A rant about house prices, WA
 

Can someone please either condemn/commend, Whatever you feel about what i am about to say.


As far as i can see if you want to live in any sort of decent house( most mention 4 x 2) in perth you are looking at forking out the $400k mark as a starting point.

Now! i am making an educated guess here so bare with me on this one! The average Mr Smith with partner and lets say 3 kids( hence 4 x 2) would have a single income of $50k PA or maybe Joint Income of $70-80K. (slate me if i`m wrong)

Now, as i believe (slate me if i`m wrong) you would be eligible for a mortgage of around $150k on the single income or $280k with the joint income ( all again based on the 3x for single income and 3.5 for joint income)
I know, I know, not like the UK works! BUT, before you make any other comment, Do you honestly feel that you would be happy to have a Mortgage that is lets say, 5 or 6 times your annual income?

First Point! if the house prices are that high ( around $400) for a decent house then to live there you would need to put down as a deposit of $120 - $250k

b, How many people on this forum plan on taking any amount of £`s with them to manage on the single income and how many plan on having enough for working off the joint income?


Second Point! Going by many other comments made on this site it looks like if i want to live in Perth, have any sort of Comfortable living conditions when i get there ( apart from the hammock in the back garden,If i can afford a back garden) maybe all i will have is a Hou with a Ba Gar with a hamm, then i am well and truly F***** unless i do one of the few below.

a, Win the thing in a raffle!
b, get a job that pay`s $100K PA
c, Get the Missus a job that pays more! :D



All comments on whether this really was a rant or its just me talking P**** cause i dont know how to spoke my words properly

Anyway, i can use this against the Missus as i want to build our own house as i will save a few $ ! WHAT? I cant get land for any less that $250k just about anywhere that is within civilisation?


One little simple Question: Do we all that plan on moving to Perth have Loads of £`s to take over ( not a worry) or do we just not give a S*** what we stay in as long as we are there? or are we trying to Hide away from it all and get a shock when we get there

Or is it that there are just so many ppl on here talking S*** about what the market is really like


Well? Give it to me ;)


PS: Visa Application Sent today :o :D

Re: A rant about house prices, WA
 

This is why I'm going to Adelaide :D

Re: A rant about house prices, WA
 

You never fail to impress me Wendy! :p

Re: A rant about house prices, WA
 

My hubby will have a decent salary but we are not taking over loads of ££££s as we only bought our house in the UK 3 years ago so we haven't made much profit. We are on a temporary 457 visa so we'll have to put down 20% deposit. We'll only be able to afford something a bit under AUD400k.

I think we're all a bit worried that we won't be able to afford to buy property as the prices keep increasing so quickly.

Re: A rant about house prices, WA
 

Think I might join you - damn why did I book that reccie to Perth! :D

Re: A rant about house prices, WA
 

same as wendy...except we we're going to the east coast...however it will be interesting to see what will happen in the sense that if no-one can afford to live there...who will go there anyway

BTW ...stop whinging...lol :D

Re: A rant about house prices, WA
 

I think that's a fair comment, I know it worries me, but we're too far off to worry about it at the moment, will reassess nearer the time.

Re: A rant about house prices, WA
 

we are all worried about the prices in perth, we are taking about £130k with us so not in too bad a position but still not certain we have enough

we are hoping to be there in october so we really need some help

surely someone in perth can give us an insight to the house prices at the moment and what we can expect for our money,

isn't that what this forum is for, helping people and easing their worries?

steve

Re: A rant about house prices, WA
 

I'm sure they will when they wake up. Just keep the thread near the top.

