WA Perth Market 2015

http://www.abs.gov.au/ausstats/[email protected]?Opendocument

http://www.abs.gov.au/ausstats/[email protected]?Opendocument

 

Sanj
Are you able to elaborate with regards to central ave and MPC?

Thanks
MTR

 

Not sure about Central Ave but MPC would be his development on Mount Pleasant Crescent in Maylands which was buying an old duplex pair, renovating them and building some apartments behind the duplex.

 

Yup mpc is mount prospect crescent.

Basically I've always kind of looked for more difficult sites, there's usually a lot less competition, margins are greater but granted more headaches.

Mpc - 2 terribly run down 2x1s on 994 sqm but with block sloping 7m from front to rear. Was on the market for a good few years, market was flat at the time. Renovated the front homes extensively and got very high prices for 2x1s, they were a huge change from before. Unfortunately had to sell them due to needing funds for other businesses. Currently building 5 apartments on the rear which has been a challenge, I did the retaining and subdivision before, from memory there was 400m3 of fill brought in and over 150 lineal meters of retaining. Big challenge.

Should've been finished 4 months ago but builder has been nowhere near as good as they should, nearly there though. Plan has always been to keep all these units as they'll be positively geared a fair bit, should be over $1m equity which is decent for a project like this. Staged the development so the max cash used was only $450k from memory and even that was right at the end of the reno and subdivision. At the moment I've only got around 250k cash in the project which is unheard of for a 5 apartment development but I need deals like this as my capital is precious and I tend to need it for higher yielding things outside of property.

Central Ave - tired old bungalow on Inglewood side of the railway but in maylands officially. Was on the market a while too with private owner, didn't work out for people wanting to retain as driveway was too narrow, didn't work for renovators as maylands and central ave meant a cap on end values.

Cut back the roof, walls etc to create the driveway, squeezed 2 blocks with excellent 3x2s designed by Aaron on them and sold the blocks off due to needing funds for something else. Ideally they would've been long term holds but I was just consulting on that one, not my funds.

Quick few hundred k on that one, from memory was just under 30% which is decent in a flat market.

Also part of the reason I've stayed out of market and haven't bought a site for 2 years, returns have been pretty low and a lot of things looked expensive. At the same time returns outside of property were better.

With the market turning I think it's time to look at property again and maybe do some more consulting/JVs

 

Edeline street not a street I would touch
Agent an opportunist, he forgot you can't do this one in a declining market.
Out of area agent, what a dik

mtr

 

Lol.

 

Outside the square stuff, that makes money, so you purchased property 1 mpc in flat market and sold in rising market?

Mar

 

Definitely purchased in flat market, sold the duplexes in December 2013 sp market was rising a bit but not much for existing homes in maylands. As you would know the uptick was a lot in sites and not heaps in actual existing or finished stock

 

I read a few weeknds ago in the west australian that the city is looking into planning to allow for future population growth etc and are looking at expanding the citys footprint with large scale developments but also the "infil" developments as you guys are talking about. where can i go to find out more??
Is perth a popular spot for developing compared to the east? easier or government encouraged? or is it i just notice all the perthians discussing this more??

 

Search for "directions 2031" my friend. The answers you seek are held within.

 

2.5% drop in values...doesnt seem like the predicted "crash"...

http://www.perthnow.com.au/realesta...stmas-nab-report/story-fnhlgriw-1227417992029

 

Good timing and vision. Great stuff

 

A good home for shadows thread on SS

 

Also see below from Ronnie Elhaj, director of Nicheliving.

 

Probably also a good idea to look at differences, mining.... A big one


Mar

 

There maybe hope with our fascination with double brick construction to save money and time.

http://www.perthnow.com.au/realesta...414734482?sv=b3cd149ea8fcfe1326711b9ea1dd5314

 

As the small print always say: past performance is not a good indicator of future performance.

He's referencing positive net migration of 40,000 and increase of mining jobs of 100% leading to 4% increase of jobs in other sectors. This may have been the case during the boom of yesteryears... But it is a very different picture now.

I guess that's the commentary you'd expect from the "marketing / public relations" arm.

 

http://www.perthnow.com.au/realesta...stmas-nab-report/story-fnhlgriw-1227417992029

 

I have close to zero knowledge on Perth. This attached map kind of helps to understand what people are saying when they mention suburbs/regions. I believe it is close to 'Perth Metropolitan Region'.

 

Is Rottnest the same colour as the rest of "Metropolitan Perth" there? a simple google map would give people a better image, as well as more detailed suburb names - about 90% of them are missing in your map