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Investment activity awakening in WA
Topic Started: 20 Apr 2012, 10:44 AM (3,448 Views)
Black Panther
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Investment activity awakening in WA

Top brokers have said investors are returning to the WA market after a long period of inactivity.

MPA Top 100 Broker Troy Cameron of Stratique Finance in Wembley, WA, has seen investors reawaken in the Perth market after a long period of slumber.

“Investor activity from the start of 2012 with renewed interest in the Perth property market as opposed to the former focus of Queensland and Melbourne,” Cameron said.

The Real Estate Institute of Western Australia has echoed Cameron’s claims, saying it has seen a rush of investors that is only set to grow as the end of the financial year approaches.

“Many potential investors who have been waiting and watching the Perth market, in particular, following the decline in prices since 2010, now sense that it’s an opportune time to look at entering the market,” the group said.

Cameron said the rental market was the key to the surge in activity.

Rental yields are the talk of the Perth market and are going through the roof at the moment. Renters are lining up to view properties and landlords are reaping the benefits. This is having a flow on to investor activity and confidence,” Cameron said.

Fellow MPA Top 100 Broker Darin Yacopetti agreed, and said Perth metro areas were seeing rental yields of 4.5-5%, while mining areas could yield as much as 10%.

REIWA data has borne out the claims, showing that median rents in the Perth metro area increased by 8.1% over the past year. The median weekly rent for Perth now sits at $420 per week. Vacancy rates in the city are tight as well, at 2.3%.

http://www.brokernews.com.au/article/investment-activity-awakening-in-wa-128285.aspx
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newjez
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Really BP? Is this the best you can do? Your mate Mike has all sorts of links. Why not have a chat with him and he will help you to spruce things up. You may even be able to compare portfolios. But I think you may be the bigger man!!! I don't think he'll be able to fill that mankini.
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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Wisebear
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How exciting for you BP.
Is this the start of the Q3 2011 turning point you keep telling us about?

I suppose it just wouldn't be the same on APF without your daily fantasy post.
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Mike
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newjez
20 Apr 2012, 11:37 AM
Really BP? Is this the best you can do? Your mate Mike has all sorts of links. Why not have a chat with him and he will help you to spruce things up. You may even be able to compare portfolios. But I think you may be the bigger man!!! I don't think he'll be able to fill that mankini.
I notice the bears cannot present any data to backup their claims. Mother statements dont count bears.

This certainly matches what we are seeing in the market right now. WA is the place to buy, rents soaring with attractive yields on investments. WA is certainly the pick to invest in at present.

The only problem for investors at present is you may be alittle late to the party, First Home Buyer activity is surging over here, so you wont find prices like you could in the 3rd quater of 2011. Taking this into account that it is still a good buy with median prices well below other capitals.

If you factor in we are building no where near new housing to house our 60,000+ people per year growth (2.6%) the rental situration is set to get worse over 2012. Until we see a large spike in construction and building approvals this situation will not correct. Building approvals are rising, slowly but most lending is still for existing housing stock.
Edited by Mike, 20 Apr 2012, 03:07 PM.
http://mike-globaleconomy.blogspot.com.au/
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davel
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Mike
20 Apr 2012, 03:06 PM
newjez
20 Apr 2012, 11:37 AM
Really BP? Is this the best you can do? Your mate Mike has all sorts of links. Why not have a chat with him and he will help you to spruce things up. You may even be able to compare portfolios. But I think you may be the bigger man!!! I don't think he'll be able to fill that mankini.
I notice the bears cannot present any data to backup their claims. Mother statements dont count bears.

This certainly matches what we are seeing in the market right now. WA is the place to buy, rents soaring with attractive yields on investments. WA is certainly the pick to invest in at present.

The only problem for investors at present is you may be alittle late to the party, First Home Buyer activity is surging over here, so you wont find prices like you could in the 3rd quater of 2011. Taking this into account that it is still a good buy with median prices well below other capitals.

If you factor in we are building no where near new housing to house our 60,000+ people per year growth (2.6%) the rental situration is set to get worse over 2012. Until we see a large spike in construction and building approvals this situation will not correct. Building approvals are rising, slowly but most lending is still for existing housing stock.
I actually think you're right on the overall shortage in Perth having visited there quite a lot in last 12 months. Just from my own observations.