Re: A rant about house prices, WA
 

We're in a similar situation, since we're both self-employed and thus won't qualify for a standard mortgage, just a lo-doc. For a lo-doc you have to put down between 20% and 35% of the purchase price (depending on lender). There are houses near where we're moving to that fall into our price range, but that doesn't mean we'll see one we like. With that in mind we plan on renting for a year or so to build up the necessary credit paper trail and then buy; putting the money we would have spent on the mortgage into the same high interest account we'll have our pot of money in. I'm not familiar with the property market in WA, but we've found there are plenty of areas you can buy in our neck of the woods as long as you don't imagine you'll end up with some Arkon-sized country estate. :)

Re: A rant about house prices, WA
 

How do we do that Wendy? :D

Re: A rant about house prices, WA
 

By keep doing this...... :D

by the way we opted out of going to Perth for the same reason as mentioned ie too expensive,and it's gonna rise :(

Re: A rant about house prices, WA
 

will help keeping post at top.... :D

also we're not looking at perth cos of the house prices, looking at brissey, SA but most importantly its got to be where the work is... :)

Re: A rant about house prices, WA
 

I'm worried for all the same reasons!

We're heading for Perth but we have the added worry of being first time buyers, which means no house to sell and next to no capital to take with us, we'll be lucky if we have £20k to take with us! But the way I see it, we've got sod all chance of getting a house over here so we may as well go to the sun and have sod all chance of getting a house there instead!! :D

Re: A rant about house prices, WA
 

I have a Bro in Sydney we went to see last year ( jan- Feb) we originally thought this is where we would have gone until we seen the costs there and decided to look at Perth after that.

Perth Deffinately looked the better option for affordability

I know that you cant decide where to live on property prices alone but it is withought doubt a factor if you cant afford the houses available or cant rent anything decent for what you can afford


Anyone know anything about Darwin? :D

Re: A rant about house prices, WA
 

i have to give it to you, you have a good point. just curious if you have any kids

Re: A rant about house prices, WA
 

I am not sure of the other states but I thought west Australia was the chepeast state.
We just came back and I think realistically you will get somewhere in a nice area for around $400.000 and maybe $350.000 but be bloody quick. Who knows in a year though? Some people there think the boom in high rises is over and others do not - crystal ball scenario. All I will say is the minute houses anywhere outstrip peoples incomes then it naturally slows things down.
We hope to be off in a year keeping the house in the U.k and renting in Oz and not worrying too much about it. I used to and you cannot change it. :)

Re: A rant about house prices, WA
 

We dont have any kids no, just the two of us, and we've not been living together too long so we are gathering evidence to prove our relationship as well.

I do have relatives in Perth but I wouldn't want to stay with them for very long so we'll just have to see what happens.

I'm more than willing to give it a go though cos I'm not waking up in 20 years time and regretting never giving it a try. I went to Perth for a hol last year and the place is beautiful, so I really do want to make a go of it, I'm just banking on a lottery win to help me out! lol

Re: A rant about house prices, WA
 

I feel exactly the same as you. I'm really stressed about the whole house boom thing and am worried we won't find a house we like and can afford in the area we want. My husband on the other hand is so laid back so I worry even more. He says there's no point in worrying about something we can't control when we're not even there yet. We're also looking for an area with good schools which also raises house prices. About 2 and a half years ago when we were in Perth on holiday we decided, after seeing the boom in house prices, to buy a house then. We were told that we had to be residents to buy so missed out on buying then :mad:

I know this is off the subject but I just found this link. I know lots of you probably already have it in your favourites but I just discovered this section about cost of living, etc which I found helpful. It's a family of four and how much they need to live monthly/annually.

Anyway, I'll try and stop stressing now and think of nice things instead like staying with the in-laws till we find our own place :scared:

Marina x

Re: A rant about house prices, WA
 

Anyone know anything about Darwin? :D[/QUOTE]

Just that our agent ("who is Darryl from Thinking Australia such a funny guy and very knowledgable!")

Said there were only 2 immigrants to Darwin last year - and that he would only recommend we try Darwin after everywhere else turned us down!

Also we met another guy from Perth at the Emigrate 2006 exhibition in Sandown who said Northern Territories were always desparate for immigrants as "no one from Oz would live there because its even too hot for them!" two seasons aparently hot and hot n rainy!

