WA Perth market 2020

Have once again started looking to buy in Perth. Looking for properties with decent yield within walking distance of future "potential" train stations or light rail. Perth will eventually get to the Sydney and Melbourne though process (and pricing) in terms of, you want to be as close as possible to non bus public transport once the roads clog up further

ie South Perth (Train Station - 5-20 years to be announced, hopefully) or Vic Park (Light Rail)

Is anyone able to tell me where the light rail down Albany highway to Curtain Uni is up to? The lack of information online tells me that this is once again on the backburner?

I'm not too worried if infrastructure is never announced. Buying for yield with the "potential" for a spike in CG based on new infrastructure. Properties will be positively geared so I'm not too worried if that spike never comes

 

Forget light rail, it will never work in Perth. Why would we want to lose our street median trees for a trams down fitzgerald/alexander drive or albany highway. I can tell you that light rail is very much on the backburner in Perth... especially now that we have no desire to become like Melbourne following covid. Perth is investing heavily in their heavy electrified rail and bus routes.
You mention non bus public transport, why are you against buses? Perth has a world class busport in the city and our roads (besides the freeway) are so far ahead of modelling data that the risk of clogging is low. I think buses are very underated and property close to buses are superior than close to train stations as majority of the train stations in perth you need to drive to anyway, they are all park and ride. Buses in Perth work like Trams in Melbourne... only without all the spider cobweb wiring above and with trees in the median.

 

Just be aware that property management is higher in Perth relative to the rest of the country. It's not unusual for a PM to be charging 10% in addition to fees and even $150 per routine inspection as well. Something to factor into cash flow calculations as there is a significant different relative to all other states and some investors get a bit of a rude shock when they start looking for PM after they're commited.

- Andrew

 

HI Lynchy,

I know the Light Rail project by City of Stirling to go along Scarborough Beach Rd has now been canned in favour of trackless tram system to reduce the cost and upheaval of building the light rail. So other projects will most likely be watching with interest.

https://www.stirling.wa.gov.au/your...zB9xUcJ66oY0-GE_GypaVx0QBId8wHiQKMF9XF94sUeAw

Trackless trams are quite bus-like however they can have multiple carriages so can carry more people but they still run on the road.

The market is exceedingly hot in many suburbs at the moment with multiple offers at first home open type scenarios which is not good for the bargain hunters.

 

If a PM is charging 10% (incl GST) then the routine inspection should be free and included in this management fee.
If you are paying 8% (incl GST) then they may charge around $55 for a routine inspection
I don’t think anyone in Perth wold be paying more than 10% and an additional $150 on top of that for a routine inspection with a quality PM in Perth?

 

Having lived in Mosman Park for a few years, being able to walk to the train in 5 minutes and be in the city quickly rather than sitting in a bus in traffic on stirling hwy was fantastic

The new Sydney light rail has very little above ground wiring and with the sandstone and attractive landscaping surrounding it, it actually looks quite good. It shows it quite well, lots of traffic on the right, light rail on the left.



i have no doubt in my mind that within 20 years, the mind set of people living in Perth will change. I lived there for 20 years, Melbourne for 5 and Sydney for 5. I’d like to think it’s an educated guess and one i’d be willing to bet on if the initial yield is attractive enough

I think this picture within the trackless light rail video for the City of Stirling speaks a thousand words. Running busses through there in 10-20 years will be a nightmare

 

A few others 10% plus gst.
I talked to one company 14% plus lots of expensive extras

My old PM was about 12% all up a year (8% plus extras) depending if new leases issued.

 

'Should' is a relative term. Should people be paying $1.5m for a unit in Cronulla in Sydney? Should someone be paying a 20% management fee to their agent as an artist? It's all driven by the free hand of the market and if that's what agents are charging and the market is paying, then price is supported.

There is an argument that people 'should' be paying those prices. Everyone complains about their property managers, yet they don't want to pay fees that would support a business proposition where high calibre staff can be paid salaries that equate to a professional level of service you would find in industries that demand better service and the business can sustain it. Instead, we pay 5% in certain cities and complain when our PMs don't call us back or don't understand property investment. As with anything, you get what you pay for.

Broadly, I am not advocating Perth PMs 'should' be charging that because I have absolutely no business or financial interest in the Perth property management space, but if you're comparing it to fees in other cities then that is the wrong approach. Markets don't work that way and if they did, you'd be able to get a house in Sydney near the beach/city for the same price you can in Perth. The comparison is the same.

At the end of the day, I'm not charging them and I'm not advocating for or against per se. I'm just saying that there are PMs in Perth that charge those fees and you should factor in higher PM charges into your cash flow. Like everything, you can negotiate.

- Andrew

 

https://www.realestate.com.au/property/11a-cowrie-cres-mount-pleasant-wa-6153

Will be interesting to see what this one goes for.
Bought Dec 2013 for $975k
Extensive Reno
On market Nov 2020 for 1395-1495k

 

Anyone watching Mt Hawthorn? Its flying

 

it's been strong for a few years.
days on market are very low, lots of buyers. ready to move in houses are flying out the door

 

I'll nominate this for Not a Bargain 2020 https://www.realestate.com.au/property-house-wa-west+perth-134983158
I'm just not seeing how they came up with this price point?

 

Lol I was looking at it this afternoon trying to work out the same. Good too see it’s not just me

 

Oh, wouldn’t the agent spruik “Easy access to the Freeway”

 

Beautiful but i just wish they finished the plastering out the back...

 

what are peoples thoughts on this flooring, yay or nay? I really like it but figure it will outdate fast

 

Nay for me. I went back to the old photos to see if it was the original flooring.
I prefer wood-look tiles however i do think the flooring actually suits this house.

 

The herringbone? Or the granite style tiles downstairs?

 

Also im not at all familiar with Mt Pleasant but that price seems quite high for an unfinished reno? Im imagining what $1.4M gets you in many other suburbs of perth...

 

That particular street has quite impressive city and water views