reflections on the Perth market

[TheBacon]

Hi Ken,
Yeah - I agree that there doesnt seem to be an overall decline, rather there are ups and downs in different segments of the markets.

You may be right and we might see an overall rise in the market in 2008 because the low end and high end keep going well.

The mid-level; family 3 or 4 bed houses within 20km of Perth seems to have levelled off though. Might be some good buying in this segment in 08/09. Housing affordability in the $500-800k range is an issue I think, and houses in this range that are not near the beach or CBD seem to be struggling compared to a year ago.

Given the sharp decline in the share market I think shares might be the way I go in 2008 instead of Perth property. But its horses for courses as always.

TB

 

[Kennethkohsg]

Hi Ken,

Given the sharp decline in the share market I think shares might be the way I go in 2008 instead of Perth property. But its horses for courses as always.

TB[/QUOTE
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Dear TheBacon,

1. Provided that you are good at "shorting" the ASX, I will not recommend that you re-enter the ASX, at this point in time.

2. I personally believe that the global debt crisis has still not fully evolved out and I think it is still "pre-mature" to re-enter the ASX at this point in time despite some bargains to be got from certain share counters on the ASX, when the fundamental stockmarket trend has started to turn "bearish" world-wide in 2008.

Cheers,
Kenneth KOH

 

[Nicko]

not sure if 20% qualifies for incredible or stupid status... the costs of ownership has gone up so much that i would say 20% would be a minimal expectation, particulalry given the tightness of the vacancy rate

Believe the last year was 20% growth in rent or so. Do you you think that's likely again?

Tenants recieve a lot of "media attention" which may interfere with linear commercial growth, no?