WA How much is Perth moving south?

At our bargain basement interest rate, every $1 off the price is almost $2 off the lifetime loan payment (assuming principal + interest).

House drops $30K - great, you just saved $60K!

The fact that people can see Perth dropping means you could get a lot of people switching over to wait and see. This in turn means prices fall, so they're right... and they keep waiting.

Market sentiment is a self-reinforcing killer.

 

I agree. Its not just timing id say- Perth, has yet to show a stronger push to non mining industries.

 

Might be a few cases of buying a bargain and then only needing bargain-basement rent to cover costs which could drive rents down temporarily.

 

What we should do is revisit this thread in 6 months and then we can work out whether jumping in paid off or not

 

Only when it hits bottom, we are not at bottom yet, this is where investors get burnt, buying at peak and a market which is still declining, not sure which is worse?

 

I'm sure if you bought in the right areas it wouldn't matter.

I didn't know Perth from a brick until five years ago when friends of mine moved there. They bought a house in North Perth at that time and I'm sure they won't regret that, it's much nicer than the rest of Perth (too much like Canberra for my liking!).

 

Its is harder with the borrowing restrictions, however banks still want to lend particularly to owner occupiers. There's lots of great discounting and promos to attract people buying or refinancing ppors.

 

Which pockets are these @Perthguy ? I'm trying to learn more about Bayswater.

 

@MTR what are the signs that market has reached bottom?

 

We're not at the bottom yet. From a commercial point of view, I can see more pain happening in the key industrial drivers for WA.

But...in every difficulty, there is opportunity.

 

Very good point Jess, restrictions will slow down buy and hold investors, I think accessing equity is a no go with some lenders??

 

Last report by Herron Todd this market is in decline, I don't this but perhaps those buying CIP/Industrial may find some great buys down the track.

 

Its only been falling for 18 months, our economy is going backwards, Au$ in decline, unemployment on the rise etc.

Look at previous boom/bust cycles anywhere in Australia you will find after peaks, booming markets don't happen in such a short timeframe - 18 months last peak in Perth, too short IMO.

However there are always markets within markets. Happy if I am wrong and it does boom, I will be the first one jumping in.

MTR

 

The banks all want your PPOR mortgage business. Due to APRA wanting IP mortgage growth of under 10% per annum, most lenders are not chasing this, hence the new pricing differential between PPOR mortgages and IP mortgages.

 

Not as such - equity over 80% is trickier, but under 80 mainly is harder due to the tighter servicing. If you only just service and you want cash out above 80, a lot of questions will be asked as to purpose, and you'll need to show end debt servicing with the lender (which is the part that bites.)

 

Hi Jess
so can investors still release equity ??

 

Yep, for sure it's the main thing I've been doing for the past few months.

 

OK, that is good, I read on forum that accessing equity was going to be far more difficult, another broker on PC?

 

Yes its harder but definitely still possible. How hard depends on personal situation but under 80% servicing is the biggest factor.

 

The boundary is roughly: Beaufort St, Coode St, the railway, and Grand Prom.