WA Perth Market 2022

Great, thanks for the info.

 

Thanks mate, that makes sense.

Westminister's chart showed around 10.5% of jobs in Perth are associated with mining industry - so although it's only 10.5%, according to Curtin research, it contributes 34% to the states economy that's significant given the amount of dollars and financial impacts to WA associated with mining.

Hopefully the WA govt listens to the Curtin university research in the article above about diversifying the economy.

 

Yep.... they seriously underbuilt... so supply will not catch up for a while. Let say rates jump to 4% people buying a 500k property today with a 50k deposit from the current 2.5%. Repayment would jump from 18k per annum to 24k. Still almost what you would pay almost in rent....

Same would not be true in Sydney....

 

Exactly, and with low stock, possible population….. ticks a lot of boxes.

If FOMO hits Perth like Sydney last years, could be in for a wild ride….even if it doesn’t, growth prospects medium term look good to me.

 

No chance of building that house for less rhan than $750k turnkey in this market, possibly even higher than that.

 

Resi real estate

 

Covid central, expensive food and politicians?

 

Good to see that you walked away with profit.

Out of curiosity why did you consider this location? Im more asking 285k cost on a project nearly worth $1 million. Did you ever consider a smaller scale (two dwelling etc) project in a superior (valued if not actual) location?

 

Sorry the project at 10 tangmere is not mine, I just brought it up as an example, as I think anything over 20% profit from a development is good.

I did a triplex project in Balga back in 2015 as I had originally bought an old house on big block as my first home at start of 2013 ( no stamp duty plus accessed FHOG) Why this area?? As this was one of the few suburbs I could afford with my budget. Lived in original house for couple of years saved money then knocked it down and built three villas. Lived in front villa myself, rented other two out and managed myself. Never had problem renting out or with tenants. Sold front one recently no GST No CGT , sitting on other two will sell them soon( will walk away with minimum 15% net profit if market stays where it is). Had a good cash flow for 5 odd years saved money built house in a better suburb, might sell new house in an year and buy a PPOR in a superior location or stay where I am and do a project in superior location as suggested.

I am not trying to convince anyone to buy in this suburb or do development. My original post was for someone who hold in the same area and were thinking when they should sell. I replied to that post just as heads up that market has moved and it might be time to consider selling.

However I do think one strategy doesn’t suit all, everyone has different budget, circumstances and knowledge. What might work for one, might not work for others.

 

Thanks Sash will consider mid or upper market once I sell what is left and budget allows. It might be next cycle.

 

Sash,
Another Sydney person here who is very bullish on Perth. Bought one in late 2020 and another early 2021 and have convinced my children, who have bought there as well
Looking forward to the next few years, especially our place in Morley. New train in 2024. We have lived in the Hills district for many years and have seen what new infra can do...

 

Good to see. I have 3 built and another 1 building and another in planning. Looking for another 2.

Morley is very popular . It should do well. Interesting how like Sydney rail is becoming part house search requirements in perth

 

The decision is made. I'm pulling the trigger on Perth.

@Westminster will be contacting you soon.

 

Congrats on Morley
I have been a very big fan of Morley

Premier locations in Morley is south of Morley Ave. My nephew is currently developing 4 unit site. There are some juicy fat profits here as stones throw from Galleria

A suburb I believe is still under valued kind of is Bedford, 6km from city, median of surrounding suburbs higher. Problem very hard to source the right property to add value or develop

Must work with local agents

 

I actually think that there is an inherent flaw to how people perceive industries and their contribution to the states economy. My logic might be flawed and no one has to agree but here is my issue:
Prices for gold/coal/wheat/sheep/iron ore/gas all go up and down and are major export items. So in 2021 mining might contribute to 34% of the economy when iron ore is at an all time high but if for example iron ore was trading at $70 instead of $160 then the percentage might go down to 25% does that make the economy any more diverse because it's not so dominant and the percentages for other industries go up due to this?

This is some of the '21 budget summaries that focus on revenue. Most of the mining revenue comes from royalties which currently makes up 27% of the state's revenue which is higher than normal due to current iron ore prices. It's predicted to go back to low 20% when iron ore prices stabilise to a more normal price. That royalty bonus is being recycled back into infrastructure projects which will continue to benefit the state for years to come.

Maybe WA should diversify it's economy and get some pokies NOT. NSW gets a staggering $1.8b a year in revenue from pokies ($3b overall from gambling).

 

what do you consider a good investment property. where else can you get a house for under 500K? thanks

 

are you from Perth and have an areas you could suggest from personal experience? thank you

 

In the current Perth market you should expect a rental yield of 5%+ with strong buying demand.
There are quite some options in this price range as most people suggested you can look into suburbs in the CITY OF ROCKINGHAM which have some attractive entry price points

Hope this helps and good luck!

 

I’ll look into Rockingham thanks

 

One that is above average or exceptional in some or many qualities compared to other properties of the same price.

What was special about the parmelia property?

Otherwise I could just bash "$500k" into a search bar on realestate.com