Property Investment - Perth (opinions) good or bad move

[ncik01]

Hi all!

Just starting on a thread, I?m seeking thoughts on my current situation. Thanks in advance for all input!

Question 1 ? I'm just looking for opinions on buying an investment property in Perth. I've heard mixed reviews ie people saying buy buy buy!! Others saying doesn?t they are expecting a crash end of 2014 (and they are currently pulling out/divesting from their investments, which doesn?t sound to good if this is the norm).

Question 2 ? House (north suburbs but max 6-8km from city) or apartment inner city or subiaco etc (investment purposes)

Question 3 ? Should I just keep saving like I am now (for 1-1.5 more years) ... By the end of this year I'll hit 110k+ I feel as my money is just wasted not utilised to its full potential (though it's in a high interest account of 3.5%)

My situation: finished Uni and started a grad program in 2012 and have managed to save 82k since then (2 years).
I can save an average of around 3.8k per month (make 4.6k after tax/hecs etc a month i.e. money deposited into my bank).
Thanks again for any guidance.

I hope we get a good flow of info

 

[Brady]

Question 4? should you buy elsewhere?

 

[ncik01]

I guess yeah, I live in Perth - this would be my first buy and would ideally like it to be in Perth.

 

[Jake D]

I've heard mixed reviews ie people saying buy buy buy!! Others saying doesn?t they are expecting a crash end of 2014 (and they are currently pulling out/divesting from their investments, which doesn?t sound to good if this is the norm).

This is constant. Regardless of what does happen, you will keep hearing these polar opinions for the next 100 years.

 

[Chomp]

In my opinion,I would buy, they are all decent options you have listed.

Perth is growing and with population expected to double or so in the next twenty years you cant go too far wrong.

 

[Rixter]

Just starting on a thread, I?m seeking thoughts on my current situation. Thanks in advance for all input!

First off, welcome to Somersoft.

What and where to purchase is dependent upon your chosen investment strategy.

You see property is merely 'the vehicle'. Your strategy is how you intend driving that vehicle.

Unfortunately the mistake I see newbies and sometimes not so newbies is that they are property focused instead of strategy focused which is like putting the cart before the horse.

Property investing is not about 'the property' rather about 'the strategy' and the way you intend to use 'the vehicle' to get to where you are wanting to go. No good purchasing a small shopping car if you intend driving interstate on a family holiday.

Which strategy/s is best for you is determined by where you are wanting to go, the time frame you want to get there in and how hands on along the way you want to be - all based around your personal risk profile.

I hope this provides some food for thought.

What is your chosen investment strategy?

 

[HD_ACE]

Have a good look at directions 2031. It should give you a good understanding of whats in plan for perth to help narrow down your areas etc.

http://www.planning.wa.gov.au/dop_pub_pdf/plan_directions2031_part1.pdf

Cheers

 

[westminster]

Welcome.

Once you've had a think about strategy then have a chat with a broker - there is a Perth one on here called Colin Rice who is not scary or pushy. A broker can tell you what you can borrow based on your income and savings (kudos on the fantastic savings btw!!)

Then you can see what suburbs and what types of properties fit your strategy and match up the money to that.

Perth has been moving for the past 18-24mths so it might not grow much more but it certainly isn't doom an gloom in my opinion.

Read the interviews section on here, search keywords strategy, read past threads that talk about Perth suburbs in your area of interest.

Have fun and watch out for Somersoft addiction