Lets face it the Oz Housing market can't be any worse than the UK Market we must have over 70 million people living in a country 38 times smaller than Australia!

Re: A rant about house prices, WA
 

To all those concerned, please try

www.realestate.com.au

Re: A rant about house prices, WA
 

Yep, exactly what is bothering me also, we'll be lucky to have £10-15,000 stg with us ( damn really must start saving!) and thats going to take the next year saving while waiting for visa so definitely renting for short to medium term, for us its either build up here or take a chance on there ( and start off at the bottom again work wise! - electrician so will have to go the whole electrician helper followed by getting licence followed by contractor and trying to build up customer base again, reckon realistically 2 years in that), but what can ya do, thats the game and hopefully it'll be worth it for the lifestyle, the sun, the easygoing friendly attitude of the Auzzies which is one thing most posters seem to agree on. Dave.

Re: A rant about house prices, WA
 

I think your assessment is a little bit too harsh. :)

Firstly, the UK actually has just over 60 million people. (Source.)

Secondly, it is only 30 times smaller than Australia. (Source.)

Having said that, I think you make a good point about property markets.

Both countries have their hotspots (where property is radically overpriced and booming like there's no tomorrow) their sensible areas (where prices are realistic) and their blackspots (where prices are sub-zero because the area is so horrid.)

At the moment, Western Australia is riding the crest of a ridiculous property boom which has sent prices through the roof; it is clearly overvalued, and should cool down eventually. (The trick is to know when!) Other areas in Australia (such as South Australia, where I am headed) are reasonably static; Adelaide prices have actually dropped a little in the past month or so.

It all boils down to the sort of lifestyle you're chasing, the amount of money you have, the size of the mortgage you're prepared to take on, and the extent to which all of these goals are genuinely realistic.

Remember also that you can often pick up a real bargain by buying outside the suburban area; even a few kilometres here and there can make a huge difference. This is one of the reasons why I am intending to buy a house in the Adelaide hills.

The Bloke has helpfully posted a link to Australia's premier real estate Website; I suggest you spend as much time on it as you possibly can. :)

Re: A rant about house prices, WA
 

We too don`t have a house to sell here so we will not have loads of dosh to put down on a house. I think I`ve accepted the fact that we may have to buy a unit rather than a house, So it`s a case of lowering our expectations -start of small work bloody hard and try to move up, but hey we`d have been in a similar position in the UK anyway :) One thing I have noticed though on the lender calculators that they have, if you put the mortgage in one name (rather than joint) they seem willing to lend you more money, even if you have a couple of sprogs. Trouble is I would rather live in a small place with a smaller mortgage than struggle with a large mortgage. (that`s just my own opinion though)

Re: A rant about house prices, WA
 

I have to be honest and feel that when the boom busts, people in Perth will be more *****ed as it will be even more overpriced. It's like in any housing market the first time buyers and the overstretched are the first to go, in Australia's case, the established suburbs and established economies will go last. This may not happen of course and I'm sure there are exceptions this time.

Anyhow the money situation as you describe now applies to any capital city.
We got around it as I earn $80k+ and we bought a house for $300,000 with a mortgage of $150,000. My mortgage is a 1/4 of an income (Melbourne). This means we can start a family. We would never be able to do this in London.

B

Re: A rant about house prices, WA
 

A lot of people will disagree with us, but I'd rather be poor in Australia than poor in the UK. I've always said that.

Re: A rant about house prices, WA
 

House prices have risen 25% in WA in the past 12 months and are expected to keep on rising.

Re: A rant about house prices, WA
 

Cant agree more with you on that one mate.

