WA Post a Bargain - Perth

Thanks .. will check them out.

Does Maddington, Kelmscott, Gosnell and Lockridge are much worst demographic than your list + MTR list?.. They seem much lower entry price versus KM from CBD

 

I've always liked Eden Hills low price, large blocks and close proximity to city. Have not checked prices for a while

 

Yes I would classify them as lower down the rung on the demographic scale but if the sums stack up then the sums stack up. Just be aware of more troublesome tenants and CLAY as mentioned for some of those areas.

If you can convince a builder to use a waffle slab and/or framed construction then clay is not as much of an issue but both are rare here.

 

I like also. last time I looked it was 50k more than Lockie, but without the stigma tag and an inch closer to CBD.

 

Yes. They are all significantly worse suburbs

 

Maybe its just me, but I think the Coolbellup big lots for around $450k seem like good deals on a retain and subdivide. Rear lots sold off for at least $220k, and the front house should be worth at least $350k or more afterwards.

 

Makes sense. I didn't know Coolbellup is next to Murdoch. Murdoch is expensive I think?

 

Eh "next to" is a bit of a stretch if you're talking about the residential part of the actual suburb of Murdoch. Murdoch the university is very close however, and a reasonable number of students do live in Coobie.

Just make sure you're buying in the north or eastern parts of the suburb and not close to where Roe 8 is gonna go through.

 

So many OK bargains out there ATM significantly below replacement cost in areas that would normally be well out of reach for someone with a particular budget.

4x3 modern 2 storey home of around 360sqm incl garage that would cost over $1m turnkey on land that would've costed 900k minimum in the past selling for 1.3m near the river, In 2 excellent high school zones and on a good street in Mt pleasant. In the past someone would've been hoping for a suburb a couple of rungs down in order to get similar land and house for similar repayments.

People in the past asking in the 600s for willahee villas when for 700k you can now buy a pretty comfortable 3x2 survey strata home on 250 odd Sam in Mt pleasant, again Mt pleasant vs willagee, completely ridiculous

 

Are many developers holding back lots? Most of the 'bigger guys' I work with are still going full steam ahead, just on tighter margins. Even if the market is slow and prices aren't what they used to be, $ in the bank is still better than sitting around wearing the holding costs? And these are the guys with enough capital to hold on if they needed to. I'd be interested to hear another side to the story though.

 

I don't know for sure. I would have to check state lot activity. Word on the street is they are not applying for subdivision, which means in 3 to 4 years time there may be a shortage of lots. Lots take a long time to get to market and the time from preliminary subdivision approval to lots being sold is 3 or 4 years. I could be completely wrong about this though.

 

me too

 

Anyone dreaming of beachfront could not go too far wrong with Hall Head. These are as cheap as chips

124 Leighton Road Halls Head WA 6210 - House for Sale #123544550 - realestate.com.au

 

Is this a cashflow play? $265K

11/6A Valley Road Halls Head WA 6210 - House for Sale #124365994 - realestate.com.au

 

So, yes. Word on the street is correct.

If you have a look at June qtr 2014, developers lodged applications to create 11,593 lots (1).
If you have a look at June qtr 2016, developers lodged applications to create 5,456 lots (2).

That's a 52%+ decrease.

The most recent number is 5,198 lots in Sept qtr 2016, which is down 5% from June qtr 2016 (3).

While this does not matter now because there is low demand, it may impact in the future. 3 or 4 years from now (if I am right about the lead time for lot creation) if demand increases by supply decreases, there could be price increases as a response.

(1) https://www.planning.wa.gov.au/dop_pub_pdf/June_quarter_2014.pdf
(2) https://www.planning.wa.gov.au/dop_pub_pdf/State_Lot_Activity_June_Quarter_2016.pdf
(3) https://www.planning.wa.gov.au/dop_pub_pdf/State_Lot_Activity_Sept_Quarter_2016.pdf

 

Possibly but you would need to know current rent, demand, apartments on market, days on market (for rent).

Also, possibly not much left after council rates, water and sewer rates, strata fees, insurance, landlord insurance, property management fees etc.

 

All the weird angles in that one make me car sick.

 

Mandurah is come down to 2011-2012 prices about 290k ( for the the non beachfront properties)..

Would people consider R30-50 1000m2 lots?

 

No not for me
there are lots of deve sites in central Mandurah but I think this has always been higher risk in this area.

 

From speaking to some business owners, a lot of the CBD dev sites have quite restrictive planning conditions that make development not stack up.