WA Post a Bargain - Perth

Looks like abit of a slope, from front to back. So you would have to factor this in to the feasibility.

 

As someome who is leasing a property in melbourne for 350/wk that is worth $600k+ whilre receiving 400/wk rent from a property worth $400k in Perth, i reckon its fair to say there are a lot of bargains in Perth.

Theres little to refute the fact that Perth is at the bottom of its cycle. Investors who want in on perth could not be handed a better situation than what they have now. Yes i'm vested, but for a pretty good reason.

 

Well either Perth's good value or Syd/Mel have overshot by quite a margin. I'd be more inclined to say the latter.

I don't get the 'feeling' that Perth has hit rock bottom. It still seems a bit exy to me. Yes, it has dropped since the peak of the mining boom but prices had no right hitting those highs in the first place. And returns are by and large still pretty dismal. 4.5-5% is not the norm at present. Certainly nowhere close in the better suburbs ie suburbs with medians > $600K.

I'm betting on downside for all metro cities in the short term. I don't invest in regional cities/towns so can't comment. If I had to pick a city/cities, it would be Adelaide, Brisbane and Perth (not necessarily in that order) but that's because Syd and Mel are well and truly out of whack with fundamentals. Having said that, being 'cheaper' is not a signal to buy either. As mentioned, I'm betting on potential, yet modest reductions in prices across the board.

 

Yes i live in perth and have several Ip's. Here is my take on the last few so called bargains.
Wanneroo and Pinjarra are foolish investments for anyone who is looking for ROI for a number of reasons - High crime and unemployment levels, Very limited infrastructure projects for those immediate areas on the horizon and in my opinion ages away from what draws people to Perth (beaches, cafes, wineries, entertainment.

Yokine is the poor brother of Mount Hawthorn and at the listed price is still about 60K overpriced in my opinion

 

Your getting good return on your perth property dont let it go vacant is my advice you may well see that rent drop by 20%

As for "bargain" our interpretations of this word are clearly worlds apart. But hey you are in Melbourne and you may have become desensitised to property prices somewhat

 

Wanneroo and Pinjarra are not my areas of choice either but they may well suit someone's strategy. I like coastal or close to the city.

I have about 15 post codes that I follow and have a few saved in those which I haven't shared in here in case a client comes along needing something.

 

What would your recommendations be for a new investor to the Perth region? I have to say that the yields (as compared to NSW) are enticing.

EDIT: Just browsing through realestate.com.au it's insane to see relatively cheap 2br houses in a CBD when compared to Sydney or Melbourne. Not sure if this is expected for Perth (I do not know much about the market) or a result of the correction/crash

 

So basically you're saying that there are no properties in Wanneroo or Pinjarra that could be good investments? Did you even take a closer look at the properties posted?

I doubt it.

Blanket stereotypical statements on suburbs are rarely useful past the most basic of DDs, and especially in a thread where posters have already analysed specific properties well beyond that point, as far as I can see.

 

100% living here has changed my perspective on prices.

What I find interesting is the number of people renting in Perth has increased some 20% in recent times. Given the net out-bound migration, logic would say that new rentals should be falling. So it must be a lot of would-be buyers who are renting to wait for prices to turn. Though i know i'm getting better rent than most, many properties at current prices would still be more expensive to rent than take out an 80% LVR loan, so as soon as there is incentive to buy (ie. scope for capital gains), there are a lot of people who would be financially better off to take the plunge. In Melbourne, it costs you far more than renting if you want ownership. To me, the only thing stopping prices from rising in WA is sentiment which is most likely due to over-supply.

By ABS statistics, WA has passed peak supply and it is falling fast. Annual dwelling approvals are now under 20,000 from peak 35,000. When compared to population growth, once outbound migration balances out there will be an underbuild in WA. I forecast this will be in full effect next year, with green shoots by October this year. I don't see the same for Brisbane (too much supply coming already) or Adelaide (no prospect for increasing population growth).

Personally i think many development sites are still over-priced in Perth as they rely too heavily on capital gains in new build which will only be minor. Agreed that outer suburbs don't have much steam in them, as the fastest falling wage sectors are people who live in these areas. To me the bargains are larger properties within the 10km radius, as well as prime located townhouses. That or any opportunity to undercut current prices by more than 10%.

 

Is it usual in Perth to advertise that as 4 car? Normally i would have thought it would only be listed as 2 being the garage, and in the ad they might say "additional 2 off street parking spaces"

 

Dan
Usually only mention the 2 being the garage. Seems a little silly really to mention the other

 

YES that is exactly what im saying

 

To be honest I would wait out a bit longer however some northern suburbs i do like are Carine, Duncraig and Greenwood.

This heat map of crime stats in perth may be of interest. This is one of the big drivers for me when deciding where to buy

Perth Crime Map

 

I was just wondering, what is the basis for selecting "bargains"? What do you compare it to? I am trying to get into the IP market but really don't know how to spot a bargain. Who can help me?

 

It's hard.

Try the following rules
- look at 1-2 postcodes and get a feel for prices for new things and prices for second hand things.
- sort those postcodes from low to high. What is the lowest one bedder, two bedder, 3 bedder, 4 bedder etc.
- look at those lowest ones - is there a reason why it's low? Could be main street, ugly, highway frontage, bad design
- how much lower is it than the next lowest? lots? might be a bargain
- is the reasons why it might be low fixable? could ugly be fixed with paint, could a horrible bathroom be renovated?
- how much has something similar sold for? look at sold listings
- how long has it been on the market for? if it's fresh then it might sell quickly, if it's old then no one else has been able to get over the bad points for it and you might be able to get it even cheaper if you are confident you can fix the bad points.

Once you are confident in 1-2 postcodes then you can branch to other areas but start small until you are more confident as Perth has a lot of listings!

 

I think this was a bargain, have see a couple of others very occasionally in this price range. 69 Barridale Drive, Kingsley, WA 6026 - Property Details

 

Nice photo...who are you now? I loved Ivanka...what a disappointment....hey did note that the resident troll sees to put likes whenever there are negative comments to your posts....interesting...he does the same thing to me...

 

Are you kidding, the First Lady

 

...she looks different Melania.......noice...when are you going to have his son-in-law andn kid Barron?

You must start a Trump adoration thread...I know guys like @sanj @geoffw will be massive fans.

I reckon Trump is great for countries like Australia...just by being here has funds moving to Europe, Asia, and Australia .... word around the traps is that the US is too unstable politically.

Having said that unemployment has dropped to 4.3%....but it might be more cyclical than anything else....

 

Fake news not what we are seeing in US
Economy on the rise, interest rate rises also an indicator

the world has gone property shopping in USA since 2011and there us not enough stock to meet demand

US like foreigners buying up, how kind

US Share market also going nuts

Amazon hit $1000

Did you view our last commercial deal 27% net yield, you wont get this in Australia

I personally think there is far more risk in some Australian markets ATM