Re: A rant about house prices, WA
 

Think it's good to be realistic on this one. We,or rather OH,really still expected the "4x2 + pool" dream home for maybe $300/$350k and thought we'd do it on just his wage & that I could stay at home til the kiddies were at school.
However, we've missed the boat on this dream by a couple of years because of the house prices rising.
Don't know why we thought we could have a bigger mortgage than we did in the UK & how we would do it on one wage :( Obviously didn't do the sums right somewhere along the line, we just got caught up in the whole "Lifestyle" "Better life" hype.
Don't get me wrong,we love it here,wouldn't go back to UK if you paid us :)
BUT now we're here,we appreciate it's not an easy ride & for those of you who aren't bringing loads of dosh, lets be honest,it won't be any easier than starting off in the UK. But at least you'll have more to show for it a few years down the line.
Friends of ours have been here 7 years,came with nothing, live in a nice 3 bed house,which they bought on 1 wage,now little girl at school,my friend can work part-time,they had a pool put in last year & they are now finacially secure,& working on paying mortgage off ASAP. But, it's taken 7 years.
People who come over,that were in that position already in the UK,like we were,just can't expect to go up the housing ladder in one big leap,just cos you're in Oz. It's just not going to happen.
Be prepared for a struggle & SAVE,SAVE,SAVE as much £££ as you can before you come :)

Re: A rant about house prices, WA
 

Unfortunately its is probably quite a bit to do with us Brits coming here with all the money from our UK houses and buying up all the propertys that have helped cause this huge boom in prices. WA is swamped with poms....

I dont know what people are after in standard of housing....do you all want mansions...? but you can still get a nice property at the moment SOR for $400,000. Spending more than this would buy you what in my opinion is a mansion...but then in the UK I used to live in a tiny 2 up 2 down so my 3 by 2 seems huge to me and I actually have a garden now although its not huge by Oz standards by UK ones its fare dinkum.

I could never have afforded a house like I have now in the UK in a million years....

Re: A rant about house prices, WA
 

I don't know anything about the housing market in Perth, but if I was going to buy there at the moment - or anywhere else that's seen unusually large increases in prices in the last few years - I'd want to know whether prices had become unattached from economic fundamentals like rents and incomes.

Re: A rant about house prices, WA
 

Ok having moved out here 7wks ago I feel relatively qualified to help you ;)

When we arrived and started looking at the real estate prices, we found that we couldn''t get a 4x2 in a relatively decent area for under $380,000. Considering $250,000 was the target price for us 1yr ago we were feeling slightly screwed! We have been lucky enough to pick up a block for $220,000 and a 4x2 house for $143,000, we're borrowing $220,000 on a single income and the mortgage is still 45% lower than it was in the UK, my wife also won't have to work which was one of our objectives. Because we had approx 40% to put down the bank gave us unconditional approval on a fixed rate (fixed on construction also) offset mortgage, the only docs I needed were from my employer to state my conditions of employment, and ID, bank statements etc.
As far as the market goes, im my opinion the market will not stop until it is inline with the eastern states for a few reasons

1. There are still 500 families coming from abroad and the eastern states per month, external currency is driving this boom mainly which is difficult to conrol internally whilst the £-$ is still so good.

2. This boom is driven by resources and the deal Howard has just signed witht the chinese will see Uranium popping out of the ground here for the foreseeable future (10 yrs and beyond). This boom is driving the whole Australian economy not just WA.

3. The job market here is phenomenal, the employment pages make up half the thickness of the West on a Saturday, 25% of these jobs are for mining etc. I've been lucky enough to attract a wage just £500 short of what I was earning in the UK, as the MODL lis confirmed, my trade is in demand.

4. After talking to a friend in Qld last year who said "they've run out of places to build on the east coast" which I believe is true, WA is now being marketed top to bottom with new developments and is growing at a staggering rate. With all these factors I personally believe (and it's only opinion) that the WA house prices will only slow when they come into line with the east coast and UK markets, hence slowing the immigrant explosion, And most experts are saying the market will slow not crash but this is still 5yrs off.

So sadly all in all, if you can get your money in now, get it in as fast as possible. Things are only going to go up, the prices are stilll nowhere near on a par with the UK but unfortunately many young Aussies are being priced out as well. The 3x1 market is still hovering around the $350 mark but even they are still rising, remember the averge 4x2 price of $380,000 is still only approx £150,000 which is £70,000 under the UK average.

