Perth?
- Thread starter beejay
- Start date
East Perth
There is a oversupply in the market there.
A typical franchise on a theme of multi-density housing, thou better than the older type of apartments. (I guess the architects have stoped smoking since the 70's.)
They have both 2x1 to 3x2.5 apartments/no common area developemnts thru to more upmarket resort styled accomodation (no bad for shared depreciation).
IMHO, if you want to invest there wait for another few years and place your money in a better preforming suburb for IP.
East Perth is still developing. But it does have good infrastructure with a mass transit bus service all through it.
They have a TAFE campus but unfortunately (IMHO) it is utilised to its maximum benefit. Parking is a nightmare, but where in any CBD isn't.
Happy hunting.
Respect, Peace, Out.
OPM-addict
There is a oversupply in the market there.
A typical franchise on a theme of multi-density housing, thou better than the older type of apartments. (I guess the architects have stoped smoking since the 70's.)
They have both 2x1 to 3x2.5 apartments/no common area developemnts thru to more upmarket resort styled accomodation (no bad for shared depreciation).
IMHO, if you want to invest there wait for another few years and place your money in a better preforming suburb for IP.
East Perth is still developing. But it does have good infrastructure with a mass transit bus service all through it.
They have a TAFE campus but unfortunately (IMHO) it is utilised to its maximum benefit. Parking is a nightmare, but where in any CBD isn't.
Happy hunting.
Respect, Peace, Out.
OPM-addict
I too struggled with Brett's initial question, "Is it the wrong time to buy residential property in Perth?"
A great quote coutesy of David Koch of www.moneymanger.com.au today,
"He who looks into a crystal ball ends up eating glass."
All I can add is that with money still so cheap and a long term outlook for our IPs, we have bought 4 in the last 10 months in Perth.
A great quote coutesy of David Koch of www.moneymanger.com.au today,
"He who looks into a crystal ball ends up eating glass."
All I can add is that with money still so cheap and a long term outlook for our IPs, we have bought 4 in the last 10 months in Perth.
Hi All,
My initial observations of the new area of East Perth were that it could become a bit yukkie after 10-20 years due to all the hastily built homes.
Recently, a mate and I went for a run (Maylands to the WACA and back) which took us through the heart of the new part of East Perth....mate, this suburb is becoming very nice now that the lanscapes are starting to grow. There are plenty of decidous trees that have been planted and the cafes & restaurants are generally well patronised.
All in all, the suburb should rise at or above the rate for the metro area due to the fact that the available land has just about all been developed.
Good luck
Glenn
My initial observations of the new area of East Perth were that it could become a bit yukkie after 10-20 years due to all the hastily built homes.
Recently, a mate and I went for a run (Maylands to the WACA and back) which took us through the heart of the new part of East Perth....mate, this suburb is becoming very nice now that the lanscapes are starting to grow. There are plenty of decidous trees that have been planted and the cafes & restaurants are generally well patronised.
All in all, the suburb should rise at or above the rate for the metro area due to the fact that the available land has just about all been developed.
Good luck
Glenn
Hi Glenn and Puppeteer.
All in all, the suburb should rise at or above the rate for the metro area due to the fact that the available land has just about all been developed
IMHO, I agree. But to put your cash in there now is not a wise choice. There are other areas that are offering better CG and yield returns. For the same value for money Subiaco now is far more superior investment.
Im waiting for the Leighton Beach development to start happening. They announced the plans last night on the news.
A much better design offering a more opened planned living area. (and it only took them 6 years if stuffing about to get it...yeah the government)
Puppeteer, as for those buildings, I personnally think that inlet looks alot worse. But people are still willing to build/buy apartments looking into the polluted, stagnet water.
Go figure, it takes all sorts in the world.
Respect, Peace, Out.
OPM-addict
All in all, the suburb should rise at or above the rate for the metro area due to the fact that the available land has just about all been developed
IMHO, I agree. But to put your cash in there now is not a wise choice. There are other areas that are offering better CG and yield returns. For the same value for money Subiaco now is far more superior investment.
Im waiting for the Leighton Beach development to start happening. They announced the plans last night on the news.
A much better design offering a more opened planned living area. (and it only took them 6 years if stuffing about to get it...yeah the government)
Puppeteer, as for those buildings, I personnally think that inlet looks alot worse. But people are still willing to build/buy apartments looking into the polluted, stagnet water.
Go figure, it takes all sorts in the world.
Respect, Peace, Out.
OPM-addict
Just a quick hand with doing research in Perth,
A great web site is www.reiwa.com.au this is where all R/E agents link with eachother for multlisting and is specific to the WA property market.
Also can give stats (generalised though).
