WA Perth Development Sites

Discussion in 'Where to Buy' started by BLAIR_, 18th Jun, 2015.

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  1. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    BTW if you do need to look at selling talk to your accountant and there are important things to consider before committing to it, ie possibly keeping it for 12mths if you are eligible for CGT etc etc
     
  2. sanj

    sanj Well-Known Member Premium Member

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    That is a bit of a how long is a piece of string question. What were prices like for comparable properties before a potential rezoning made it jump?
     
  3. 2086

    2086 Active Member

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    Very low in comparison... that was 2011? ~$300k.
     
  4. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    I don't think that is an accurate figure to base off. Potential rezoning is not worth $150k. It does help get a better price but it's probably no more than a 10% value add on top of normal prices.
    In 2011 heaps of Perth was worth WAY less so you can't go back that far.
     
  5. sanj

    sanj Well-Known Member Premium Member

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    Yeah its a hard one because i suspect forrestfield in general is probably becoming a bit more desirable to some than before but i think your 10% estimate could be conservative. I know nothing about this market at all but we all know how stupid prices got for sites in general and in particular potential rezoning sites.

    Didnt girrawheen go from 320k to 460 or 480k? Or did it end up peaking even higher for a typocal old home on 692 odd sqm? No way woild it have gone past 400k if it has been left as r20 or whatever it was initially.

    I doubt forrestfield market got that silly because girrawheen over the last 12/18 months of the uptick was some of the best example of sheer lunacy when it comes to real estate purchases. People were buying potentially rezoned that would make less than 20% profit if it was rezoned the day of purchase let alone years later.
     
  6. 2086

    2086 Active Member

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    ^^^That's scary, I have no knowledge of that market so I can't compare... The fear is 100% the worst thing driving me to think like this, the fear of losing $60k+ at least is astronomical to me as I said, the fear of losing more would be worse...

    It could be easy to just ignore the short term comparable sales to my property which are honestly $30k less already, with that I am being realistic I think. But by doing that, aren't I just blocking out reality? In reality the biggest driver of the Forrestfield market was the rezoning which looks as though now will mean nothing to most properties in the suburb and will obviously slow down.

    If I hold onto it, and there are sales comparable to mine that continue to go down in price, at what point do I say enough is enough? At what point do I say I am already in too deep that I would just have to hold?
     
  7. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    I don't have the answer for you, I'm sorry. Prices are going down all around Perth so no matter where you had bought it would be doing the same. What hurts is the risk that you might not be able to compensate for that by doing the retain and build.

    I do know that what seems like $60k doesn't end up being $60k cash after a good accountant gets his hands on it and advises you. A loss can also be carried forward for a future gain.

    Please talk to your accountant.

    Please note I edited this as I realised I was talking **** about income tax and losses
     
  8. Big Daddy

    Big Daddy Well-Known Member

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    I purchased 3 properties at the end of 2006 (peak of boom) and was negative geared by 45k a year in a 8.5% interest rate environment.

    It took me 8 years to recover and buy another property. Worst thing you can do is give up and sell. I don't want to work until I'm 70 and since I'm bad in the share market then property is my only saviour. I must pick myself up, learn from my mistakes and move forward.
     
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  9. Jamie_

    Jamie_ Well-Known Member

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    Seems that dev sites in Perth are still doing quite well, Bayswater sites are still getting more and more expensive (close to maylands pricing now) and they aren't staying on the market very long. Same with Bedford, Doubleview & Innaloo.
     
  10. Perthguy

    Perthguy Well-Known Member

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    I don't think you are blocking out reality by ignoring prices for a short time. I don't believe prices are going down and are going to stay down. In my opinion, this is temporary. It sounds to me like you are focusing maybe a bit too much on current prices. That's not realistic either.

    I don't agree. IMO, Forrestfield has a lot going for it. It has good proximity to the airport, Swan Valley, hills and CBD. I think Forrestfield has been undervalued for a long time. Prices have been driven up by the proposed rezoning, it's location, the train station and it being undervalued.

    We can't answer that. I think you are being very hard on yourself thinking this was not a good buy. I haven't run all the numbers but it seems to me that you have bought a solid house in a good location. You have potential to increase the value through renovation and a possible granny flat as mentioned above. I think it is way too early to panic.
     
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  11. 2086

    2086 Active Member

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    Hey guys, I have got home and had time to share my feelings with my parents. You guys got me through today at work I think, helping me think about the long-term positives and sharing your experiences. It hasn't been easy for me working recently with these thoughts in my head as guess what... I work for a finance broker and will be a broker my self in 1-2 years. So thinking oh, I could be one of those clients who I've seen with investment properties who have lost money is hard.

