Perth?

[casper]

Perth ... Building wealth through Turnkey Properties

2 years ago I launched Dale Alcock Turnkey Investments (Dale Alcock is WA's most awarded builder).

In that time, we have built 165 new homes for investors.
These are generally long term Buy and Hold properties.

Ares like Success, Atwell, Beeliar, Baldivis, Secret Harbour - South and Carramar, Landsdale, Ashby and Brighton (Butler) - North.

The strategy has worked extremely well with many of our clients back for their third IP's with us.

The Capital Growth in many of their properties is betweek $60k - $80k in less than 18 months ... not bad when you consider entry prices between $200k - $260k.

The new estates work for two reasons ...
1. Lack of rental properties available.
2. Number of land purchasers who need a rental whilst they build.

The construction of new homes in Perth is being driven by the 28,000 people coming to live here every year. (Obviously our Beaches attract many people - especially Brighton wich seems to attract UK people).

This year, property developers are expecting price increases in land to be around 10%. The cost of building a new home will increase by approximately 6% (Traditional average ... unlike the 10% - 15% per year for the past two years).

These increases mean instant profits for those astute investors who by building are actually buying wholesale as opposed to retail.

I have had some of my investors sell their rental property as soon as it was completed to a property investor who will then keep it long term.


This new investor is paying Stamp Duty on the total house and land price where as my client only paid it on land (Saving $8k).

The new investor is also paying my clients profit margin of $20 - $40k.

I can never understand the logic of investors who only buy established and don't consider new???

Our Turnkey Programme takes care of everything from brick and colour selections through to handing keys to the preoperty manager and arranging tenants. (MAny of our clients are interstate or overseas).

If you are interested in finding out more about Turnkey ... visit the following link... www.dalealcock.com.au (Click on Turnkey Investments).

Happy Investing...

Casper

P.S. Do I think it will slow down in Perth??? Well I am busier with enquiries today than I was this time last year... so I guess my answer is NO!

 

[Peter Parker]

For previous discussion on the above topic see http://www.somersoft.com/forums/showthread.php?t=15048

I know Dale Alcock is a well-respected builder, but I'd be wary about paying money to any promoter who use inflated growth projections (compared to historical trends) to try to woo investors.

Regards, Peter

 

[Aceyducey]

I agree Spiderman.

There's growth markets & there's hyping the markets.

I'm interested in the views of people who BUY property in the Perth market rather than the views of people who SELL property in the Perth market.

Anyone with an agenda, such as an aim to sell properties, cannot be trusted to provide an objective viewpoint.

Cheers,

Aceyducey

 

[casper]

Turnkey In Perth

Hello Spiderman ... sorry you didn't introduce yourself at my seminar. You obviously did not make an appointment to have a one on one consultation... as then you would have had the opportunity of changing the various growth levels, inflation and interest rates that would have given you a more realistic figure to work with.

Individual reports are all produced using PIA Pro.

The CPI figure starts at 2% (which is currently correct) Then I adjust it by .5% per year - making the 10th year 5.5% - thus giving an average of 3.89%.

The interest rate starts at 6.5% with a .25% increase per year - up to 8.75% at the end of 10 years ... giving an average rate of 8.47% (Last 10 year average was 7.84% - Source NAB).

It is difficult in a seminar environment to present individual detailed Analysis ... thus my invitation for a no obligation one to one session.

As for the points about tenants and not wanting to live in New Estates due to lack in infrastructure ... I make no qualms about the target market for our Turnkey homes ... It is people who are building their own homes. The average rental lease is for 12 months @$240 per week.

The Estates I have targeted (Such as Brighton Beach at Butler) have many years of land to still be developed (8-10 years in the case of Brighton). When you consider that 30 -50 blocks are being sold every month ... that is a lot of potential tenants - albeit short term.

If we look back in history at suburbs like Currumbine ... which was in the early stages of being developed 10 years ago... I am sure that a Turnkey Package in that area - targeting the 1000's of people who have built in that suburb would have produced excellent returns. (Average house and land package 10 years ago = $95k - Current H&L package = $340k.

