Perth Market 2022

Discussion in 'Property Market Economics' started by MTR, 1st Jan, 2022.

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  1. MTR

    MTR Well-Known Member

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    Last edited by a moderator: 1st Jan, 2022
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  2. Hills123

    Hills123 Well-Known Member

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    I’m thinking about buying in Perth in 2022! Will start looking in early Feb - around $500K - will be following this thread closely!! :D
     
  3. Calder&Scale

    Calder&Scale Well-Known Member

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    Is there a 'normal' settlement timeframe for WA?
     
  4. MTR

    MTR Well-Known Member

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    I recommend you Review old threads lots of info here

    Most suburbs mentioned have already seen 10%+ growth. 2022 going to be a great year
     
  5. MTR

    MTR Well-Known Member

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    Depends can vary. After finance approved I think around 3-4 weeks??

    In hot market….I ask what buyer wants.
     
  6. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    Sort of but everything is negotiable. Generally the standard is 21 days for finance and then 21 days for settlement. When banks are slow I tend to use 28 and 28
     
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  7. Calder&Scale

    Calder&Scale Well-Known Member

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    Thanks guys. 4 weeks after finance is plenty.
    In QLD they wanted 35 (incl finance) and it was a bit stressful for us.
     
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  8. george costanza

    george costanza Well-Known Member

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    The outlook is looking good for Perth. The best in a long time.

    2021 was a good year and will be looked back as a turning point, where the market started to bounce back after 6 or so years of decline and stagnation from 2014-15.

    My wish list is for the Perth median price to overtake its 2014 peak, and for the apartment market to improve.
     
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  9. MTR

    MTR Well-Known Member

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    I think there is an over supply of apartments in all capital cities
     
  10. MTR

    MTR Well-Known Member

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  11. Redwing

    Redwing Well-Known Member

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    21 days, but i know someone who goes in hard with cash and 14 days settlement
     
  12. george costanza

    george costanza Well-Known Member

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    Rents have been increasing for apartments in Perth metro area over the last 1-2 years. Just hope for some capital growth.
     
  13. MTR

    MTR Well-Known Member

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    This is great news
     
  14. Fraggle

    Fraggle Member

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    We are looking to get into perth market so some advice please - Plan is to hold onto for capital growth (hopefully) and something thats rather cost neutral:

    We are unsure whether to go for new build or something established.

    New build in Forestdale - seems to tick all the boxes for infrastructure being spent on the area and proximity to schools etc. maximises the tax benefits for depreciation
    or
    Should we be looking at an established home in a area like Rockingham.

    Thanks for any advice
     
  15. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    I'm going to assume the Forrestdale build is in a new estate?

    Why just those 2 options? I don't know your budget but I think there could be better areas but can't really say without more information. At a very macro scale between the 2 choices of a new build in a land estate vs established house on a larger block I'd probably go established but it's a very nuanced verdict and needs more options and information.
     
  16. Alex AB

    Alex AB Well-Known Member

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    While not at Perth city level, but many suburbs have gone past 2014 peak right? At least a few north west suburbs that I looked at. I think many sub-divisions, new builds keep the city median lower too.
     
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  17. MTR

    MTR Well-Known Member

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    Becareful with building in Perth atm, its crazy and builders are putting up prices even after signing build contract

    read this


    Building costs can blow out

    Also opportunity cost? Are you better off buying established, considering building could take 18 months

    I am a huge fan of Rockingham, its going to keep rising
     
  18. Hetty

    Hetty Well-Known Member

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    We are tentatively looking at getting another property and considering Perth (all very early days- just been reading this thread and it’s predecessor).

    What is prompting investors to think Perth will boom? Is it Covid? Because Perth will be just as stuffed as the rest of us with time. Is it catch up with other states/from the crash? The crash concerns me too, I feel like the market is more volatile there than the eastern states.

    PM costs are also quite expensive there aren’t they?
     
  19. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    It's quite a few things
    - years of very little new supply since 2014 causing undersupply which increases competition and values
    - overall affordability - attracts investors from East increases competition and values
    - strong economy with a number of large projects to come
    - low unemployment and shortage of employees who will need to come from other states/OS who will most likely rent
    - strong yields - generally higher than other capital cities attracts investors from East increases competition and values

    Yes PM costs are more expensive than Sydney but somewhat comparable to other states.

    Perth has already seen some significant growth in the last 12-18mths and most likely will continue so "will boom" might be "already booming" but it depends on what you call a boom.
     
  20. Alex AB

    Alex AB Well-Known Member

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    Just to add about PM cost in Perth based on my limited experiences:
    1. It is higher than many other capital cities but that seems to come down - at least if you negotiate and look at other agencies that people posted here. Initially I read it is about 13-16% all inclusive but you can definitely get a few % lower than that or at least get main PM fee in single digit with some other charges. Still 1-2% more expensive than Brisbane for me though.
    2. PM fee is what we can see quickly but don’t forget other costs like council, water, insurance, land tax, etc. for example for my case, water / service bill in Brisbane is more expensive than Perth.
    3. Overall, I would think in the current market, net yield in Perth is still more attractive than many other capital cities. However that cost / profit is still relatively small compared to long term CG, which is unknown, multi million dollar question right?
     

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