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Should we buy house while on holiday in Perth?

Should we buy house while on holiday in Perth?

Old Sep 5th 2007, 4:36 pm
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Default Should we buy house while on holiday in Perth?

Following grant of our visa, we are now in Perth for a 3 week period to validate our visas. Having heard all the stories of property prices in Perth, we are seriously looking to purchase property in NOR, near Darch. We are very close to putting in an offer on something we like. Before we do, I would appreciate advice/opinion on below:

-buy now with intention to return within 12-24 months permanently
-rent out until we come back to Perth

Factors to bear in mind:
house price stability
rental prospects in Darch
rental return of 3.3%, plus we will need to contribute approx £800 to the mortgage per month for 12-24 months

If we do go for it, what is the process? Real EA seems desperate to flog the properties, offering their finance brokers to speak with us to sort out the loan process. Can anyone recommend best deals for mortgages in Australia/brokers providing free product comparsion services.

Most crucial question - are we doing the right thing purchasing property within a short time scale??? I just want to get on the property ladder, despite house prices appearing to have stabalised.

All help/opinions greatly appreciated.
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Old Sep 5th 2007, 6:25 pm
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Default Re: Should we buy house while on holiday in Perth?

Originally Posted by yogita_dabasia
Following grant of our visa, we are now in Perth for a 3 week period to validate our visas. Having heard all the stories of property prices in Perth, we are seriously looking to purchase property in NOR, near Darch. We are very close to putting in an offer on something we like. Before we do, I would appreciate advice/opinion on below:

-buy now with intention to return within 12-24 months permanently
-rent out until we come back to Perth

Factors to bear in mind:
house price stability
rental prospects in Darch
rental return of 3.3%, plus we will need to contribute approx £800 to the mortgage per month for 12-24 months

If we do go for it, what is the process? Real EA seems desperate to flog the properties, offering their finance brokers to speak with us to sort out the loan process. Can anyone recommend best deals for mortgages in Australia/brokers providing free product comparsion services.

Most crucial question - are we doing the right thing purchasing property within a short time scale??? I just want to get on the property ladder, despite house prices appearing to have stabalised.

All help/opinions greatly appreciated.
I wouldn't.

It's a really big step to take when you are not going to be living there. Some people buy early, but the majority wait at least a few months before they commit to anything.

Do you really know what the area is like? You may end up getting the tenants from hell, and you would have extras to fork out, not just the mortgage.

I know the house prices are rising, and it is really tempting, but if I was you I wouldn't. It's not worth it.
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Old Sep 5th 2007, 7:21 pm
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Default Re: Should we buy house while on holiday in Perth?

Originally Posted by yogita_dabasia
Following grant of our visa, we are now in Perth for a 3 week period to validate our visas. Having heard all the stories of property prices in Perth, we are seriously looking to purchase property in NOR, near Darch. We are very close to putting in an offer on something we like. Before we do, I would appreciate advice/opinion on below:

-buy now with intention to return within 12-24 months permanently
-rent out until we come back to Perth

Factors to bear in mind:
house price stability
rental prospects in Darch
rental return of 3.3%, plus we will need to contribute approx £800 to the mortgage per month for 12-24 months

If we do go for it, what is the process? Real EA seems desperate to flog the properties, offering their finance brokers to speak with us to sort out the loan process. Can anyone recommend best deals for mortgages in Australia/brokers providing free product comparsion services.

Most crucial question - are we doing the right thing purchasing property within a short time scale??? I just want to get on the property ladder, despite house prices appearing to have stabalised.

All help/opinions greatly appreciated.
We did it, in 2 weeks. Best thing we ever did, just get a good agency to look after it until you move. We bought ours in Oct 05 and move over in Dec next year.

At the end of the day - its if it feels right to you.
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Old Sep 5th 2007, 11:49 pm
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Default Re: Should we buy house while on holiday in Perth?

