WA Post a Bargain - Perth 2019

Discussion in 'Property Analysis' started by hematite, 1st Jan, 2019.

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  1. property world

    property world Well-Known Member

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    but people are buying much more Existing now especially with FHBs as article suggest. I still don't see the need to extrapolate that even more? FHBs are already seeing the benefit of existing without extra grants. You void stamp duty and that's the incentive in place. For me that's a better incentive than the 10k buying 300sqm in bum hole no where

    Economically for the state and jobs being present id keep it the same. A grant to buy established would mean another big hit to New Builds thus a big reduction in jobs involved in building ie: all trades and the domino effect from that.

    Just the way I see it
     
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  2. JohnPropChat

    JohnPropChat Well-Known Member

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    It's all about the rents. Steady supply of new housing means less rents to go around and will put downward pressure on property prices. Supply needs to calm down for things to stabilize or else we'll end up Japan/China with very many vacant houses.

    As for construction industry, it may not be as as we think it'll be. Even if it did - Short term pain for long term gain.
     
  3. Perthguy

    Perthguy Well-Known Member

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    I have owned in Mandurah and followed prices from 2004 until now. I can tell you with 100% accuracy that Mandurah does not boom like Perth. If you want to buy in Mandurah and think it will boom like Perth then I fear you will be dissapointed.

    Unless you are particularly attached to the beach, for your money I would be looking in the Kewdale, Cloverdale, Belmont area, walking distance to Belmont Forum. Just don't go too close to the airport. It's noisy!
     
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  4. Shogun

    Shogun Well-Known Member

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    I knew that Ellenbronx had some micro blocks (<100m2) as a trial. I thought their were strict rules about being within easy walking distance to amenities, public transport etc.

    It seems you can now have the inner city experience of a micro block 105 m2 in Byford. I guess just being over 100 m2 means a few less guidelines.
    Lot 8 Braford Way, Byford, WA 6122

    $20k or 10% more gets you double the block size and a bigger property in other areas of Byford. You have to wonder who will buy them.
     
  5. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    I reckon that might be a Single Bedroom Dwelling not a normal dwelling and would have therefore been able to use the 2/3 lot size density bonus. Guessing that it might be a R60 or 60 zoned block then?
    Someone one built like 24 of them in Baldivis!! 22/71 Kingaroy Drive, Baldivis, WA 6171
     
  6. JohnPropChat

    JohnPropChat Well-Known Member

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    Abomination those microlots in middle of nowhere estates. Completely unjustified and I feel sorry for the poor buggers who bought them.
     
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  7. Aaron Sice

    Aaron Sice Well-Known Member

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  8. Aaron Sice

    Aaron Sice Well-Known Member

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  9. Propin

    Propin Well-Known Member

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    ^ Yuck!! My daughter’s boyfriend was told he could borrow $250,000 and he was going to buy a tiny unit in Byford but I just couldn’t sit back and say nothing. I think it will be worth less in 15 yrs.
     
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  10. JohnPropChat

    JohnPropChat Well-Known Member

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    It's probably worth 80% of it's purchase price as soon as it is bought. Nightmare.
     
    Last edited: 8th Mar, 2019
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  11. Shogun

    Shogun Well-Known Member

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  12. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    That $136k I’d say was the land component as they were selling OTP. and would have entered into building contracts for each unit.
     
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  13. Rex

    Rex Well-Known Member

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    I'm not the only one that just sees Baldivis as Kwinana 2.0 right?
    It blows my mind how many people want to live and/or buy there of all places.
     
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  14. JohnPropChat

    JohnPropChat Well-Known Member

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    7 years ago, when every man and his dog were talking about Baldivis as an investment hotspot, I was completely puzzled as to why that was the case. Fast forward, it has become a bankruptcy capital for Perth.
     
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  15. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    That and there is usually a bushfire each year in baldivis.
     
  16. Beachsnow

    Beachsnow Well-Known Member

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    How about this house, seems like a straight fwd subdivision. Haven't looked into the numbers, just noticed it yesterday. Already renovated. There has been over 6000 views so maybe i'm missing something.

    12 Alvis Place, North Beach, WA 6020
     
  17. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    I've been watching it. You need to look at the numbers then you'll probably work out why it's still on the market for months.
    It might suit someone who's after some skinny profits or if they can convince the owners to take a loss on it as they bought it for $700k in 2013. When you add in stamp duty plus the renovation it probably owes them $770k.
    I'm surprised that they didn't just spend the money and carve off the rear block themselves as that would make them more money than selling.
     
  18. Beachsnow

    Beachsnow Well-Known Member

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    Also, wanted to share this bargain.
    I saw the for sale sign on the property but no listing on the internet. Was in the middle of due diligence and told the agent I wanted to make an offer once I had confirmed some costs and asked him to let me know if he was going to list it. Then a few days later I got an alert saying he had listed it on domain. Needless to say it sold within a couple of hours of listing - cash offer.
    Was super disappointed and regretting that I didn't make an offer subject to DD. Lesson learnt.
    Not sure why he didn't list it on realestate.com . Asking price was from $799,000 for a corner triplex site in south Scarborough. What a steal. Strategy wouldve been to sell blocks after subdivision.

    Ewen Street, Scarborough WA 6019 - 3 beds house for Sale, Price Upon Application - 2014948780 | Domain
     
    Last edited: 11th Mar, 2019
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  19. Beachsnow

    Beachsnow Well-Known Member

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    Yes thats what I was thinking. They had some plans done so was obviously on the cards.
     
  20. boeman

    boeman Well-Known Member

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    I have spoken to a potential client a few times about a new build in North Beach.

    They purchased a subdivided block and want to build their forever home on it. Problem is, their budget is $650k, and the block is a mongrel of a thing that will need $100k+ of just retaining and boundary works.

    That leaves $550k for a two-storey turn key product, which probably wouldn't cut the mustard for spec for North Beach as its very close to the beach. Design they have sits around $850-$900k all in (pool and deck etc), add that to the land cost and its a huge loss.

    Modern block prices are near impossible to build on without overcapitalising.
     

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