WA Perth market 2020

The surge in vacant land sales and the drop in rental listings is wild. It's obvious what is driving the land sales but the magnitude of action in the rental market is more surprising.

A friend said that a leasing agent told them they are seeing a lot of applications coming due to relationship breakdowns that occured during the lockdown, only now making the move to find separate accommodation. Could be anecdotal Chinese whispers, but I guess this backlog affect could explain some of the strength in the rental market. Though other capitals aren't experiencing the sort of surge Perth has seen recently. Odd.

Also, I suppose the big cohort of new builds being commissioned this year will complete mid-late 2021, and we should expect a small rise in vacancies around this time as FHBs leave the rental market and move in to newly built homes.

 

I had a talk with one of the Ben Trager sales rep who was fired. Apparently, its strategic decision as owner wants to focus on other brands in group which does single storey houses as thats where most of the business is at present due to grants. So it makes sense from owner's point of view to focus where more margin is. That way, they can redirect all their subbies to single storey brands as there is going to be shortage of tradespeople very soon. Its smart business move. There may be other consideration involved which we do not know.

 

Wow those rental stats are looking good. I leased and increased one my rentals by $20pw at the end of the month as the tenant moved out.

 

From continuous and sustained decreasing stock levels for all types of properties available, looks like Perth is going to have strong market towards end of 2020 and 2021 will be growth year. I reckon, we will not have any noticeable impact of jobkeeper ending in Sept. Even now, many suburbs you can notice majority of stocks under offer.

 

Spoke with a builders rep this morning, his company have sold 230 house/land packages in the past fortnight he said its insane

 

But what will all of this mean in 2 years time.....oversupply? He said majority is FHB OO not many investors. I called as its something I am considering as an IP but not sure its really worth it...I was looking at house/land package 4x2x2 in clarkson 2.5km from train station 2.5km from beach 36km from cbd looking at around 450k for that
Ive always been pro established but its not always a bad idea to go new if theres a little help from the govt and depending on your desires/goals
Now 36km is a long commute by Perth standards but in 10 years time will it still be? Especially if the train is right there....or is it better to go further north to Alkimos....yes its further from the cbd ( which in my view isn't as big a factor for people in Perth compared to other cities ) but you will get the bigger land component and perhaps to your average family Alkimos is more attractive due its pub/parks/family friendly etc

Is anyone else on here considering taking up any of the current grants to build an IP?

 

I view grants as an opportunity to challenge ones plans to explore all avenues to ensure maximum value is attained but never allow it to stray from your core strategy.
For me personally, I looked at different options but I dont have the cash and other options were less lucrative than my current plan so I am sitting on my hands.

Established Housing in that area still presents better buying I believe if the going rate is 4x2x2 for 450k..(assume smaller lot than you would get buying established).
I would think being within 1.5km of the Train Station and 3-4km from the beach would be more ideal as most would commute daily and go to the beach less frequently.
A few examples:
https://www.realestate.com.au/property-house-wa-clarkson-133642454
https://www.realestate.com.au/property-house-wa-clarkson-133723982
https://www.realestate.com.au/property-house-wa-clarkson-133717234

 

You're so right, never let the temptation of grants deviate you from your core strategy. We do have the cash but a second dwelling in Perth was never on the cards...the plan was to turn current ppor into ip when we move out of Perth. Buying an IP now would mean 2 IPs in Perth down the track and not sure if thats what we want, the plan was to buy an IP on the east coast.

 

It’s good to have a solid plan leading to a desired outcome however when market conditions change I would also consider adapting to take advantage and stay on track.
If an IP in Perth is now looking like the better option to assist you in achieving that long term end goal then I wouldn’t hesitate to deviate towards the decision that ultimately gets you to where you want to be.

 

WA gifts foreign buyers $20k housing subsidy - MacroBusiness

 

Heaven's come true for those who have prime subdivisable lands ready to be built on. Suburbs such as Applecross, Rossmoyne, Willeton, etc., will be laughing all the way

 

Not just foreigners

 

If I was going to build an IP in Perth (assuming the budget is for a single dwelling) I'd be looking for a subdivided street front block in a nice area within the 15 km ring. Although many of these blocks have no doubt been snapped up in the last fortnight. I would still not be tempted to go greenfield estate areas even with the government grants.

 

What impact will these new grants (which are only eligible for new houses) have on the price of existing stock? Wouldn't the potential buyers now get attracted to only new houses now and it will further slide the prices of existing homes on sale (which were built like 3-4 years ago). Is this scheme fair to the owners of those existing dwellings?

 

I heard yesterday, might have been from Hegney, that established market is also doing well. Maybe people are getting excited about building but after doing the numbers realising established is great value.

 

Established ones with desperate sellers are always a godsend. It just hard to have all the boxes ticked as "deals of the Year". But keep searching, luck favours the prepared ones. Why bother dealing with the repairs with a builder already taken your money.

 

I'm looking at moving to Perth in 5-7 years and want to buy an investment property. By December/January I should have my second house built and both being positively cash flowed by about $120/week.

I'm hoping in the next month I can get onto a better roster at work and earn about 90K. Looking at the numbers, and going to about 87.5% I can buy something between 600-650K.

What do people think about the corridor between Como and Fremantle - Nedlands to Wembley.

I want modern, easy to rent and 3br.

I have been interested in some town houses around Attadale, Myaree, and This section around Fremantle. All near shops/Parks/Sporting grounds.

Any thoughts on something I can get good growth and move into later on.

 

I'd probably look for something with the biggest land component you can find and the crappest house you can bear to live in.

Otherwise you'll just be buying something most likely to be generic and unremarkable on a small lot or strata villa/townhouse.

 

So something like this? Nice to live in but generic?
https://www.realestate.com.au/property-townhouse-wa-attadale-133716182

 

Pretty much. I'd give its growth prospects as somewhere between rubbish and below average.

Unfortunately there's often an inverse relationship between "nice ppor" and "above average investment".