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More than 200 Perth suburbs hit million-dollar property mark; Bears Perth Fantasy Disintegrates
Topic Started: 14 Sep 2014, 10:08 AM (2,893 Views)
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goldbug
14 Sep 2014, 03:04 PM
A new home is built and the higher costs of contruction puts it over a million.
A home under a million gets a revamp and a pool and goes over a million.
A sap nuvo landlord buys dog boxes in the eastern burbs and the price of them go NOWHERE in 7 years.

He feels cheated but he's trapped with decades worthd of debt, so he sticks with the 2005 rhetoric and jawbones endlessly about how great an investment property is. 7 years and where are perth property prices? 100% higher? 50% higher? Sorry, not even close.
If someone purchased an IP in Perth in 2005, on average it will have gone up 50% in capital value and paid them 27% in yield. So you are right, property investment since 2005 has been a great investment with a 77% return on the original purchase price.

What makes it even better is the fact they probably risked the banks money and not their own to do it. At an LVR of 80% it means the return on their starting capital is more like 300%.

And it will continue to pay them an income for the rest of their lives, so anyone who purchased in 2005 is pretty much a genius.
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Jimbo
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goldbug
14 Sep 2014, 03:04 PM
A new home is built and the higher costs of contruction puts it over a million.
A home under a million gets a revamp and a pool and goes over a million.
A sap nuvo landlord buys dog boxes in the eastern burbs and the price of them go NOWHERE in 7 years.

REIWA can't find anything positive in the sales or price data so they have come out with this pile of obvious crap to try and spruik the market.

I love the line "real estate experts expect the list to continue to grow." which Black Panther decided to highlight red and grow bigger.

Of course it is going to grow. We add new suburbs to Perth every year. In every new suburb there will be some dog boxes and some mansions.

30% of all road accidents are caused by drink drivers. No doubt, according to REIWA, 70% of accidents are caused by sober drivers so it is obviously safer to drive when you are pissed.

Matthew, 30 Jan 2016, 09:21 AM Your simplistic view is so flawed it is not worth debating. The current oversupply will be swallowed in 12 months. By the time dumb shits like you realise this prices will already be :?: rising.
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Drgonzo
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Places in Girro selling for 500 now, time to sell out soon :D
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Massive
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so 200 suburbs have had homes that have sold for $1m+ - basically it equates to a little over twice the median

its not a surprise, nor is it a market indicator... but it is great for a spruik i suppose ...


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Jimbo
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Drgonzo
14 Sep 2014, 03:28 PM
Places in Girro selling for 500 now, time to sell out soon :D
Actually, I would tend to hold Girro or Balga property for the long term.

My own experience of living in London tells me that if you can buy land tight to the city, in the long run you will gain.

In the 60's, central London property nosedived in value as more people went into the burbs to have the best of both worlds (London wages and country life). They took advantage of new road links that made commuting viable.

However, in the last 25 years that trend has reversed and city boroughs like Notting Hill (once a black ghetto) are now the places of the rich and famous as they embrace the obvious advantage of not spending 4 hours a day commuting to work.

Both Girro and Balga are close to the city and as the city grows, they will become more sought after.

I remember in the 70's when Wembley(Perth) and Claremont were considered to be dumps.

Where RE is going to suffer in Perth is in the outlying suburbs that were bid up to extremes in the 2000's property rush. As new apartments are being thrown up all over the place in the city, ask yourself this.

If you were a 20 year old couple, would you rather rent a new apartment in Northbridge that was close to your job and nightlife or would you rather rent a 3x1 in far off Kelmscott for the same price?





Matthew, 30 Jan 2016, 09:21 AM Your simplistic view is so flawed it is not worth debating. The current oversupply will be swallowed in 12 months. By the time dumb shits like you realise this prices will already be :?: rising.
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Drgonzo
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Jimbo
14 Sep 2014, 03:47 PM
Actually, I would tend to hold Girro or Balga property for the long term.

My own experience of living in London tells me that if you can buy land tight to the city, in the long run you will gain.

In the 60's, central London property nosedived in value as more people went into the burbs to have the best of both worlds (London wages and country life). They took advantage of new road links that made commuting viable.

However, in the last 25 years that trend has reversed and city boroughs like Notting Hill (once a black ghetto) are now the places of the rich and famous as they embrace the obvious advantage of not spending 4 hours a day commuting to work.

Both Girro and Balga are close to the city and as the city grows, they will become more sought after.

I remember in the 70's when Wembley(Perth) and Claremont were considered to be dumps.

