Brain Picking - where would you buy in Perth?
Jan 10th 2013, 10:33 am
#31
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Joined: Aug 2005
Location: Perth (ex Oxford)
Posts: 411
Re: Brain Picking - where would you buy in Perth?
I wouldn't touch Perth these days unless it was a house I wanted to live in. I do believe the days of sitting back and watching the price go up is largely a thing of the past. Of course there will be blips but Perth saw such massive raised from 03 to 09 I do not believe it will be repeated again or even or even close in this cycle.
The mining seems to be shedding numbers of staff and the boom was after all the reason for Perth prices to go sky high in everything including housing.
Without a boom I don't see a lot of folk remaining here as there are plenty of other places paying big bucks for those in the area.
I know folk here seem to have some blind soldered faith in housing but I've the feeling it's been done. Anyway I have been looking at investment for sometime and shyed away from Perth prices.
The mining seems to be shedding numbers of staff and the boom was after all the reason for Perth prices to go sky high in everything including housing.
Without a boom I don't see a lot of folk remaining here as there are plenty of other places paying big bucks for those in the area.
I know folk here seem to have some blind soldered faith in housing but I've the feeling it's been done. Anyway I have been looking at investment for sometime and shyed away from Perth prices.
Like others have said, Perth has a distinct shortage in rentals and there is no sign of this letting up anytime soon. I see this all the time as new migrants who join the company that I work for consistently struggle to find rentals.
Jan 10th 2013, 10:42 am
#32
Lost in BE Cyberspace
Joined: Oct 2008
Location: Perth
Posts: 6,775
Re: Brain Picking - where would you buy in Perth?
Yep. Should be better than 4.85% term deposit plus the aim is to buy a fixer upper or one with land to build a second home - all tax deductable. I aim to negatively gear the purchase to offset tax owed and storage costs for my furniture (500 per month!!). Happy to be convinced its a crap idea....??
I guess France is no longer an option..............in the moving department......
Jan 10th 2013, 10:52 am
#33
Lost in BE Cyberspace
Joined: Oct 2008
Location: Perth
Posts: 6,775
Re: Brain Picking - where would you buy in Perth?
You were saying this over 3 years ago mate
Like others have said, Perth has a distinct shortage in rentals and there is no sign of this letting up anytime soon. I see this all the time as new migrants who join the company that I work for consistently struggle to find rentals.
Like others have said, Perth has a distinct shortage in rentals and there is no sign of this letting up anytime soon. I see this all the time as new migrants who join the company that I work for consistently struggle to find rentals.
I've been associated with WA a long time and am yet to be convinced the boom bust cycle is still not part of the way things pan out here.
At the end of the day it's only a forum guys.....none have any special insight and only go on gut feeling...all is lakker....
Jan 10th 2013, 11:58 am
#34
Forum Regular
Joined: Sep 2012
Posts: 214
Re: Brain Picking - where would you buy in Perth?
It is the costs around namely deeds, strata title fees, insurance, rates, water,management fees, little growth in prices with a possible decline....but I would never attempt to convince anyone it is a crap idea,we're all adults.....but living in the inner city and seeing my house price increase way over 200% in eight years does get me thinking prices shot over the mark... nobody has convinced me otherwise.....and pay little attention to industry related opinion with self interest in the matter.
You don't get all that strata stuff if you buy a house, and it might not apply to small groups such as up to 4 dwellings, but you'd have to check on that. I'm not sure about how much a property manager charges, it might be 8-10% of the rental. There's also other charges such as inspection fees, re-leasing fees and anything else they can get away with, such as hefty tradesmen fees if something needs repairing or replacing. Landlord's insurance is worthwhile but costs a bit more.
Jan 11th 2013, 2:39 am
#35
Lost in BE Cyberspace
Joined: Oct 2008
Location: Perth
Posts: 6,775
Re: Brain Picking - where would you buy in Perth?
If you can find a property that has the potential to be developed later, by subdividing or re-building/renovating, then you have to do a bit more homework understanding the planning rules in Perth, which vary from one council to another. Plus there's also the potential for the WA govt to decide that we should all be living in units and pack us in like sardines, more and more suburbs seem to be going that way. Property investment is usually a long-term strategy and if people expect to make a profit in a short period they could get badly caught out. TE, try www.somersoft.com for loads of info.
You don't get all that strata stuff if you buy a house, and it might not apply to small groups such as up to 4 dwellings, but you'd have to check on that. I'm not sure about how much a property manager charges, it might be 8-10% of the rental. There's also other charges such as inspection fees, re-leasing fees and anything else they can get away with, such as hefty tradesmen fees if something needs repairing or replacing. Landlord's insurance is worthwhile but costs a bit more.
You don't get all that strata stuff if you buy a house, and it might not apply to small groups such as up to 4 dwellings, but you'd have to check on that. I'm not sure about how much a property manager charges, it might be 8-10% of the rental. There's also other charges such as inspection fees, re-leasing fees and anything else they can get away with, such as hefty tradesmen fees if something needs repairing or replacing. Landlord's insurance is worthwhile but costs a bit more.
I don't see great capital growth at around 3 to 4% with low capital growth..
Of course over the last 30 years ou could have looked a genius by buying something and sitting on your hands waiting for it to go up,so it is not really very surpring that such myths persist.
I know a couple building on a block at the moment as well. Works ok if you can do a lot of the work yourself and/or with mates help. Once outside labour are used costs go up rather sustantially.
Feb 17th 2013, 4:11 am
#36
Lost in BE Cyberspace
Joined: Oct 2008
Location: Perth
Posts: 6,775
Re: Brain Picking - where would you buy in Perth?
They do at the moment, I think so anyway. Rentals are incredibly scarce, not surprisingly since our house prices have risen so dramatically!
You do need to pick your area carefully though. You could spend $400,000 on a very nice 3x2 house in a suburb with a poor reputation, and only get $300 per week in rent. Or you could spend the same amount on a dinky (by Oz standards) 2x1 flat in Mt Lawley and get $500 a week.
Location, location,....you know the rest
You do need to pick your area carefully though. You could spend $400,000 on a very nice 3x2 house in a suburb with a poor reputation, and only get $300 per week in rent. Or you could spend the same amount on a dinky (by Oz standards) 2x1 flat in Mt Lawley and get $500 a week.
Location, location,....you know the rest
There are so many costs to be factored into the plan to buy to rent. Strata fees are something to be really considered. They can even amount to more if essential work is considered necessary. So many owners don't attend meetings. Rates and water around $2,000 a year.....the costs go on. With inflated prices here in Perth,I think I can find better places to park money.