Originally Posted by yogita_dabasia
Following grant of our visa, we are now in Perth for a 3 week period to validate our visas. Having heard all the stories of property prices in Perth, we are seriously looking to purchase property in NOR, near Darch. We are very close to putting in an offer on something we like. Before we do, I would appreciate advice/opinion on below:

-buy now with intention to return within 12-24 months permanently
-rent out until we come back to Perth

Factors to bear in mind:
house price stability
rental prospects in Darch
rental return of 3.3%, plus we will need to contribute approx £800 to the mortgage per month for 12-24 months

If we do go for it, what is the process? Real EA seems desperate to flog the properties, offering their finance brokers to speak with us to sort out the loan process. Can anyone recommend best deals for mortgages in Australia/brokers providing free product comparsion services.

Most crucial question - are we doing the right thing purchasing property within a short time scale??? I just want to get on the property ladder, despite house prices appearing to have stabalised.

All help/opinions greatly appreciated.
I reckon Darch and Madely area is more likely to go down in value or at least stagnate for the next 12 months. Negative gearing a property is all well and good if you have a reasonably high income to offset the tax but if you are not going to be living here you will be throwing money down the drain IMO.
If you really like the property offer 10% under asking, average offer price to asking is now 94% in Perth.
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Old Sep 5th 2007, 11:53 pm
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Default Re: Should we buy house while on holiday in Perth?

Originally Posted by yogita_dabasia
Following grant of our visa, we are now in Perth for a 3 week period to validate our visas. Having heard all the stories of property prices in Perth, we are seriously looking to purchase property in NOR, near Darch. We are very close to putting in an offer on something we like. Before we do, I would appreciate advice/opinion on below:

-buy now with intention to return within 12-24 months permanently
-rent out until we come back to Perth

Factors to bear in mind:
house price stability
rental prospects in Darch
rental return of 3.3%, plus we will need to contribute approx £800 to the mortgage per month for 12-24 months

If we do go for it, what is the process? Real EA seems desperate to flog the properties, offering their finance brokers to speak with us to sort out the loan process. Can anyone recommend best deals for mortgages in Australia/brokers providing free product comparsion services.

Most crucial question - are we doing the right thing purchasing property within a short time scale??? I just want to get on the property ladder, despite house prices appearing to have stabalised.

All help/opinions greatly appreciated.
We bought a house within a week of arriving. If you find the right place at the right price, why not?
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Old Sep 6th 2007, 12:29 am
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Default Re: Should we buy house while on holiday in Perth?

It is a big gamble. You might strike lucky but wouldn't you have a better idea about areas etc when you have lived here a while? We bought hastily when prices were going up 25% pa 18 months ago but they have stabilised now, even falling in some areas, so no longer a rush. I think we got 8/10 as it is a good house in a good area. But having got more established we realised we could earn more money than we thought then and hence afford a more expensive house in an area closer to the city. If we had waited we would probably be in a completely different area now (Duncraig, Woodvale etc). But having settled our daughter in school and taking into account the price of moving we can't correct that easily now.
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Old Sep 6th 2007, 1:10 am
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Default Re: Should we buy house while on holiday in Perth?

Don't ! It's better to put your money away somewhere and earn some interest. The housing market in Perth is not going to jump upwards in the next year, high interest rates are taking care of that.

Also, do you know where you will be working ? You might end up with a long commute. Do you know what the schools are like ? When we first came here we ended up in Quinns Rocks. Looks nice and is next to the ocean, but the commute by car to central perth is not funny and I ended up hating the place. Luckily we were renting so we bought somewhere else [Duncraig] that suited us more.

Whilst you may financially benefit a little by buying now and renting, if you find out its not where you really want to live, its going to cost you a lot of money to sell up and move somewhere else which will wipe out any gains and more. [somewhere in the region of $20-$25k for stamp duty and agents fees]
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Old Sep 6th 2007, 1:16 am
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Default Re: Should we buy house while on holiday in Perth?

Thanks to everyone for responding - a good mix of opinions...it feels right for us, but at the same time feel apprehensive about the whole purchasing and letting side...you could end up with bad tenants, I agree...we are also considering a purchase under 500k to avoid the SD (recommendations on areas would be appreciated i.e closer to City, and approx rental pw etc...), and then use that as a stepping stone to purchase a permanent home once we move...so its a gamble between an investment home, or our dream home the difference between the two being $100 - $130k...please continue to give your opinions as our time is running out, we only have 5 days left in Perth and are desperately seeking properties to arrange viewings...
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Old Sep 6th 2007, 3:31 am
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Default Re: Should we buy house while on holiday in Perth?

