Good video guy, we bought two new apartments in 2017 at river walk side facing swan river view, east perth with good rentals and near to cbd areas !! 👍
Mandurah tends to proxy the Perth market but there are some things to be mindful of, plenty of homes sitting with negative equity (built in last 10ish years), higher % of mortgaged properties and higher levels of mortgage stress. Also, town planning wise their are areas without deep sewer and strange town planning rules (Min density). BUT I'd focus on old Mandurah as yields are good and likely to continue.
@@KentCliffe Thanks for the reply. Any idea on cost to build three houses on a quarter acre block zoned R60 in old Mandurah? Do you think we would we be better off just buying 3 existing houses?
@@adwordsppc805 If you're looking at 3x2 single level house, on a flat block 110sqm of living, basic spec, they could be finished turn key for $185k. What are you trying to achieve with building vs buying? Is it for growth in the market or bumping up your existing yield? I'd say you'd struggle to make any extra margin on developing a triplex in Mandurah ATM.
Just subbed! Thoughts on Balcatta? I just put my house on the market yesterday after watching too much Harry Dent and Martin North, and now im seeing people buying up property like never before around here... Should I be holding my block?! lol ... why is everyone going nuts right now? just about every house the same size as mine (800sqm) is all under offer!
Balcatta is a solid suburb, why are you selling? Broken clocks 🕒 are right twice 🕒 a day. But in all seriousness, those guys look at the macro market, sub markets don't cross their mind. Since 2013, Perth has seen an inflation adjusted decline of 25% whereas in the same time period, Sydney has seen an inflation adjusted rise of 65%+. It's nonsensical to consider the downside risk to an Australian property market crash symmetrical.
@@KentCliffe Cheers mate really appreciate the reply! I'm selling based on the narrative that Harry and Martin are pushing which is: - Immigration is slowing down - Interest rates are low which will allow more people to borrow money and buy things they cant afford (which will be bad when interest rates rise) - Unemployment is increasing - Job keeper is ending in March - Mortgage relief is ending soon - Debt to income ratio has been reduced - Australia (according to harry) has the 2nd largest housing bubble in the world - China has the 1st largest housing bubble which is bad for us as they are the largest foreign buyer of Australian property and typically they would liquidate international property over their own national property when they experience a major housing recession (again harry) So I put my house up for sale because I figured I can buy back in 5 maybe 10 years from now at a much better price. But after watching your video and many other I'm really starting to second guess what I'm doing, because now I am hearing that: - There are a shortage of houses in Australia (Perth in particular) - People like property for Tax benefits - There are massive government rebates as most of the Australian debt is tied up in mortgages therefore they will most likely do all they can to prop up the Real Estate market that will encourage price appreciation - Expats are moving back to Australia These are just some notes I have been taking down to work out whats going on. But I think I am now more confused then ever. I would be gutted if I sold now and missed out on a property boom after holding my house for the last 8 years and seeing no return. Havent sold it just yet, still just trying to work it all out. Whats your thoughts lol - Sorry about the novel!
@@jackgreen128 It all depends on why you're selling. I don't see too much downside risk in holding Perth property at the moment. Low supply, tight sales market, low vacancy, rising rents and strong demand for commodities.
@@KentCliffe I just bought my first house in Perth on a large block in Padbury I can subdivide later. I have my eyes on bargains in Melbourne, Sydney late next year for investments. Thankyou bull market 2020 lol
@@jackgreen128 The negative china -Aus relationship is something to consider for WA in particular. At present amazing Iron Ore price, but once Brazil is back running Aus Resource wont be as valuable. China have already begun slowing demand for coal, agriculture, education, Wine, barley etc. Im a first home buyer and will be waiting to buy established in a year or two.