Now that the area is more established, the regular long term tenants are moving in and the suburb has a 21% rental penetration.
Brighton on the other hand has a 5% rental penetration... and the land price is going up at a minimum of 10% this year.

Turnkey is not for everyone ... and yes it does suit people on higher incomes.

Case Study: Today I had a client who purchased a Turnkey with me 9 months ago (completed 6 months ago) - sign up for their second Turnkey IP... Let's look at their first Turnkey home;

Their total package including fees and holding costs was $220k (We advance them holding costs and paid their Stamp Duty ... they used their own home as security and borrowed 105% of the value of the IP).

Their IP is valued today at $290k (A similar spec home is currently on the market for $320k - so their Bank Valuation is conservative).

They now have $70k equity... the new package they signed for costs $285k ... but the land they have purchased is $14k cheaper than the current block prices (we found this block for them from a private vendor).

By the time this home is finished ... estimated value will be $330k - $340k.

Had they chosen to buy 9 months ago in a more established area ... they would have paid $20 - $30k more + $8k more on stamp duty. Their depreciation and building write off would have been dramatically reduced (meaning a much larger shortfall per week) and most importantly, the increase in the value would not have been 31% as it has been with their Turnkey).

They obviously have the confidence in how it works to come back for a second one. (as have many other investors).

As for believing in a sales person (with an obviously vested interest in building) as upposed to an investor who buys properties ... good call.

I have invested in 2 x Turnkey homes ... one North in Brighton Beach estate and one south in Settlers Hills Baldivis. Both homes are compelted and rented @$240 per week ... and the combined capital growth (in less than 12 months) has been $90k in Quinns and $80k in Baldivis. (I also have new homes in more established suburbs).

Building IP homes is not a new concept ... we have been doing it for 16 years, and I'm sure it has been going on for a lot longer than that. The difference with Turnkey is that the investor does not have to do anything ... it's like buying an established home - BUT for a wholesale rather than retail price.

The reason I posted the info on Turnkey is not to generate more business (I have more enquiries than what I can deal with) ... It was simply to give a Building Perspective to IP's.

I read on the forum how difficult it is to get Property Investment Advice for Financial Planners ... and your average Real Estate Agent is only interested in selling you which ever home you are standing in ... as for builders, there are very few sales reps that understand Property Investment. We are the only builder in Perth that offers such a comprehensive building package.

And on a final note ... Yes we do build on inner city land and peoples back yards ... cheers and happy investing.

 

[Peter Parker]

Hello Spiderman ... sorry you didn't introduce yourself at my seminar. You obviously did not make an appointment to have a one on one consultation... as then you would have had the opportunity of changing the various growth levels, inflation and interest rates that would have given you a more realistic figure to work with..

I would be asking 'why not put the more realistic figures up front on the A4 handout?' This would prevent people from being hyped up with unrealistic expectations. What's wrong with using more realistic growth and CPI figures (perhaps based on actual CPI and sale prices over the last 30-40 years) on the A4 flyer sheet?

This would give the sheet more credibility and you could have a disclaimer like 'These statistics are based on average movements in Perth house prices and CPI over the last 30 years - future returns may not reflect past returns' or similar.

This would give the prudent investor assurance that your stats were soundly based and not just made up to sell a particular investment product. Think of the number of cautious investors who've said these projections are too good to be true for the long term and decided against booking a consultation.

Matters that are most suited to personal consultations are where there are variations between purchasers due to their incomes, tax rates, etc. These primarily centre around cashflow, loan affordability, tax, asset protection, investment structures, etc.

>Individual reports are all produced using PIA Pro.

Apparently it's very good software but only as good as the numbers you put in.

>The CPI figure starts at 2% (which is currently correct) Then I adjust it >by .5% per year - making the 10th year 5.5% - thus giving an average of >3.89%.