Regards,
NAS
A great web site is www.reiwa.com.au this is where all R/E agents link with eachother for multlisting and is specific to the WA property market.
Also can give stats (generalised though).
Regards,
NAS
Brett,
Your post obviously created some good debate. Have you made a purchase in Perth now?
Does any one know if there is a Perth investors club (that hopefully involves a beer near the ocean!)?
Your post obviously created some good debate. Have you made a purchase in Perth now?
Does any one know if there is a Perth investors club (that hopefully involves a beer near the ocean!)?
G'day Nickshinner.
No I haven't made a purchase yet. I was going to do the reno
type thing but a recent promotion at work means less time on my hands so I'll have to change tack,probably for the straight buy and hold strategy.
As for areas I'm currently looking at Kardinya.I grew up around the area so know it pretty well.It has good infrastructure,15 min to the city,and will have a train station at south st in the near future.
It has a mix of housing from 20 year old 3/4 bed brick homes to
2/3 storey mansions on the summerville side.(West of Nth Lake rd).
Now I just have to find one I like.
Cheers
Brett
No I haven't made a purchase yet. I was going to do the reno
type thing but a recent promotion at work means less time on my hands so I'll have to change tack,probably for the straight buy and hold strategy.
As for areas I'm currently looking at Kardinya.I grew up around the area so know it pretty well.It has good infrastructure,15 min to the city,and will have a train station at south st in the near future.
It has a mix of housing from 20 year old 3/4 bed brick homes to
2/3 storey mansions on the summerville side.(West of Nth Lake rd).
Now I just have to find one I like.
Cheers
Brett
Hello all,
I have just spent the last week hunting in the Perth Market for my next IP (Not including prior research) and have bought a 3x1 fully renovated home on a 765M block within Morley P.P. 230K
I ustilised a local independant valuer that gave invaluble advice to growth specs of surrounding areas and predicated locations.
So here I was driving round in my hire car in 36 - 42C heat (apparently a once in 5 year event) to the chosen suburbs (Price point below 250K) - travelled around 950K in Suburban Driving within 6 Days.
I chose Morley as it is an up an coming suburb, this is due to:
1. The surrounding suburbs have a significant pricing discrepancy and I firmly believe it will be Morleys turn next.
2. The suburb itself when cruising around is within a change of construction wherever you look. I.E. Old houses are either being pulled down for a new one or being renovated. Not too many old fibro shacks left.
3. The average land size is over 700M sq and virtually the whole of Morley complies with R25 zoning (Duplex Sites are achievable).
4. Approx only 11KM NE from Perth CBD
5. There is a large shopping center called the Galleria, which is equivellant to the Large Westfields back in the eastern states. (This is looking to be expanded in the future).
6. Local culture is great - go for a walk in the shopping centre to see the type of people who are in the area.
7. Rental properties percentage 20%
8. Growth Last 12 Mths 20.6, Last 5 12.4%
Note: this was a purchase for Cap Growth, not yield as the property will return approx 200PW.
By the way anyone know a good property Manager in the area?
Other Suburbs of interest are:
Rivervale (4K from the city, gradually changing)
Belmont (4K-5K from the city, gradually changing)
Note both these areas were prone to Homeswest housing in the past and the associated Socio - Economic issues. This is now getting cleaned up by the government not renewing leases and sending the homeswest people out to Armadale (30K from CBD)
East Vic Park is another area worth looking at, however price point is above 250K for a home.
Hope this provides a little insight for others.
Regards,
NAS
I have just spent the last week hunting in the Perth Market for my next IP (Not including prior research) and have bought a 3x1 fully renovated home on a 765M block within Morley P.P. 230K
I ustilised a local independant valuer that gave invaluble advice to growth specs of surrounding areas and predicated locations.
So here I was driving round in my hire car in 36 - 42C heat (apparently a once in 5 year event) to the chosen suburbs (Price point below 250K) - travelled around 950K in Suburban Driving within 6 Days.
I chose Morley as it is an up an coming suburb, this is due to:
1. The surrounding suburbs have a significant pricing discrepancy and I firmly believe it will be Morleys turn next.
2. The suburb itself when cruising around is within a change of construction wherever you look. I.E. Old houses are either being pulled down for a new one or being renovated. Not too many old fibro shacks left.
3. The average land size is over 700M sq and virtually the whole of Morley complies with R25 zoning (Duplex Sites are achievable).
4. Approx only 11KM NE from Perth CBD
5. There is a large shopping center called the Galleria, which is equivellant to the Large Westfields back in the eastern states. (This is looking to be expanded in the future).
