WA Recovery for Investment Potential?
- Thread starter <KS>
- Start date
I received monthly sales for Craigie WA. The August sales were 17!!!! what do you think? it is strong or not?
I checked this out because it seemed a little to good to be true.
1) The $350/week is proposed by the vendors...its inflated $50 above the rate others are renting for in the area.
2) The REA said he was not confident your could build another house on the block due to the access being very tight.
3) I am a bit ignorant of the area I admit - but dont see a great chance of decent CG in the near future.
But I do love the way you thought about the possible investment, thank you for highlighting some other avenues of consideration.
<KS>
Minxdamanx,
I have seen rent increases in Old Warnbro, I've just done a very long/lazy reno on a place we have in old Warnbro. It was ented for $175 12 months ago. I had a tenant 3 days after advertising last week at $280. I think much of this rent increase is not attributed to the reno, but the state of the market. Typical brick 3x1 on Old Warnbro (West of Currie).
I just got an appraisal done on my new one (west of Currie also) at $270 so good to know it's in the ballpark - would love Sparky's returns though yield is probably similar.
I'll pm you for details and might go for a cruise past if you don't mind??
Thanks for the information.
Are they not selling even after the asking price has dropped? That doesn't sound good.
Why has the demand dried up?
How about other areas closer to the city?
Are they also experiencing big drops?
Is this mainly only happening to outer suburbs?
Basically economic affordability and the flood of property stock coming onto the market.
Closer in areas are not effected to the same degree as the outer mortgage belt suburbs.
Its all just part of the way how the property cycle moves. The last to boom are the first to contract.
Rixter has it spot on!
At one point quality 4x2's in the Anchorage were sold on the market for over $500k
That is quite a bit of money for a house that is 45 minutes drive from Perth - regardless of the beach and it being new. If I was buying a house to live in I would now spend that 500k closer to perth and buy a house with character.
These new houses on the market are so incredibly generic, they are good for nothing except renting out.
I went and looked at 5 houses in Lakelands. 4 of them were very slightly different versions of EXACTLY the same house, so the other 1 stood out bigtime. Dale Alcock released the 'space saver' series and then almost every builder copied it....trust me I know because I built one also and I am currently living in it in the Anchorage!
I should have listen to Kenneth and bailed out of WA when he did - it was a prudent investing move on his part. But my gut feeling says that when these house prices do eventually stop falling (6-18 months?)....a hell of a lot of people will strart buying and the ride will start all over again...just not to the same extent as the last boom.
<KS>
At one point quality 4x2's in the Anchorage were sold on the market for over $500k
That is quite a bit of money for a house that is 45 minutes drive from Perth - regardless of the beach and it being new. If I was buying a house to live in I would now spend that 500k closer to perth and buy a house with character.
These new houses on the market are so incredibly generic, they are good for nothing except renting out.
I went and looked at 5 houses in Lakelands. 4 of them were very slightly different versions of EXACTLY the same house, so the other 1 stood out bigtime. Dale Alcock released the 'space saver' series and then almost every builder copied it....trust me I know because I built one also and I am currently living in it in the Anchorage!
I should have listen to Kenneth and bailed out of WA when he did - it was a prudent investing move on his part. But my gut feeling says that when these house prices do eventually stop falling (6-18 months?)....a hell of a lot of people will strart buying and the ride will start all over again...just not to the same extent as the last boom.
<KS>
like the "Elegant" from Impressions from 15 years ago that is still in force today....?
Ken left a wake of despair and misery behind him - so i wouldn't sing his praises to this little black duck.
Ken left a wake of despair and misery behind him - so i wouldn't sing his praises to this little black duck.
Huh???? Did I miss something here?
Which Kenneth are you talking about,
Can you kindly fill me in on the details?
Cheers,
Beef.
Ken Fraser....? WA property scammer?
i've just realised - are you talking Kenneth on here?
Phew!! For a moment there I was wondering...
I think (rarely but it does happen) that <KS> was referring to our Kenneth.
Haven't seen any posts from him for a while now and I've always held him in high esteem for his clear and well thought out posts. Given the discussion on Anchorage, I became a little shocked and confused.
Thanks for clearing that up BC.
Cheers,
Beef.
sorry for the confusion! my bad
Yes I think 'our' Kenneth is the one in question, unfortunately he has had some bad luck lately and things haven't been travelling too well for him with one thing and another, I have emailed a couple of times but heard nothing back. If anyone has heard from him it would be nice to know that he is ok, or if you read this Kenneth just say hello as I know a lot of people care.
yes it would seem the bog standard 4x2 down there has dropped from about $525k to under $400k, so 30-40% pain has already been felt in this market. The ones priced at around $350-375k are slowly selling possibly? wish now I had sold more during the boom, unfortunately the buy'n'die argument gripped me a little. still, I am way ahead on cost regardless.
i know my villas in mandurah that were bank valued at $400k would be struggling to get $300k now. couldn't replace them for that
i know my villas in mandurah that were bank valued at $400k would be struggling to get $300k now. couldn't replace them for that
On the upside Ausprop I rekon when the market rises again these areas will also rise fast.
If you are a first home buyer Rocky/Mandurah is awesome now. Where else can you buy a complete house package that close to the beach for under 350-400k? Rents are also good now ($350/week) so depite the plummet in values its not hard to hold the properties when you only owe about 280k on them.
If I were cashed up I would be out there making dozens of really lowball offers on those 4x2's that could rent very well or stood out a little from the standard build.
My mate is an REA and he sold a 3x1 in Safety Bay for $235k.....it would rent for $250/week easily!!
He told me if he knew the client was THAT desperate to sell he would have let me know about it. The house was originally up for $285k, he never dreamed the guy would take the offer he presented him - and normally he would disuade his clients from accepting such low offers but he had not sold a house in 7 weeks....and he is very good at what he does.
<KS>
If you are a first home buyer Rocky/Mandurah is awesome now. Where else can you buy a complete house package that close to the beach for under 350-400k? Rents are also good now ($350/week) so depite the plummet in values its not hard to hold the properties when you only owe about 280k on them.
If I were cashed up I would be out there making dozens of really lowball offers on those 4x2's that could rent very well or stood out a little from the standard build.
My mate is an REA and he sold a 3x1 in Safety Bay for $235k.....it would rent for $250/week easily!!
He told me if he knew the client was THAT desperate to sell he would have let me know about it. The house was originally up for $285k, he never dreamed the guy would take the offer he presented him - and normally he would disuade his clients from accepting such low offers but he had not sold a house in 7 weeks....and he is very good at what he does.
<KS>
Hi <KS>
Off thread topic but re: where else can you get new 4x2 close to the beach under $350K, try Aldinga and Seaford in Adelaide. Rent around $330-$350 in Sunday estate.
Regards Jodie
Off thread topic but re: where else can you get new 4x2 close to the beach under $350K, try Aldinga and Seaford in Adelaide. Rent around $330-$350 in Sunday estate.
Regards Jodie
intresting, what is that price as a multiple of average wages?