Originally Posted by yogita_dabasia
Thanks to everyone for responding - a good mix of opinions...it feels right for us, but at the same time feel apprehensive about the whole purchasing and letting side...you could end up with bad tenants, I agree...we are also considering a purchase under 500k to avoid the SD (recommendations on areas would be appreciated i.e closer to City, and approx rental pw etc...), and then use that as a stepping stone to purchase a permanent home once we move...so its a gamble between an investment home, or our dream home the difference between the two being $100 - $130k...please continue to give your opinions as our time is running out, we only have 5 days left in Perth and are desperately seeking properties to arrange viewings...
What's the main attraction about Darch............... any special reason why you have an inkling to move into that suburb?

For $500K you won't be able to get anything too sparkling in Darch. Cottage blocks are going for close to the $300K mark so a decent sized block comes in at $350K plus?

With that in mind............... anything you find around the $500K mark will be bordering on basic shell rebuild price without the trimmings.......... and in all probability will be very tiny.......... dog-boxy for want of a better term..... and won't offer much by way of resale value down the track?

Darch was way over-priced two years ago when they were asking high $600K's for decent sized ........... but very basic dwellings.

If you were here 18 months ago and you were asking the same questions...... I would have advised you to purchase straight away because 18 months ago........... as we blinked the prices were going up. Several of my clients made a killing...........their properties rose in value from as much as $80K to a whopping $600K in a mere 6 months.

18 months ago we weren't doing any Home-Opens simply because a property didn't remain For Sale long enough to reach the weekend! 18 months ago it was not unusual for us to write-up 5 or 6 offers on a property within 2 days of the sign going up......... and it wasn't unusual for said property to sell for $40K to $60K above the asking price? I even had purchasers willing to buy property sight unseen............ they didn't care what the inside was like....... they wanted to put an offer in without inspecting the property?

The market has changed somewhat since then............... tables have turned and it is very much a buyer's market now. As a buyer you are in the driver's seat............. but I would advise you to proceed with caution? A few BE members have recently bought hastily as new arrivals........... and have come unstuck because the Agent played on the fact they weren't aware as to how the system works here........ or they hadn't done their homework..... ? Don't rush into it yourself; do your homework.......... do your research........... and take it from there!

Good luck with whatever direction you take.
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Old Sep 6th 2007, 5:50 pm
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Default Re: Should we buy house while on holiday in Perth?

Originally Posted by Bobcat
What's the main attraction about Darch............... any special reason why you have an inkling to move into that suburb?

For $500K you won't be able to get anything too sparkling in Darch. Cottage blocks are going for close to the $300K mark so a decent sized block comes in at $350K plus?

With that in mind............... anything you find around the $500K mark will be bordering on basic shell rebuild price without the trimmings.......... and in all probability will be very tiny.......... dog-boxy for want of a better term..... and won't offer much by way of resale value down the track?

Darch was way over-priced two years ago when they were asking high $600K's for decent sized ........... but very basic dwellings.

If you were here 18 months ago and you were asking the same questions...... I would have advised you to purchase straight away because 18 months ago........... as we blinked the prices were going up. Several of my clients made a killing...........their properties rose in value from as much as $80K to a whopping $600K in a mere 6 months.

18 months ago we weren't doing any Home-Opens simply because a property didn't remain For Sale long enough to reach the weekend! 18 months ago it was not unusual for us to write-up 5 or 6 offers on a property within 2 days of the sign going up......... and it wasn't unusual for said property to sell for $40K to $60K above the asking price? I even had purchasers willing to buy property sight unseen............ they didn't care what the inside was like....... they wanted to put an offer in without inspecting the property?

The market has changed somewhat since then............... tables have turned and it is very much a buyer's market now. As a buyer you are in the driver's seat............. but I would advise you to proceed with caution? A few BE members have recently bought hastily as new arrivals........... and have come unstuck because the Agent played on the fact they weren't aware as to how the system works here........ or they hadn't done their homework..... ? Don't rush into it yourself; do your homework.......... do your research........... and take it from there!

Good luck with whatever direction you take.
Sound advice.

Bought ours 23 months ago, no mortgage to pay so very lucky. Getting $360 per week rental in Connolly to give you some idea.

