WA Post a Bargain - Perth 2018

Discussion in 'Where to Buy' started by Spiderman, 2nd Jan, 2018.

Join Australia's most dynamic and respected property investment community
  1. Big Daddy

    Big Daddy Well-Known Member

    Joined:
    25th Jun, 2015
    Posts:
    853
    Location:
    Perth
    They have one buyer =you. You have many sellers = everything listed on realestate.com.au.

    If I was you then I would start going along to the same agents other home opens to show you have moved on. Then when they come back to you, don't go above 710k.
     
  2. property world

    property world Well-Known Member

    Joined:
    2nd Jul, 2015
    Posts:
    225
    Location:
    WA
    I like this and never really thought of it

    Ill use it

    Edit: However does the REA care which 750k property they sell, only that they care they sell one of them
     
    Damo93 likes this.
  3. Rex

    Rex Well-Known Member

    Joined:
    12th Feb, 2018
    Posts:
    363
    Location:
    Perth
    Key that you don't seem particularly interested in the agent's second property when you view it then I suppose. So the agent knows you're looking at other properties, but you're probably not going to buy another one of his/hers.
     
    Damo93 likes this.
  4. Westminster

    Westminster Tigress at Tiger Developments Business Member

    Joined:
    13th Jun, 2015
    Posts:
    5,947
    Location:
    Perth
    How did you go? Did you stick to your guns or decide to raise it to what you thought was still good value?
     
    Damo93 likes this.
  5. FrivolousPanda

    FrivolousPanda Well-Known Member

    Joined:
    21st Sep, 2016
    Posts:
    98
    Location:
    Sydney
    You could expand and go to other properties of agents from the same office. When you speak to them mention your experience of this property as what you are looking for.
     
    Damo93 and property world like this.
  6. Mr. Wolf

    Mr. Wolf New Member

    Joined:
    21st Jun, 2015
    Posts:
    4
    Location:
    Perth
    Jmillar likes this.
  7. Damo93

    Damo93 Well-Known Member

    Joined:
    26th Dec, 2017
    Posts:
    93
    Location:
    Perth

    So long story short $710k wasnt going to cut it (prior to final bidding we were happy to go to $750k - most full sized blocks go for $1000 per sqm in Applecross School Zone at the very least -basically land value)
    After the bidding outcome we decided $730k was probably achievable. After some back and forths and making it clear I knew there was noone else we finally arrived at $730k and the seller accepted!
    Our broker couldn’t believe we bought 809sqm in Booragoon for that price and house will enjoy a $40k reno to spruce it up for myself and 3 renters. Already have reliable friends interested which is great.
    This has been 3 years of research on and off the ground and definitely couldn’t have done it with the advice from many members here so I appreciate you all and want to thank you for helping us achieve our goal.
    Plenty of options with re-zoning yet to occur but I think a reno to make liveable and rentable for now then way up the options of a full reno or demo/build.
     
    Perthguy, spoon, Jmillar and 12 others like this.
  8. Westminster

    Westminster Tigress at Tiger Developments Business Member

    Joined:
    13th Jun, 2015
    Posts:
    5,947
    Location:
    Perth
    Damo93 likes this.
  9. thatbum

    thatbum Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    2,302
    Location:
    Perth, WA
    Gratz on the pickup, I think its a great price - but I can't see any rezoning happening anytime soon - I'm pretty sure the area was only recently rezoned as part of a garden city structure plan.
     
    JohnPropChat and Damo93 like this.
  10. Damo93

    Damo93 Well-Known Member

    Joined:
    26th Dec, 2017
    Posts:
    93
    Location:
    Perth
    Thanks, appreciate it!
    Yeah i agree I think more like 10 years or so for rezoning.
    We will have over half the mortgage covered with rental income for the next 5-6 years. We’re lucky to have friends who are students living in/near the area currently renting with long postgraduate degrees. Good opportunity to pay down debt while interest rates are low and before the kids come along.
     