Hope this helps and does p*ss too many of you off, but it's the way I "perceive" things to be

Dave

:)

Re: A rant about house prices, WA
 

If any of you are coming to Perth and want the email of my mortgage broker thenPM me, he should be able to tell you what you can borrow etc before you arrive....

Re: A rant about house prices, WA
 

see where your comming from when you look at the Average house price in the UK being £220K for a 4 x2 BUT, this is the average so would we be saying that ( As i live in a 4 x2 now, with an estimate Value of £125k) which is way below the average in the UK as you mention.

Now! you have mentioned a figure of $380k as an average in Perth/Aus for a 4 x2 if we compare this then it would be nice if there is a lower end of the 4 x2 Houses like it is in the UK which would be around $220k


I think if we have to look at the big picture here the average of a 4 x2 in the UK of £220k may be an average with a massive sway either way i.e. my 4 x2 £125k then the average 4 x2 £220k then where the average workin guy cant live £315k

Getting abit confusing! ;)

Just need to know where the below average is for a 4 x2 for around $220k

Re: A rant about house prices, WA
 

A below average 4x2 in Perth right now will cost you $320,000 upwards

Re: A rant about house prices, WA
 

And neither are salaries...

Re: A rant about house prices, WA
 

They are if you're in mining. Thing is, not everyone in Perth is in the mining industry

Re: A rant about house prices, WA
 

not only are the house prices increasing here in Perth but due to the influx of people to the city there is also a huge shortage. I can only comment on the northern suburbs because that is where I have been looking for the last few months. My search area was huge from duncraig up to kinross across to Carramar and Tapping. I have been to every damn home open in my price range. I started out being dead picky about stuff but for those coming you can't be picky. If the house has a good floor plan and satisfies 80% of your needs you have to go for it because they are on the market for a couple of days and then gone. One agent told me she had 25 offers on one property in Woodvale. Also a lot of people are getting greedy about what their house is worth so there is a lot of crap around too for top money. My husband is in oil and gas and the resouce boom is going to be here for 10 years + so for those coming don't hang around when you get here buy quickly because they will go up for some time yet.

Re: A rant about house prices, WA
 

This boom in Perth is being called a 1 in 100 year boom. This is the big kahuna. This is Alaska in the 70's, Aberdeen in the 80's or Las Vegas in the 90's. A lot of things have come together at the same time to create this, huge demand from China & India, low interest rates, low inflation & a massive skills shortage. Perth is at the centre of all this & that's why it's booming. The mining & oil & gas industries are attracting the people they need here & paying them accordingly. So there are a lot of people coming here who can earn AUD100k+. The boom means that if you are in it, you are a player & it's good. If you are not, if you are on the outside looking in, then it's sh*t. Perth has always been a boom & bust city. They had booms in the 60's & the 80's & they were followed by major busts & it all ended in tears. Will it happen again? Who knows, I wouldn't like to call it. I personally think it has another 3-5 years left in it, maybe more, but what do I know. China & India are going to keep growing, they need iron ore & gas & oil & zinc & lead etc. All that stuff is here. WA will eventually mine uranium & when it does it will create another surge. Maybe the economic balance in Australia is shifting from the east to the west. People who know a lot more about it say it is happening. Others say it is not. It's happened in other countries in the past. WA's contribution to the Australian economy is way out of proportion to it's size. At the moment WA is propping up the rest of the economy, hence the recent interest rate hike. Will there be a correction, I don't think so, not for a while, but who knows.

Sorry for going on a bit, but I was just trying to explain why entry level houses are now AUD400k & rising. Get in quick before it's too late or hold off 5 years & wait for the bust, if it comes.

I found this article from the LA Times interesting. It's not only about Perth but explains a lot:
http://www.latimes.com/news/opinion/...day-commentary

Re: A rant about house prices, WA
 

Mine is, then I guess I'm lucky........and I'm not in mining :)