Perth land up $40,000 to be most expensive of Australian capital cities; THE median price of land in Perth has skyrocketed by $40,000 over the past year.
Tweet Topic Started: 1 Oct 2014, 05:51 AM (3,383 Views)
Just got board approval to enter into a heads of agreement to acquire a Perth business, the seller separately owns the three workshops. I told the seller yesterday when we presented our offer to him that he shouldn't forget that he would have a secure landlord paying his rents if he accepted.
Landlord or tenant??
Anyway good luck with your new business.
Hope it goes well.
May i ask what industry you are in.
I am always on the look out for contractors.
Peter
Black Panther
1 Oct 2014, 10:02 AM
At worst Perth may dip slightly and then trend up again strongly.
Keep screaming chicken little all you want.
It wont make any difference.
Perth Land prices up prove you wrong. The RE market here is still solid.
Yes the low interest rates are doing the trick.
Every renter is asking the question, why pay rent when it is just as cheap to buy and pay interest. Peter
Yes correct we will be the tenants and he will be the landlord.
This business is in the oil and gas sector, I work in many sectors.
Lets see how it goes, we only gave him the EBIT multiplier yesterday ie our valuation, I can tell you it was lower than industry norms, plus he has to earn out his value ie some of his payment is at risk if he does not achieve forecasted earnings and margin.
He said that he knows that he is selling his business at the wrong time, which to us validates that it is the right time to be buying his business.
What's happening in Perth is that low interest rates and the tight rental market of a year ago have led to a surge in demand for new properties. This increased demand has led to developers and investors buying any land they can get their hands on cash in.
I agree low rates play a role however the rest of this comment is a load of steaming crap.
Go look at lending data from the ABS, Perth has had no noticeable increase in investor activity over long term averages. What has increases is lending to Owner Occupiers, FHB and upgraders.
It is these buyers competing for land that are driving prices higher.
This large price increase of $40,000 for a median block of land is not reflected in Perth house prices at present as very few of these properties would be for sale, are still under construction or awaiting future construction.
Quote:
However, the slowdown in mining has led to a slowdown in immigration and a slackening of the rental market.
Why have prices increased 1.2% in 2 weeks and the yearly figure is starting to rise again. If as you say and have been saying a big slow down is under way then why are prices moving up again after the normal winter slowdown?
Quote:
Near me there is a block right next to the beach that has sat vacant for over ten years. It was bought by a local investor and developed into a duplex pair. He has them on the market as rentals at $550 a week each and after six weeks he still has no interest. A year ago they would have been snapped up but $550 a week is too high now. Maybe $400 would be closer to the mark today.
Could you give us a link to the advertised properties for rent, im sure it must be on the realestate site or another major internet site? Or is this just another one of your many stories you seem to keep rolling out.
Quote:
The simple fact is that the surge in demand for land is leading to an increased supply of housing stock just as the WA economy begins to face major headwinds from the mining slowdown.
Yes and it is not investors leading that demand it is owner occupiers who are buying and building. You know the people who have jobs with WA having an unemployment rate of close to 5%.
Quote:
Even REIWA are predicting a bear market for 2014/2015 and when the main vested interest body predicts falling prices, you know there must be something in it.
Is this the same vested interest group who a few weeks ago could not be trusted with the data as it showed figures you could not explain. Yet now you think they are correct. Perhaps Reiwa are just stating this so buyers think the market is flat to encourage people sitting on the side lines to buy now.
So Reiwa say what I have been saying for over 2 years that I expect 2015/16 to be flat after this next Spring/Summer of growth. Even Reiwa said they expect growth in prices over the Spring/Summer of this year followed by a flat market. They have finally moved in the direction I have been at for 2 years. Just shows how accurate I am on the movements of the market.
I agree low rates play a role however the rest of this comment is a load of steaming crap.
Go look at lending data from the ABS, Perth has had no noticeable increase in investor activity over long term averages. What has increases is lending to Owner Occupiers, FHB and upgraders.
It is these buyers competing for land that are driving prices higher.
This large price increase of $40,000 for a median block of land is not reflected in Perth house prices at present as very few of these properties would be for sale, are still under construction or awaiting future construction.
Why have prices increased 1.2% in 2 weeks and the yearly figure is starting to rise again. If as you say and have been saying a big slow down is under way then why are prices moving up again after the normal winter slowdown?
Could you give us a link to the advertised properties for rent, im sure it must be on the realestate site or another major internet site? Or is this just another one of your many stories you seem to keep rolling out.
Yes and it is not investors leading that demand it is owner occupiers who are buying and building. You know the people who have jobs with WA having an unemployment rate of close to 5%.
Is this the same vested interest group who a few weeks ago could not be trusted with the data as it showed figures you could not explain. Yet now you think they are correct. Perhaps Reiwa are just stating this so buyers think the market is flat to encourage people sitting on the side lines to buy now.