Why? I know of few people who would be game to predict inflation 10 years out. Why not use an average of 4%.

>The interest rate starts at 6.5% with a .25% increase per year - up to >8.75% at the end of 10 years

Again we cannot assume that sort of steady increase. It could just as easily go up to 10%, down to 6 and hover around 8 for a while.

> ... giving an average rate of 8.47% (Last 10 year average was 7.84% - >Source NAB).

Ah, good. A long-term average. So why not use a flat 8.47% (or even 7.84%) with contingency allowances up to 10% or more?

>It is difficult in a seminar environment to present individual detailed >Analysis ... thus my invitation for a no obligation one to one session.

Very true. But basic assumptions like interest rates, CPI and CG (which determine if the investment will succeed or fail) apply to everyone equally. Move one of these by 2-3% and you've gone from big profits to big losses.

>The Estates I have targeted (Such as Brighton Beach at Butler) have many >years of land to still be developed (8-10 years in the case of Brighton).
>When you consider that 30 -50 blocks are being sold every month ... that is >a lot of potential tenants - albeit short term.

Long-term tenants are preferable to short-term tenants to minimise vacancy and wear and tear on the property.

Also estates with many empty blocks do not have the scarcity value of established areas (at least until the estates are fully developed). This may limit capital growth in the early years. Though you've reported some outstanding results for some areas, almost anything does well during a general boom such as Perth has recently seen.

>I read on the forum how difficult it is to get Property Investment Advice for >Financial Planners ... and your average Real Estate Agent is only interested >in selling you which ever home you are standing in ... as for builders, there >are very few sales reps that understand Property Investment. We are the >only builder in Perth that offers such a comprehensive building package.

Understanding PI makes your people better salesmen (which is a worthy aim), but there is a difference between this and an independent adviser who has no vested interest in what he recommends.

Kind regards, Peter

 

[paulie]

Hi Jabberwocky,

Kelmscott & Maddington (I don't know Seville Grove) are along the South West growth corridor from Perth. Historically this has been the cheapest and nastiest of the five main growth corrdors out of the Perth Metro Area (the other four being north & south along the coast, Great eastern Highway and great northern highway). This is reflected in the prices you'll see from the REIWA summaries of each suburb below, both have rather low media prices, the great news here is that with low entry prices any little price movements give great capital growth rates. IE a $20K move on a $150K house is a good year, however I doubt either of these suburbs will out perform the market in years to come as they have typically lagged the rest of Perth, I'd expect capital growth rates of 4 - 5% for the next few years and then when the market cycle booms again they can catch up to the 8.5% Perth Metro area average.
Remember Diamonds are to be found in all suburbs at all times, you just gotta look hard.

Good Luck

Paulie


Maddington
Population: 9,006
Median Age of Residents (Years): 32
Residents over 65 (%): 9.8%
Distance from Perth GPO (km's): 18
Number of Homes:
Fully Owned (%):
Being Purchased (%):
Rental Properties (%):
Not Stated (%): 3,381
32%
43%
19%
8%
Median House Price: $133,500 (Dec 2003)
Percent Change in Last 12 Months: 24.40% (Dec 2003)
5 Year Average Annual Growth Rate: 9.40% (Dec 2003)
Highest House Sale Price: $335,000 (Dec 2003)
Median Weekly Rent: $150
Median Monthly Loan Repayment: $673
Median Household Weekly Income: $670
Local Schools: Maddington Primary School, East Maddington Primary School, Maddington Snr High School, Bramfield Park Primary School, Maddington Education Support Cntre, Maddington Pre-School
Shops: Maddington Village, Metro Maddington
Train Stations: Maddington train station
Bus Services: Local bus service



