halcyon 52

Hi all.

Just come back from Perth and have been looking at house prices for over a year and have noticed how they have rose in the last 12 months. My brother has been there for 18 years and cannot afford to get on the ladder.He is no expert but thinks the hikes in price are over. The U.K market has become unaffordable for many so the market has peaked and people are even cutting the price of their house. My b.i.l. here in the u.k just bought a house for £75.000 under asking price (it was £475.000 originally)and I have heard of others like that.

The reason for post is that we are going to rent our house out in the U.K and hope to go to Perth in July/August 2007. I am just worried about never getting on the ladder in a couple of years time if we decided to stay in Perth.

I suppose its not worth worrying about things too much as situations change all the time and the U.K market is flat so it might be worth renting anyway.

Just interested in views on the housing market in Perth at the moment and in the next couple of years.Cheers James

movetoperth

IMO it will slow down over the next few months, but i can't see prices dropping until the demand for property dries up. But i do think it will affect different areas in different ways.

Lynn

halcyon 52

Hi Lynn.
It does not help with people moving to Perth from the U.K and other areas with large amounts of money so I suppose that is inflating things as well.
Someone said it is one of the fastest growing cities in the world but I have no idea about that.

movetoperth

It wouldn't surprise me if it was up there amongs the fastest growing cities for now. There was a similar, although not quite as bad, spurt in late 2002 where certain areas experienced out of the ordinary growth, but it slowed down again. I think the thing that makes it look worse is that up until fairly recently Perth prices have been undervalued in comparison with other state capital cities. I also believe that many people choose Perth to migrate to because they think that it's a cheaper option housing wise than elsewhere, there are fewer and fewer areas which come into that cateory now.

Lynn

halcyon 52

At least if the prices are the same on average as the U.K at least the houses are bigger so in theory they are still cheaper - cheers James.

sj oldfield

Talking to a bloke from the Real estate today and he reckons the priceare going to continue to rise for the next year or so, or until they catch up with the prices of the eastern states.
Very worrying. We are in the process of selling 2 properties and buying a real dream home. The more the prices rise, the bigger the wad of cash that will go to the bloody state in the form of stamp duty!!!

sassenach

i am a bricklayer and our team is turning out 3 units a week and it isnt slowing down and the demand is still there .Units and houses are going up by a granda week ,it obviously cant be maintained but most real estate guys reckon this has another 12 months to run yet in WA then prices will flatten off .It really is as expensive as the uk here now especially if you are moving up the ladder as stamp duty is a killer .Even dodgy areas like girrawheen ,koondoola,balga,westminster are commanding 300000 plus now and no one in their right mind would want to live there .As long as china keeps booming the west australian economy will march on .

OriginalSunshine

how much is stamp duty nowadays?

sassenach

400000=15700 stamp 450000=18200 500000=20700 550000=23400
600000=26100 all west australian rates

movetoperth

It depends where in the UK you compare it too. The price variations between different areas of the UK are vast, just as they are in different areas of Perth. There is a general misconception that most people moving here sell their house in the UK for "southern" prices and come here cash rich and can afford to live in a $700k+ suburb, the reality is that most people come here with a small deposit to put down on bog standard home in a middle of the road suburb. I think many people are dissapointed by what they can actually get for their money.

As everyone says, stamp duty is a killer and is the thimng that can stop many people from moving as they cannot afford to pour the guts of $20k down the drain. There are rumours that it will change but i wouldn't hold out for a change that benefits anyone other than first time buyers.

Lynn

movetoperth

Sandra

Where's your dream house then?????

Lynn

marson

Hi all,

We arrived in the Perth area in January, prices for an average 4 x 2 were at the 290k mark, we wanted to hold on buying until we were very happy with an area, so we rented in Quinn’s’ Rocks.

Prices have gone mad, in the Quinn’s’ Rocks Area the ‘cheapest’ house is going for $385k although it has an under offer sticker on it. The house is on a very small plot and is right on a round about.

All the estate agents we have talked to say the houses are going to continue rising for the next 3 years, but then they would say that to make people feel desperate to buy. We get fliers in the post almost daily offering free appraisals, they are short of houses to sell, which is causing a bidding frenzy for the few they have.


www.realestate.com.au

We have only lived in Quinn’s for 3 months, and that’s enough for us - if you listen carefully though the noise of idiot boy racers doing burn outs and street racing down Marmion / Hester avenue, you can practically hear the banjos, well you would if the sound of barking dogs coming from every house didn’t drown it out. Scratch Quinn’s from our list……

Stamp duty varies depending if you are a first time buyer, and there are 2 different types of stamp duty, this is a calculator for it all.
http://www.echoice.com.au/servlet/Ho...stampduty.html

Stamp duty is going to be phased out though, but it will be a slow reduction in the duty over a long period.

Hope this helps a bit, contact me if you want specific info on an area.

Mike

movetoperth

Mike

was that Jan 2006 you arrived? If so then maybe bottom end prices in Quinns may have been around $290k but certainly not the average price. I personally don't like the newer estates in Quinns and neither primary school is very highly though of either, but i love Old Quinns. If it's space and a bit of privcy you're after look to the hills, it's beautiful. Good luck in finding somewhere that suits you

Lynn

halcyon 52

Thanks for all the thoughts, there are some good views here.

We first looked at moving over a year ago and as pointed out the reality of Perth is different to what you think back in the U.K. If we do sell we would have a large amount of money and could buy in a nice area but would still have a morgtage and a year ago we could probably just manage an outright buy for around 400k$. The thing is though the house we would have in Perth we could never afford in the U.K and that is the difference people forget.

Its where you set your sights as well. If you want to live at Ocean Reef or Hilarys then most people are going to be very dissapointed, we could not afford the big house there.

We rented on Hocking and to be honest we thought it was O.K and friends and people we spoke to said it was a good area. We live on a good estate in the u.k and have 2 kids and we are not bothered about ocean views so again its all about what you want.

One thing that did suprise me was the fact that the houses in Perth were on smaller plots than I imagined and are built just as close together as houses in the U.K

No one can really say for sure what will happen as even the "experts" get it wrong. As I said the U.K market is flat and the building societies are still talking it up and saying it will rise but I dont see it.

Sunny_Glesga

Well, as it stands now i have a mortgage on a 3bed Semi in Glasgow roughly 300msq. I originall bought the house for £50,000 in Dec 1995. I have since added to te property and build boundary wall/fencing at front and now have 4 bedromm semi

The valation of tis Now is around the £120,000 so htis would give us a bit to take with us, prob once all the fees for house and all the travel expense to OZ we will look to put down £50,000/ $120000 on a house

lets say we were to look at having same size mortgage over there we then be looking at say $120000

SO! the money we would have and the mortgage we would have to get to keep similar to what we pay now would be $240000

Just 1 Q, What would we get for $240000


Unlike a lot of ppl on here that may have paid £150000 for their house and now can sell for £350000 it looks like we will find to hard to get on the property ladder withought paying much more that we would hope to

I need to laugh when i hear stories, OHHHHHh i had to drop my house price by £20000 then another £10000 FFS


If i want to live in a decent are it looks like i would have to look for maybe $250-280K as a Mortgage yes?

This also as far as i can see would have to come with an income of roughly $90000 Per Annum

OK! so i`m a Plasterer, Will i earn that in Perth or WA anywhere?


A few comments would be good