Perth property listings - under 9,000
- Thread starter Ausprop
- Start date
You think it's just because of the Christmas/new year period, maybe it starts going back up main a few weeks.
Hope so I was wanting a bit more supply to have some bargaining power for my next purchase!
yoy comparison was 9243, which would need to be adjusted for growth in the pool size, so about a 10% direct comparable drop
Yeh but I mean in the few months before this time last year numbers could have been a fair bit higher than 9243 and decreased similar to this year, leading up to the Christmas new year period. I'm not sure how to look all those stats up on my phone but I'd imagine it's common every year in most locations for there to be a drop in listings during this period??
Regardless listings are still low so I guess that means there is still some steam left in the Perth property market..
second that, there is heaps of work coming up over here and the dollars are reasonably comparable if you work for a tier 1.
Perth market is still very strong at the moment with prices still rising in many areas. I think it is only the Syd market that is moving faster and happening everywhere in Syd now I believe.
MTR
I'll need to get in in the next 6 months or I believe I'll miss the boat!! I want to ensure buying whilst values as still rising rather than at the top of the market.
Yep....I am about to raid Brissie which would make even the SAS proud.
2 days of mad property shopping...have about 700k to spend and hope to get another 2 places.
I am done with Perth for now....as it is harder to get bargains....
2 days of mad property shopping...have about 700k to spend and hope to get another 2 places.
I am done with Perth for now....as it is harder to get bargains....
I am still looking at purchasing another 3/4 unit development site in Perth, if this does not pan out over the next 2 months I plan to purchase another 4 unit site in Melb and organise plans and permits ready to build.
I think the Melb market does not have the momentum yet, however the market is bubbling along and it is very good time to purchase development sites, when the herd jumps in you will be competing with builders who pay silly prices as they have better margins.
QLD is very low base at the moment, plenty of areas that provide good yields, moving everywhere even Gold Coast, Nerang market has shortage of stock, houses, not units.
Happy hunting everyone, looks rosie everywhere at the moment
I think the Melb market does not have the momentum yet, however the market is bubbling along and it is very good time to purchase development sites, when the herd jumps in you will be competing with builders who pay silly prices as they have better margins.
QLD is very low base at the moment, plenty of areas that provide good yields, moving everywhere even Gold Coast, Nerang market has shortage of stock, houses, not units.
Happy hunting everyone, looks rosie everywhere at the moment
Have you considered interstate? As Sash says in the post above mine Brisbane is where I'm looking now. Perth I think the horse may not have bolted but it's definetely not in the stable.
Understandable if you want to keep things central to your location and/or potentially property manage yourself but interstate is worth looking at IMO.
Hi
I haven't ruled it out. I'd get a buyers agent if I went down this road.
If I buy a 2 bed in the areas I know well, Dianella & surrounds I'll be NG by quite a bit. I'm going to talk to mb & see if I can finance a 1 bed <50 Sqm as the ip would be less NG that way. For instance if I could get a 1 bed for $220 k I would be able to rent it for $300 per week which is not a bad yield. Compare that to a $320 k property that rents for just $350 pw or so.
Perhaps I need to become a specialist in a few outer Perth suburbs. I'd be able to get a 2 bed for the same amount of cash (low $200's) thereby satisfying my >50 requirement & a better rental yield. If i chose this option I have no idea though which suburbs to invest in. I don't want anywhere to rough though.
Maybe I should buy the residex best rental yield report and go fom there.
I'm not sure what deposit I'll have.
Loans total $376 k & value of properties total approx $580 k = $204 k equity
How much of that $204 k equity can I use for a deposit?
I heard that you can only get a 60% loan for a <50 Sqm unit. Maybe I could take 40% from my equity to go towards the deposit, and then just get a new loan for 60% for the ip.