Hi Kent Thank you for your response, I have taken a look at your link but it shows the owner as clare, is that the correct site that you own? With our borders opening up and the recent Adelaide outbreak, I feel it’s highly possible that WA will see more disruption and lockdowns in WA in the near future, How do you see the market changing if we have a second wave of the big C? Also do you think that the Perth price growth is likely to be temporary with a downward turn returning if we are affected by covid? If I do hang on to my property, I would only want this to be short term with a maximum hold time of 6 to 12 months. Also I would really appreciate it if you could provide some advice on how CGT can affect those who have decided to sell a home that has previously been a primary residence before renting it out but has been rented out for more than 6 years. From the information I can find it seems that if you have rented your property out for more than 6 months you have to pay CGT. My husband works and we own the property jointly so the CGT calculators that I can find don’t allow for our scenario and am struggling to work out how much this would cost us if we did sell. Thank you for taking the time to read and respond to all the questions you receive 😊
Great questions! No one knows how the market will perform, but I do get subtle hints from Canberra. Why does WA get to operate different to Australia? Simple, that iron ore $$$, the miners can't afford sites being shut down. As expected, we will shut our flight quicker than planes taking off the tarmac if other areas of Australia have an outbreak (as recently proofed with SA. Second to your point about growth, soon we will be one of the few states creating jobs (mineral exploration is through the roof) and with a sustained period of negative growth, we're a highly affordable state. It's taken me 6 years to get positive on Perth property (not like the average spruiker) and I see limited downside if I'm wrong (improving rental yields / low interest rates).
Tax is personal to everyone's situation, and I'm no accountant so I'd prefer you to speak with one. You can see more here www.ato.gov.au/General/Capital-gains-tax/Your-home-and-other-real-estate/Your-main-residence/ My general reading is that someone who has mainly lived in it might be able to apportion the tax free amount, so if you've in it for 20 years and only rented it for 1, in the last 6 years' you pay 1/20th the tax at the CGT concession rate (50% again)... AND resided in it for ANY amount of time in the last 6 years.
Any opinions about Yanchep, Alkimos and Two Rocks??? I am looking to buy a House and land package in one of these areas. I have recently moved from Sydney to Brisbane but I don't like the property prices in Brisbane and surrounds... Way too expensive now all the East Coast! I decided to buy my first home in Perth and settle down there..🙂
How much can infrastructure increase property prices? Because of the stigma surrounding Midland it's seen as an undesirable place to buy. Even if they add new highways, shopping centres it doesn't change who your neighbours are. Isn't having the newest house in suburbs like that a headache waiting to happen?
You're 100% right infrastructure does not increase property prices, it's the accessibility to the CBD which helps property prices. You too are correct on Midland being affordable. Affordability means more people can afford the median house price and more upside momentum in a bell curve. I do want to point out, the assumption regarding the 'newest house' in the area is wrong - I STRONGLY discourage that for investment properties. You want to buy the old homes on large blocks with mostly land value - make the value add upside yourself.
Kent - you have some really insightful videos! Besides Perth would you personally ever consider buying (purely investment) in more regional areas in the South West (Bunburry, Rockingham, Albany, etc), what would you consider and what would run from?
Yeah, I'd consider those areas. I spent a lot of time a few years ago looking at Margaret River and Busselton due to the upgraded airport. The airport carrier stalled and we never proceed with purchasing anything there. The Airbnb market could be good for 1-2 years due to the increase in domestic travel. It will also flow through the the normal rental market in the area. I would stay away from small towns with limited employment - aim for regional centres. A lot of the same criteria for buying inner city, stay close to city centre, buy established where you could add value, land value, and stay away for properties with detractive characteristics (busy road, rough areas etc.)
Hi Kent liked and subscribed. I'm abit confused, I'm interested in buying an established property. I'm a first home buyer, I have been saving for a couple of years now. But doing my search established property prices have increased even when all these 55k grants to build are out! wouldn't established homes drop in value as you can build a new home with such good grant incentives atm? In saying should I hold off for another 6-12months and wait after grants are over from 31st December and see drop in sell price in established property or should I get in now? because wouldn't sellers have to compete with 55k grants and force to put homes for lower price? Thank you for your feedback in advance.
You need to consider the substitution of a build, a brand new build in an area will will impact the value of a couple of year old build in a similar locality. If you're buying in an established area away from new supply the impact to values will be buffeted. Infact I'd anticipate negative equity for people who have built in the last few years' prior to the grant because the new sellers will sell (and write off their grant money) whereas the other owners will have to sell for less to make their property competitive to newer dwellings.