    I have been very conservative for someone at 22 years of age, I watch 90% of people my age live week to week, no thought at all regarding my future and think how can they do that. I have been able to save over $60k but then the thoughts that it could all be gone keep coming into my head.

    My old man shared his experiences tonight as well as him basically saying 'I'm not letting you sell the property right now' it makes no sense unless a time down the track and your still feeling this way and it's not good for your health.

    I have to work on switching my view for the long term, not just looking at current comparable sales. I need to keep controlling the things I can like you guys have said, maintaining the property, renovation and possibly a granny flat. As well as expressing my voice to this ridiculous draft policy.

    I also have to look at the other things in my life that I can control like family, further my career - there's unlimited potential there, I work with people who earn $1-2m/year. I will never be typical 22 year old going out and getting drunk every weekend, as you can see this isn't all about the property... I am getting pretty personal here.

    I'll sign off tonight by saying I'm not going anywhere for now, I'll be here hopefully only for constructive discussions, not for negativity. Thanks guys, I really appreciate you taking time out of your day to respond to me and share your experiences.
     
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  12. Jamie_

    Jamie_ Well-Known Member

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    I want that kind of money! what roles :p?
    Backup plan for this forrestfield place? Let's say you can't develop it at this stage, what else can you now do to increase the rent to minimize your losses and wait for CG and potential to change?
     
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  13. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    @nevernotspurs I did a like on your post but just wanted to reiterate that with every purchase you will always feel some time of panic after doing it where you go 'what the fork have I done, omg the house down the road just came on the market and is cheaper etc etc'. Your situation was compounded by the TPS policy being a pile of cow manure.
    Hindsight is amazingly clear and the 'shoulda, woulda, coulda' thoughts creep in.

    [​IMG]
     
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  14. 2086

    2086 Active Member

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    Finance brokers.
    I am getting $400 per week rent at the moment which definitively looks to be over market price. I think the tenants are just happy to keep paying the $400 per week because I'm not going to kick up a stink about them driving their 4WD's around the back etc. So at the moment I will just maintain to keep them happy. The 1 thing I can't fix to keep them happy really is the old back sun room which leaks, at least I don't think I can... But yes, I get your point and will continue to work on that.

    Thanks mate, let's hope all turns out well and I am able to share my experience with a positive outcome.
     
  15. Big Daddy

    Big Daddy Well-Known Member

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    Im interested in buying in bayswater (grew up there). I have stopped following the market but the prices of dev sites were definetly dropping a few months ago. Do you have any recent sales that will confirm the reversal? Or have any idea why these dev sites are in such high demand?
     
  16. Big Daddy

    Big Daddy Well-Known Member

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    eg This site only a few mins from the maylands border. Originally 849k and would have got that 18 months ago. For sale for 799k for about 4 months and still no takers. Others on the same street did sell for mid 800's a year or two but slightly better condition. Most developers would knock the old house down
    reiwa.com - 21 Grosvenor Road, Bayswater
     
  17. Perthguy

    Perthguy Well-Known Member

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    That is a great property for the wrong price in this market. I don't think that accurately reflects Bayswater though. There were some good ones on Winifred earlier but that's not a good part of Basie. Maybe something like this?

    13 Henrietta Street Bayswater WA 6053 - House for Sale #121228398 - realestate.com.au

    I still think it is over for this market. But I think that about everything :p

    Every thing I see tells me we are still around 12 months away from good buying.
     
  18. Big Daddy

    Big Daddy Well-Known Member

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    Yes . From all reports I'm reading unemployment in WA is still rising. rents and house prices dropping . Supply increasing due to large boom last year and demand decreasing due to negative net migration. Prob 12 to 18 months before it gets better assuming interest rates don't rise too fast. I'm guessing if international buyers and eastern states buyers start seeing value in Perth then it may rise sooner.
     
  19. Big Daddy

    Big Daddy Well-Known Member

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    That's fairly close to the industrial area and near embleton and not a great location. Grosvenor is in an average location but if it was on the other side of the tracks bordering Inglewood then it would be a bargain.

     
  20. sanj

    sanj Well-Known Member Premium Member

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    agreed, i was talking more generally than specifically re this one purchase.

    it's often said that you only make a loss if you sell and i think it is sometimes a mix of a copout and a way to avoid dealing with an unpleasant situation.

    again, not referring to this particular situation, more of a general comment
     
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