Perth - Start of New Boom 2011 ?
- Thread starter Alex P Keaton
- Start date
No worries, I try to post before the others do
...good luck on your hunt...Im currently hunting in NSW - Sydney metro area.
Great, can you give us an idea of your price bracket, any particular area you are looking at.
I also like inner west but it has already bolted and you need deep pockets, so missed the boat here.
Cheers, MTR
I actually work on rail for rgp5 for the last year probably done about 100 kilometres of new constructed railway still 200ks left.
There would have to be few hundred people working on the ground workers there would be heaps more on the port side of the job.
It will turn 50 million tones of ore to 200 million tones of ore a year that is a big jump.
then there is more expansions with rgp6 then ive herd there is quantum 1 2 3 other projects that is a lot of money into wa economy.
there is so much work here i personally think perth is going to boom again
There would have to be few hundred people working on the ground workers there would be heaps more on the port side of the job.
It will turn 50 million tones of ore to 200 million tones of ore a year that is a big jump.
then there is more expansions with rgp6 then ive herd there is quantum 1 2 3 other projects that is a lot of money into wa economy.
there is so much work here i personally think perth is going to boom again
I'm with you Jacko.... quietly confident. Bit slow right now, but things will pick up. Not convinced it'll be another boom, but certainly good growth coming with unemployment steadily decreasing and mining projects steadily increasing, the rest will follow.
i agree, i'm looking to buy in perth early 2012 when i think Perth will start to boom again!!
Early 12 because that's when you think market will be good or early 12 because that's when you'll be able to buy?
Thats when I'll be able to afford to buy! and I also happen to think it will boom again come 2012.
There's definitely still movement in the Perth market, at least at the lower end from investors. We have just sold two units (one about three weeks ago, just signed the contract for the second one today) for excellent prices, both to investors. We showed the two units to three people total, two put in offers that we accepted. And we definitely had a bit of fat built into the price too.
Are you asking if furnished rents for more than unfurnished? I'd be surprised if that answer was no
We're getting rid of our one-bedroom units, and are picking up a couple of two-bedroom units instead. Our mortgage broker told us that we could JUST scrape by equity-wise if we held onto the one-beds, but we'd been planning to move on from them for a while, so now seemed as good a time as any.
It does - one of our one-beds (completely renovated throughout) was getting $300/week, in a complex where the normal rate for one-beds is around $220; the other (unrenovated, but painted etc) is getting $270/week instead of around $220.
More than that though, there is a reasonable market out there looking for furnished rentals, which is what we were targeting. It's surprising how few apartments are rented out furnished in Perth. So we were really going for a niche market I guess with that strategy.
I should make it clear that both our one-beds are rented on a separate basis to our apartments listed on our website - the one-beds were rented furnished, not fully furnished, and on a much longer-term basis (typically a year at a time). Our website has completely self-contained properties for shorter-term lets, and is aimed at a different market again.
Are you asking if furnished rents for more than unfurnished? I'd be surprised if that answer was no
yeh but when you take into account furnishing costs, vacancies and effort, sometimes it's about the same to just lease them long term unfurnished, which is what 99% of investors seem to think as well
Furnishing costs aren't too bad; we can furnish a 2x1 for around $2K - Gumtree is our friend! Vacancies are pretty minimal as well, which I put down to there being a real lack of similar accommodation in Perth. I do agree re: the effort side of things though. It's time consuming, particularly as we do all the end of lease cleaning ourselves. Given the nature of the apartments we lease, this therefore includes things like washing all the linen, checking all dishes/pots/pans and washing them if necessary, etc. However we don't do a lot with our spare time outside of work, we don't have kids etc, and so we've decided that for us, giving up that spare time is worth the return it gets.
boom is a dead word.
any use of the word here in Perth at present is just specufesting selling jargon used to trap mums'n'dads, who missed the last run, into paying finished land prices for wholesale blocks.
move along. very pessimistic here.
any use of the word here in Perth at present is just specufesting selling jargon used to trap mums'n'dads, who missed the last run, into paying finished land prices for wholesale blocks.
move along. very pessimistic here.
One property yields 11.22%, the other 11.52%. This is based on the total setup costs (so purchase price together with furniture, crockery etc, plus any renovation costs prior to renting out property - in one property for example we redid the bathroom/laundry). Yield formula is therefore:
weekly rent x 52
total setup costs
hi Jen
your PFR website is simple but comprehensive, well done. kudos for your LGBTI friendliness.
I've often thought of doing similar with two units I have in one block, but thought it's all a bit too much work.
if you're agreeable i have some questions (if you're not just direct me to the where to buy in melb thread)
-what sort of vacancy rate do you generally experience?
-I presume these are not let through reas, so how do you market?
-what sort of premium do you get over unfurnished long term rentals (looks like area is around 330?, sorry don't know Perth)
-will you add to the stock in this niche thing you have going on?
-finally, a question I always ask businesses - would you do it again and what would you change?
thanks in anticipation.
Jen, what type of vacancy rates are you experiencing? If any?
EDIT, sorry I realised I just repeated Ed's question. please reply to his post
