WA Perth market 2018

Pity no one publishes a list of such areas.

 

Another thought on this.


Seems to me that areas that are both close to the city and affordable are bound to be ones with high investor activity traditionally. Particularly because the higher density provides for much more units, apartments and villas.


So if you want to live in these areas and you don’t have 600k to spend you will be buying housing stock that is also targeted by investors to rent out.


And if you want a bigger house and don’t have that money to spend it’s to the outer burbs you go.


So by saying that people should not be buying in investor infested areas aren’t you really saying that its outer burbs mortgage belt or 600k plus dwellings in the inner ring or bust?

 

‪For the first time in more than 5 years Perth property is not the worst performing of the four largest cities. Sydney prices are down 3.9% over the last year while Perth is down just 0.9%. The average Australian house price is now $686,200, down $4,100 since last quarter. Perth prices still declining though...

 

I'm guessing that data is current to early 2018, but that trend for Perth has been interrupted in recent months. Perth median price is down something like 1.5% over the last 3 months alone. On the upside, we continue to lead the nation in rental yield growth...

 

SQM Research newsletter out this week also reports vacancy rate dropping from 4.0% last month to 3.7% this month. Down from 4.9% 12 months ago which is very significant.

 

Investor infested areas are those where "investors" bought in droves without fully understanding fundamentals. They are all around the city.

Yes, outer burbs are a no-no in this climate but always exceptions to the rule.

Nollamara is not exactly an outer suburb but infested for sure. Belmont/Cloverdale was infested but is slowly getting better.

Gosnells, Girrawheen are also prime examples for mindless investor activity only to slide into despair. Plenty more suburbs like these...

All those burbs were fueled by investor activity and did well during the boom but reality brought them back to fundamentals.

Many good suburbs have been listed and talked about. Ignoring blanket statements and getting on the ground is the only way to find gems even in a **** market.

 

eg?? COVE Nollamara Villas – ORBIC BUILD

They forget to mention close to Mirrabooka shopping center

Even I wonder if this was a smart investment to make.

 

https://www.realestate.com.au/prope...ep-pdp|sold-pdp:property-history-cta#timeline

Ouch, and plenty more where that came from.

 

Absolutely. 20% off peak for something that has plenty plenty plenty of other same same same properties competing against it. Within 1km of that site there is a veritable flood of cookie cutter 3 x 2 villas. Always has been and always will be.

That's the sort of investor product that most would advise people not to put in their portfolio as it has such overwhelming supply issues. It doesn't mean the suburb is bad, just that there will always be plentiful supply and therefore less competition when it comes to increases in values.

 

But isn’t the fact that lots of 3x2 villas are being built indicative of the fact that that is what people want to live in? How much heterogeneity is there in housing stock anyway?


And isn’t the main problem simply the fact that arse fell out of the rental market? Not that there were too many 3x2 villas but that there were too many investors buying them and when everyone left there weren’t enough tenants to go around fatally undercutting the investment strategy.


BTW, the main issue I have with a lot of villas like this is the lack of outside space. I expect that villas like this one which are at the back of a block and have a decent sized entertaining area and some space for plants and good light will hold their value a little better- even if they tend to be older developments.

 

The fact that there is lots of 3x2s being built is not indicative of what people want to live in. In my opinion it is indicative of what developers/investors THINK that's what people want to live in and/or what their sheeple minds came up with "oh look people are building triplexes and making money, I must therefore build triplexes"

It is also a symptom of zoning dictating product and somewhat funding restrictions. Funding because it's a heck of a lot easier getting a loan for 3 than 4.

In my experience around 60% of people that live in a 3 bedroom villa are a couple with no kids or a couple with one child. That 60% could well be much better off in a 1 or 2 bedroom villa but no one builds them because in R40 areas the blocks nicely divide into 3 and putting a 1 or 2 bedder on 200sqm of land seems quite silly.

Those R40 areas can have apartments which could meet that diversity but not everyone wants to live in an apartment.

I've built one bedroom townhouses and they rented in this crap market like hotcakes with multiple applicants and applicants offering more money to secure it.

A successful development can sometimes mean going against the trend. If all product in the area is 3 x 2 where does a family with 3 kids live? 4 x 2 stock to them could be rare and they may pay more for it.

 

Amid an epidemic of mortgage stress, a financial 'perfect storm' is on the way

Seems that the market in Perth still has a fair way to go judging by that article and the recent Core Logic RP data daily index.

 

Sad state of affairs but Perth is not (ALL of)WA. Fringes of Perth were never a good investment to begin with. Overshot fundamentals and is now back to reality. Financial hardship can be debilitating but sometimes declaring bankruptcy is not the worst thing that can happen as opposed to many many many sleepless nights and worry.

I applaud people who dare to cut losses to adapt to the circumstances, it's a very tough call when the stakes are high.

 

Begs the question why banks were willing to write the loans

 

Looking for some experience advice again

After a PPOR, Something thats liveable straight away regarding insides. Backyard happy for that to be a dump have experience in landscaping so happy to put in the hard yards and get something for cheaper with an average/not looked after backyard.

- 3-4 Bed (Somewhere good for kids d9wn the track 3 yrs away)
- 2 Bath
- 400m2 minimum (Decent size Backyard due to border collie puppy and no doubt another down the track)
- 400-475k price range
- One works in Osborne Park and the other Nedlands

As we are investing so much money would still like something that is going to hold value or make value in the 10-20yr term

 

4x2 and 400m2 $475k is a lot of ask will mean a commute
Maybe Hamersley
79 Eglinton Crescent, Hamersley, WA 6022

 

Search for "Marangaroo" on here. Reasonable distance/time to Osborne Park but another 10ish km to Nedlands
Real Estate & Property For Sale between $0 and $475,000 in Marangaroo, WA 6064 (Page 1) - realestate.com.au

 

Believe it or not, I have a place in Marangaroo, 2 border collies and work in Osborne Park.

I am bias but so far so good as a suburb and fits your price range for a 4x2 on a decent land component. No guarantees long term as with all areas but I remain optimistic.

 

Certainly the area leaning towards. Greenwood/Warwick have some quality high schools across wanneroo road. Straight down hepburn to Hillarys and beaches.

Wanneroo road an easy access into CBD 15-20km range away from CBD.

Any good spots and bad spots. Were you the one that lives near John Maloney park? Im guessing the north and west of Marangaroos suburb is the better parts

 

To banks its all a numbers game. Calculated risk with a certain level of bankruptcies/losses being accepted. Even in those case, they rarely loose everything. For high LVR there is LMI to recoup capital and for low lvr loans, they are likely to recover most if not all of their debts.