Saif I was very close to purchasing a house and land package but thankfully came across the work of @martinnorth /DFA. I have decided against buying new and am going to wait a year or two anticipating a drop in established areas. DONT RUSH
Hi Kent What do you think will happen with established homes in Carramar? I have a 4x2 with pool on a 630 block, we lived in it for 5 years but have rented it out as a short term holiday rental, with the covid impact on our overseas bookings we don’t know if we should sell it now or hang on a little longer ( short term maybe 6 months ) if property is going to increase. I would love to know your thoughts on this please 😊
I don't know your personal situation, but if you can afore to hold, hold. On the ground, the market in Perth is improving from week to week. Some quick Carramar stats, in 12 months, median days on market has dropped from 75 to 33 - meaning homes sell in half the time they used to. Listings have fallen from 115 to 90 and vendor discounting has reduced from 5% to about 2.5%. As an absolutely shameful plug, one of the businesses I own would love to find you a tenant: www.rentchoice.com.au
Perth supply numbers are incorrect. If you scrap realestate.com data, some Bayswater properties aren’t counted in the Perth supply, but is counted in Greater region WA. If there’s more demand, wa Government won’t be doing stimulus.... but they are...
I love a sceptic on the data, a person after my own heart ❤️Are you talking listings for sale or rentals? Comparing and contrasting SQM Research, REIWA and CoreLogic they are all different and come from a range of sources. I'd dare say they'd all need to be in collusion (like the suggestion by RBA 😉) to sell us a dummy of reducing stock levels (as they all show a downtrend). I'd agree, the WA Govt. stimulus is nothing to do with stock on the market, it is to drive construction up ⬆️ Building homes creates jobs, there has been very little home building in WA, so they need to stimulate demand. There is no stimulus to reduce stock on the market (as it is for new, not established properties). However, I do want to take on board your comment about scraping data and not everything appearing in stats. This type of stuff interests me, did you have a link to a source/article?
Hi, been renting in Butler for over a year with a view to buy established property near the coast. Heaps of properties gone under offer recently in the area, causing the supply to reduce and prices increase slightly. Should ww buy if we find something and pay more or wait to see how things pan out once government Covid help runs out? Cheers, I've subbed :)
The narrative around the property market slowing once govt. stimulus ends is something that may impact the East Coast markets. However, the Perth market is coming off a depressed period that was already improving pre COVID, but now we also are having strong construction / mining activity helping Perth along quicker than I'd anticipated when putting out this update.
Hi Kent great vids , Ive got a 1216m R100 down in Mandurah 2 units on cox st , see unit prices have risen 16 % apparently , I have on market for $450k what do you recon I could do to make bank on this ? , Mandurah seems to be benefiting from the lithium plant and the state of the art shopping mall with extra wide walkways which are perfect for a covid world
Hi Colin, I've had a look at the scheme / area. The locality has seen limited development despite the block having a high density - R100. My view is that clause 2.3.2 in the Local Development Plan is an issue, "A minimum scale of three storeys is required for Grouped Dwellings or Multiple Dwellings fronting the street". Land in the locality is fairly cheap and easily available, but by putting a minimum height on the development, construction cost is the main prohibiting factor. Mandurah continues to be in a world of pain as dwellings are selling below replacement value. The factor of construction being the main cost (with a minimum height) and the dwellings selling below replacement value would make it hard for me to justify any form of development on this site. The only action from here would be to speak to a planner (someone who understand the council's rules better than me) and see if there is any way to have that clause varied or look into some cheaper framed construction methods for the third storey.
Nice channel mate. I've just subscribed. Thoughts on the suburb of Tapping? Have a small doublestory townhouse house and land package for $389,000 available at stage one release with the house next door (exact same) stage to recently being released at 409k. My initial research has found there is a community centre, small shopping centre and petrol station being built very closeby as well as the wanneroo rd/joondalup drive intersection almost at completion close-by. Other positives (having grown up in the same suburb are: Excellent schooling, parks, low crime rate. Keen to know your honest thoughts
Great to hear you're enjoying the content. Tapping for me is a little too close to areas of high supply (lots of land subdivisions). But ignore that because you're buying there because it sounds like you want to live nearby. The older stock could have some potential, something like this: www.realestate.com.au/property-house-wa-tapping-133735894 It would have more land value being a 500sqm block of land, around the same price point of the town house and most of the new home premium has been depreciated off. You can add a little value. If you're not fussed on area but want to stay north, check out Beldon and Cragie. Bit closer to the city and coast.
