WA Perth market 2020

I am a long term Langford resident. Given its proximity to the city, ease of access via roe hwy and Albany hwy its has some upsides. Plenty of gentrification has been done. Yes it has pockets that don't look the best. But on the flipside there are some good streets. I have never had any trouble or concerns over break ins etc. I think a time will come much like they did with balga was to demolish a lot of stock and rebuild with new. Be mindful of air traffic noise though. I would choose Langford over Thornlie personally

 

How about this place for cash flow/yield play if negotiated well.
Although,orelia is a sister suburb of kwinana
https://www.realestate.com.au/property/6-casserley-way-orelia-wa-6167

 

Would anyone offer an opinion on buying & renting an IP/future PPOR in South Perth vs buying, renovating and selling in the 10-15km ring (max budget 500k)? My timeline is most likely 18months to 3 years away but interested in what others might think between the two options.

 

High Wycombe is close to Airport and is short drive away from Armadale. Growth on this suburb has been stagnant for the last 10 years, but expected to grow in double digit figures over the next two years before the train station opens. Good time to buy now, especially close to the train station.

 

Already priced in, same thing with Redcliffe. If you want to buy along the train line, Bayswater with the new $100 million dollar junction that ties in Midland line, Airport Link and the future Ellenbrook line is a much better bet. MRA have taken over the Bayswater station precinct so expect some good rezoning coming through.

 

Mate, I thought you already bought something? Is this another purchase?

In any case, Medina, Orelia, Leda, Permelia are a cluster **** - stay away. Much better value closer to the city.

"high yield" is pointless if they don't actually pay and destroy your property.

 

A house? for $500k in South Perth in 1.5 to 3 years?

At this point in the cycle, inner ring offers the most bang for buck and CG prospects. Middle ring (10k to 20k) will come next but the timing is a bit uncertain but as the saying goes, buy what you can afford and buy something with a twist (add value, dev block etc)

 

Probably a bad idea for a lot of reasons. No point compromising on growth just to get cashflow remember.

3 A & 3 B Butt Place, Orelia, WA 6167

This would have been strictly better for cashflow and just generally if you really wanted to go Orelia for some reason.

 

Not a house. I should have mentioned stock and price difference.
2x1 (min) apartment/unit in South Perth vs 3-4 bed/1-2 bath in a middle ring suburb

I know inner ring is starting to move and has moved in areas and that means middle will eventually follow suit. My thinking is in 30 years time once kids have moved on I'd like to downsize to South Perth. I don't want to even begin to imagine the prices in 30 years.
Hypothetically if you had a situation where you found an apartment/unit in an inner city suburb now that you'd like to downsize to in the future would you be better off buying now, renting and then moving in later or look to the middle ring and buy, reno, sell and eventually buy the inner ring apartment/unit in the future?

 

I can't even imagine what I'll be doing 5 years from now, let alone 30 years.

If a property doesn't make sense as an IP now then no point buying it, simple as that. As a general rule, I stay away from apartments but if the numbers stack up then why not.

In that price range, one can't go wrong with strata free villas inner ring.

Is your current hurdle servicing or deposit?

 

I like to plan ahead...haha.
This chat is really the only opportunity i have to discuss things with as most of my friends are in the "enjoying life in the moment" lane.

Deposit is the big hurdle.

 

super juvenile of me but i cannot stop laughing at the unfortunate street name

 

ponders if there is a Uranus street nearby

 

How is the equity extraction coming for the Booragoon place?

 

When you are enjoying life by then, they will be posting to this forum and ask for advice on "only a few years to retirement but still have a mortgage to pay off, where is the best place to tree/sea change for a lower budget home". You have done well by planning ahead. Be the bees, not the butterflies.

 

Just casually doing a search, what about something like this for $500~K: https://www.realestate.com.au/prope...ep-pdp|sold-pdp:property-history-cta#timeline

 

First, that place is at least $50K over priced, even with the granny flat.

Secondly, ask yourself this - what kind of tenant would want to rent in Kwinana? Moreover, who would be so desperate as to want to rent a granny flat in the back yard of a house in Kwinana?!?

It's probably not going to be pretty and I don't think you could realistically get the $500+ P/W combined rent the agent is suggesting anyway. If you really want to have some exposure to the Orelia market (why???), you might as well by a 3x1 for $170K and get almost the same yield.

Perth has many areas that can achieve better tenant quality and future CG potential for similar yield and entry price.

 

Number of listings for sale down to 12257, probably as they might have got rid of listings old than an year.

Perth market snapshot for the week ending 5 January 2020
NEW
06 January 2020


Sales activity increased 16 per cent in Perth this week, with REIWA members reporting 249 transactions.

This increase can be attributed to a 11 per cent rise in house sales, 45 per cent rise in unit sales and 18 per cent rise in vacant land sales over the week.

Properties for sale
There were 12,257 properties for sale in Perth at the end of this week, which is six per cent less than last week.

A closer look at listing stock levels shows house and unit listings decreased by seven per cent and listings for vacant land decreased by five per cent.

This week's total figure is 12 per cent lower than levels seen four weeks ago and are 24 per cent lower than levels seen a year ago.



Perth rental market
REIWA members reported there were 5,767 properties for rent in Perth at the end of this week, which is three per cent more than last week.

This week's rental listings figure is four per cent lower than levels seen four weeks ago and are 21 per cent lower than levels seen a year ago.

Leasing activity increased nine per cent in Perth this week, with REIWA members reporting 485 properties leased.

View our Perth Market Snapshot graph for a detailed breakdown of the past week.

 

Slow. Still a bathroom and entire front & back yard to go. Within 18months the front yard and bathroom will be complete which will push the value to (assuming market picks up a little and compared to current similar stock) mid-high 9's. We are paying down the mortgage a little extra too.

 

Most mid-spec renovated 3 bedders in Kardinya tend to go for mid 6's. Im not sure there would be much money in it. I was thinking more towards the 300-400k value add stock a little more inland