Kelmscott
Population: 9,556
Median Age of Residents (Years): 36
Residents over 65 (%): 10.8%
Distance from Perth GPO (km's): 25
Number of Homes: Fully Owned (%): Being Purchased (%): Rental Properties (%): Not Stated (%): 3,586 40% 41% 16% 5%
Median House Price: $155,000 (Dec 2003)
Percent Change in Last 12 Months: 31.90% (Dec 2003)
5 Year Average Annual Growth Rate: 7.90% (Dec 2003)
Highest House Sale Price: $535,000 (Dec 2003)
Median Weekly Rent: $143
Median Monthly Loan Repayment: $681
Median Household Weekly Income: $706
Local Schools: Kelmscott Primary School, Clifton Hills Primary School, Westfield Park Primary School, Kelmscott Snr High School, John Wollaston Anglican Community School, Kelmscott John Calvin School, Kelmscott Secondary College, Kelmscott Secondary College Farm School
Shops: Kelmscott Plaza, Kelmscott Village
Train Stations: Kelmscott train station
Bus Services: Local bus service, Kelmscott bus

 

[noddy]

The south west growth corridor is an interesting description!!.

I know the areas very well, including the new suburb of Seville Grove which was part of Armadale before the Council created a bunch of new suburbs, another of which is Mt Richon.

Owning property in this are which has double in value over the last 18 months (85k - 170k), I feel that the growth is primarily rillple effect similiar to Dandenong/Doveton in Melbourne doubled about a year/18 months ago as per Melbournes ripple effect. Same sorts of suburbs with fairly similar profiles. EG High Gov owned and low socio-economic. Amazingly cheap and all of a sudden went verticle....and then stopped.

If the prices keep going up then I'll be happy, but realistically, the growth has done a lot of catch-up; and it is still not reccomended to be outside at night and I still get the monthly notifaction of thefts occuring. An area not for the faint hearted.

I have noticed a number of mortgagee sales in the Dandenong area in the last month and have shifted my focus back east now.

Noddy

 

[<KS>]

I greatly enjoyed spidermans + caspers little debate.

I have recently looked at making faster profits by building vs buying established. The difference being I would do it for totally different reasons as my income is rather small to be focusing on tax breaks - not to mention my father is a rather good accountant and he specifically said that the one thing Robert Kiosaky got perfectly right was that no matter how you dress it up a VERY negatively geared property can never be justified. Not because it cant save you money, but because the same amount elsewhere will earn you far more than you will save.

To be honest I would only participate in something like turn-key if I was

a) On a rather huge income
b) I was too busy to do my own research and number crunching.

If I were to go into making short term gains by building, I would become friends with real-estate agents in the area, talk to locals and find out that areas specific growth averages.

I would then hunt for land under my personal limit for any given area and organise the building etc myself. Turnkey sounds convenient but fact is it exists to make money from those who make use of it, therefore doing the work yourself would essentially save you thousands. Now Casper could argue thats its the service you pay for, but realistically to get to where you want to be the fastest (friggin loaded) you HAVE to educate yourself as to what your doing at some point and there is no avoiding that - unless of course you have both a + b as listed above, and a very good and trustworthy accountant

Casper - just to put something into focus with what I meant at the start of my post in regards to negative gearing consider this:

I purchased a 2 bed unit in Rockingham. My total mortgage after my small deposit was $72,000. I began renting this out early at $130/week due to its great location and established suburb within Rockingham central.

3 years later (2 months ago) I recieved an offer that I turned down for $150,000 - and the trainline has not even been finished yet.

Now had I done this 2x with under $150,000 (less than what it costs to build and finish a nice house) I would be looking at a tidy profit of $160,000 in 3 years. But the most important thing to note is that during those 3 years both properties have been +ve geared making me about $13,000 PROFIT (based on rent of 2/3 years), after costs and 35% tax has been considered. This profit covers the estate agents cost to sell and leaves me $160,000 richer without ever having to worry about inflation increases or building problems/delays.

Now, my point is would I have recieved the same result/benefits investing in a negatively geared Turn-key property of the same $150,000 cost, with a rather low income?

-----

But like I said, if you dont have the time to do it yourself and you can afford it then turn key could seem attractive but IMHO it wont maximise what you could do with your money.

