Guest Guest6235 Posted April 27, 2015 Report Share Posted April 27, 2015 Just to anybody thinking of buying at the moment it may be worth hanging on for another year if your planning on staying in WA. I've been to Quinns beach/Ocean keys today and got chatting to a guy who works FIFO. They have rented out here for 4 years and his place of work is winding up in the next few months. He advised us not to buy for at least a year as he's been told by a mate in property business that there will be a crash in prices in that time and also in rents. He said it could be from 10-20% crash in prices. He wants to move back to Scotland once they have citizenship as as he said it will be better for them. He also said quite a few who have bought big could struggle over the next couple of years. Obviously entirely up to anybody what they do but I was grateful for his info. Quote Link to comment Share on other sites More sharing options...
Druid Posted April 27, 2015 Report Share Posted April 27, 2015 We all know that WA is in a slow down, but not a crash, Australia in general weathered the GFC very well, WA extremely well, most of WA's wealth comes from the mining sector and more importantly exports to China, so when China slowed down it was obvious WA was going to slow down, now the world has predicted China's slow down is over and its now on the up, so in the future the price of minerals will go up and the WA mining sector will pick up again, in the meantime things in Perth have stabilised, they needed to, rents and the price of houses was getting silly, so for the next couple of years things will be steady but not crashing, landlords will be sweating, but they have had it good for a few years, now lets hope they can take the bad, if not, they can always sell, in the meantime there are some bargains to be had while the FIFO sell of their toys cheap. Quote Link to comment Share on other sites More sharing options...
newjez Posted May 15, 2015 Report Share Posted May 15, 2015 We all know that WA is in a slow down, but not a crash, Australia in general weathered the GFC very well, WA extremely well, most of WA's wealth comes from the mining sector and more importantly exports to China, so when China slowed down it was obvious WA was going to slow down, now the world has predicted China's slow down is over and its now on the up, so in the future the price of minerals will go up and the WA mining sector will pick up again, in the meantime things in Perth have stabilised, they needed to, rents and the price of houses was getting silly, so for the next couple of years things will be steady but not crashing, landlords will be sweating, but they have had it good for a few years, now lets hope they can take the bad, if not, they can always sell, in the meantime there are some bargains to be had while the FIFO sell of their toys cheap. Is China's growth increasing? I thought they were still trying to stem the tide. You could be right, but then I would feel more secure if you could expand on the reasons and drivers behind what you say will happen. Quote Link to comment Share on other sites More sharing options...
portlaunay Posted May 16, 2015 Report Share Posted May 16, 2015 (edited) Perth rental market is in a state of flux at the moment with vacancy rates at 4.8% and around 7000 properties advertised for rent, that's more than twice the number expected. The higher end of the market has been ridiculous for many years with agents inflating prices because they've been letting to corporations. Rates for properties over the $650pw mark have dropped between 20 and 50% over the same period last year. Hotel vacancies are higher than they've ever been too. As owners with heavily mortgaged 'portfolios' struggle to find tenants to cover those mortgages they'll have to rethink their strategies and compete with a market of new properties advertising staggering terms such as 'move in for as little as $3000'! Prices will inevitably fall and one of our economics editors in yesterday or todays paper, I can't remember which, even mentioned the R-word. We've been looking for some time at industrial units with a view to rezoning to work/live spaces. One place that we love was put on the market 5 months ago at $1.5m, two weeks ago it had dropped to $950k. @Druid, sorry mate, I'm not sure I agree about China. Since November 2014 they've cut their interest rates 3 times. M0 growth has fallen from 6.7% to 3.2% and China's domestic fixed asset investment has fallen to its lowest level ever, down from 13% to 9.4%. There's a 12% slow down in construction and their domestic mining has slowed by 23.9%. On Wednesday the Wall Street Journal had an interesting article about the Chinese stock market which is booming. The worrying thing is though that it's not through construction or mining which is really bad for their economy. The government are doing a lot to try to shear it up but everything they've done so far has had little impact and the speculation about yet another cut in interest rates isn't helping. If China does begin to recover next year there is surplus in their domestic mining operations, something they will be keen to address before they look to external markets. Then, if they do recover sufficiently to open imports again there's a mountain for iron ore to climb from its current price hovering sub-$50 a ton. A couple of weeks ago there was excitement about it 'surging' to $60/t which was bizarre. Remember, forecasts just last year placed the price at $123/t and we're still some way from Decembers mid-year review price of $75/t. I think there are a great many people here who talk good game but it's done almost to reassure themselves. Yesterday I was speaking to a real estate agent friend (I'm not really, I'm just someone who hates him less), about our plans and he said with a laugh, "Wait 12 months mate and you'll get exactly what you want for half what we'd have advertised it at last year" Edited May 16, 2015 by portlaunay major fact fail Quote Link to comment Share on other sites More sharing options...