The problem with that is that the people will stop coming. Noone knows quite when that will happen, but it will. In addition noone knows quite when the building response will come, if it does. So you better time it right! Think of Melbourne 3 years ago as a good guide.
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earthsta
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Black Panther
20 Apr 2012, 10:44 AM
Dick pulling rant
Perth house prices - ABS House Price Index

Mar-2010 208.7
Dec-2011 192.8
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Andrew
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earthsta
20 Apr 2012, 03:30 PM
Perth house prices - ABS House Price Index

Mar-2010 208.7
Dec-2011 192.8
Those numbers just prove how sage an investor Mike is. He sold everything at the top, and just bought a bunch of IPs at the bottom. Perhaps his sign to get in was BP's Q3 epoch.

As BP would says "holdouts will be punished from this point forward"

Or, as Mike would say, "and now they will pay a cost for that mistake"


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Mike
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davel
20 Apr 2012, 03:15 PM
Mike
20 Apr 2012, 03:06 PM
newjez
20 Apr 2012, 11:37 AM
Really BP? Is this the best you can do? Your mate Mike has all sorts of links. Why not have a chat with him and he will help you to spruce things up. You may even be able to compare portfolios. But I think you may be the bigger man!!! I don't think he'll be able to fill that mankini.
I notice the bears cannot present any data to backup their claims. Mother statements dont count bears.

This certainly matches what we are seeing in the market right now. WA is the place to buy, rents soaring with attractive yields on investments. WA is certainly the pick to invest in at present.

The only problem for investors at present is you may be alittle late to the party, First Home Buyer activity is surging over here, so you wont find prices like you could in the 3rd quater of 2011. Taking this into account that it is still a good buy with median prices well below other capitals.

If you factor in we are building no where near new housing to house our 60,000+ people per year growth (2.6%) the rental situration is set to get worse over 2012. Until we see a large spike in construction and building approvals this situation will not correct. Building approvals are rising, slowly but most lending is still for existing housing stock.
I actually think you're right on the overall shortage in Perth having visited there quite a lot in last 12 months. Just from my own observations.

The problem with that is that the people will stop coming. Noone knows quite when that will happen, but it will. In addition noone knows quite when the building response will come, if it does. So you better time it right! Think of Melbourne 3 years ago as a good guide.
Yes you are correct.

Land sales in March are up 17.5%, sales of existing houses are up 30% in 2012 to date. Finance commitments are up 24% in 2012. First home buyer grants paid are up 15% in march and 35% for the year.

It will take some time to see how many houses this adds to the property market but the large jump in land sales is a good indication construction levels should start to see some solid rises in comming months. This would help ease the rental squeeze.

The issue for perth is our population growth has gone from being around 40,000 per year total growth, to now being over 60,000 in less then 2 years. A 33% jump in the number of people comming to perth each year. 2012 will see this rise to over 70,000. 2013/14 could be even worse as the ABS states that most of the large mining projects will be under construction during the 2013/14 time frame requiring a further 75,000 skilled workers let alone the workers needed to support them. As most people moving to WA have families, then rent 1st in perth while looking to buy or build some time in the future. This is what is placing the present pressure on our rents. Cashed up miners can afford perth rents, no problem there. The issue is for our children who dont earn these huge incomes and lower paid workers, where will they live. Until we build more houses and expand supply rents will rise sharply and in turn perth property price rises will continue.
http://mike-globaleconomy.blogspot.com.au/
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Perthite
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Mike??? Population growth today is a little over half what it was in 2006. That has been the main driver behind falling housing starts... Less people arriving require less housing supply. What planet are you on?

I'm sorry but that post... Lost for words. :wak:
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stinkbug
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Perthite
20 Apr 2012, 06:04 PM
Mike??? Population growth today is a little over half what it was in 2006. That has been the main driver behind falling housing starts... Less people arriving require less housing supply. What planet are you on?

I'm sorry but that post... Lost for words. :wak:
Less people arriving requires less housing supply? Uh, no it doesn't, these people still need somewhere to live. It just means that not as many new dwellings need to be built. How's that shortage again...?
---------------------------------------------------------------

While it's true that those who win never quit, and those who quit never win, those who never win and never quit are idiots.

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