How many more years of pain for the Perth market?

Guys market still falling in Balga (Bronx),the good news for tenants here,they are building more
villas here,in my situation now the landlord is not comfortable to make any Renos here,we need a new kitchen ,bathroom and a fresh paint,the the house is old,that's why is time to move in a renovated house for the same rent,is no point to pay 275 aud (boom price 350 aud),we could ask for more rent reduction ,but no point. I want be moving in a small dog house.
I need a better house for the same price.

 

The world is your oyster the worm has turned, tenants rule in Perth

 

This real estate agent has gone above and beyond in his duty to try to sell this home — writing and performing a YouTube video with up-and-coming Perth band Tangent.

http://www.news.com.au/finance/real...e/news-story/e5c40605f5b539b2ee29965ddab700e4

What a Flog.

 

seemed to work to get all the extra media attention

 

I think this can be quite dependant on what you are renting. Yes 100% agree rents are down and some areas are 25% +. In saying that, I have a property in Heathridge (4x1, double garage, workshop, pool and good sized useable alfresco, large bedrooms and second living area, that was achieving $500pw in 2014 and now I have only reduced it to $460 with multiple tenants wanting it. I think having a point of difference and good sized bedrooms etc all helps. New estates and run down properties will struggle

 

I invest in the stock market so have a reasonable idea of the resource cycle

we are now in the third phase of mining boom (not a job creation phase, there will be jobs but nothing like the second phase)

the job creation phase which is the second phase (investment phase) is done and dusted this is where all the jobs are created and money pouring into developing infrastructure ready for extra export and volume (third phase)

what leads to the second phase is the first phase with the resource price rising, which gives them the money to build infrastructure to increase volume, now company benefits from an extra export volume, not workers.

You sell out of Perth in Second phase not buying
you buy back first phase when the boom starts again, not for a long while as we can sustain the current infra for 30 years of export but WA may develop a different economy by then instead of dependent on mining and if they cant well they be stuck in third phase for a while

 

Lots of talk about Lithium and this will create a boom in WA, 1000 jobs, that is a pimple on a mountain.
WA is a great State but Govt needs to start looking at ways of creating jobs and maximising what we have

 

Some interesting charts/stats. Byford has particularly copped a beating, interestingly
most suburbs listed are south...

Young West Aussies revelling in the right time to buy

 

Just revisiting this one. The reno is over and market rent ended up at $440. A nice family put in an offer at $420 and I accepted.

 

07/12/2017

Perth Median House & Rent Prices Stable In November

Perth’s sales and rental markets are starting to improve, with new reiwa.com data showing stable median house and rent prices in November.

REIWA President Hayden Groves said Perth’s median house price increased one per cent to $525,000 during the three months to November, while the overall median rent price remained at $350 per week.

Median price
“Perth’s median house price has shown resilience over the last few months. We’ve seen the median increase in the three months to November, up a healthy 1.9 per cent when compared to three months ago.

“Similarly, Perth’s median rent has not changed since April, which is the longest streak of stable prices we’ve seen since 2013. After a prolonged period of declining rental prices, these steady results are a welcome change for property investors,” Mr Groves said.

Sub-market activity
At a sub-market level, reiwa.com data shows Perth City in the Central sub-region had the biggest increase to its median house price, up 6.8 per cent during the three months to November.

“Other stand-out sub-markets were Stirling East (up 4.3 per cent), South Perth/Victoria Park (up 3.7 per cent) and Melville (up 3.4 per cent),” Mr Groves said.

In the rental market, the Mundaring sub-market in the North East sub-region was the top performer, with its median rent price increasing $30 to $430 per week during the three months to November.

“It’s encouraging that prices in both the sales and rental markets are steady or improving. While we don’t expect there to be significant price growth in 2018, the stability we’ve observed in the Perth market over the last half of 2017 points to the start of the recovery,” Mr Groves said.

 

ABC usually publish negative stories about the property market.

Surprised to see something positive about WA.