Yes there will be CG with the apartment.
here's one of the last cheapies in mandurah:
http://www.realestate.com.au/property-duplex+semi+detached-wa-mandurah-115755579
would easily get $350pw.
my bias to mandurah is no secret, it's definitely on the turn but there are always a few shells left to collect as the tide comes in. as you would be riding momentum and the yield is circa 6% and there is no construction risk, it is hard to see the downside risk
http://www.realestate.com.au/property-duplex+semi+detached-wa-mandurah-115755579
would easily get $350pw.
my bias to mandurah is no secret, it's definitely on the turn but there are always a few shells left to collect as the tide comes in. as you would be riding momentum and the yield is circa 6% and there is no construction risk, it is hard to see the downside risk
What's the split on the 580k? Lets say its 260k highgate 320k dianella? Then 60% x 260k + 90% x 320k = 444k worth of borrowings minus 376k already got leaves around 70k to spend. 10% deposit on new purchase at 350k = 35k deposit + 10k stamps + 10k lmi = 15k buffer left over.
Dont get another little sub 50 shitbox, it ruins your momentum.
Sub 50 sqm, even if you source the finance they can be very hard to sell, also why would you sacrifice this amount of equity LVR at 60%. Not a good way to move forward.
I have seen a few <50sqm fall over in Mt Lawley due to finance criteria. Find something that does not have an issue. To focus just on yield is short sighted and you will be shooting yourself in the foot and missing out again on a good opportunity as Perth market is now starting to hot up again.
Another strategy buy in a hot area in Perth even if slightly negative as long as you have funds to manage this for 12 months you can then perhaps sell after 12 months (50% CGT) take your profit and use this for another rising market such as Brisbane market, IMO there is still time with this market as long as you secure the right property. But you need to continually monitor and work out when to bail.
This strategy will probably make your next property cash flow positive while increasing equity. Alternatively, review the properties you have, what is holding you back, sometimes you offload to move forward and achieve better outcome. Buy and hold and hope for the best is going to give an average result.
Properties for sale this week Perth Metro Area = 8,692 (Down)
Properties Listed for Rent this week = 4,890 (Up)
Perth Metro Medium Rental figure = $460 pw (No Change)
Perth Metro Rental Vacancy Rate = 3.0% (No Change)
Alex you really need to take on board what alot of people are saying, do some research. Try and find what has worked well for other people. I could bet that will take you longer to find people who have been successful from buying <50sqm property compared to others.
There is a reason why you can only borrow 60%, there is little demand for people to buy these, hard for the bank to sell off. Usually only good for investors to buy, minimal demand as <50sqm units/studios don't come in lots of 10 they come in 50's+ because they are so small. There is little competition. 1 bedroom rules out a whole lot of the market especially small ones.
Why would you burn 40% of your equity on such a poor investment IMO. You are looking for CF+ but are really forgetting CG IMO. There are better IP options out there many area's have been pointed to you already. Have you heard 1 person on SS yet to say yes buy <50sqm house its a good investment.
How do you know there will be CG in the apartment, please share your research.
Thanks everyone for all your help. I appreciate it! Yeah I've been taking this all on board over the last few weeks. Actually even before i read the last few comments here on this thread that its not a good idea to buy dogboxes I was checking out properties on realestate.com today in the outer areas where the median perth house values are between 300 - 400 K. Noticing for example how much more property you can buy for the price tag compared to inner/middle ring Perth. I am just going to have to get used to the idea that inner/middle ring will be too ng for me and I need to concentrate on outer ring.
I agree I need to focus on 2 - 3 bed villas, something with 170 sqm or more. If I can afford it, something new or near new to help reduce the ng with the help of depreciation and I'll also be able to charge a decent rent and attract good tenants. I have noticed over the years that villas do grow more than those tiny units. I think in my desire and need for attracting a good yield I lost sight of the bigger picture and that is cg. Thats what we are here for.
I've been thinking of employing a Brisbane buyers agent to catch the upturn phase of the cycle but MTR that option you suggested sounds exciting to me. Its stirred something within in me lol. I know I shoudn't just focus on yield but on the other hand I still need to ensure I can afford the ng. If for example I were to buy that gibson street mandurah property http://www.realestate.com.au/property-duplex+semi+detached-wa-mandurah-115755579 how ng would that be do you think if depcreciation were taken into account?
