Perth Property Market updates

Looking good for you in Gwelup. :) That's a good idea about a week free rent. I have had that up for a week. I think it's time to drop the price.

I'm offering a weeks free rent for my studio in highgate. Ive had to drop the rent down from $290 to $270 pw from when I first advertised it about 5 weeks ago. A few years ago I was getting $340.

Oh well, $270 pw will cover the mortgage. Mortgage is around $190 pw. So all is good
 
I'm offering a weeks free rent for my studio in highgate. Ive had to drop the rent down from $290 to $270 pw from when I first advertised it about 5 weeks ago. A few years ago I was getting $340.

Oh well, $270 pw will cover the mortgage. Mortgage is around $190 pw. So all is good


It will only cover the mortgage if somebody pays it.

Plenty of stock in Highgate.
 
I forgot to add, mine was a break lease too so the tenant has to keep paying until June 30 if I don't manage to secure someone before then.

I'm confident I'll attract someone. I have it priced right now. I've met the market.
 
Thanks for the comments, it's new stock supply in particular that turn me off places like Mandurah. Ideally what I am trying to do is buy a solid older home as close to the Perth CBD as possible and then stick a granny flat on it. Trying to get gross yield around 7.5-8%. Looking to spend about 600k all up to do it.

I think this is a valid idea, the closer you get to the city the better off you'll be in the long term for safer growth. Just remember if you want to put a transportable GF on it that the bank may not fund it so you'll need some cashola.
 
Just got a message from my tenant last night saying they want to break lease so they can rent an apartment in the city.

They only moved in on January on a 12 months lease :(

A break lease is a blessing at the moment as it gives you time to find a new tenant at the rate you are currently receiving or if your current tenant wants out earlier than can agree to a drop and make up the calculated shortfall to the end of their lease.
 
I think this is a valid idea, the closer you get to the city the better off you'll be in the long term for safer growth. Just remember if you want to put a transportable GF on it that the bank may not fund it so you'll need some cashola.

It would be a proper gf like i have been doing here in nsw not portable. What do you think of Girrawheen for that type of development westminster?
 
how does this GF thing work in a nutshell? I thought the valuers didn't attribute value to them, in which case the $120k you sink into it is just unleveraged investment? Seems like a really hard way to achieve some extra yield
 
I think this is a valid idea, the closer you get to the city the better off you'll be in the long term for safer growth.

I disagree - there are multiple cities. You couldn't say Hamilton Hill is worth less than Girrawheen just because one is closer to Perth than the other.

Also there is plenty of new build supply in Perth - wouldn't put me off buying an existing house.
 
how does this GF thing work in a nutshell? I thought the valuers didn't attribute value to them, in which case the $120k you sink into it is just unleveraged investment? Seems like a really hard way to achieve some extra yield

For a proper build of course the valuer attributes value. If it is just a portable home though it adds nothing.

Generally in cheaper areas you may only get 70-80% but a more expensive area it can come out to 100% or even more. A lot depends on comparables, there isnt much in nsw to go off and fewer in Perth i would assume.
 
I forgot to add, mine was a break lease too so the tenant has to keep paying until June 30 if I don't manage to secure someone before then.

I'm confident I'll attract someone. I have it priced right now. I've met the market.

Ours was break lease too, we are now into week 9 without a tenant and we believe we have also 'met the market'.

I think the fact that we are having this conversation on this thread speaks a lot to the stage of the market in Perth, pretty dire. We are going to use the vacancy as an opportunity to give the place a bit of a tune up.
 
had a house that was empty for a couple of months, luckily a new tenant moved in about a month ago. gave us plenty of time to clean the place up after the mess the old tenants left, but it was a bit nerve racking not receiving a single application for weeks...
 
just read the Western Suburbs Weekly, reiwa article in there saying sales in the western burbs have 'surged', up 50% in May. best suburbs - from memory - Claremont, mosman park, Nedlands.
 
well it said sales surged, listings steady.

not trying to talk the market up or down - not that I can - just found it at a complete 180 to feedback on this thread.

bearing in mind 50% can be 2 sales moving to 3 sales
 
Thanks. Just had a look and you're right there isn't much on the market in nedlands. Doesn't look like prices have started increasing much or at all but I suspect you were right, things are beginning to improve.

6 croydon in nedlands is a good example, when it sold a couple of years ago it was on the market for over a year I believe. It recently came back on and is under offer within about a month. Not much price appreciation but indicative of increasing activity
 
Things are selling but only at the right price. A house I've been watching in City Beach has been on the market with two separate agents for six months and got nowhere. Going to auction soon with a third agent. We shall see - luxury house with good spec but the price was always up there...

Another house that sold for $3.5m a couple of years ago is struggling to get $3m now...
 
yeh that $2.5m - $5m range, you need good times to be rolling to shift that easy with a profit. I like that sweet spot of $1m-$2m.
 
well it said sales surged, listings steady.

not trying to talk the market up or down - not that I can - just found it at a complete 180 to feedback on this thread.
Markets within markets within markets. It's like the '2 speed' economy. Some markets might be going up while others are going down and at the same time some are stagnant. It just reinforces your earlier argument that some markets have not recovered since GFC. Maybe it is start of the recovery for those markets. At the same time, some other markets have boomed and busted already!
 
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