So Reiwa say what I have been saying for over 2 years that I expect 2015/16 to be flat after this next Spring/Summer of growth. Even Reiwa said they expect growth in prices over the Spring/Summer of this year followed by a flat market. They have finally moved in the direction I have been at for 2 years. Just shows how accurate I am on the movements of the market.
Rp data looks like it is correcting a dip. As I said to Jim previously; don't read anything into it until there is a significant move.
Whenever you have an argument with someone, there comes a moment where you must ask yourself, whatever your political persuasion, 'am I the Nazi?'
Yes Mike and you are very quick to jump in when RP shows even a slight improvement. I am not stupid and I don't take small blips as proof of anything.
Quote:
Why have prices increased 1.2% in 2 weeks and the yearly figure is starting to rise again. If as you say and have been saying a big slow down is under way then why are prices moving up again after the normal winter slowdown?
As above. They haven't. You could say they have fallen because a few weeks back the index showed 619.11 compared to todays 616.13.
Quote:
Could you give us a link to the advertised properties for rent, im sure it must be on the realestate site or another major internet site? Or is this just another one of your many stories you seem to keep rolling out.
Is this the same vested interest group who a few weeks ago could not be trusted with the data as it showed figures you could not explain. Yet now you think they are correct. Perhaps Reiwa are just stating this so buyers think the market is flat to encourage people sitting on the side lines to buy now.
Ah yes, REIWA is advising people to buy now because prices are about to fall? Are you for fvcking real?
Quote:
So Reiwa say what I have been saying for over 2 years that I expect 2015/16 to be flat after this next Spring/Summer of growth. Even Reiwa said they expect growth in prices over the Spring/Summer of this year followed by a flat market. They have finally moved in the direction I have been at for 2 years. Just shows how accurate I am on the movements of the market.
Bullshit. You have been spruiking non stop for the last two years. You still claim prices will increase 5% until 2015 because I suppose if they don't, your little get rich quick scheme will be dead in the water. You are a twat Mike. Piss off.
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.
A tight rental market encourages FHB's and investors to buy. Not crap at all.
Then why do we see no increase in investor activity over long term averages. FHB and Upgraders make up the bulk of the market not investors, no data exists which shows investors are driving demand in Perth. If you had said Sydney I would agree with you.
Quote:
Yes Mike and you are very quick to jump in when RP shows even a slight improvement. I am not stupid and I don't take small blips as proof of anything.
No just respond to your multiple posts per day stating RP data showed prices down 1.5%. I am just stating RP data now shows prices are down 0.3% which means prices increased 1.2% in the last two weeks. Hard to believe your claims the sky is falling when prices rebound up. Why did that happen and not continue to fall, do you know?
Quote:
As above. They haven't. You could say they have fallen because a few weeks back the index showed 619.11 compared to todays 616.13.
I did not talk about a figure, I responded to your claims prices had decreased 1.5%, now it is only 0.3%. You certainly do post every little bump you have been doing it for weeks.
Also this must hurt.
Quote:
We are already seeing the values of established homes in areas such as Safety Bay, Warnbro and Waikiki rising because of rising land prices in nearby Baldivis,” Mr Kempton said. “A similar trend is also occurring in the northern suburbs in areas such as Clarkson and Mindarie.
You would not last 5 seconds with me, you ignorant fool. I will flick the agent an email asking how long it has been on the market to rent for, see if your story holds up.
Quote:
Ah yes, REIWA is advising people to buy now because prices are about to fall? Are you for fvcking real?
Bullshit. You have been spruiking non stop for the last two years. You still claim prices will increase 5% until 2015 because I suppose if they don't, your little get rich quick scheme will be dead in the water. You are a twat Mike. Piss off.
One minute you hate Reiwa next your in love with them, make up your mind. My 5% prediction is in line with my long held predictions which have happened to date from 2 years ago. I have not changed my tune. How would I know 2 years ago about price growth now, think about it. How could I be so accurate time and time again. 5% wont make anyone rich, you are a complete fool. But 5% will cost you tens of thousands of dollars trying to buy back into the market and thousands more on renting longer. Enjoy that and I will be here in 6 months to remind you.
Then why do we see no increase in investor activity over long term averages. FHB and Upgraders make up the bulk of the market not investors, no data exists which shows investors are driving demand in Perth. If you had said Sydney I would agree with you.
No just respond to your multiple posts per day stating RP data showed prices down 1.5%. I am just stating RP data now shows prices are down 0.3% which means prices increased 1.2% in the last two weeks. Hard to believe your claims the sky is falling when prices rebound up. Why did that happen and not continue to fall, do you know?
I did not talk about a figure, I responded to your claims prices had decreased 1.5%, now it is only 0.3%. You certainly do post every little bump you have been doing it for weeks.
It appears prices are rising quickly in your area, ouch you sold at the wrong time.
