if I put 40k down, it is going to cost $653 per week. I would want to use leverage as I don't have 600k. Rent at $500 per week as you say - somewhat generous
Leaves me with a 150/week shortfall?
Am I missing something.
I wasn't aware land prices are rising.
Bardon
30 Sep 2016, 09:22 AM
Hes just throwing stuff around for info.
I got one for my nephew recently at 5% yield, cash flow neutral at 85% LVR in a fast growth location.
I see, I do reckon over the next year will be a good time to buy.
Someone on here mentioned Coogee, that area has been hit hard with price drops and may have some development kicking off over the next few years.
if I put 40k down, it is going to cost $653 per week. I would want to use leverage as I don't have 600k. Rent at $500 per week as you say - somewhat generous
Leaves me with a 150/week shortfall?
Am I missing something.
I get $446 a week. Why would you pay P&I on an investment property you plan to demolish in in a few years? Why would you pay the 5.9% interest rate in the calculator when you can get 4%?
As I said your calculator is broken.
Quote:
I wasn't aware land prices are rising.
You should do a little research then.
newjez
30 Sep 2016, 07:09 AM
Like this one? Not sure what low to mid millions means
Something like that as far as the house goes, just finished to a higher standard around paving and flooring in particular. That block is far more restrictive though than the other one though
21m frontage necking down to 5m at the back. You would have to push the house all the way to the back of the block and design the pool, alfresco, outdoor kitchen etc at the front. Not a train wreck, not as private though. It does show the potential of the Warner Court block.
I get $446 a week. Why would you pay P&I on an investment property you plan to demolish in in a few years? Why would you pay the 5.9% interest rate in the calculator when you can get 4%?
As I said your calculator is broken.
Ye you're right. I had P&I. That's actually not a bad deal.
Perth is a long way from being a buy yet. Fox bat is nothing but a sexist fool!! Perth is an over supplied market with a tanking economy and falling population growth. As anyone who has been around long enough knows the real price falls only happen when the psycological barrier is broken - aka capitulation. That is still some months away.
The king of the hill lets say his name was Bill a rental here a rental there everywhere that Bill went people would shower him with money some young girls a bit short with honey but then on that fateful day in May 2013 unlucky as it was always going to be a sage called Foxbat said what was that the mining boom did POP Bill being the true Aussie he is said she will be right mate and heaped on Foxbat nothing but hate year by year Bill resisted his fate until with empty unit land tax, water rates, shire rates and more Bill fell to his knees and to Foxbat said Sorry mate
Perth is a long way from being a buy yet. Fox bat is nothing but a sexist fool!! Perth is an over supplied market with a tanking economy and falling population growth. As anyone who has been around long enough knows the real price falls only happen when the psycological barrier is broken - aka capitulation. That is still some months away.
Foxbat is probably a bit early but on this occasion he isn't entirely wrong.
The Perth market won't capitulate, but some sellers will and they are the buys a smart buyer will target. The not so smart buyers will wait and wait and then complain that they missed out.
Take risks - if you win you will become wealthy, if you lose you will become wise
Foxbat is probably a bit early but on this occasion he isn't entirely wrong.
The Perth market won't capitulate, but some sellers will and they are the buys a smart buyer will target. The not so smart buyers will wait and wait and then complain that they missed out.
+ 1
Wait until depths of winter 2018. You'll see some bargains then. Mind you in 2025 you might be kicking yourself you didn't by back in the late teen's.
Wait until depths of winter 2018. You'll see some bargains then. Mind you in 2025 you might be kicking yourself you didn't by back in the late teen's.
Yeah, that's my take. Perth is unique due to its geography. People can't just pack up in Melbourne and decide to shift here. It's like emigrating to a new country. So the uptake on supply here is poor. 10 new houses up for hardship sales? You won't get 10 Eastern Staters waving flyers at the auction.
And with a dearth of sloshing CAPEX money, it'll be down to the usual, cashed-up local suspects to absorb the realty of choice. The people whose families got here first 2 generations ago and have been making a killing off the property rises ever since. They'll be spoiled for choice and have to be picky as even their deep pockets can't buy all of it. So better to buy a half price mansion in Scarborough than 5 dog-box units in Dianella. Snob value alone will see to that.
With so much on offer at such good-to-be prices, people of means will buy the good stuff and leave the tat. Meaning Perth will finally do what very other city does eventually. Move to extremes of bifurcation. Perth is surprisingly flat in land value compared too other cities. A strong social policy and decent wages has seen to that but Snob Hill beckons ever on. If you want to be an eventual winner you'll need to secure in the top 70 suburbs as the rest linger on. 2018 is your extreme low point. The suffering hasn't even really registered with many. Still holding their investment property with feeble equity and a refusal to admit they're underwater.
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