WA Mandurah WA??

Discussion in 'Where to Buy' started by Xiao Hui, 26th Mar, 2017.

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  1. Xiao Hui

    Xiao Hui Well-Known Member

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    Hi

    Anyone who has invested in Mandurah? Properties there grew rapidly around 7 to 10 years ago, I remember. But the last few years it has been weak or even declined?

    With Perth now seemingly getting "better", at least in sentiments, would investment here be good? A look into Real estate.com tell us that many properties are now selling pretty cheaply here - with lots of developable sites of at least 800sqm.

    Conventional wisdom dictates that recovery in prices usually starts with the core or good areas, then slowly spread to outlying regions like Mandurah. So if Perth is to slowly recover from this year or next, is it more logical to buy in Mandurah only say 2 to 3 years later? Thank you.
     
  2. ellejay

    ellejay Well-Known Member

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    Have you tried doing a search? I think there's at least 1 thread on Mandurah. I haven't got a clue but I know it's been flat for a good couple of years at least. Would be a long time waiting for growth? More of a lifestyle purchase rather than investment?
     
  3. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

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    I've got 2 properties in Mandurah's northern suburbs, which I've bought one very recently and one 3 years ago. Just finishing the Renos on one - the value has been pretty steady on the whole in our area but maybe a dip very recently.

    It's going to depend where you buy and what you want to do. I would be looking quality builds as close to the beach as you can - then you also have the option to air BnB if th rental market was no good.

    I would not buy a crappy looking renovator, unless you're willing to sink significant cash - the appetite here is for new and there's lots of rentals around in new estates. Old shacks, even cosmetically renovated ones, tend to attract crappy tenants cos there's so much brand new around.

    I like it for the long term though, beachside if you can get a good buy I don't think you can go far wrong.
     
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  4. MTR

    MTR Well-Known Member

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    Still oversupply at the moment unfortunately, has not really moved since the crash of 2007.
    If your strategy is to buy on a low then perhaps? Problem is rents are not that crash hot in Mandurah and neither are property managers, they seem to charge more ?

    I however do agree if you are going to buy pick beach side.

    MTR:)
     
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  5. Xiao Hui

    Xiao Hui Well-Known Member

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    MTR and Jess

    Thanks for your comments. Yes, lots of properties for sale in mandurah. I did a bit of research and realised that prices has not gone up at all for a long long time. But prices cannot be this low forever..

    Say a property sandwiched in between the beach, shops and train station, all around 1.5km away by walking, would this be considered as desirable? Or would this distance be considered "too far" from amenities?
     
  6. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    Well as you've discovered the prices have been low for around 7-9 years now after they crashed ferociously.
    Will they stay low forever? it's unlikely but what growth it will have will generally be slow and low. If you're from Melbourne then it's quite a bit like Frankston.
    In Perth though it's not really close to our CBD by Perth standards (it's close by Melbourne and Sydney standards). It's a strange mix of retirees, meth addicts, rich people and poor people.
     
  7. Ross Forrester

    Ross Forrester Well-Known Member

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    A LOT of people were burnt by Mandurah. Especially in the marina.

    Awesome place to live if you can find work down there. Especially on the beach - it is amazing.

    If you cannot find work down there - you will be commuting a lot. The car will be your friend.

    And you really do not need to commute that much in Perth.
     
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  8. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

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    The train is great - less than an hour into the city. Personally I would not be looking in central Mandurah though, it's pretty low socio economic in that area and the development rules in the CBD are restrictive.

    I'd look from Silversands up the coast from there.
     
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  9. Perthguy

    Perthguy Well-Known Member

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    My first PPoR was in Mandurah somewhere around 2005. A quite spacious 2x1 for the princely sum of $211k! lol

    I sold in maybe 2012 for somewhere around $260k. That was after a cosmetic reno and a complete overhaul of the back yard. The buyers sold in 2015 fir $255k, which is not good. A lot of properties in Perth increased a lot in value during that time.

    Personally, I found Mandurah quite boring and drove up to Perth to stay most weekends.

    Prices are cheap now and I agree they won't stay that low. It is a matter of when they will increase and how much by. Based on track record, Mandurah tends to lag any price increases by a good couple of years at least. Even then any price increases seem to be modest. Of course all this could change in the future. Who really knows?
     
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  10. Xiao Hui

    Xiao Hui Well-Known Member

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    Thanks for all the feedback.

    I think the comparision with Frankston is pretty true. Frankston, until recently was the "not so desirable" surburb of Melbourne, despite it having a great Beach. After years of property boom in other Melbourne surburbs, it is finally Frankston's turn now. Using this as an analogy, the saying that Mandurah trails Perth and it's other surburbs in price increment could be very true.

    What I felt "value for money" in Mandurah, very similar to Frankston is that for the price we need to pay to live close to the beach, it's very affordable. If we were to compare that with Bunbury, another coastal town much further down, but of which is costlier in house prices, this "under value" aspect of Mandurah became even more stark.
     
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  11. Xiao Hui

    Xiao Hui Well-Known Member

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    Like to know how is Mandurah doing now? I understand that house prices here are still dipping. But with prices so low now (even lower than 12 years ago for many properties), is it a good time to buy some well located properties for longer term investment? Is it at the bottom now, esp when Perth proper itself seems to have been through it's worst?

    I understand it's still a depressed market but like some said, it's just by the beach. You can't be too wrong buying here if you buy right?
     
    Last edited: 30th Dec, 2018
  12. thatbum

    thatbum Well-Known Member

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    I don't really agree with these mantras. I mean there would have been lots of people who said the same thing 12 years ago buying in mandurah who have still lost money.

    I would avoid unless you know the area very, very well.
     
  13. MTR

    MTR Well-Known Member

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    The money was made by those who purchased in 2001 at much lower entry point. This market crashed in 2007 and still not recovered

    My question is what will drive prices up ????

    Also so much oversupply land and house packages and rents are much lower than Perth

    Its not time to buy in Manurah, I see more pain
     
  14. sash

    sash Well-Known Member

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    MTR...this could be the perfect time...you are now getting about 5% return...there are areas where you can buy for well under 300k.

    Perth is incredibly cheap at the moment......focus on how the economy is tracking.

    I would say that you need to be counter cyclical....I would move away from Sydney, Melbourne and even the USA...to more like Perth and Brisbane.

    I look at what Trump is doing...and I can see money flow out of America..... a small shock there it could cause chaos. Classic example is London post Brexit......
     
  15. JohnPropChat

    JohnPropChat Well-Known Member

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    Plenty of good buys in Perth. Some even with 5%+ yields.
    Peel region (mandurah) is not worth the risk when the same money is buying top quality stock in Perth.
     
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  16. Ketsle

    Ketsle Well-Known Member

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    Beat me to it
     
  17. Shogun

    Shogun Well-Known Member

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    Some call it Methdurah
     
  18. MTR

    MTR Well-Known Member

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    Lol

    Nice tenant pool
     
  19. JohnPropChat

    JohnPropChat Well-Known Member

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    I personally wouldn't mind owning a canal block in Dudley park but it's more of a lifestyle choice than a good investment.
     
  20. MTR

    MTR Well-Known Member

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    Not a strategy that suits me

    Prefer rising markets;)
     

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