Where is hot?

I bought in PEET's Wellard Village.

Two weeks after I signed the contract Woolworths and PEET announced that a $28m Woolworths will open. They are the anchor tenant and other commercial tenants will follow. A train station already exists and thew city is about 30 minutes away by train so access is good. Wellard is also from memory about 4 stops from the new Hospital at Murdoch.

If you can buy in Wellard Village...

b7277 said:
Any feedback on Emerald park projects in Wellard.
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singingtheblues said:
It has been Perth, Mandurah, Frankston, Western Melbourne, Western Sydney, Gladstone, Brisbane hinterlands, Qld Mining towns, Darwin, & heaps of other places too (as no doubt i'll get reminded) - these were all 'Hot' but now they've done their dash .. so where is the new hot? .. i can't think of anywhere that's running hot or the next big thing .. what are your views?
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G'day STB. With the benefit of 20/20 hindsight, you don't want the area that is HOT, you want an area that is GOING to be HOT. I'd checkout Gladstone.

The area went from 400-ish up to 550-ish between say 2008-2011.

I bought at the end of 2011 (i.e. the peak! - doh!). Lucky the cash flow has been great!

All the investors ran into this 'hot' market, H&L packages were built in a big way, and then the market has been flat for the unique/quality stuff and a decline on the stock standard dime and dozen stuff since end 2011.

What you would have built for 500k 2 years ago you can now get for 430k if you can find a desperate vendor. Normal price is around 460k. These would still rent for $600-650pw.

It is absolutely a BUYERS market at the moment and this has made the yields even better. They are still very good at 8-9% (the long term average for the city is ~6.5%). Vacancies are high at around 5-6% however if you can mitigate this by just charging less rent, waiting for the oversupply to be consumed and go for a nice ex-OO property (I would avoid inner CBD high rise and H&L packages - basically anything the marketing companies try to sell). In the last two years I've only had about 2-4 weeks vacancy only.

The area got a lot of interest for very good reason, it still has very strong long term prospects - the world (esp booming SE Asia) has an insatiable demand for our resources in particular GLNG (Gladstone Liquefied Natural Gas). 20 year contracts are in place. Take advantage of this downturn, do better than me (I have learned my lesson), go against the herd and buy well.

Disclaimer - I have property in the area.
 
thanks DavidMc - don't worry i've no intention of jumping into anywhere that's HOT right now - i asked the question because all my properties haven't moved for what seems like ages - i bought in gladstone in 2010 & seen a 50% rise in both capital value & rent .. & the townhouses have never been empty .. you can see my observations of gladstone in the gladstone thread.

I asked the question because my feeling is that there is very little direction in the market at present .. all the state governments are all bust & have no money for investment, RBA is petrified of a property boom & everyone is nervous about keeing their jobs .. so i was wondering where the HOT money is at present .. I live in adelaide & the press coverage only extends to elizabeth, mt barker & aldinga! .. from the posts so far i'm happy to see that inner east sydney is alive & well - & there seems something of a revival in mandurah / southern perth - for my budget i'm probably priced out of eastern sydney & i just dont trust mandurah after the last time it went pear shaped over there - south australia is a no no, i'm paying too much land tax here as it is

to be honest i'm out of inspiration as to where to invest at the present - i'm thinking that the only way to make any real money at present is by developing & there is enough of that going on in gladstone at the moment!
 
We are looking at Adelaide's southern suburbs at present,just settled on 1 in Christie Downs.The expressway duplication,coupled with the new rail line should see some good gains.Settled on Monday,had 1st open,14 couples/families went through.May run again in Christies Beach.
 
DavidMc said:
G'day STB. With the benefit of 20/20 hindsight, you don't want the area that is HOT, you want an area that is GOING to be HOT. I'd checkout Gladstone.

The area went from 400-ish up to 550-ish between say 2008-2011.

I bought at the end of 2011 (i.e. the peak! - doh!). Lucky the cash flow has been great!

All the investors ran into this 'hot' market, H&L packages were built in a big way, and then the market has been flat for the unique/quality stuff and a decline on the stock standard dime and dozen stuff since end 2011.

What you would have built for 500k 2 years ago you can now get for 430k if you can find a desperate vendor. Normal price is around 460k. These would still rent for $600-650pw.

It is absolutely a BUYERS market at the moment and this has made the yields even better. They are still very good at 8-9% (the long term average for the city is ~6.5%). Vacancies are high at around 5-6% however if you can mitigate this by just charging less rent, waiting for the oversupply to be consumed and go for a nice ex-OO property (I would avoid inner CBD high rise and H&L packages - basically anything the marketing companies try to sell). In the last two years I've only had about 2-4 weeks vacancy only.

