WA Perth Region Time to Buy ?

Discussion in 'Where to Buy' started by FastWalker, 21st Mar, 2018.

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Time to Buy in Perth Region ?

  1. Yes

    38 vote(s)
    54.3%
  2. No

    18 vote(s)
    25.7%
  3. Depends

    14 vote(s)
    20.0%
  1. virhlpool

    virhlpool Well-Known Member

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    Rental demand isn’t ok though. Is it?
     
  2. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

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    Not always - pretty high vacancy rates in some areas so definitely pays to chat with some PM’s before taking the plunge.
     
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  3. virhlpool

    virhlpool Well-Known Member

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    Exactly what I meant. So probably not a great time to be buying an IP in Perth yet.
     
  4. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

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    Markets within markets ;)
     
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  5. Perthguy

    Perthguy Well-Known Member

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    Yes, it is true and I dismiss it as well due to the status of the suburb.

    When I first looked at Heidelberg West 10 years ago it had a worse reputation than Ashfield. However it has performed really well over the last 10 years. Just because a suburb has a bad reputation doesn't mean it will always stay that way. That said, Melbourne has had a massive boom, so that is a consideration too.
     
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  6. MyPropertyPro

    MyPropertyPro REBAA Buyer's Agents Sutherland Shire & Surrounds Business Member

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    I think Perth is in that dull phase where no one is really sure. Whether or not it will bottom out for a while or only a short time is yet to be seen, but picking bottoms is basically impossible without hindsight. I have recently purchased in Perth using a buyer's agent and I just don't believe what and where I've bought will go down any further. The BA meters the risk by good due diligence and negotiation and could mean the difference between buying slightly above where the bottom ends up in any given market or slightly below it.

    For my money, if you're thinking of buying in Perth then now is the time as once it starts to pick up it can do so quickly. I was looking for a place in Sydney in 2013 and I remember very clearly that within a matter of weekends prices had gone up by tens of thousands as the media and competition started.

    Everything is a risk, it's just how you mitigate it.
     
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  7. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    Our low yields are pretty good compared to Sydney yields. Our low can sometimes equal normal in Sydney. It is also dependant on suburb.
    You can't have it all. You can't buy at the bottom of the market AND have great yields AND low vacancies. If the yields go up and vacancies go down then house prices will already be rising.
     
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  8. JL1

    JL1 Well-Known Member

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    To me the big difference is that if you want yield, you can get it. By 2016 most areas in Melbourne had lifted to the point where >4% was no longer possible. There were places going in Dallas for low 300k's that would rent for $300/wk+, but you really were buying the worst of the worst. Now that even Dallas is $450k+, there is really nothing left in the Melbourne area.

    My place in Perth yields ~5% gross in a very desirable location, and i really don't think its hard to find >4% in Perth right now. Like Westminster says, you can't have it all so if you're looking for a site with future dev potential, of course you're not going to be seeing these numbers (saying that, I bet if you look you will find one).

    For the yield on my place to drop to 4% gross (without any movement in the rent price), it's market value would have to go up by 27%. This is a part of my reasoning for seeing ~20% price movement in Perth in the next few years
     
  9. theperthurbanist

    theperthurbanist Well-Known Member

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    Agreed, just may be a longer time to wait for those capital gains to arrive. I see places like Ashfield having a higher CG potential over the long term (20-30yr) than other higher prices neighbors, I’m just not sure when the growth will arrive and I’m uncomfortable with that question mark as I need the CG in my strategy to be able to keep investing.
     
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  10. Perthguy

    Perthguy Well-Known Member

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    Definitely a long play.
     
  11. Cmelderis

    Cmelderis Well-Known Member

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    You are correct! Predominately equestrain properties ( 800k + ) but there are some H&L packages coming online now. No way I would buy there and I am horsey!
     
  12. Samuel Brophy

    Samuel Brophy New Member

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    Which buyers agent did you use if you don’t mind me asking? . I’m from Perth and looking at using a BA for my next purchase
     
  13. thydzik

    thydzik Well-Known Member

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    yields are good, but doesn't look to be bringing in investors.
     
  14. Coastal

    Coastal Well-Known Member

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    I smell serious opportunity in Perth

    But for long term play
     
  15. JohnPropChat

    JohnPropChat Well-Known Member

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    Which suburb did you invest in? If you don't mind me asking.
     
  16. JohnPropChat

    JohnPropChat Well-Known Member

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    Follow the smell, I say :)

    Adelaide had one thing going for it, higher yields. With Perth, you can now get good yields while not sacrificing CG prospects. A win-win for the long term.
     
  17. MyPropertyPro

    MyPropertyPro REBAA Buyer's Agents Sutherland Shire & Surrounds Business Member

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    No problem. I bought in Carine.
     
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  18. David Shih

    David Shih Mortgage Broker Business Member

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    What yield would you classify as "good" in Perth's sense?

    Cheers,
    David
     
  19. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    It's not an easy answer.
    If you were buying today at today's values then you would probably be seeing around 4% (with a range of 3.5-4.5%) depending on the deal. Which is considered actually a very good yield compared to many states but is a yield isn't that great here.
    In "good" times it can be quite easy to find 5% yield site.

    However the reality for some Perth folk is that today's values is not what they paid for the site and so they might only be experiencing 2.5-3.5% yield on the price that they paid
     
    JohnPropChat likes this.
  20. Propin

    Propin Well-Known Member

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    This sold quick- within days. I think closest to the river will move first as lots of Reno’s/new builds going on in this area 61 Hardy Road, Ashfield, WA 6054 - Property Details
     

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