Kent Cliffe really appreciate the insight. I guess my situation is unique in having a low deposit and wanting to take advantage of the 55k grants (I’m a first home buyer) would you advise any other build locations? From what I’ve seen most tend to be outer suburbs like alkimos etc
Oh yeah, have you looked at split lots inner city? For example, I went out to Bullsbrook, all 350sqm lots were selling for $150k a few months ago (+ extra incentives) now the same lots (after the grant) are selling for $180k with nil incentives. This is before builders have dropped all incentives and some have increased their price 2%-3%. Be mindful that a lot of the grant money has been already taken in mark ups. From a financing POV it may make sense, but you may be in negative equity + LMI so it needs to be a long term plan to hold the house.
Also in considering Darwin has "no community trans COVID" and relativly affordable housing, I'm hoping for a boom here too (I'll need the equity) ... Any thoughts?
Yeah, I'd like to go around the other capital cities and do a market update. It will take a lot of research to get it to the same standard as I want (like Perth's market update). I'll do some research and get back to you.
Im a firsthome buyer and am seriously questioning building my 126sqm townhouse 3x2 in tapping for essentially $411,000 despite the 55k bonus:S Thoughts on waiting until the upcoming forced sales in the nxt two years?
The 'forced sale' downside risk in WA relative to other states is lower. Perth property prices have been falling for 6 years (pent up demand is there), WA's economy has restarted sooner, hospo industry is going well and commodities are pumping due to global infrastructure stimulus. BUT it's not going to be rosey, so make sure your personal situation is solid (to avoid a forced sale) and make sure this property suits you for the long term (ride out the market).
Hello, love watching tour videos I’m currently in my last year of high school what jobs would you recommend that can get me into the realestate field after I leave school. Thanks for any advice.
There are sooo many different jobs in the real estate field. It depends on what you enjoy, and then find out the pathway. If it's construction, go for a trade or study engineering in uni then ultimately apply for your building ticket. If it's finance related aim for a business major at uni, or get a diploma first and move into uni. At this stage early on in working out what you want to do, my best tip would be to try a few areas in real estate (casual jobs or work experience) and work out what you enjoy or find easy to be good at 👍
Subi needs a BIG change. The footy brought a lot of retail dollars into the area. With that gone much of the cafe / bar amenity has died. To get back to the same activity centre catchment it needs many years of densification (One Subi is a start). Be mindful there are a lot of apartments in Subi in negative equity.
Have more questions, contact me here: www.kentcliffe.com.au
Now this is what you call property data analytics. Very good. Perth has a large international favour given the climate and the mining.
Yes, over the last couple of months reflecting on COVID + winter we're pretty lucky!
Very well explained Kent. Your efforts are immensely appreciated. Thank you so much:)
Really great to hear positive feedback!
Good video guy, we bought two new apartments in 2017 at river walk side facing swan river view, east perth with good rentals and near to cbd areas !! 👍
How about an update on this video and compare from last year?
Excellent round up Kent. Are you doing any further updates?
Great analysis! Thoughts on Mandurah?
Mandurah tends to proxy the Perth market but there are some things to be mindful of, plenty of homes sitting with negative equity (built in last 10ish years), higher % of mortgaged properties and higher levels of mortgage stress. Also, town planning wise their are areas without deep sewer and strange town planning rules (Min density). BUT I'd focus on old Mandurah as yields are good and likely to continue.
@@KentCliffe Thanks for the reply. Any idea on cost to build three houses on a quarter acre block zoned R60 in old Mandurah? Do you think we would we be better off just buying 3 existing houses?
@@adwordsppc805 If you're looking at 3x2 single level house, on a flat block 110sqm of living, basic spec, they could be finished turn key for $185k. What are you trying to achieve with building vs buying? Is it for growth in the market or bumping up your existing yield? I'd say you'd struggle to make any extra margin on developing a triplex in Mandurah ATM.
What a sharp analysis.
Great to hear you enjoyed!
