Melbourne or Perth

Discussion in 'Where to Buy' started by snoopy, 27th Jun, 2021.

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  1. snoopy

    snoopy Well-Known Member

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    We are significantly over the land tax thresholds in NSW and Qld and were looking at buying in another State.

    Melbourne will be the largest city in Australia once the borders open up and Perth is recovering from a downturn so probably has a bit more upside, but it is so isolated.

    Thoughts?
     
  2. Shogun

    Shogun Well-Known Member

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    Perth currently has a housing rental shortage.
    Media articles suggest WA industry requires a huge number of skilled workers. Industry wants overseas migrants to fill vacancies
     
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  3. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    It really depends on your budget. Historically Perth has had better yields than Melbourne so is easier to hold and if we're looking at $700k market then that buys something wayyyy better in Perth and only gets you outer reach land estates in Melb which might not have as much CG potential as Perth
     
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  4. PeterCr

    PeterCr Well-Known Member

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    Agree with Westminster - Perth will probably get you something a lot better closer to the CBD for similar price points I suspect. Perth is the way to go I would say - the pricing in Perth has not reached the previous high points - and if that trajectory was to continue and previous records was to be surpassed - Perth has a bit more potential.

    Other parameters may need to be reviewed - Risks, Strategy, etc that may provide you a bit more insight I suppose.
     
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  5. snoopy

    snoopy Well-Known Member

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    What would an middle class area, 10ks out of the city in Perth where I can build say 3 or 4 townhouses - over 800sqm with an old house, close to train station? for around $1m
     
  6. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    Sorry can you rephrase that?
    Are you asking what suburbs are within 10km from city where you can buy a site for 3-4 townhouses for around $1m near a train station?

    You're list is very specific and might only refer to one suburb - which is why I'm asking if it's a statement or a question?
    Anyway if it's a question then you're probably looking at Maylands, Bayswater, Glendalough, Bedford, East Vic Park, Carlisle and probably a few others but it's pretty easy to look at maps and those criteria and work it out.

    Whether its a good idea or profitable is a whole other story.
     
  7. snoopy

    snoopy Well-Known Member

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    Thank you - those are specific requirements based on our previous experience in Sydney. It’s for a long term hold.

    I will research those suburbs.
     
  8. Momentum

    Momentum Well-Known Member

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    The problem with Perth is the management fees will take a huge chunk of your cashflow, unless you self manage. I would be contrarian and invest in Melbourne inner city units - small walk up blocks in good locations like inner bayside
     
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  9. Shogun

    Shogun Well-Known Member

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  10. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    Yes please do be aware that management fees in Perth are much higher than other states
     
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  11. VICPER

    VICPER Well-Known Member

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  12. Shogun

    Shogun Well-Known Member

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    . Details sent.
     
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  13. Colin Rice

    Colin Rice Mortgage Broker Business Member

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    Circa 10 to 12% all inc.
     
  14. skyfall

    skyfall Well-Known Member

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    Ouch why are the fees so expensive over there? On the east coast management fees are 4-6% and includes all those side fees they are gouging you with.
     
  15. skyfall

    skyfall Well-Known Member

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    Wow that's expensive!
     
  16. Shogun

    Shogun Well-Known Member

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    .
    Cheapest in Perth I can find.
    DFR used to charge 10% flat don't know if new customers can get that with RMA
     
  17. Colin Rice

    Colin Rice Mortgage Broker Business Member

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    It's a good question, I will ask my PM why such a disparity in fees between the west and east coast and report back as she is very helpful and knowledgeable.
     
  18. Jaacksn

    Jaacksn Well-Known Member

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    Hi Colin, I am myself very curious

    would love to know
     
  19. strongy1986

    strongy1986 Well-Known Member

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    Im guessing the high management fees are just a hangover from the last mining boom where it was hard to get employees on average money

    The rates were never decreased after the boom because the rent dropped through the floor

    Pretty much everything is more expensive in WA with the exception being housing affordability
     
  20. Spiderman

    Spiderman Well-Known Member

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    Even before the boom really gathered steam (eg early 2003) WA PMs were expensive.

    It was like there was a cartel operating - everyone was charging 9.35% (incl GST) with lots of add-ons to bring it to well over 10%.

    An opportunity may await to enter the PM market (eg offer a flat 9%) and shake up the industry.
     

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