WA Perth bottoming out?

I have not run numbers but I would guess that low end apartments in the city of Belmont would be a no go.

 

That's what I have been told about the supplier side of things.
It's every dog for themselves out there - even to just do this for cost and keep the factory churning over.
The atmosphere is tense with the supplier - that's almost certain for most of them. There might be one or two that is bucking the trend.

This have to translate to tougher negotiation and profit would be hit. The fittest will survive this cycle and flourish in boom time.

 

Hi all, new here and first post. I'm in building services and, yes, there is a major tightening of margin in this industry.
There are still some large projects - 8 new schools, 4 shopping centres, airport work, Universities are investing and some major transport projects are coming on line. I think the industry will continue to decline.
Apartment buildings (we designed many) are really softening and I know of developers that have over invested.
I'm still looking to buy property here, in the $800-$900k range, and I am starting to see good value in this price range. I was looking around 12 months ago and am now seeing houses that would have been +$1M drop to the $800ks.
Hopefully I can be a valuable contributor to this site.

 

Hi @Jello_B and welcome to the site!
Im a relatively new member myself,
do you mind if I ask with what strategy you plan on buying the new IP with? would you be "buying and hold" for future capital gains?

 

Pretty much. I have had a few properties in SA that I have done well on (I am still holding one in North Plympton on 1000m2 that I bought for $250k, 7 years ago) with this type is strategy.
My strategy is to buy as much land as possible, so I'm looking at 500m2 in Claremont and surrounding. I have a business and am currently being hit hard with taxes so I can get some tax relief as well, although I'm not an advocate of negative cash flow properties. I'm 34 now so I don't have as much time anymore to buy at $150 - $200k, spend $30k on renos, rent at $280 and sell after a few years. I need to drop some money on an 'easy' investment. Long answer but hopefully that helps.
I am also hoping the recent approval from Woodside for a new gas plant offshore of Exmouth will renew some confidence (I work in construction which also includes O&G clients).

 

Nice! ok cool, sounds good. I personally feel Perth may have a little way to go before it starts gaining again, but that is just the property clock? I didnt hear about the woodside project yet, has that been confirmed? I work in In O&G so if so good news for me.

 

Here you go mate, there is a resources newsletter that is worth subscribing to if you are in that industry.
New Woodside oil development approved - National Resources Review

 

wow! probably should try keep myself more up to date, this was published 3 days ago

 

ahhh sorry
I thought this was something related to the earlier $40 billion-plus floating LNG project they said they were going to hold off at.Not as good but still good news with the smaller project.