Just subbed! Thoughts on Balcatta? I just put my house on the market yesterday after watching too much Harry Dent and Martin North, and now im seeing people buying up property like never before around here... Should I be holding my block?! lol ... why is everyone going nuts right now? just about every house the same size as mine (800sqm) is all under offer!
Balcatta is a solid suburb, why are you selling? Broken clocks 🕒 are right twice 🕒 a day. But in all seriousness, those guys look at the macro market, sub markets don't cross their mind. Since 2013, Perth has seen an inflation adjusted decline of 25% whereas in the same time period, Sydney has seen an inflation adjusted rise of 65%+. It's nonsensical to consider the downside risk to an Australian property market crash symmetrical.
@@KentCliffe Cheers mate really appreciate the reply!
I'm selling based on the narrative that Harry and Martin are pushing which is:
- Immigration is slowing down
- Interest rates are low which will allow more people to borrow money and buy things they cant afford (which will be bad when interest rates rise)
- Unemployment is increasing
- Job keeper is ending in March
- Mortgage relief is ending soon
- Debt to income ratio has been reduced
- Australia (according to harry) has the 2nd largest housing bubble in the world
- China has the 1st largest housing bubble which is bad for us as they are the largest foreign buyer of Australian property and typically they would liquidate international property over their own national property when they experience a major housing recession (again harry)
So I put my house up for sale because I figured I can buy back in 5 maybe 10 years from now at a much better price.
But after watching your video and many other I'm really starting to second guess what I'm doing, because now I am hearing that:
- There are a shortage of houses in Australia (Perth in particular)
- People like property for Tax benefits
- There are massive government rebates as most of the Australian debt is tied up in mortgages therefore they will most likely do all they can to prop up the Real Estate market that will encourage price appreciation
- Expats are moving back to Australia
These are just some notes I have been taking down to work out whats going on.
But I think I am now more confused then ever.
I would be gutted if I sold now and missed out on a property boom after holding my house for the last 8 years and seeing no return.
Havent sold it just yet, still just trying to work it all out.
Whats your thoughts lol - Sorry about the novel!
@@jackgreen128 It all depends on why you're selling. I don't see too much downside risk in holding Perth property at the moment. Low supply, tight sales market, low vacancy, rising rents and strong demand for commodities.
@@KentCliffe I just bought my first house in Perth on a large block in Padbury I can subdivide later. I have my eyes on bargains in Melbourne, Sydney late next year for investments. Thankyou bull market 2020 lol
@@jackgreen128 The negative china -Aus relationship is something to consider for WA in particular. At present amazing Iron Ore price, but once Brazil is back running Aus Resource wont be as valuable. China have already begun slowing demand for coal, agriculture, education, Wine, barley etc.
Im a first home buyer and will be waiting to buy established in a year or two.
Hi Kent
Thank you for your response, I have taken a look at your link but it shows the owner as clare, is that the correct site that you own?
With our borders opening up and the recent Adelaide outbreak, I feel it’s highly possible that WA will see more disruption and lockdowns in WA in the near future, How do you see the market changing if we have a second wave of the big C?
Also do you think that the Perth price growth is likely to be temporary with a downward turn returning if we are affected by covid?
If I do hang on to my property, I would only want this to be short term with a maximum hold time of 6 to 12 months.
Also I would really appreciate it if you could provide some advice on how CGT can affect those who have decided to sell a home that has previously been a primary residence before renting it out but has been rented out for more than 6 years.
From the information I can find it seems that if you have rented your property out for more than 6 months you have to pay CGT.
My husband works and we own the property jointly so the CGT calculators that I can find don’t allow for our scenario and am struggling to work out how much this would cost us if we did sell.
Thank you for taking the time to read and respond to all the questions you receive 😊
Great questions! No one knows how the market will perform, but I do get subtle hints from Canberra. Why does WA get to operate different to Australia? Simple, that iron ore $$$, the miners can't afford sites being shut down. As expected, we will shut our flight quicker than planes taking off the tarmac if other areas of Australia have an outbreak (as recently proofed with SA. Second to your point about growth, soon we will be one of the few states creating jobs (mineral exploration is through the roof) and with a sustained period of negative growth, we're a highly affordable state. It's taken me 6 years to get positive on Perth property (not like the average spruiker) and I see limited downside if I'm wrong (improving rental yields / low interest rates).