Perth property bust finally set to end with slow growth forecast for 2018

 

Fingers crossed

 

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Unit supply in Perth has often been over supply or under supply. Stability has never been it's strong point. In good times everyone jumps on the bandwagon but maybe that won't happen as much anymore with APRA tightening methods

Unit construction starts for the past 3 years has been very very low so it stands to reason that might be where the first symptom of under supply will be.

 

India needs to get its act together. China won because they actually have been able to get their act together. The fact that they can lift themselves from a country where the majority of its citizens were seriously poor to now where the majority are middle class and the rich are filthy rich. In general, they are country-centric (pro-China) which helps their own economy as well.

On the other hand India needs to sort themselves out, unite the people and so on. We'll have to see what happens, I'm not sure if we'll see such a meteoric rise in terms of the wealth gap and so on like China.

So how many phases are there then? Is it 3?

I have a mate who is an analyst in one of the major miners who reckons Adelaide is the next hot spot.

Too bad we live in Perth and I have no interest to move to Adelaide.

 

Question Fiona?

On what basis are you making these statements? Do you realize in some areas Indians make more money than the Chinese (i.e. IT...and Finance industries).

Second do you realise by 2030....India will be the 3 largest economy and by 2050...it will be the second largest?

Perhaps you need to do more reading and research.......

The only reason China was able to do it quickly is that China is an autocracy...India is a democracy..no way they will allow people's land ..etc to be repossessed and be paid a pittance.

I acknowledge corruption is huge in both countries...but less so on the listed Indian companies ...as...there is huge crackdown there.

 

Yes I am aware some Indians do make a whole heap of money. I'm just saying that China is more united even if it is a communist country. That's why they were able to do it faster (plus it was a miracle that they could do it). There are many (former) communist nations that were economic failures and are still on the mend.

By the way, my name isn't Fiona.

Perhaps you need to do more research.

 

Yo cracker...hilarious......let me ask you have you been to either country?

And by the way....China is not longer a communist country....if you have been there....you would have known that...they say they are ...but they aren't.....not even socialist....an autocracy yes...

 

Not 100% familiar with Perth, but for those on the ground, what do you think of $600k - $1.2m properties around Highgate / Mt Lawley? Checked out Hyde Park today, such a lovely place to live near. This would be for an IP that may be a PPOR (only in the distant future, probably wouldn't ever happen unless we got really sick of Sydney). Sale prices seem to be same as about 10 years ago (ouch) - surely it would only be increasing from here?

 

It's a great central location - you can hardly imagine those prices when you compare to Sydney
The closer you get to $1.2 the more troubled it was after the GFC and struggled to regain it's feet but in my mind it's been great buying since then. In the current downturn it has fared better than outer reaches of Perth and maintained it's value with maybe only a 5-10% drop compared to outer areas which may have lost 20%
The $600-900k has weathered well due to it's affordability.
What type of dwelling have you been looking at? I'd suggest houses rather than apartments to get that land growth.

 

I wouldn't take anything said by Mr Groves with a proverbial grain of salt. Ever since he took over as head of the REIWA he has proved to be a misleading spruiker. Two recent articles he wrote in the Saturday West (or it could have been the Sunday Times) are cases in point.

The first was the usual RE tirade against negative gearing. Unbelievably he used the same thoroughly debunked urban myth that the last time negative gearing was removed in the 80s it caused rents to rise. It only rose in two cities which were in the upswing cycle.

The second was his attempt to demonstrate that it makes more financial sense in WA to buy a home rather than rent. To make is point he used 10 year projections for rent and housing prices but he based his housing prices not on the past 10 years for like with like, but 15 years. It is pretty clear he chose the extra 5 years of historical data so it captured the once in a lifetime Perth mining boom.

It is incredible that the REIWA tries to represent itself as the peak real estate industry body in WA and yet chooses and allows its head to spruik misleading information and myths to the general public. It only plays into the hands of the RE industry stereotype.