WA Perth Market 2024

yeap, buy and hold all the way, burn and churn the tenants and cash out equity when the banks get loosey goose, thats what i say! oh and dont buy the fringe, and pay down bad debt.. and , and, add some dumb luck, shoulda brought more year of unit they say!

south perth/ kensington is edgy? where are you living? Jutland Pde?

"once per year rent increases", so now when costs increase and market moves up renters will get hit with a big one off increase which is likely to last another whole year as well as on renew who will drop the rental price? and no one is suggesting the RBA raise rates once per year.. more knee jerk rules, yay

 

Vic Pk - drove through today, still very rough

 

Depends which part.
I lived in Oats street for 2 years, walked to the train every day and night for work in town (sometimes using the excellent bus system too), never had a sideways glance. Ate and shopped locally, used the local gym, we walked everywhere. I’ve got nothing bad to say about it, or Perth.

 

I was thinking it is a pretty cool unpretentious inner city location that has a bit going on and some character. some of those views from those blocks of flats!

 

As far as its value as an IP, there is zero correlation to ‘bad’ areas and ‘good areas’ on capital appreciation % gain.
In other words, gentrified areas cost more initially, and get capital gain. Non-gentrified areas cost less initially, and also get capital appreciation. The % increases, cash on cash, are identical historically. This fact is perhaps not widely appreciated?

Sure, if you’re living there like I did, consider the area. But as a pure business play, Vic Park’s lower buy-in means it’s a very attractive proposition for most of we regular investors. The rest can go to Dalkeith (where I also enjoyed a year living) and spend 4+ million and get the same % gain, or very likely less.

 

This is a good take.

I lived in the area as a uni student, in a share house. It was affordable whilst having great proximity to university, my work, entertainment, restaurants, et al. I really enjoyed my time there.

Did I have my car broken into, house broken into and retail workplace held up by an armed robber? Absolutely.
Would I live in that area now? Probably not.

The combined affordability, location and amenities of Vic Park will continue to appeal to tenants. Its gentrification has been happening for a while now, including commercial. Plenty of restaurants have been closing up shop in other precincts to reopen along this strip.

 

Does anyone rent raise every 6 months?

I do 12 month leases and rent raises every 12 months so nothing changes for me.

 

I think lots have an option to change based on cpi after 6 months

 

Is that currently? Is 6 monthly raise limited to CPI, or people just choose to do it that way?

That would suck, my rents are going up 10%.

 

A friend mentioned a very recent purchase in Karnup

100 people at the home open, and around 47 offers

Another person purchased their Yangebup property for around $115k in 1995, just sold it for mid $600k

 

You can specify in the lease agreement a fixed % increase or CPI.

 

1995 is a long time ago (29 years). Equates to 6% compound annual growth, which is about average.

 

It's been a bumpy ride

Corelogic: The long game… 30 years of housing values

 

Hey mate, you seem to be across the data very much. I am of the same view that good and bad suburbs appreciate at very similar rates. There are some opposing views on this. For example, people that I follow and respect, like Michael yardney and Stuart wemyss believe wealthy suburbs have better CG rates. Which also makes sense, because with more intergenerational wealth ppl dont need to rely solely on income.

What is your view on properties on main roads? Do you think they appreciate at the same rate as properties in quiet locations? I'm starting to think that they do based on my limited research.



What i

 

PM me and I’ll share the data research.

I have no view on your second question.

 

hey how did you work out the average annual percentage growth on this?
Just wanting to know how to do it for personal reasons
thanks

 

I’d live to know too! I remember back in school days just learning how to do this. I just gave away a scientific calculator last week, starting to wish I kept it! Or does the Google calculator work? I’d love to know the numbers on this. https://www.realestate.com.au/sold/property-house-wa-ashfield-144251568

 

(650/110)
Then inverse root
29
= 1.063

Which equates to 6.3% annual growth over 29 years.

 

One thing to consider is what happens when the market is quiet or in a downturn and you want to sell. Blue chip/wealthy suburbs often hold their value better. Trying to sell a B-grade property on a main road would also be difficult.

Quality of tenants is also a factor as some with investment properties in Armadale will know.

 

I'm struggling with this being presented as a fact - so I just quickly checked Girrawheen 10 yr growth rate = 1%, Cottesloe - 86%, am I missing something? The whole point of cheaper suburbs is that they are an income yield play, therefore higher rent v lower capital growth