Re: Blocks of Land in Perth
 

I'm in that category. It's either rent forever, or if rent gets too expensive, which is what it looks like it's doing then either move to Adelaide or FNQ.

Re: Blocks of Land in Perth
 

But.... if you had your time over again would you do it differently?

BTW i remember you saying your landlord was getting your house valued, do you think he'll sell up or hike the rent? or will thinks just stay the same?

Lynn

Re: Blocks of Land in Perth
 

Hmm, good question.

We are very attached to our house in the UK and didn't want to sell it before moving over. I think we probably should have sold it about a year after we moved when we saw a nice house which we could afford but is doubtless now way out of our price range.

The landlord got the house valued by a valuer not a real estate agent so I believe him when he tells me it's to obtain another loan.

If the landlord really wanted to sell the house I think we'd sell in the UK and buy it off him privately and save him loads on real estate agents fees so giving us a slightly better price.

Re: Blocks of Land in Perth
 

Agreed, this property obsession is insane.
It's now all about money/equity blah blah. Every tom dick and harry wants an investment property, to quote " it's my pension". :confused:
Once upon a time the house you bought was a home. For some the word investment has taken over. Some people obsess about how much the value of the house has risen, perhaps forgetting that it's no good for them should they wish to move in the region. It's only good when you sell and then rent or move out of the area with a few bucks in the bank.( ie UK migrants)
Also, those young couples/first time buyers camping out for block releases paying a lot of money may, in otherwords be at risk of being lambs to the slaughter financially. Sucked in by the VI spin machine.

Re: Blocks of Land in Perth
 

Maybe you should suggest it to him and see what he says, then you'd know for sure ;)

Lynn

Re: Blocks of Land in Perth
 

I just don't know what to do. I'm not in any hurry to buy in to the market right now. I won't be panicked into buying.

Re: Blocks of Land in Perth
 

Ok but don;t whinge in 2 years time if you're living in some remote god forsaken area of QLD dodging cassowary's and sweating buckets :D :D

Lynn

Re: Blocks of Land in Perth
 

This is an interesting thread and a lot of sense has been talked. So I'll change that pattern. Land price inflation will almost certainly continue in the short term but in the outer reaches of Perth it will undoubtedly have the brakes put on at some point by 2 things:

a) the continuing increasing cost of fuel ($1.40/L across most of Perth today) making it less desirable to live too far out. Moreover, there will almost certainly be some action in Iran in the not too distant future which will send the price rocketing; and

b) the slightest hint of a global recession associated with a) will put the brakes on the Chinese economy and WA's bubble will pop.

In summary and as has happened in the past and will happen again there will be an adjustment at some point and that's the time to jump in quick and buy

Re: Blocks of Land in Perth
 

I think you've hit the nail on the head. Everywhere I turn people seem to be pressurising me to buy....real estate agents being the main culprits but other investors and home owners also.

If I bought now I'd not get anything where I'd be prepared to live or be prepared to send my kids to school. I'd also be a long way from my place of work.

So why bother? I can't be in it now so I ain't going to worry about not being in it in two years time.

Might as well just sit it out - and as I said before if it means that when I eventually want to buy that I can't buy in anywhere decent, I'll move states (or countries) and find a place where prices are more sensible and in line with salaries.

I do think there is a word of caution to potential migrants to Perth though. If you have a lot of equity from a house sale - probably in southern England - fine. If not and if you have a 'normal' salary (50K to 90K?) then I think you may be making a mistake if you think you may be able to access a large house in a nice area with decent garden space.

You may wish to head east where salaries are higher and house prices are the similar.

To make a comparison - I currently earn about $80K. If I sold my house in the UK I could release about 100GBP equity (tops). I'd still find it difficult to buy something decent in a decent suburb with an affordable mortgage.

Re: Blocks of Land in Perth
 

I get so fed up of people asking me"how much is your house worth, how much did you pay for it" and all that..... yes its gone up by quite a bit and i would like to look at getting something bigger as my kids get older and need more space, but there is no way i can do this without getting a much bigger mortgage, so whats the point, i liove in an ok area, i have enough space, I'd like a bigger patio/garden/en-suite/garage and an extra bedroom, but i can get by fine without them, not be overstretched and if some sort of shit happens i have a nice bit of equity in there if i need it.

The bottom line is that this is my home, I have no intention of moving away from Perth and our house suits our current needs, if i want to make any changes/improvements to it, i'l be stopping and asking "will this improve my life" not "will this increase the value of my property".

Lynn

Re: Blocks of Land in Perth
 

Well said

Re: Blocks of Land in Perth
 

Hmmm, fair point.

But you have to be capable of buying it first! :eek:

I certainly wouldn't buy any of those Perth blocks. I'd much rather have a house in the Adelaide hills.

And since I've already got an investment property in Tasmania, I don't need another one! :D

Re: Blocks of Land in Perth
 

What renth is describing in Perth happened in QLD about 3 years ago. People were camping out for 300 m blocks but it was discouraged and instead land went into raffles, if you knew someone :rolleyes: your number came up.

Now people have lived on 300m blocks realised the cell like lifestyle they give and the whole event has gone full cycle people now want acerage under 10 minutes to the beach, its impossible to find, if it comes up its prices are extreme yet people are on waiting lists to view anything that comes up, that includes us, currently we are looking at asbestos filled house with a pool so feral it is now a dam yet it sits among houses worth ridiculous sums because people are desperate for a bit of space.

Perth seems to be doing what happened over here. What stopped it and stabalised prices was 2 tiny interest rate rises around Dec 2003, it flattened the market in months.

With petrol prices pushing inflation sky high, interest rates are looking 50/50 to rise in australia, even small rises coupled with petrol and food prices which 90% of australians said are now seriously affecting their budget will hit hard.

I personally would look at WA with the hindsight of what happened in most other states in OZ a few years ago, they all did the same thing really, cracked when interest rates hit, australians seem far more sensitive to even small rises than overseas.

Re: Blocks of Land in Perth
 

Yes, that's very true. And when you look at the figures, it's not hard to see why.

People in many (if not most?) other Western nations do not own their homes; they rent from somebody else. Consequently, they remain largely unaffected by rising property values (and costs.)

By contrast, nearly 70% of Australians live in their own house. Nearly 25% of these people have no mortgage debt at all, having already paid off their house. The remainder are busy throwing money at the mortgage, secure in the knowledge that they, too, will own their houses completely in time.

Consequently, about 75% of Australians do not pay rent at all.

Australians are a mobile bunch of people; on average, we tend to move house every seven years. By far the most common reason for moving is an upgrade to a more valuable property. This is made possible by a high level of equity in the previous house.

In short: it's our high level of property investment and home ownership that makes us so sensitive to every ripple in the real estate market.

Re: Blocks of Land in Perth
 

Here's the first one:

http://www.news.com.au/story/0,10117...08-462,00.html

Reserve lifts interest rates