6. Local culture is great - go for a walk in the shopping centre to see the type of people who are in the area.
7. Rental properties percentage 20%
8. Growth Last 12 Mths 20.6, Last 5 12.4%
Note: this was a purchase for Cap Growth, not yield as the property will return approx 200PW.
By the way anyone know a good property Manager in the area?
Other Suburbs of interest are:
Rivervale (4K from the city, gradually changing)
Belmont (4K-5K from the city, gradually changing)
Note both these areas were prone to Homeswest housing in the past and the associated Socio - Economic issues. This is now getting cleaned up by the government not renewing leases and sending the homeswest people out to Armadale (30K from CBD)
East Vic Park is another area worth looking at, however price point is above 250K for a home.
Hope this provides a little insight for others.
Regards,
NAS
dtraeger2k said:
Morning / Afternoon Dave.
Thank you for the congrats.
Re the Valuer, I work for a large bank and know the panel valuers we use in each state location.
The valuers helped me for free due to my position in the bank - Have to use any resources available right :0).
They may help as an initial research provider at a cost - however if you want their details I would want to chat with them first before giving out further info (professional courtesy).
We crunched through a number of area's for the 250K mark, taking into consideration growth history, surrounding suburb growth, local culture and came up with the suburbs that were suitable within a 10K radius of CBD (In my earlier post I stated Morley as 11km it is actually only 9km from CBD).
Then went to stage two and printed out a listing of all availble properties within suburb and focused on those that were in a good street & location.
The Perth Gregories was a great tool to save the pain of driving round to properties which were next to main roads, power stations etc.
My focus was Green title in lieu of units / villa's & townhouses.
After I selected the home and completed negotiations, had the valuer come out and perform a full Val on property for $200. I think they normally charge around $350.00
Also ensured that the I had the below clause in my contract
"This offer is subject to the buyer at his expense and within 48hrs of acceptance to have a valuation performed on the said property by a licensed valuer of the buyers choice and the valuation to be acceptable to the buyer"
- Therefore no risk of falling in to two tier marketing.
Ended up buying under market value by 10K - Woo Hoo.
Regards
NAS
NAS,
Congrats & well done - its always a good idea to get an independent valuation clause within your offer/contract.
Like you, I commission the same valuer as used by my lender to perform this valuation. I find it vital twofold - 1/covers you incase of an inflated purchase price & ,2/ provides you the supportive documentation & evidence in the event of the banks valuation coming in low in relation to possible current and/or future LVR issues.
Congrats & well done - its always a good idea to get an independent valuation clause within your offer/contract.
Like you, I commission the same valuer as used by my lender to perform this valuation. I find it vital twofold - 1/covers you incase of an inflated purchase price & ,2/ provides you the supportive documentation & evidence in the event of the banks valuation coming in low in relation to possible current and/or future LVR issues.
Where to buy in Perth?
Personal prefrence is High Wycombe, 3x1's selling for $160 - $180K on 800+sqm in area to be rezoned from R12.5 to R25 - hence duplex potential. Rent returns are strong (between $180-$200 for above mentioned home types) with low vacancy rates - 1% last REIWA figures.
With the future potential to sub divide and either sell block or build another rental property I like this area a lot. As last new land relelase in Jacaranda Springs is sold out for between $110 - $115K for block sizes 600 - 800sqm.
Hope this helps
Personal prefrence is High Wycombe, 3x1's selling for $160 - $180K on 800+sqm in area to be rezoned from R12.5 to R25 - hence duplex potential. Rent returns are strong (between $180-$200 for above mentioned home types) with low vacancy rates - 1% last REIWA figures.
With the future potential to sub divide and either sell block or build another rental property I like this area a lot. As last new land relelase in Jacaranda Springs is sold out for between $110 - $115K for block sizes 600 - 800sqm.
Hope this helps
MJK said:
The Canning Vale estates have been an amazing Success story - to date. The developers (Satterley Group mostly I think) have created a beautiful and obviously popular urban sub division and prices have reflected this popularity, HOWEVER (dramatic pause)
The fundamentals like location location location do not add up for continual good growth. The surrounding suburbs, especially those closer to Perth than Canning Vale are considerably cheaper, those suburbs next to and behind Canning Vale are massively cheaper.
Looking into a crystal ball I would compare Canning Vale with slightly older sub divisions in the southern suburbs like Winthrop and also Leeming which have experienced great appreciation whilst the land developers are still selling their holdings (first three to five years), but capital Growth becomes stagnant after the developer leaves and prices fall into line with surrounding suburbs and the basics of the infrastructure of the location - ie proximity to perth, water, amenities etc.
Having said all that, bargains will be found in even the most over priced of suburbs so good luck in your search.
Paulie
Can anyone give impressions insight into the Geraldton area?, with regard to recent growth, population etc.
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