<KS>

P.S - I think what Spiderman said about de-fluffing your figures a bit would greatly help convince skeptics like the many many would-be investors that what you have to offer is sound.

 

[ktee]

Perth and the southwest

Hi,

I am new to the forum and would like to know members views on the following two areas;

Manning: a look on the median house price map @ Reiwa shows the suburb of Manning standing out as being surrounded on all areas by higher priced suburbs... does that ring positive alarm bells to anyone?

Nannup: now where is Nannup you might ask... Well it is in a sleepy little hollow down in the south west, about 60km inland from Margaret River. It just seems to me that with such a persistent and strong migration down toward this uniquely tranquil/beautiful part of the state, the tremendous capital growth experienced by Margaret River will inevitably have to ripple out inland to toward Nannup... any views/comments?

Thanks
KTee

 

[D.T.]

Hi Ktee,

Whilst I dont claim to know alot about that side of the river, Manning could be a good buy. Wouldnt get much change from 400-450k for a house tho from what I've seen. It's already had a decent growth stint (hasn't everywhere?) so who knows whether it has some left in it or not. But based on the fact that its only about 3 or 4 suburbs out from the cbd, and a nice distance from the river I'd say it was a good place for a long term hold.

I cant help you at all on Nannup sorry. Spiderman from these forums may have some info since he invests in country towns, but usually in larger ones from what I've heard.

-Just my 2c

Dave

 

[Peter Parker]

I cant help you at all on Nannup sorry. Spiderman from these forums may have some info since he invests in country towns, but usually in larger ones from what I've heard.

Dave

See my reply on the other Perth thread.

Regards, Peter

 

[paulie]

Info on Manning

Manning
Population: 3,298
Median Age of Residents (Years): 34
Residents over 65 (%): 15.6%
Distance from Perth GPO (km's): 7
Number of Homes: 1,347
Fully Owned (%): 34
Being Purchased (%): 28
Rental Properties (%): 34
Not Stated (%): 5
Median House Sale Price: $346,500 (Jun Qtr 2004)
Percent Change in Last 12 Months: 10.90%
5 Year Average Annual Growth Rate: 10.40%
Highest House Sale Price: $545,000 (Jun Qtr 2004)
Median Weekly Rent: $235
Median Monthly Loan Repayment: $1,095
Median Household Weekly Income: $794
Local Schools: Manning Pre-School, Manning Primary School, Koonawarra Primary School, Como Cnr High School, Aquinas College
Shops: Karawara Shopping Centre