You would not last 5 seconds with me, you ignorant fool. I will flick the agent an email asking how long it has been on the market to rent for, see if your story holds up.
One minute you hate Reiwa next your in love with them, make up your mind. My 5% prediction is in line with my long held predictions which have happened to date from 2 years ago. I have not changed my tune. How would I know 2 years ago about price growth now, think about it. How could I be so accurate time and time again. 5% wont make anyone rich, you are a complete fool. But 5% will cost you tens of thousands of dollars trying to buy back into the market and thousands more on renting longer. Enjoy that and I will be here in 6 months to remind you.
Don't know why we have to keep dragging this one out but,
If a used car dealer tells you a car is great, you don't believe him, as he is just trying to make money.
If a used car dealer tells you not to buy a car, you do believe him, as it's probably a death trap, and he's worried he'll get done for manslaughter.
Is there a name for this?
Whenever you have an argument with someone, there comes a moment where you must ask yourself, whatever your political persuasion, 'am I the Nazi?'
Australian Property Forum is an economics and finance forum dedicated to discussion of Australian and global real estate markets and macroeconomics, including house prices, housing affordability, and the likelihood of a property crash. Is there an Australian housing bubble? Will house prices crash, boom or stagnate? Is the Australian property market a pyramid scheme or Ponzi scheme? Can house prices really rise forever? These are the questions we address on Australian Property Forum, the premier real estate site for property bears, bulls, investors, and speculators. Members may also discuss matters related to finance, modern monetary theory (MMT), debt deflation, cryptocurrencies like Bitcoin Ethereum and Ripple, property investing, landlords, tenants, debt consolidation, reverse home equity loans, the housing shortage, negative gearing, capital gains tax, land tax and macro prudential regulation.
Forum Rules:
The main forum may be used to discuss property, politics, economics and finance, precious metals, crypto currency, debt management, generational divides, climate change, sustainability, alternative energy, environmental topics, human rights or social justice issues, and other topics on a case by case basis. Topics unsuitable for the main forum may be discussed in the lounge. You agree you won't use this forum to post material that is illegal, private, defamatory, pornographic, excessively abusive or profane, threatening, or invasive of another forum member's privacy. Don't post NSFW content. Racist or ethnic slurs and homophobic comments aren't tolerated. Accusing forum members of serious crimes is not permitted. Accusations, attacks, abuse or threats, litigious or otherwise, directed against the forum or forum administrators aren't tolerated and will result in immediate suspension of your account for a number of days depending on the severity of the attack. No spamming or advertising in the main forum. Spamming includes repeating the same message over and over again within a short period of time. Don't post ALL CAPS thread titles. The Advertising and Promotion Subforum may be used to promote your Australian property related business or service. Active members of the forum who contribute regularly to main forum discussions may also include a link to their product or service in their signature block. Members are limited to one actively posting account each. A secondary account may be used solely for the purpose of maintaining a blog as long as that account no longer posts in threads. Any member who believes another member has violated these rules may report the offending post using the report button.
Australian Property Forum complies with ASIC Regulatory Guide 162 regarding Internet Discussion Sites. Australian Property Forum is not a provider of financial advice. Australian Property Forum does not in any way endorse the views and opinions of its members, nor does it vouch for for the accuracy or authenticity of their posts. It is not permitted for any Australian Property Forum member to post in the role of a licensed financial advisor or to post as the representative of a financial advisor. It is not permitted for Australian Property Forum members to ask for or offer specific buy, sell or hold recommendations on particular stocks, as a response to a request of this nature may be considered the provision of financial advice.
Views expressed on this forum are not representative of the forum owners. The forum owners are not liable or responsible for comments posted. Information posted does not constitute financial or legal advice. The forum owners accept no liability for information posted, nor for consequences of actions taken on the basis of that information. By visiting or using this forum, members and guests agree to be bound by the Zetaboards Terms of Use.
This site may contain copyright material (i.e. attributed snippets from online news reports), the use of which has not always been specifically authorized by the copyright owner. Such content is posted to advance understanding of environmental, political, human rights, economic, democratic, scientific, and social justice issues. This constitutes 'fair use' of such copyright material as provided for in section 107 of US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed for research and educational purposes only. If you wish to use this material for purposes that go beyond 'fair use', you must obtain permission from the copyright owner. Such material is credited to the true owner or licensee. We will remove from the forum any such material upon the request of the owners of the copyright of said material, as we claim no credit for such material.
Privacy Policy: Australian Property Forum uses third party advertising companies to serve ads when you visit our site. These third party advertising companies may collect and use information about your visits to Australian Property Forum as well as other web sites in order to provide advertisements about goods and services of interest to you. If you would like more information about this practice and to know your choices about not having this information used by these companies, click here: Google Advertising Privacy FAQ
Australian Property Forum is hosted by Zetaboards. Please refer also to the Zetaboards Privacy Policy