WA Perth property prices: there is a silver lining!

Yes, the backside has fallen out of the Perth market, prices are so low, etc etc...
... but you know what? Now is a great time to look at setting up for your next PPoR.

Husband and I have been in discussion for a while now, about our home. We currently live in a 4x2 in Gwelup (near Karrinyup). I work in the CBD, husband is SoR for work, and our properties are primarily in Balcatta and Glendalough. The current house isn't ideally set up for us, although it has some good points about it. One of the key issues is that the laundry is tiny, and there isn't a door to close it off from the rest of the house. This seems minor, until you consider that our seven properties are completely self contained - so every time tenants move out, I have piles of linen to be washed and ironed.

So, we are tentatively looking around the Wembley/Floreat and similar areas, for an older house on a not-too-small block (min size 400m2) which we can rent out for a few years while we refine our house plans, then bulldoze and build on.

Anybody else doing the same - looking around for their own PPoR? How are you finding the market generally? The properties we've seen so far seem to be pretty reasonably priced, for what they are - certainly they have moderated over the last couple of years.

 

Hi Jen

Yes I agree.....we are also considering same and are now dedicating some effort to complete overdue maintenance, painting etc.....in readiness of placing PPOR on the market should we proceed....Our home is bigger than what we really need so looking for a place we can consider developing also.....
good luck
baz

 

Now is a fantastic time to buy a PPOR in Perth from what I can see, especially if you're upgrading. There are great discounts to be had, and sellers are very negotiable as houses tend to be sitting on the market for ages.

Even if the properties have both dropped say 10%, you tend to save more on your upgrade than you lose on your home. And add to that that expensive properties (in my area anyways, can't speak for each suburb) have fallen further than the lower priced homes, the potential to come out in front long term is high.

If you're in a position to buy and stay put or rent out your current PPOR I think it's a great time to buy. If you have to sell yours to move that makes it harder, especially if your buyer needs to sell theirs to go unconditional.

 

Thanks for the fast responses guys!

Yes Jess, we'd be staying here and renting out the new place for a while. As much as anything we will probably be getting the house plans drawn for us rather than go for a standard plan, so that in itself will mean that there will be plenty of negotiations occurring before we can agree on a final plan

Glad to hear we're not the only ones on the market Baz! Would you guys consider hanging onto your current place and renting it out, if you find it tough to sell?

 

Have considered renting back until we make the preferred move, if that makes sense to you?

 

I think it will give you greater choices. It's nice when things aren't being snapped up super quickly and for more than asking price. It's nice to be able to take your time and even make some cheeky offers.

 

Reading this thread in 2020. The backside hasn't stopped dropping after 5 years! To time the market can be such a hard thing. That's a lesson learned. But of course everyone will kick their backside if the market has risen. Such is life.