WA Perth market 2019

Do you have a budget? I probably wouldn't go with Summit Homes - I've seen some poor workmanship issues on the facebook site Shonky Builders Perth. Go on there and you'll find lots of builders not to use.

I'd go with a smaller builder that will work with you to your budget.

 

I have a budget upto 250k and its an irregular small block so want to go with someone who is good.
Thanks for the inputs.

 

Thoughts on the Election results? Does it change your approach to Investing in Property in the short or medium term?

 

I think a lot of investors have taken a big deep sigh regarding labors proposed changes to NG/CGT. Particularly if they were looking to buy in the short term but after the Jan 1 deadline. I think the market pundits suggestion of their being a short term spike in sales activity as a result of investors purchasing before this deadline won't occur anymore. Thats to say if it were ever going to occur in the first place. I think you may also actually see a slight slump in sales particularly for FHB stock, as many will take advantage of the guaranteed LMI which is proposed for Jan 1. For me personally, nothing has changed as we wish to buy before the end of the year, but if nothing comes along and we do buy next year it will be nice to put some savings towards renovations

 

Hi.

Good news!!

I got a $20 increase pw for my 3 x 2 Gosnells villa. I’m stoked!! Hopefully the rents will continue to recover. It was only on the market a couple of weeks too. Didn’t take long as I realistically priced it. Woohooo.

I’m over that little tough patch and doing nicely now. Yey!!

Hopefully values will rise soon too. Fingers crossed.

 

I'm finding the rental market slow at the moment, lost of similar listings, probably due to winter period.

 

I don’t really know if there would have been much change even if labour got in IMO these policies they speak of often take a long time to come in if at all.

What does sound good though, is APRA proposing banks loosen up on assessment rates for home loans. Currently assessing at 7.25% - I’ve had a couple of brokers I use indicate it looks like banks are going to assess at much lower rates which will mean people can borrow more. This might help a bit of buyer activity in the market which can only be a good thing

 

Hi I haven’t been on here much so I’m not sure of your situation. Have you got a rental listing up?

 

With more FHBs likely to delay purchasing while they wait for the new deposit scheme next year, borrowing capacity about to improve and rents rising, the second half of this year is sounding like a pretty good time to buy in Perth, particularly in the sub-$450K end of the market. As @Ketsle said, probably even a bit more of a dip to come the market picks up next year.

 

The Government, APRA, and the RBA have declared war on falling house prices. So far, so predictable (with a Liberal win)

This ought to be good news for Perth. They were happy to let us fry while the east coast boomed.
But surely FTBs are not the white knight: Surely most will take the 10k grant and buy new builds?
Investors have to come back into the picture too.
So rental vacancy rate and rents remain the key.

 

FHBs seem a bit more clued up during this downturn. When one can buy below replacement cost and there is no longer an "instant equity" with a new build but rather "instant loss like a new car", they are thinking twice - not all of them obviously.

I agree that vacancy rates are key but #Perth10k is doing relatively well in that regard. Asked and have gotten rent increases on two of my stock.

A rental in Byford/Ellenbrook and other suicide estates is not the same as rentals not that far out from the city.

 

In fairness, Demand among first time buyers in WA has held up.

The story of WA’s property downfall is it seems to me, the exodus of the investor, closely followed by a supply boom driven by investors.

The latter caused the former: far too much new rental stock built by new investors hitting the market at exactly the same time as thousands of people fcked off back to Sydney or decided to stop coming altogether.

So its still mainly about the rents and that’s all about population growth and an undersupply biting.

 

Question - can someone please explain the "online (or open) auction" you often see with Perth listings, I know how it works but how transparent and trustworthy is it? What stops the agent from dummy bidding to drive the price up, and also love how they state "can be sold at any time"...

 

No different to real auctions where the agent can secretly bid. To be honest, they are a pain. If really keen, tell the agent that you don't have time and want to negotiate straight away (offline). Do your back and forth and if the seller is not happy then you move on.

Online auctions are generally tried on OO type stock but have seen it on difficult dev blocks as well.

 

I actually bought my house using this so:
1. The seller has a reserve price. If someone makes an offer at or above this, it may sell early.
2. You must be a registered bidder to make a bid i.e. you have presented your terms and conditions and the seller has accepted your conditions etc.
3. It is a transparent and reliable tool for both parties and I am confident dummy bids are not permitted in any way - need to check on whether this is unlawful or not.
4. Assuming you reach the final bidding date; In the final bidding stage, every time another bid is made, the 2 minute clock will restart to give you enough time to decide whether to bid again. What they don't tell you is the increments change. Basically they start at 10k then decrease slowly at their discretion every 1k or so. They also have the ability to pause bidding to contact all registered bidders to see if they wish to make any bids etc.
5. Scenario: You win! so your bid of 500k won and the sellers agent contacts you to congratulate you and discloses that the sellers reserve was 550k. Now you negotiate. They make an offer: Its yours for $550k and you counter offer etc until both parties are satisfied.

I have confidence that this tool is transparent and fair but if you aren't very patient and cannot be bothered with the process as it can drag on, I would aim for a more conventional way of purchasing a property. Personally i think this is great for PPOR and first home buyers but less so for IP or experienced property investors.

 

Winter is shocking for demand in some areas. I had one of mine vacant for 12 weeks once, even though it was priced agressively. We were lucky to pick up a great couple for the townhouse build. It was only on the market a few weeks.

 

Anyone live in Landsdsle or have much knowledge of the Landsdale area with crime and how you see the suburb as a place to live. Seen from 2016-2018 went through a bit of a crime patch. Has this dissipated over the last year doesnt look like a place where much crime/burglary would occur?

From what ive seen all similar to Darch, Madeley slightly bigger blocks can be found as further inland. Family type suburb nice green parks/lakes

Looking to buy near the main amenities there.

Ashdale getting some good wraps as a school.

Just a bit in land away from ocean, city and train line so dont see huge growth in the area

Let me know if you have differing thoughts to any of mine or think i mightve read the suburb wrong.

 

I’m on some of the local FB pages and agree the crime in Landsdale and Madeley has dropped off this year. I Agree with your thoughts! It would be a bonus to be handy to a bus stop that takes you to the train station.

 

Place to live? Average. I would go somewhere like Duncraig in that price range. I live in Marangaroo (next suburb to the south) and never understood the premium price across the road in Landsdale, other than the newer houses. Large supply there too and I think still more blocks to be built on so agree in that it won't have huge growth.

 

I think its purely schools and the newer dwellings

Where do people send their kids to senior school living in the Marangaroo and Alex Heights areas?

Ashdale starting to get quite good recognition amongst the education and teaching community

But i agree in sentiment and was always of the same opinion. Further from city, Further from beach, Further from train stations, plenty of land around it for more supply to only bring down prices