- Deb_Member@deb_Join Date: 2006Post Count: 5
I am astounded at the prices in Perth.
I have done a forum search and realise that Perth prices have been a topic on here before so I am not wanting to debate the why’s or wherefore’s of the current climate, rather, I am at a loss as to how I can even get into it.
I am not a property owner but I am desperate to buy something/anything to get my foot in the door. According to most “mortgage calculators” i can only borrow about 180-200k tops. i have some savings plus the FHOG which equal about 20k together (savings growing at $900 per week right now due to low rent – short term plus as much overtime as i can get) ..
The problem is there are negligible properties in Perth for this kind of cash. There is now way I will find a house, so it has to be a unit. Even then, they are not exactly abundant PLUS I am not 100% sure I will qualify for a bank loan ..
Am i better off looking for vendor finance? (and where do i start?) ..
Given that I am slightly above the average wage.. i wonder how everyone else trying to get into the markey is faring??Mortgage HunterParticipant@mortgage-hunterJoin Date: 2003Post Count: 3,781
Rather than speculating whether or not you might be able to get a loan I suggest you call a broker and sit down with him/her and find out exactly where you stand.
I can give generic advice via this forum or email but am a poor substitute for a local expert sitting in front of you.
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
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Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.Kiwi-FullaMember@kiwi-fullaJoin Date: 2002Post Count: 371
I wouldn’t get too upset about hte hype of the market at the moment either as they are over priced there at the moment and there are other markets that are good for buying at the lower point in the boom/bust cycle…..then in 6-18 months you could benefit from the rise in capital gains…… better still buy in a good growth potential area (past stats from residex should give you a few clues)….
Buy a dog house (tired but….not stuffed) Give it a 10-12K makeover ant then get it revalued … you could then sell it … or wait till prices rise again.
Or you could find a motivated seller and give them a get out of financial doom & gloom card … you should be able to buy wholesale then and then still make money in a rising market or falling market as you should have a buffer agains the house prices falling!
Hope this gives you a few good ideas to develop on…
Why Rent? Rent 2 own!
http://www.rent2ownaus.comDeb_Member@deb_Join Date: 2006Post Count: 5
Thanks for the replies ..
Kiwi – it’s not simply a matter of being pi**ed off at prices, I CAN’T get into the market at these prices – actually buying a ‘doghouse’ as you put ir is out of my reach at the moment. Let alone then having ’10-12k’ left over to do a reno.
So, I am not moaning about the prices just to moan. I am actually saying that rises in the past couple of years have put properties out of my reach.
I am sure that while I keep looking something will come up. But I am trying to point out that if the ‘average person’ in WA (eg me) cannot (not won’t, or may find it hard to but CANNOT) get into the market due to astronomical price rises then something must have to give right?? Or .. will Perth be the only capital city in Aus where anyone earning less than 100k won’t be able to buy??snowkiwiParticipant@snowkiwiJoin Date: 2004Post Count: 40
I think what Kiwi is saying is not to buy a dog-house in Perth, but buy one on the other side of the country. Lots of really successful people has said you make money by going against the herd. If the herd is in WA, maybe there are better opportunities elsewhere.
I’d sit down with a good mortgage broker and talk about what you can get elsewhere. You don’t have to buy in your back yard. Sure it’s easier to see, touch and sometimes to research, but not always the best option.
If you identify a good growth potential area (residex was mentioned and they have a pretty good track record) on the east coast or in a major regional centre, I’m sure you’d be able to get something.
For example, you can currently get 3br houses for under $200k in Sydney’s western suburbs. Or you can get houses for under $100k in loads of places outside major centres. I’m not suggesting they are the right places for you – only you can decide that. Just pointing out they are there.
As a side note, if you’re saving $900/week, I would have thought on the surface of it that you could cover more than 200k for an investment property. But you need to be comfortable with what you can cover and you need to work it out with a good mortgage broker.
Whatever you decide, research, make a plan and go for it.
Ask me about Joint Ventures earning 15+% COCR.suzieqMember@suzieqJoin Date: 2003Post Count: 149
How about looking further afield……there are still some country areas in WA worth a look!!
SQcrusherParticipant@crusherJoin Date: 2002Post Count: 186
If you want an investment property then my suggestion is find an area that you can afford and has the right rent return or forecast capital growth. Perth generally has very poor rent returns compared to what you pay for the property and it will take a while for rents to catch up now that prices have leapt up so much recently.
I go where the best deals are (in Australia) and I do not restrict myself geographically and this works for me. Why don’t you grab a copy of the Residex report on predicted cashlfow areas or high captial growth to get you started.