    Propin, property world and Big Daddy like this.
  11. MFol

    MFol New Member

    Joined:
    29th Dec, 2018
    Posts:
    2
    Location:
    Perth
    Hi All brand new to this and love your forum! We currently own a 3x1 in Innaloo that we want to make our investment property and move our to a bigger PPOR where we could do work. Thinking Doubleview, Karrinyup, Sorrento - any advice on what to look for and those areas? Also would like another investment property but cannot seem to find cashflow positive ones in WA ( bar a couple in places like Forrestfield/Armadale) - thoughts?
     
  12. property world

    property world Well-Known Member

    Joined:
    2nd Jul, 2015
    Posts:
    225
    Location:
    WA
    FHB ?
     
  13. JohnPropChat

    JohnPropChat Well-Known Member

    Joined:
    10th Sep, 2015
    Posts:
    1,367
    Location:
    Perth
    CF+ on what LVR? Negative gearing? Depreciation benefits?
     
  14. MFol

    MFol New Member

    Joined:
    29th Dec, 2018
    Posts:
    2
    Location:
    Perth
    Thanks John.
    Investment property - would go 80% LVR. Our innaloo house would be negatively geared ( bought at a bad time when the market was higher and prob overpaid compared to demands now for rent in the area) so ideally don’t want to have two with negative gearing.
    The PPOR we are less decided about how much to spend and what LVR we will end up at, researching areas that might suit
     
  15. Damo93

    Damo93 Well-Known Member

    Joined:
    26th Dec, 2017
    Posts:
    93
    Location:
    Perth
    Yeah, been 3-4 years in the making. Doubling my income and a whole lotta research and meeting the right girl helped secure the house in that area. Good times!
     
    Ketsle and JohnPropChat like this.
  16. property world

    property world Well-Known Member

    Joined:
    2nd Jul, 2015
    Posts:
    225
    Location:
    WA
    Nice very impressive to be buying a FHB at 750k with just you and your partners work. Fairly blue chip area cant go wrong as a FHB.

    May i ask of you and your partners age? If you dont want to anwser that, thats fine.

    Also how much stamp duty do you have to pay in 750k as a FHB? I suspect a heap 40k?
     
  17. JohnPropChat

    JohnPropChat Well-Known Member

    Joined:
    10th Sep, 2015
    Posts:
    1,367
    Location:
    Perth
    There seems to be no unified way to define CF+. For my calcs, I define it as income - expenses

    Expenses:
    Mortgage interest (I don't count the principal payments)
    Council Rates
    Strata fees (if any)
    Land tax
    Water Corp
    Insurance
    PM fees
    Repairs and maintenance

    Income:
    Rent
    NG (if any)

    End of tax year, if you made a few bucks then it is CF+.

    A property that has a 4% yield on purchase price is 3.52% (after PM fees) and 4.4% at 80% LVR. If the mortgage interest is about 4%, the 0.4% will cover some of the other expenses. Throw in some NG benefits, it'll be very close to CF neutral.

    Now, if the yield is 4.5%, 5% etc then it'll be CF+ (in my book anyway). Having said all that, I don't worry too much about having IPs that are neutral/CF+ and compromise on buying good quality stock with CG prospects.
     
    Shogun and property world like this.
  18. Damo93

    Damo93 Well-Known Member

    Joined:
    26th Dec, 2017
    Posts:
    93
    Location:
    Perth
    No problem, im 25 and shes 23.

    The house was bought at 730k and stamp duty works out to be 28.5k roughly. Her mum owns a settlement company so no fee for that. We had a 20% deposit and still 50k leftover for renovations. I think we’ve done pretty well.
     
    Jmillar likes this.
  19. property world

    property world Well-Known Member

    Joined:
    2nd Jul, 2015
    Posts:
    225
    Location:
    WA
    Very very impressive




    {Note from mods - thread continues here: WA - Post a Bargain - Perth 2019}
     
    Last edited by a moderator: 22nd Jan, 2019