Browse Forums General Discussion 1 Oct 19, 2008 4:26 pm Hi, first time poster here, nice informative site.
Im from Perth and been out of the property market for a while. I am 30 and currently living and working in Japan and own my own 2x1 townhouse in Perth, fully owned and paid and renting out at about 300 a week. I am making a 3-month trip home to Perth in February and thinking of taking the opportunity to purchase a new property in Perth during that time. I will have about 40k deposit by then. I am looking at properties of around 600-700m2 north of the river (Nollamara, Duncraig, Padbury etc) priced at 400k to 450k, then tenant it out at about 500/600 a week depending on age and condition. I think with two rental incomes, I can make the repayments without eating into my salary. Id use my salary to add funds to the mortage to get the amount down as soon as possible. My fiancee will be working during that time and we are planning to live in Japan for about 4 years before moving back to Perth to build a double storey and start a family. Im guessing the design we want will cost around 500k without landscaping (something Id like to do myself). It sounds a bit far-fetched, but does even sound possible? Its a long term plan I know. Any advice from more informed posters about what I should do over the next few months would be much appreciated. Thanks Jebb. Re: Time to buy next property? 2Oct 19, 2008 6:54 pm jebb check out the standard rents for those areas. i think you'll find your 500-600 a week rent is way out. try 300- 3200 a week if that. take a look at one of the rental property sites. ie [url]www,realestate.com.au[/url] for start to get an idea of what rental costs are in perth.
anything that did rate that kind of rent would not be in any of the suburbs you mentioned. Re: Time to buy next property? 3Oct 19, 2008 8:31 pm Jebb Hi, first time poster here, nice informative site. Im from Perth and been out of the property market for a while. I am 30 and currently living and working in Japan and own my own 2x1 townhouse in Perth, fully owned and paid and renting out at about 300 a week. I am making a 3-month trip home to Perth in February and thinking of taking the opportunity to purchase a new property in Perth during that time. I will have about 40k deposit by then. I am looking at properties of around 600-700m2 north of the river (Nollamara, Duncraig, Padbury etc) priced at 400k to 450k, then tenant it out at about 500/600 a week depending on age and condition. I think with two rental incomes, I can make the repayments without eating into my salary. Id use my salary to add funds to the mortage to get the amount down as soon as possible. My fiancee will be working during that time and we are planning to live in Japan for about 4 years before moving back to Perth to build a double storey and start a family. Im guessing the design we want will cost around 500k without landscaping (something Id like to do myself). It sounds a bit far-fetched, but does even sound possible? Its a long term plan I know. Any advice from more informed posters about what I should do over the next few months would be much appreciated. Thanks Jebb. By the time 4 yrs later to build a double storey home would be $800,000 instead of your budget $500,000 i think. Re: Time to buy next property? 4Oct 19, 2008 11:18 pm I'm wondering if buying an investment property in a market that experts believe is set to fall in price (especially Perth) is such a good investment. You could bust your gut paying off 100k of it only to find it's worth 100k less than what you paid for it. By all means I'd keep your current property but if I were you I'd sit back and see what happens with prices - they certainly aren't about to go up thats for sure. To me a rental property that is negatively geared is only a good investment if the market is increasing in value - if it's doing the opposite then whats the point? Re: Time to buy next property? 5Oct 20, 2008 2:37 pm Thanks for the replies guys.
What you say about the rates seems right, Im sure I saw 600 somewhere, but there also seems to be a lot for 350. Seems strange that my place is going for 300, and another 2 rooms and bathroom only gets 50 more, but thats reality I guess. I could still service the loan by putting in 100 or 150 a week and negative gear it anyway. Well, Im not thinking of buying yet, itll be Feb or March next year, so there is still time to see what happens to the market. In that time, Im hoping rates will drop which will in turn force house prices up within a year. I may be wrong, and I am no expert. Building costs rise that much in 4 years??? Ouch.... Is there any other advice for what I may be able to do in this situation? I finished paying my property off a couple of months ago and have been enjoying living debt free, but what to invest it in property somehow while the prices are hopefully down. Re: Time to buy next property? 6Oct 25, 2008 8:31 pm I have to say, I don't understand this at all. Why would you want to buy an asset that is falling in price? Not sure if you are aware of this but there is a worldwide recession on the way...
6 months is nowhere near long enough to see what's going to happen. If I were you I'd stay cashed up and debt free, that is a very safe option right now. Anyone who thinks that Aus is immune from the chaos hapenning around the world is living in a bubble. In this environment, cash is King. Re: Time to buy next property? 7Oct 29, 2008 2:58 pm yeah, but no one know when is the "bottom", that's the problem.
normally when you start noticing it's coming up, it's already too late. I guess if you keep it for a long term, a few years fluctuation should be ok. Re: Time to buy next property? 8Oct 29, 2008 3:05 pm Being a perthie you would not get $500 - $600 week
My IP is tenanted at $325/week but it only cost $300k. Reason for such a good return is because it is in Bentley near the uni so 3 students live together (its a 3x2) and $105 each a week is affordable. Plus I got 50 enquiries on the first day of advertising on an unknown classified site Look around areas with high rental returns, Bentley is typical of this. Also buying in Rockingham for $215k when you can rent it out for $200/week seems like more sense to me Trying to make it mine! Re: Time to buy next property? 9Oct 29, 2008 8:33 pm Jebb,
I have just moved to Melbourne from Perth. I have a one bedroom studio apartment in a strata titled complex with gym and pool etc in Belmont (across the highway from the river) that I have just leased out for $260/week on a 12 month lease. I am looking to sell, as I purchased a block in Melbourne and am building in the new year and want to put every spare cent into my new house. I paid $235k for the unit in April 07 (borrowed 95% of the property value) and am looking to sell for the price I paid for it, just to get out of it. If I was still in Perth I would love to keep it because it is a great return. If you have a $40k deposit......7% interest on $195k is....$262/week.....rent is $260/week..... That might be a cheaper option for you...and if I didn't have to pay the real estate commission, could buy it at say $233k Would love if someone could take it off my hands...would relieve the pressure a bit as I am currently paying $850/week on rent and mortgages on one salary...making it very tough! Built in now city 2009, now moving to the country to embark on another build. Check out our previous blog http://ourpalazzo.blogspot.com/ i imagine you also have another contract with an architect? and yeah, whatever other's said about special conditions and appendices 16 16008 Hi all I am looking to run a water line under my concrete footpath which is directly next to my home, was seeing if this is possible without cutting the entire section… 0 20182 Did you know that you can get rugs made from carpet? So much cheaper than buying a shop rug. So many styles to choose from, but you won't get the highly patterned… 0 6273 |