WA Post a Bargain - Perth 2020

FOMO has started.
No one wants to buy in a falling market before the "bottom". So what if you pay an extra few percent above "bottom". You had time to look and negotiate.

Now you get a quick look at property and get to offer asking price or above.

An "investor" "who always wanted to get into property for his retirement". In a ABC article rushed and brought before Christmas because he was worried he would pay more next month.

 

Having purchased in 2013 when Perth was full FOMO mode and also in 2019 when the market was dead and agents were begging you to come to viewings... I can confidently say that the risk of immediately losing a few % equity in a falling market is totally worth it for the peace of mind of being able to properly view and inspect properties, make purchasing decisions in an orderly manner, etc. It's extremely stressful and more risky buying in a sellers market IMHO I'd be kicking myself if I'd left it to now to be buying.

 

I agree with this. So glad we bought in late 2018. I have seen 5 and 6 figure price increases in just 18 months in the suburbs I follow. It’s been crazy out there over the past 6 months. Some people I know have just started to look or decided to delay until 2021. I can’t see things slowing down next year. Should be a good one for Perth property owners finally.

 

at the end of 2019 there was no competition, things were selling really cheap. Fast forward 12 months, the bargains have lost the discount and now have a premium.
A bit like building at the moment

 

Struggling to find anything like what was so easily found a year earlier. A good time to own Real Estate in most major capitals in Australia.

 

Agree with this above. I purchased in 2018 primarily because it was a quiet falling market, knowing that, being overseas throughout the whole process would have made it almost impossible now, especially with Covid. Have been looking for the next one since last year, but it is getting more and more difficult especially due to not being on the ground.

 

it's hard work at the moment, even when you are on the ground! lot's of hard work

 

I think it is also important to buy a property ticking most boxes, instead of close enough is good enough due to competition. Also, you know if you miss out from a purchase, a good one will be around the corner. In a poor market, people sell due to circumstances, not profit. I have been monitoring the markets I like to enter from 2016 to now. Not many ticking all boxes are there. And those which had, sold despite a desperate market.

Plus the losing few % of equity is only paper-based. It would be recovered in 2021!

 

Hi All, I have invested in Sydney, QLD, Victoria and Adelaide before but never bought any in Perth, as recently sold one of my Geelong property and have a bit of spare fund to play. just follow through this thread and found people are really looking into Perth market for the next a few years, I thought I might get myself one of the Perth property as well.
As the first step for me to get familiar with a new market, I always tried to talk with some of the property managers in the area. It surprise me that the property manager in Perth charges much higher rate than the other states. They charge around 13-15% of your gross rent or 8.8% but extra for condition report, ingoing and outgoing, routine inspection, court attendance fee, insurance claim fee, filing fee, etc. etc. This makes me wonder you can hardly hold for long term if holding cost is so high. Also the property manager told me Perth rent is up and down a lot. Although the rent looks very high at the moment, historically it varies a lot.

 

why "most " of them absolutely shh*tt! This is putting politely.

Correct. my agent charges 8.5% and others are extra.

Capital growth is the key. As an example, 2 years ago I told many people to invest in Harrisdale when the property price was around $500k, now over $700k!.

This is true, atm rent is very high. I'm increasing both my properties' rent for an extra $50 to meet the current market.

 

Thanks VICPER. But in the last two years every house in Australia jumped 20% or more, Perth is no better than other states. I can’t really justify why they charge these ridiculous amount of property management fee. All I can think of is this is a huge discouragement for investing property over there.

 

Even with the higher PM fees we pay in Perth the yield is generally still better than other states.

 

It’s the market so there could be more competition from PMs in the future - higher rent, more investment properties so at some point, the management fee % might be lower and more comparable to other main cities.

While I don’t like the higher %, but it does not decide if I invest in one market or not. Similarly, different state has different land tax % for the same land value. Just another fee to consider but does not change the overall decision to me.

 

Another not so good sign for Perth market is September month growth rate only 0.3% and quarter growth rate is only 1.2% compare to 2% monthly and 5% quarterly for the other state counterparts.
Perth homes up 18.1 per cent in value, but growth is slowing

 

Seems between lunchtime and 6pm you’ve talked yourself out of Perth property… might be worth some further research.
Be sceptical of Corelogic data for Perth over the last few of months, Corelogic themselves have identified there is some issues in regards to their Perth data (the article referenced is based on Corelogic data).

 

This data is probably less than worthless. Doesn't seem to have any correlation to what is happening on the ground.

 

around 11% all up, shop it

In a rising market you will make money. Perth is a hot market, think of the big picture

 

I'm in Melbourne now, Surprisingly, the fee is around 6-7% only.

I have been researching for a new agent in Perth, and found this company has the option of $249 flat fees per month ,includes everything.
| Life Real Estate

 

Anyone found any bargains? some cashed up people are on the hunt. I've been tagging mark McGowan in shiba inu posts on twitter. Time for WA to open the border. I see people with 300,000% gains since the start of jan

edit: its actually up 60m% year on year.

 

McGowan …. How can we get rid of him.