Re: Perth is Full
 

$550 per week would get you a mortgage for about $400K, would the property be worth more or less than that?

As a rough guide from an investement point of view the weekly rental needs to be roughly the same in $K's of the property value for it to be a realistic investment.

So on that basis the property should be worth approx $550K.
So your looking to rent at $550 per week your effectively able to get a property worth $150K (or 35%) more than you could afford to mortgage at.

Re: Perth is Full
 

If this were the case I should be paying $1,100 a week instead of $400.

The possibility of having to leave Perth if we get kicked out/house sold etc is VERY REAL.

In fact, the owner is having a valuation done this Friday :scared:

Re: Perth is Full
 

full of expats - and there are more on the way :) :) :) :)

Re: Perth is Full
 

I hope they've got PLENTY OF CASH!

Re: Perth is Full
 

we're paying $350 and should be paying $1800 on that calculation

Re: Perth is Full
 

the very fact that people are beginning to consider moving out of perth suggests that the market is out of equilibrium.

Re: Perth is Full
 

We are a bit worried about how property prices are rising steeply.
Hopefully we're lucky and find a bargain there - always look on the bright side of life - la, la, la, la .......

(thanks for the warning though - appreciated)

Re: Perth is Full
 

It can't be right that familes with decent incomes can only affort to rent pig styes.

Re: Perth is Full
 

The house is OK but it certainly isn't worth over 3000 GBP per month (equiv of $1800 per week).

What would that get you in England outside London?

Re: Perth is Full
 

This is why I'm still convinced that things won't stay as they are. The whole market thing is severely out of line.

Re: Perth is Full
 

Won't the changes to tax rules re Negative gearing also mean that rents will also rise in other parts of Australia?

G

Re: Perth is Full
 

how does rent v mortgage measure up on the east coast, is it still a case of if you buy a rental the rent won't cover half the mortgage or is it different?

Lynn

Re: Perth is Full
 

Where did you find this information? I have been looking at ATO's homepage, but could not find anything. I thought that net losses in an investment property could be used to reduce your income tax regardless of how much money you earn.

Erik

Re: Perth is Full
 

Uh oh that doesnt sound good mate, how long have you got left to run on the lease? any chance of talking the owner into extending it prior to him selling?

Still happy to start looking out for a new job for you if that helps in anyway.

Id say buy something and get on the ladder over here, Hamersley/Warwick/Greenwood, $300-$350K for a 3x1, get the biggest rundown thing you can thats within walking to the trainline. spend $50-$100K on renovating it to a decent standard and ok your not in what your renting now, but your in a pretty good allround location thats only going to go up in value.

Re: Perth is Full
 

Your paying $350 a week to rent a property worth $1.8M :eek: , id suggest trying to get a 25yr lease on that place immediately. or offer the owner $500K for it, if he's only charging you $350 a week for something that would cost nearly $8,000 per month to Mortgage you never know your luck. ;)