Also I can understand your idea about possibly selling it after its had some good growth and that you would have to know when the time was right to sell it to make a profit. Would this purchase be conducted with the intentional vision of the chance of making a profit by selling at the top of the market and then using the cash for another deal ? What about buy and hold though? Is it not a good idea to buy and hold this ip ? I'm thinking one of the reasons behind selling it would also be because the ip will/would take forever to become neutral and its not worth keeping it if thats the case as its losing you money. hmmm interesting ! very interesting. I'd be taking a bit of risk hoping that Perth will continue to rise. If it doesnt rise much i'll be stuck with a ng property! I guess I could always sell it after a few years.
I'll be here at mum and dads for another 18 months so I'll be able to afford to ng a property. When I move back to my place i'll have $50 k in the bank to help, plus just a small owner occupier mortgage so I could ride out a few years of a ng property if I had to. I could even look at selling my Dianella unit but I decided against it at this stage as its nearly neutrally geared and wont cost me anything to hold. Plus if I sold it now I wont make any money from it once the agents commision comes out of it. It might look good to the banks though as I'll have less debt on the books? Could this be a good idea? to sell it now, to free up my loans? After agents fees I'd make approx $10 k if I'm lucky. Maybe I could sell it later on down the track for a better opportunity? What would you do?
I'm wracking my brains trying to decide what outer perth suburbs to invest in (if I decide to invest in Perth rather than Brisbane that is) I'm after a suburb that is not too rough. That is in a decent/nice area.
thanks so much guys.
I agree I need to focus on 2 - 3 bed villas, something with 170 sqm or more. If I can afford it, something new or near new to help reduce the ng with the help of depreciation and I'll also be able to charge a decent rent and attract good tenants. I have noticed over the years that villas do grow more than those tiny units. I think in my desire and need for attracting a good yield I lost sight of the bigger picture and that is cg. Thats what we are here for.
I've been thinking of employing a Brisbane buyers agent to catch the upturn phase of the cycle but MTR that option you suggested sounds exciting to me. Its stirred something within in me lol. I know I shoudn't just focus on yield but on the other hand I still need to ensure I can afford the ng. If for example I were to buy that gibson street mandurah property http://www.realestate.com.au/property-duplex+semi+detached-wa-mandurah-115755579 how ng would that be do you think if depcreciation were taken into account?
Also I can understand your idea about possibly selling it after its had some good growth and that you would have to know when the time was right to sell it to make a profit. Would this purchase be conducted with the intentional vision of the chance of making a profit by selling at the top of the market and then using the cash for another deal ? What about buy and hold though? Is it not a good idea to buy and hold this ip ? I'm thinking one of the reasons behind selling it would also be because the ip will/would take forever to become neutral and its not worth keeping it if thats the case as its losing you money. hmmm interesting ! very interesting. I'd be taking a bit of risk hoping that Perth will continue to rise. If it doesnt rise much i'll be stuck with a ng property! I guess I could always sell it after a few years.
I'll be here at mum and dads for another 18 months so I'll be able to afford to ng a property. When I move back to my place i'll have $50 k in the bank to help, plus just a small owner occupier mortgage so I could ride out a few years of a ng property if I had to. I could even look at selling my Dianella unit but I decided against it at this stage as its nearly neutrally geared and wont cost me anything to hold. Plus if I sold it now I wont make any money from it once the agents commision comes out of it. It might look good to the banks though as I'll have less debt on the books? Could this be a good idea? to sell it now, to free up my loans? After agents fees I'd make approx $10 k if I'm lucky. Maybe I could sell it later on down the track for a better opportunity? What would you do?
I'm wracking my brains trying to decide what outer perth suburbs to invest in (if I decide to invest in Perth rather than Brisbane that is) I'm after a suburb that is not too rough. That is in a decent/nice area.
thanks so much guys.