All the best with it.
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Old Sep 7th 2007, 3:05 am
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Default Re: Should we buy house while on holiday in Perth?

High risk for relatively little prospective reward, IMO.
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Old Sep 8th 2007, 2:19 am
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Smile Re: Should we buy house while on holiday in Perth?

Bobcat - there is no reason for choosing Darch really, its just that a lot people migrating from our area in London are moving to Darch/Madeley and having driven around for 4-5 days in Darch we really liek the area and that there is a sought after school there, Ashdale Primary whiich our kids woud attend...we don't have family in Perth but have made friends with some of the expats so it would be nice to settle in an area where we are beginning to know some people....we are both likely to get jobs in the city (hubby into IT and myself into Investment Banking) so the commute from there would not be so bad...and the beach isn't too far either...

Well - we were on the verge of offering on a 4x2 property priced under $500k, but prior to that did our maths and based on a 10% deposit, and factoring in rent (between $320 (our worst case expectation)and $400 (Real Estate indication), we would have to contribute between £500 and £700 per month to cover the monthly loan...our current mortgage in London is not even this amount...now we are in two minds whether it is worth paying into a mortgage where we are not living in the house, and then once here, selling that place after a few months to buy another house to live in...seems renting for 6 months is a cheaper option when we get here...surely we would save more money in London to bring over here if we didn't have the mortgage in Perth?? And we will be in a position to remortgage our property in London then (locked into a fixed rate product at the moment). People are saying that property prices are stagnating so if we come over next July,would there be that much movement in prices...?

I feel disappointed if we do not purchase a house now, but equally agree with many of you that rushing into a huge commitment and getting it wrong would have some serious financial implications as well as added stress...we can still offer as sellers according to REA are in a desperate position (moved out and therefore paying two mortgages)...

Craig - if you don't mind me asking, could you recommend a good REA? please..
BobCat - I take it you are into Real Estate...?

Last edited by yogita_dabasia; Sep 8th 2007 at 2:27 am.
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Old Sep 8th 2007, 2:57 am
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Default Re: Should we buy house while on holiday in Perth?

Originally Posted by yogita_dabasia
Bobcat - there is no reason for choosing Darch really, its just that a lot people migrating from our area in London are moving to Darch/Madeley and having driven around for 4-5 days in Darch we really liek the area and that there is a sought after school there, Ashdale Primary whiich our kids woud attend...we don't have family in Perth but have made friends with some of the expats so it would be nice to settle in an area where we are beginning to know some people....we are both likely to get jobs in the city (hubby into IT and myself into Investment Banking) so the commute from there would not be so bad...and the beach isn't too far either...

Well - we were on the verge of offering on a 4x2 property priced under $500k, but prior to that did our maths and based on a 10% deposit, and factoring in rent (between $320 (our worst case expectation)and $400 (Real Estate indication), we would have to contribute between £500 and £700 per month to cover the monthly loan...our current mortgage in London is not even this amount...now we are in two minds whether it is worth paying into a mortgage where we are not living in the house, and then once here, selling that place after a few months to buy another house to live in...seems renting for 6 months is a cheaper option when we get here...surely we would save more money in London to bring over here if we didn't have the mortgage in Perth?? And we will be in a position to remortgage our property in London then (locked into a fixed rate product at the moment). People are saying that property prices are stagnating so if we come over next July,would there be that much movement in prices...?

I feel disappointed if we do not purchase a house now, but equally agree with many of you that rushing into a huge commitment and getting it wrong would have some serious financial implications as well as added stress...we can still offer as sellers according to REA are in a desperate position (moved out and therefore paying two mortgages)...

Craig - if you don't mind me asking, could you recommend a good REA? please..

BobCat - I take it you are into Real Estate...?
Yes............ I am the Principal/Licensee of my own Agency.
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Old Sep 8th 2007, 3:02 am
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Default Re: Should we buy house while on holiday in Perth?

Just remember that all REA's are working for the seller! I don't know any 'good' ones when it comes to buying.
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Old Sep 8th 2007, 3:23 am
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Default Re: Should we buy house while on holiday in Perth?

I was asking more about REA for the rental side...didn't you mention that you found good ones to let your property out with?
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