Forum Replies Created
Hi Marc
I’ll tell you what is scary though, if my IPs remain vacant because I am not realistic with my rents. The lose will be more than just a couple of dollars.
Cheers, Marisa
Hi All,
This is interesting, and lots of fun, but lets get back to the topic and answer shaztas’s original question……
It was something like “how many of you are considering putting up your rent/s due to the latest rise in interest rates?
The way I personally see it is –
generally suburbs with a limted number of rental properties in a well located area tend to achieve high levels of rental income because of scarity factor.Am I putting rents up???
I review every 6 months and look at the trend in the area, what similar properties are renting for. I also ask my PM, check local papers, and keep an eye on it.I am not sure how or whether interest rates factor into the equation.
Hi Wayne,
have read a few articles on this subject one in the West and the others God Knows. some time back now.
No specific area mentioned, 20% + increases are not expected to occur due to these ongoing land releases.
Sorry, this is not too helpful but certainly something to keep in mind as this could really impact on your strategy.
You seem to have made all the right decisions to date anyway. Good luck to you.[biggrin]
I am surprised no other person has commented on Mt Hawthorn. I guess inner-city areas have taken second precident to coast properties.
Hi there,
I live near Mt Hawthorn and I believe it is a gem of an area.
Close to Perth, great transport, village atmosphere, it just keeps getting better. Its surrounded by upmarket areas such as Leederville, Subi – what not to like?? Some pockets have great city views. (I sound like a real estate agent)[blink]Older homes, median price around $420,000, Subi atmosphere without the price tag. Track record of Great Capital Growth.
Though rents would be poor, but what’s new, also if you are purchasing older home maintenance will hurt. Just need to weight it all up.
Another area which you may like to investigate is Joondanna, many new style villas – has had amazing CG over 10 year period, median price $338,000. Villas should provide better rent return, and depreciation will help.
All the best
Hi Wayne, from what I have read lately by various ‘experts’ it is not likely.
Also, it has been well documented that there is going to be alot more land released this year which will most likely stablise land prices.
Areas which are now being recommended are: Como, Kenningston, Mt Lawley, South Perth, Applecross, Nedlands the older areas which have proven record of over 10% capital growth over 30 year period. They dont expect the double digit CG figures we have recently experienced to continue.
I am not an expert but I would just make sure you buy in the best possible location in the area. As close to the beach as possible if coastal is where you want to buy.
I am sitting on the fence at the moment, as the rents are so low, and quite happy to see what happens over the next 12 months.
Cheers, Marisa
Hi Calvin
email address: http://www.hegney.com.au
Phone: 9489 9489 this is their Subi office. They also have regional offices.
I actually phoned requesting copy of the newsletter which can also be emailed direct. As stated this is free.
Apparently there is a report they recently published – may be about $40.00 it provides an overview on areas which are expected to do well over next 10 year period based on research, pop etc.
Perhaps someone on forum has purchased this report and can comment. This is on my shopping list, I will provide some feedback down the track.
Good luck.[biggrin]
Hi Derek,
thanks for the rental info.
Rents are not attractive anywhere at present. I agree, I think Merriwa will only keep going up in value and still very reasonable prices.
Cheers, Marisa
Hi Wayne, I can give you a couple of ideas.
Firstly, you could contact the developers direct and ask for sale stats on each subdivision and dates sold, though this may not be the best way to go.
I personally would contact Hegney Property Group, they circulate free monthly newsletters and have been spot on with the WA real estate market over the years.
They should also have list of land stats, but this may cost you. I have had great feedback from the various valuers I have dealt with and I recommend their service.
Regards, Marisa
waynel2
Great to hear you are doing so well. I also think Merriwa has got great potential, very affordable for coastal area, however from what I have heard you need to get into the right pocket of Merriwa, I think Seagrove was mentioned??The new release of land at $150,000 is a bonus. Great
Can you give me some information on rents in area and demand. Thanks
Cheers, Marisa
Hi jayzac
I have not specifically looked at Canning Vale, I was researching coastal suburbs. Generally looking at around 200 sq mtre H&L packages. Unfortunately builders did not provide all the items you stated, standard was generally aircond, window treatments, floor coverings, basic landscaping.Just had a quick look on the net for land prices in Canningvale, cheapest 292 sqmtre block for around $125,000 however this would be too small.
Seem to be around the $157,000+ mark (is this about right), place your home on this. I was looking at around $135,000, add interest approx. $18,000, not sure about selling costs around $10,000+ this makes it around $320,000.
It would be interesting to see your breakdown of figures and when you acquired your block etc.
I understand many people on this forum have made money with L&H packages, I am simply stating they dont seem to stack up at present. However, if you have managed to get a good deal, hope you will share and we will all be winners.
Regards, Marisa[biggrin]
Good to hear that you have done well.
Though I would be causious jumping into Land & House packages now as they are not at all attractive in current climate regardless of the area. Land is too expensive.
There is more value at present in purchasing established homes, unless land was obtained at bargin price.
Builders are taking way too long (12 months++),to complete homes, to put it in perspective homes were built in 3-6 months a fews years back. Can you afford the interest during this period?Also the extras which I believe are a MUST in a rental property such as – aircon, retic etc could be additional costs with H&L.
Cheers, and good luck to all
wall ave,
people are given this information on a continuous basis, just refer back to posts.I believe the issue is really about people acting or more to point not acting on the information.
WHAT SECRET??? this information is everywhere, pick up your local paper, real estate mags etc. it AINT TOO HARD, I find it frustrating.
But thinking outside the square is not for all.
hi there
just reading the employment column of the West is enough.There are columns of mining companies and consulting companies advertising for mining related jobs. I recall a time where engineers were going overseas for employment – now we are screaming for them.
May be of interest – as these areas still provide positive (at least last time I researched).
WA
Northam
Merredin
Karratha
Pt Hedland
Kalgoorlie
Katanning
NarroginHi Calvin@34
Unfortunely only provided TOP 3 towns.
However some interesting and positive info on redevelopment of Pt Hedland and South Hedland and various projects in the pipeline –
One mentioned was a new residential development at Pretty Pool which will create about 180 new home sites in Sth Hedland. You probably already know about this one.[biggrin]
Also rental yields on average 15%-16%.
The massive CG for Newman was partly due to BHP building a new crusher at Newman so there has been an influx of workers looking for accommodation. Pushing prices up in the short term.
Hope this is of some help to you.
[biggrin]
for anyone interested, these stats for Pilbara region were in paper recently:
Top 3 Pilbara Towns
Capital Growth
over 5 years
Newman – 12.6%Karratha/Dampier – 7.9%
Capital Growth – 12 months
Newman – 42.1%
Onslow – 10.0%
Karratha/Dampier – 5.8%Thanks for all the replies,
Just thought I would let you all know that after some negotiating with tenant I have now raised the rent from $170 to $185 which is market price. I have someone who maintains pool each month.thanks jsandso, can you PM me with the details of the company you use. My Prop Mgr advised it would cost around $350.
Hi Zen, I would also be concerned of oversupply, especially West Perth. Check the stats – downward trend at present.
APARTMENTS WHICH ARE MANAGED AND RENTAL GUARANTEES – Its all hype and spin, stay away from these.
Singleton is great as many have previously mentioned on this forum. However if you are purchasing House and Land packages you are looking at possibly 18 months to build, can you afford the interest during this period? Will it still be good buying, probably not. Housing approvals have decreased but apparently builders have an 18 month backlog.
.