The area got a lot of interest for very good reason, it still has very strong long term prospects - the world (esp booming SE Asia) has an insatiable demand for our resources in particular GLNG (Gladstone Liquefied Natural Gas). 20 year contracts are in place. Take advantage of this downturn, do better than me (I have learned my lesson), go against the herd and buy well.

Disclaimer - I have property in the area.
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Cant agree more
 
No just my research via the net and lots of reading and then a quick visit....land in Perth now is scarce.

Lot of estates do not have any land ready for building...most are selling with registrations 4-6 months out.....

bondibouy said:
Hi Sash
Are you using a buyers agent to purchase your properties in WA?
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I'll ley you know how I go with Mandurah in about 12 months when it is built. Lets say that there are things are going to go in the estate I am buying.....not a dead cert....but it is likely to happen.

The reason why people lost their shirts in Mandurah is because they got in late. Perth land has dried up.....now people are looking further afield. The Brits and Sooth Africans love it there....the distance is nothing compared to what they are used to.

People told me that I would not make money in Butler.....I am about 90-100k up in about 18-20 months.

singingtheblues said:
from the posts so far i'm happy to see that inner east sydney is alive & well - & there seems something of a revival in mandurah / southern perth - for my budget i'm probably priced out of eastern sydney & i just dont trust mandurah after the last time it went pear shaped over there - south australia is a no no, i'm paying too much land tax here as it is
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norwoodman said:
If you're going to buy where the market is hot, aren't you already a bit late to the party?
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yes, thanks norwoodman .. if you read the post then i did say i didn't want to buy in a Hot area, i was just interested in finding out where the hot money was - more for scouting out the ripples & adjacent suburbs

.. sorry, i said east sydney .. i meant west .. never been good at geography

.. i'm over in WA in a few wks time, so might have another look at mandurah .. has all that old oversupply gone now? .. all those off the plan buys that lost their shirt a couple of years ago?
 
FYI Terry Ryder is doing a free webinar on his thoughts on the Melbourne market next wednesday if you are interested.

Todd Hunter from whereproperty is also buying in Victoria at the moment I believe, his strategy is to buy via lowball offers in dead markets with good prospects - which you could easily say Victoria has been for the last 3-4 years.

Personally, I think the Melbourne market is patchy at the moment. Inner North is going very well but inner South (i.e. Albert Park / South Melbourne - ish) is pretty quiet. More discussion over on in another thread on the Melb market.

Victoria is still is still getting the most number of immigrants of all the states, however the yields are still pretty average...
 
cozmicmel said:
Id say anywhere within 10km from Sydney cbd in particular inner west. Unit next door to mine in Earlwood (kinda inner west) just sold for $510,000 last year you would probably have only got $420,000. I have just let it sit and watched it grow Id never have thought we would have got to half a mill in value so quick.
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I'll pay this (Inner West) Marrickville has been performing identically (see: astonishingly). I was looking to pick up a 1 bedder and have been well and truly priced out. No sign of slowing down. I'll wager 7%+ CG avg for the next couple of years at minimum.
 
sash said:
The train has definitely left the station for Perth but it has not peaked.

I just bought a small strata lot in Wellard and am building a house for 305k (includes 140k for land). Getting a decent block on Wellards for less than 180k is now impossible where as it was possible less than 4 months ago for 165k.

I know that one block of land down there came back on the market for 189k as someone could not settle. The land was sold 9 months ago 165k!

Mandurah is next on ....I believe it has not moved yet. I just snapped up a small cottage block for 133k. Will build on that for a total price of 302k.
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A mates brother reckons South Yunderup in Mandurah will do well soon. What do you think?
 
lots of mention of Wellard. are you worried once all the new houses being built comes into market there will be a glut of houses for sale/rent?
 
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singingtheblues said:
It has been Perth, Mandurah, Frankston, Western Melbourne, Western Sydney, Gladstone, Brisbane hinterlands, Qld Mining towns, Darwin, & heaps of other places too (as no doubt i'll get reminded) - these were all 'Hot' but now they've done their dash .. so where is the new hot? .. i can't think of anywhere that's running hot or the next big thing .. what are your views?
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Development sites (2/3+ unit sites) are still very very hot anywhere in Perth metro area. Also, properties that are currently under review/earmarked for rezoning, still running hot Perth metro area.

Have seen approx. 33% growth in 8 months on one of my deve sites and still rising.
 
"Have seen approx. 33% growth in 8 months on one of my deve sites and still rising."



i think i know which suburb that one is. i really regret not getting into that suburb earlier. =)
 
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