rpakey Posted May 16, 2015 Report Share Posted May 16, 2015 I found this thread particularly useful, especially with some of the stats mentioned I guess you have to think long-term for security, beware of relying on 'predictions' the mockery of the UK elections put that one to bed... Quote Link to comment Share on other sites More sharing options...
FOL Posted May 17, 2015 Report Share Posted May 17, 2015 Don't forget it is still unsure. Speculations about a crash are quite old and they are still speculations. I would wait another year as well though we saw some nice properties that are just above our price ;-) Quote Link to comment Share on other sites More sharing options...
benj1980 Posted May 17, 2015 Report Share Posted May 17, 2015 With a change in house prices there's always winners and losers, the only way to minimise any issues is to hang in for the medium to long term. Easier said than done if you're struggling for employment I guess... Quote Link to comment Share on other sites More sharing options...
elfie Posted May 19, 2015 Report Share Posted May 19, 2015 You have to weigh up the cost of renting and paying someone elses mortgage and paying the rental money off a mortgage of your own. It swings in roundabouts horses for courses so to speak. We had no intention of buying but then again over the last 2 half years we have paid $30k of someone elses mortgage. There are extra costs to home owing water rates, rates and building insurance but at the end of the day it will be your home. NO more rental inspections - or as we called it invasion of privacy. We were good tenants left the house in a better state than when we rented it for one it was clean and a hubby did a few minor repairs to the patio relaying part of it as it was very uneven. NO need but I am accident prone and didnt want to fall. We had a good relationship with the owner and with the rental agent but your own home is yours Icing on the cake was before we moved out of our rental the owner had dropped the monthly rental income by $50 a week.......... If we had stayed I doubt very much we would have had a drop of $50 a week. Take note of everyone's opinions and advice but at the end of the day its your decision to buy or rent. Quote Link to comment Share on other sites More sharing options...
nikkiwd Posted May 19, 2015 Report Share Posted May 19, 2015 We have just bought ourselves a do-er up-er on a pretty big block, got a decent amount of money off the original asking price and as the agent said 'you got the cheapest house in the suburb'. Beats paying $27k a year for someone else's mortgage and it will be nice to decorate how we want it. Quote Link to comment Share on other sites More sharing options...
Druid Posted May 19, 2015 Report Share Posted May 19, 2015 I have been renting for close on 3 years now, it works out roughly to $90k off some elses mortgage, and only got £10k back on my mortgage from the UK tenants, not fair Quote Link to comment Share on other sites More sharing options...
flatpack Posted May 19, 2015 Report Share Posted May 19, 2015 I do some work for a couple of Aussie guys who build units. They're still buying land and ploughing ahead with current and planned projects, they know the Perth market very well! Ive been coming to WA since 2008 and it's been the same tale every year, mining ending and Perth will collapse into the dust. Well the boom might be over but the rest of the world still needs Australia's minerals so they'll keep digging them up. Iron ore's price is artificially low because the big players are over producing to send the little boys to the wall! We have just bought our first house in Perth as we think any slight fall will be negated by the loss of renting for another 12 months. $26k in rent per year! Quote Link to comment Share on other sites More sharing options...
benj1980 Posted May 19, 2015 Report Share Posted May 19, 2015 Does owning your own home define you as being settled? I've left my house in Cornwall to move up country and possibly haven't settled properly due to renting, it seems temporary! Quote Link to comment Share on other sites More sharing options...
elfie Posted May 20, 2015 Report Share Posted May 20, 2015 We have just bought ourselves a do-er up-er on a pretty big block, got a decent amount of money off the original asking price and as the agent said 'you got the cheapest house in the suburb'. Beats paying $27k a year for someone else's mortgage and it will be nice to decorate how we want it. Thats exactly what we did. Quote Link to comment Share on other sites More sharing options...