Where RE is going to suffer in Perth is in the outlying suburbs that were bid up to extremes in the 2000's property rush. As new apartments are being thrown up all over the place in the city, ask yourself this.

If you were a 20 year old couple, would you rather rent a new apartment in Northbridge that was close to your job and nightlife or would you rather rent a 3x1 in far off Kelmscott for the same price?




I've never seen the appeal of living on the fringe of the CBD, I'd take the place with the backyard.

Northy is shit, it was shit in the nineties and it's shit now.
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peter fraser
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Jimbo
14 Sep 2014, 03:47 PM
Actually, I would tend to hold Girro or Balga property for the long term.

My own experience of living in London tells me that if you can buy land tight to the city, in the long run you will gain.

In the 60's, central London property nosedived in value as more people went into the burbs to have the best of both worlds (London wages and country life). They took advantage of new road links that made commuting viable.

However, in the last 25 years that trend has reversed and city boroughs like Notting Hill (once a black ghetto) are now the places of the rich and famous as they embrace the obvious advantage of not spending 4 hours a day commuting to work.

Both Girro and Balga are close to the city and as the city grows, they will become more sought after.

I remember in the 70's when Wembley(Perth) and Claremont were considered to be dumps.

Where RE is going to suffer in Perth is in the outlying suburbs that were bid up to extremes in the 2000's property rush. As new apartments are being thrown up all over the place in the city, ask yourself this.

If you were a 20 year old couple, would you rather rent a new apartment in Northbridge that was close to your job and nightlife or would you rather rent a 3x1 in far off Kelmscott for the same price?




In Brisbane we had Spring Hill, Fortitude Valley, New Farm, West End, South Brisbane, Highgate Hill, Red Hill, Paddington, Petrie Terrace and other fringe CBD areas where housing was cheap and the winos and drug addicts lived. All expensive areas now, still have drug addicts but not like it used to be.
Any expressed market opinion is my own and is not to be taken as financial advice
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newjez
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Mike
14 Sep 2014, 01:12 PM
More data the Bears say is wrong as it disagrees with their world view.

My take on it is this.

I don't think so many sales above normal levels have been happening at the higher end it is the construction of new large houses that is driving this trend. Construction of new million dollar homes all over the place is what is pushing suburbs into the million dollar price bracket.

I said this a few weeks ago, construction of large houses in the more expensive range $800-$1.5 million is very strong. Upgraders tend to build as they cannot find what they want in the right locations. Buy a subdivided blocked in a location you like and stick a massive modern home on it.

If Jimbo looked around outside of Rockingham it might notice it.
Dont think anyone said it was wrong. It's just pointless and irrelevant. Where's the post saying it's wrong Mike, or are you lying again?
peter fraser
14 Sep 2014, 04:00 PM
In Brisbane we had Spring Hill, Fortitude Valley, New Farm, West End, South Brisbane, Highgate Hill, Red Hill, Paddington, Petrie Terrace and other fringe CBD areas where housing was cheap and the winos and drug addicts lived. All expensive areas now, still have drug addicts but not like it used to be.
Belmont in Perth still offers better value that girro.
Edited by newjez, 14 Sep 2014, 04:04 PM.
Whenever you have an argument with someone, there comes a moment where you must ask yourself, whatever your political persuasion, 'am I the Nazi?'
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Jimbo
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peter fraser
14 Sep 2014, 04:00 PM
In Brisbane we had Spring Hill, Fortitude Valley, New Farm, West End, South Brisbane, Highgate Hill, Red Hill, Paddington, Petrie Terrace and other fringe CBD areas where housing was cheap and the winos and drug addicts lived. All expensive areas now, still have drug addicts but not like it used to be.
If you look at the East End of London for example, my Grandmother lived in Poplar which was one of the most deprived areas in Europe. Bombed to hell in WWII.

The BBC series "Call The Midwife" is set there in the time that she was working as a dinner lady in one of the local state schools.

My Grans old council house was knocked down in the 80's to make way for "One Canada Square" or the Canary Wharf Tower as it was first named.

So my Grans old council house in a deprived district has become some of the most prized real estate on the planet in 30 short years.

I have not suddenly become a property bull because I have also seen the reverse happen.

But that is another story.


Matthew, 30 Jan 2016, 09:21 AM Your simplistic view is so flawed it is not worth debating. The current oversupply will be swallowed in 12 months. By the time dumb shits like you realise this prices will already be :?: rising.
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doubleview
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Without turning Perth into a new asian/indian hub via immigration the palace is doomed!

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