Perth going gangbusters!
 

At $58,300 a year, WA workers now top the States' rich list

http://www.thewest.com.au/default.as...ontentID=13432

Boom to fuel more growth in house prices, despite interest rate rise

http://www.thewest.com.au/default.as...ontentID=13432

Wow :eek:

Re: Perth going gangbusters!
 

It's forecast that for the first home buyer market, homes in Perth will be the most expensive in the whole of Australia just into 2007. Can you believe it's going to be cheaper as a first time buyer to find a property in Sydney than in Perth? OMG. :eek:

The rising house prices in Perth is a worry for many, not only those already there but those Brits flocking for a taste of the good life. Better get there quick, or look elsewhere.

Paul.

Re: Perth going gangbusters!
 

Too late. Perth's very nice, but not "most expensive place in Australia" nice.

Re: Perth going gangbusters!
 

This is not having a go at you but generalisations are pretty useless,Perth more expensive than Sydney?An average means nothing,there are a lot of areas in Perth where a good house can be bought for $350,000.New 3 bed 2 bath villas can be had at those prices,go up to $400,000 and you have a large choice.Rent is dirt cheap,a house can be rented for 2-4% of the purchase price.The 'west 'is a bit of a rag,they were saying during the week that Forrestdale had a 90% (memory) jump last year.I drive to work through F/dale,have done for probably 15 yrs all up,it is a rural area.There were very few houses there until the last12-18 months when it was opened up.From no sales in the area to new blocks with houses on at around $430,000 up,and the west comes out with 'huge price increase 'nonsense.Recently we had Jenman saying prices will drop 20%,others say prices will rise but more slowly,nothing can sustain a 40% increase ,of course prices will slow down.Depending which expert you believe prices will drop drastically next year or rise in the region of 6-10%,which expert has the crystal ball tuned in properly?When there is a shortage and a boom,prices go up,when demand slackens prices go down.The last boom,(87-90 ish) the boom was never going to end,when the slump came ,the bust was never going to end.After all these years it is amazing why people still believe in experts or newspaper headlines.

Re: Perth going gangbusters!
 

Yes Geordie, all very true . But paper's sell headlines because average investor's treat them as respectable market research, even if the 'facts' are skewed, out of context, or misleading.

Re: Perth going gangbusters!
 

Highest wage in the country is usually mount isa :scared: , because of the mines, much the same for 'perth' they are talking WA including the mines, if your not in mining would you wages be higher than sydney, might pay to check ;)

Re: Perth going gangbusters!
 

The ABC has quoted median house prices in Perth have risen by over 40% this year. Official estimates quote that for the first time buyer it will be more expensive to buy a house in Perth than it will in Sydney by the first half of 2007 if the trend continues. Sydney has suffered a drop in house prices, Perth a rise.

Now that's not to say that Perth prices wont follow the same as Sydney. As you quite rightly point out, house prices do rise and fall and "the experts" do have differing opinions. Headlines do sell papers. But repeated rubbish headlines only lead to one thing, which does the newspaper in question no good.

Eventually there has to be some levelling out if wages remain the same or increase only slightly and a rising interest rate impacts on what people can afford each month. However, if demand out-strips supply and wages do go on increasing, forced upwards by the booming mining sector surrounding Perth and its inhabitants who fly out of the city to work, house prices will continue to rise until affordability for the local population of first time buyers or those earning less than an 'average' wage is an issue.

No offence taken mate. That's what forums are about. :D

Paul.