Walkabout Posted May 20, 2015 Report Share Posted May 20, 2015 Exciting times @nikkiwd ! where have you bought are you staying close? we obviously need to catch up!! Our doer upper is coming on, but is still being done up!! Quote Link to comment Share on other sites More sharing options...
nikkiwd Posted May 20, 2015 Report Share Posted May 20, 2015 I know, its been a while @Walkabout. We are staying in Kingsley but struggled to find anything other than duplexes in our price range near Eloise's school so we have gone over to Moolanda. She will stay at her school though. I bet you are fed up with DIY by now? Quote Link to comment Share on other sites More sharing options...
Matt&beck Posted June 5, 2015 Report Share Posted June 5, 2015 I agree looking at what's going on around us property wise we have come to the conclusion it wouldn't be wise to buy just at the moment. Rentals are sitting empty, houses not selling and prices are coming down. The agents using every tactic in the book/clearly getting desperate to sell us a house, even to put in drastically low offers because the sellers are keen to sell!! Quote Link to comment Share on other sites More sharing options...
newjez Posted June 5, 2015 Report Share Posted June 5, 2015 Don't forget it is still unsure. Speculations about a crash are quite old and they are still speculations. I would wait another year as well though we saw some nice properties that are just above our price ;-) Good properties are always just above what we can afford, no matter what the market. Quote Link to comment Share on other sites More sharing options...
Guest Guest6235 Posted June 23, 2015 Report Share Posted June 23, 2015 Could be interesting regardless of whichever way people think. This kind of goes along with what a sparky told me last week, he reckons there will be houses built or part built with nobody to fill them. He's an ozzy and only his prediction of course. Quote Link to comment Share on other sites More sharing options...
verystormy Posted June 23, 2015 Report Share Posted June 23, 2015 Already seeing it in Mandurah - lots of investment properties laying empty. The rental we left months ago is still empty. Though approvals for new houses in WA has been falling steadily for a few months and that should alleviate it. Although we have built, I have always felt that Perth property is massively overpriced. It is just a mining town that got big. It isn't London or New York or even Sydney. Now the mining boom is finished, I can see some rapid change coming along. WA entered official recession a few weeks ago. A look back in history shows what we can expect. Prior to the boom, WA was an economic basket case. Quote Link to comment Share on other sites More sharing options...
flatpack Posted June 23, 2015 Report Share Posted June 23, 2015 Anything of any substance on Nine tonight then? Quote Link to comment Share on other sites More sharing options...
Guest Guest6235 Posted June 23, 2015 Report Share Posted June 23, 2015 Lol, no substance whatsoever, pathetic news item. Quote Link to comment Share on other sites More sharing options...
flatpack Posted June 23, 2015 Report Share Posted June 23, 2015 Part of the problem with 24 hour rolling news is the play up "non news" items to make it sound like they have something to broadcast! I had 9 on but was doing other things and totally missed, that's why I asked, seems I didn't miss much! Quote Link to comment Share on other sites More sharing options...
Guest Guest6235 Posted June 23, 2015 Report Share Posted June 23, 2015 Not on tonight's no Scott Did you see about that bloke or lad got arrested in Carramar the other day for doing burn outs in an area where families were about apparently, do you know what really happened & that teenager that was in court for 70k worth of damage he did on Australia day. He lives in Mindarie apparently and drove into Tapping high as a kite, drove into a few cars then broke into two houses causing damage. Quote Link to comment Share on other sites More sharing options...
flatpack Posted June 23, 2015 Report Share Posted June 23, 2015 I didn't see it on the news tonight but I had heard about the kid hooning on Sunday! He'd been drinking in The Duke and was pissed up, tried doing one from the Police and crashed. Been told it's a minimum 6 months for failing to stop so he'll have plenty of time to think about his actions! Hadn't heard about the other fella though Quote Link to comment Share on other sites More sharing options...
Arwen Posted June 24, 2015 Report Share Posted June 24, 2015 Mosman Park has now made it into the dodgy suburb territory, siege there overnight. It's all going to hell in a handcart. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.