Recent Sales

Asking Price Sale Price Address Description
*$220000-$230000 *220000 *136 Manning Road *H B/V T 2BR 1BTH 1WCS R SHWS GP SC P K/D L LDY
*$279000 *279000 *47 Downey Drive *H B T 3BR 1BTH 1WCS 1STRYS GHWS GC SC K L LDY
*$309000 *295000 *44A Bradshaw Crescent *D B T 3BR 1BTH 2WCS 1CP L/D F A/C R GHWS SC INS P EH K LDY
*$319000 *319000 *60A Cloister Avenue *D B T 3BR 2BTH 2WCS 1STRYS 2CP A/C B R GHWS SC INS P K/D L LDY
*$345000 *335000 *30 Downey Drive *H B T 2BR 1BTH 1WCS 2CP B R SHWS GP GC SC INS S/O P EH K K/D L LDY
$339,000 *339000 *1/45 Downey Drive *H B T 3BR 1BTH 1WCS 1CP A/C R GHWS GC SC P V EH K L LDY
*$340000-$360000 *343000 *73 Henley Street *H 3BR 1BTH 1WCS 1STRYS 2CP D A/C B R GHWS GC SC INS P V EH K L LDY
*$349000-$379000 *348000 *40A Bickley Crescent *D 4BR 2BTH 2WCS 1STRYS 2G D F A/C R GHWS GC SC INS P V EH K L LDY
*$350000-$370000 *350000 *64B Cloister Avenue *D B T 4BR 2BTH 1CP D F R GC SC EH K/D L LDY
*$340000-$370000 *360000 *35A Henning Crescent *H B T 3BR 2BTH 2WCS 1STRYS 2CP D F A/C R GHWS GP GC SP SC INS P V EH K L LDY
*$365000 *360000 *61 Crawshaw Crescent *H B I 4BR 2BTH 2WCS 2CP F GHWS INS P K/D L LDY
*$373000 *368000 *39 Henning Crescent *H B T 4BR 2BTH 2WCS 2CP D F A/C BGP B R EHWS GC SC INS P EH K L LDY
*$385000 *375000 *56 Welwyn Avenue *H B T 3BR 1BTH 2WCS 1STRYS 3CP L/D A/C B R GHWS GC SC INS S/O P EH K LDY
*$395000-$415000 *410000 *5 Henning Crescent *H B T 3BR 1BTH 1WCS 2CP GM A/C B SHWS GC SC INS P EH K/D L LDY
*$410000 *410000 *2/6 Downey Drive *D B T 4BR 2BTH 2WCS 1STRYS 2G D F A/C R GHWS SC EH K L LDY
*$449000 *435000 *52 Welwyn Avenue *H B T 3BR 1BTH 1WCS 1STRYS F B EHWS SP SC K/D L LDY
*$425000-$450000 *440000 *22 Craigie Crescent *H 4BR 2BTH 2WCS 1STRYS 2G D F GM A/C R GHWS GC SC EH K L LDY
*$459000 *450000 *76 Cloister Avenue *H 2BR 1BTH 1WCS 1STRYS B R EHWS GP SC INS S/O V EH K/D L LDY
*$475000-$495000 *459000 *16 Hope Avenue *H B T 3BR 1BTH 1WCS 1G A/C B R GC SC P V K/D L LDY
*$489500 *485000 *12 Hope Avenue *D B T 3BR 2BTH 2WCS 2STRYS 2G F S A/C R GHWS GC SC P EH K L LDY
*$495000-$525000 *490000 *32 Parsons Avenue *D B TN 4BR 2BTH 2WCS 2G D F GM GHWS GP SP INS P EH L LDY
*$559000 *540000 *59A Conochie Crescent *H B CB 4BR 2BTH 2WCS 1STRYS 2G D F S A/C B R GHWS GP GC SP SC INS P EH K L LDY
*$610000-$670000 *620000 *45A & B Cloister Avenue *H 2BR 1BTH 1WCS 1CP GHWS GP GC SP SC S/O V K/D L LDY


CURRENTLY FOR SALE

*$220000-$240000 *45 Downey Drive *L */
*$279000-$299000 *83 Manning Road *D 2BR 1BTH 1WCS 1STRYS S/O EH K K/D L LDY *322/
*$355000-$385000 *3 Forward Street *H B T 3BR 1BTH 1WCS 1STRYS 1G D F A/C B R SHWS GC SC P K L LDY *872/26
*$365000 *2/33 Henning Crescent *H B T 3BR 2BTH 2WCS 1G L/D F A/C B R GHWS GC SC INS P EH K LDY */
*$369000 *11B Craigie Crescent *D B T 4BR 2BTH 2WCS 1STRYS 2G L/D F GM A/C GHWS GC SC P EH K LDY */
*$399900 *118 Manning Road *H D/B T 3BR 1BTH 1WCS 1STRYS F GM GHWS GC SC P V EH K/D L LDY */
*$449000 *59 Henning Crescent *H B T 3BR 2BTH 2G F S R GHWS GP EH K/D L LDY *451/

Knock yourselves out

Paulie

 

[TheBacon]

Paulie

Did you get this info free off the net (if so, where from)?
Or did you get it from the VGO or HomePriceGuide etc?

thebacon

 

[paulie]

Hi bacon,

I am a real estate agent in Perth so I have access to these records.

I have sent you some details on Bassendean.

