for at Shorehaven, Trinity and Butler on the east side of marmion drive.

 

[MTR]

2011 was fantastic for development sites, last year was good too but didnt have the absolute bargains of 2010 and 2011 imo. honestly at one stage i think i had 5 different extremely profitable deals i was weighing up, kicking myself now that we only bought 2 of them

Well done for getting the timing right for your properties.

 

[MTR]

Disagree. If you buy the land yourself and then get a builder there is a big upside. That's why I had to go in a ballot to buy land at Alkimos Beach that has titles in May. The ballot was required because over 400 people had applied for the 33 blocks available. Looking to buy some more land straight away. There is a shortage of titled land in the northern coastal corridor at the moment, believe it or not. And existing housing stock in places like Butler is selling like hot cakes. Also a major rental squeeze. I must add you need to select certain size blocks to maximise your profits and rental yields and I would not touch Shorehaven Estate at Alkimos which is overpriced.

Hi INXS
Perhaps you have the right formular, great if this is the case?? unfortunately when I did the sums they did not stack up and I would want 20% clear profit when offloading. If you care to share cost breakdown??

I understand - the shortage of land but there is no shortage of house and land packages for sale in Alkimos, that is a worry. I did not find too many under offer.


Cheers, MTR

 

[sanj]

Well done for getting the timing right for your properties.

to be honest timing was not a big part of it, although we were wary that the bargains could not be there forever. if the numbers stack up, they stack up, that's the way i look at it imo.

 

[INXS]

Hi INXS
Perhaps you have the right formular, great if this is the case?? unfortunately when I did the sums they did not stack up and I would want 20% clear profit when offloading. If you care to share cost breakdown??

I understand - the shortage of land but there is no shortage of house and land packages for sale in Alkimos, that is a worry. I did not find too many under offer.


Cheers, MTR

The house and land packages on the real estate sites are very deceiving. There can be a number of builders having packages on the same block. Plus even though the block may have been sold by the developer weeks or even months ago they do not remove it from the website.

With the land at Alkimos Beach, it was $137k for 240 square metres.
House Build (180sqm house) will be about $160k (incl site costs, quality finish) 20k finishing (flooring,window treatments etc). 20k stamp duty, settlement costs, interest. Total cost 337k. Estimated value when finished based on todays prices 410-430k. Rent Appraisal $450 per week (7% yield).
I expect the value and rent to be higher when the house is finished in a years time judging by what is happening at the moment.

 

[sanj]

figures look good but id be surprised if the rent on a cottage block in alkimos/south geraldton would be higher than 450/wk personally. then again the demand up there does tend to surprise me.

 

[INXS]

figures look good but id be surprised if the rent on a cottage block in alkimos/south geraldton would be higher than 450/wk personally. then again the demand up there does tend to surprise me.

Sanj, A number of small houses in Shorehaven, Alkimos (on the east side of marmion) have just rented for between 475 and $480 a week. I am being conservative as my property will be 5km closer to railway station and on the coastal side of marmion, which has and always will have a premium.

Also there are currently rentals in Jindalee with similar size blocks and smaller houses (compared to what I am building) renting between $450-$480 per week.

 

[MTR]

The house and land packages on the real estate sites are very deceiving. There can be a number of builders having packages on the same block. Plus even though the block may have been sold by the developer weeks or even months ago they do not remove it from the website.

With the land at Alkimos Beach, it was $137k for 240 square metres.
House Build (180sqm house) will be about $160k (incl site costs, quality finish) 20k finishing (flooring,window treatments etc). 20k stamp duty, settlement costs, interest. Total cost 337k. Estimated value when finished based on todays prices 410-430k. Rent Appraisal $450 per week (7% yield).
I expect the value and rent to be higher when the house is finished in a years time judging by what is happening at the moment.

Great work

Still not convinced regarding sales, however if you are holding then who cares, the yields will cover mortgage.