where is the bargains in Perth

[Samwise]

the properties around me dropped about 30% last year... I bet a few owners wish they had CF+ properties in the boonies instead. nothing like watchign your property drop in value whislt you fund weekly losses!

I partially agree... if youre in for the long term then capital growth can only be realised at the time you wish to sell (or use the equity to fund subsequent purchases). If you subscribe to the idea that, on average, property increases at 7% per year... and you buy in a suburb that shows growth in excess of 7% in the long term, then it should eventually come good.

Yes ideally you want cashflow and growth, i'm just wondering what the best mix is if you can have the best of both...?

 

[Samwise]

the properties around me dropped about 30% last year...

Just out of interest can I ask where that is?

I'm guessing probably high end, low end, sea change or suburban sprawl type suburbs... not your 2-7km inner city suburbs for which there is usually less price fluctuation away from the average?

 

[Ausprop]

Just out of interest can I ask where that is?

I'm guessing probably high end, low end, sea change or suburban sprawl type suburbs... not your 2-7km inner city suburbs for which there is usually less price fluctuation away from the average?

I was looking at swanbourne, claremont, dalkeith, cottesloe. the place i had my eye on in Swanbourne was off a true 33%. also city beach and floreat were hammered. I am told some places in applecross took a 40% knock

 

[Ausprop]

here is some sales evidence for a house near me... is back on at $1.9m now


Jan 10 - on the market at 1,900,000
21/11/08 1,650,000
28/07/07 2,020,000
12/08/05 1,310,000
28/11/03 1,050,000 (first sale as a house)
24/10/02 277,000 (vacant land)

FWIW, the hoiuse would have cost $400,000 to build back in 2002. Now would cost $800-$1m.

 

[Samwise]

I was looking at swanbourne, claremont, dalkeith, cottesloe. the place i had my eye on in Swanbourne was off a true 33%. also city beach and floreat were hammered. I am told some places in applecross took a 40% knock

OK, so not your typical investment property stomping ground, thats what i was getting at...

 

[Ausprop]

OK, so not your typical investment property stomping ground, thats what i was getting at...

yeh but that's the 2-7km range... otherwise it really only leaves rivervale, cloverdale etc. Mt Lawley, East Perth, South Perth are all the same dog as the ones I mentioned above.

 

[Aaron Sice]

cashflow AND growth are both important - couldn't agree more.

so fund the high growth, low yield property with the low growth, high yield one - x-col them and be done with it.

 

[Samwise]

so now i have to buy TWO properties... ?

 

[HiEquity]

so now i have to buy TWO properties... ?

Two hundred would be better! Or twenty of the same value even better again - two hundred would be a bit of an admin headache even with the best property managers etc

 

[jaycee]

yeh but that's the 2-7km range... otherwise it really only leaves rivervale, cloverdale etc. Mt Lawley, East Perth, South Perth are all the same dog as the ones I mentioned above.

no other suburbs 'exist' within 2-7km's of the cbd, or no other suburbs with decent opporunity ?

 

[Ausprop]

no other suburbs 'exist' within 2-7km's of the cbd, or no other suburbs with decent opporunity ?

well there are only so many and a complete list would be pointless

 

[jaycee]

that's what I mean all those suburbs combinea are surely the majority not the majority of 2-7km proerties in perth with, compared your mentioned dalkteith's etc ?

 

[Samwise]

10 yr growth stats for CBD satelite suburbs...

PERTH METRO 11.3%
South Perth 11.1%
Como 11.4%
Victoria Park 10.7%
East Vic Park 13.0%
Rivervale 11.7%
East Perth 17.3%
Highgate 9.7%
Mt Lawley 10.7%
North Perth 11.6%
Leederville 12.3%
West Perth 10.4%
Mt Hawthorn 11.6%
Wembley 11.6%
Subiaco 11.6%
Glendalough 12.6%

all pretty similar... how to choose between them? Yields dont differ a great deal

 

[Rixter]

What constitutes a suburb being a satellite cbd because some in that list arent?

 

[Samwise]

within a few kms of the CBD...

does it matter?

 

[Ausprop]

I thought the satellite cbd's were joondalup, mandurah and midland?

 

[Ausprop]

that's what I mean all those suburbs combinea are surely the majority not the majority of 2-7km proerties in perth with, compared your mentioned dalkteith's etc ?

I'm really confused!!

 

[Rixter]

does it matter?

Well yes it does...being a few kms from perth cbd doesnt cut the mustard tho....if it did then Joondalup, Midland, Cannington or Armadale for examples wouldnt make the list.

 

[Rixter]

I'm really confused!!

Makes 2 of us

 

[Samwise]

Ok said "satelite", meant "suburbs within 2 - 7km of the cbd". My bad.

I'm just trying to work out if there is a significant benefit of one suburb over another (from those listed) in terms of potential because the last 10 years doesnt seem to show any stand-outs (apart from east perth).

i.e. just pick any?