Good luck

Paulie

 

[ktee]

Thanks to all for your comments and information on Manning & Nannup - the attitude on this forum is seemingly quite unique

KTee

 

[odaat]

Hi bacon,

I am a real estate agent in Perth so I have access to these records.

I have sent you some details on Bassendean.

Good luck

Paulie

Paulie, what are the stats on Kingsley like ?
Can you sell my tenanted 3x1 prop in Kingsley - we want to buy o/s.
Realise it is too much hassle trying to sell from o/s - too many time wasters out there.

 

[dexx]

It seems that growth is still strong in Perth. I have been looking at residential land around Canning Vale. One block i looked at sold for $165,000. The owner bought it Feb 03 for $110,000. This kind of growth is common as the area is being built out.

There's now strong growth at the bottom end of the market. Shoddy suburbs like Maddington, Gosnells, and Armadale are booming.

 

[paulie]

Perth's getting ramped up

Just pulled the following article of the REIWA website.

Stock shortage returns to Perth real estate in August 2004

A rise in numbers of first home buyers has coincided with a tightening in the supply of established homes available for sale in Perth, according to the President of the Real Estate Institute of WA, Mr Jim Henneberry.

Mr Henneberry was commenting on REIWA's August 2004 report for the Perth established dwelling sales market.

"The key market indicator, the median price of established house sales in Perth, rose 0.3% in August 2004, up from $240,400 to $241,100. The same indicator was 8.9% up on the same time in the year before.

"The small rise in the median sale price of established house sales in Perth partly off-sets the decline in the June quarter this year.

"REIWA estimates there were 3,839 sales of established dwellings in Perth in August 2004, which is 13.7% fewer than the previous month. The number of established dwelling sales in August 2004 was also 8.1% fewer than at the same period in August 2003.

"By the end of August 2004 REIWA estimates there were 7,975 established homes available for sale in Perth, which is 20% down on the March 2004 peak in stock levels.

"The shortage of homes available for sale is partly a reflection of the rise in first home buyer numbers and the continuing high level of property investment.

"First home buyers accounted for 26.1% of the market in August, which is well up on the proportion of first home buyers earlier in the year. In the June quarter of 2004 first home buyers accounted for only 17% of dwelling sales.

"The surge in first home buyer numbers coincides with the stamp duty concessions for first home buyers introduced in July 2004.

"The average selling time for established residential properties in August 2004 was 50 days, which is four days less than the previous month and 12 days more than at the same time last year.

"After a flat June quarter the Perth real estate market has rebounded in July and August, both in terms of sales numbers and property values. The market has not returned to the frenzied levels of mid 2003, however there is a more sustainable rate of activity present in the Perth real estate market.

"Perth is one of the few real estate markets experiencing growth at present," said Mr Henneberry

 

[Glenn]

Hi All,

Please correct me if I am wrong, but I believe the following 3 statements are correct:

1. Perth now has the lowest median house value of any capital city in Australia

2. Perth currently has the fastest population growth of any capital city in Australia

3. Perth\WA had an increase in GDP of 8.5% last year and is expecting 10% increase for this year

4. There is still a major shortage of bricks in WA, the wait to build a new house can sometimes be up to 6 months because of this.

It seems to me that the "planets are aligning" for Perth's property market at the moment and the next 3 years could show some strong capital growth

Glenn

 

[D.T.]

Hi Glenn, (long time no see)

I tend to agree with those statements.

However I still think that a bit of suburb fussiness is required. IMHO, the suburbs along/near the beach will always be favorable.

Within the cheaper range suburbs, those that have good facilities (such as train stations, proximity to major employment centres), should also show some good growth as there is quite alot of first home buyers still in the market according to some stats on REIWA site. These cheaper suburbs with some good facilities will have their prices forced up. For example in the same street that my property is on in Clarkson, a sale was registered for 280k, and a property is currently for sale asking 315k. This is coming from a suburb that had a median of 165k not very long ago.

-Regards

Dave