Tax is personal to everyone's situation, and I'm no accountant so I'd prefer you to speak with one. You can see more here www.ato.gov.au/General/Capital-gains-tax/Your-home-and-other-real-estate/Your-main-residence/
My general reading is that someone who has mainly lived in it might be able to apportion the tax free amount, so if you've in it for 20 years and only rented it for 1, in the last 6 years' you pay 1/20th the tax at the CGT concession rate (50% again)... AND resided in it for ANY amount of time in the last 6 years.
To answer your final question, yes Clare is my wife 😀
Any opinions about Yanchep, Alkimos and Two Rocks??? I am looking to buy a House and land package in one of these areas.
I have recently moved from Sydney to Brisbane but I don't like the property prices in Brisbane and surrounds... Way too expensive now all the East Coast!
I decided to buy my first home in Perth and settle down there..🙂
How much can infrastructure increase property prices?
Because of the stigma surrounding Midland it's seen as an undesirable place to buy. Even if they add new highways, shopping centres it doesn't change who your neighbours are. Isn't having the newest house in suburbs like that a headache waiting to happen?
You're 100% right infrastructure does not increase property prices, it's the accessibility to the CBD which helps property prices. You too are correct on Midland being affordable. Affordability means more people can afford the median house price and more upside momentum in a bell curve.
I do want to point out, the assumption regarding the 'newest house' in the area is wrong - I STRONGLY discourage that for investment properties. You want to buy the old homes on large blocks with mostly land value - make the value add upside yourself.
@@KentCliffe
thanks for the informed response.
I really appreciate the insight.
@@KentCliffe Sorry, I didn't understand. Would you invest in Midland (direct train station to CBD), even if it is a well known high crime suburb?
how can we get access to RP data?
Kent - you have some really insightful videos! Besides Perth would you personally ever consider buying (purely investment) in more regional areas in the South West (Bunburry, Rockingham, Albany, etc), what would you consider and what would run from?
Yeah, I'd consider those areas. I spent a lot of time a few years ago looking at Margaret River and Busselton due to the upgraded airport. The airport carrier stalled and we never proceed with purchasing anything there. The Airbnb market could be good for 1-2 years due to the increase in domestic travel. It will also flow through the the normal rental market in the area. I would stay away from small towns with limited employment - aim for regional centres. A lot of the same criteria for buying inner city, stay close to city centre, buy established where you could add value, land value, and stay away for properties with detractive characteristics (busy road, rough areas etc.)
Hi Kent
liked and subscribed.
I'm abit confused,
I'm interested in buying an established property. I'm a first home buyer, I have been saving for a couple of years now.
But doing my search established property prices have increased even when all these 55k grants to build are out!
wouldn't established homes drop in value as you can build a new home with such good grant incentives atm?
In saying should I hold off for another 6-12months and wait after grants are over from 31st December and see drop in sell price in established property or should I get in now? because wouldn't sellers have to compete with 55k grants and force to put homes for lower price?
Thank you for your feedback in advance.
You need to consider the substitution of a build, a brand new build in an area will will impact the value of a couple of year old build in a similar locality. If you're buying in an established area away from new supply the impact to values will be buffeted.
Infact I'd anticipate negative equity for people who have built in the last few years' prior to the grant because the new sellers will sell (and write off their grant money) whereas the other owners will have to sell for less to make their property competitive to newer dwellings.
Saif I was very close to purchasing a house and land package but thankfully came across the work of @martinnorth /DFA. I have decided against buying new and am going to wait a year or two anticipating a drop in established areas.
DONT RUSH
@@ryanthornicroft6430 lol how did you go lmaaao
Hi Kent
What do you think will happen with established homes in Carramar? I have a 4x2 with pool on a 630 block, we lived in it for 5 years but have rented it out as a short term holiday rental, with the covid impact on our overseas bookings we don’t know if we should sell it now or hang on a little longer ( short term maybe 6 months ) if property is going to increase.
I would love to know your thoughts on this please 😊
I don't know your personal situation, but if you can afore to hold, hold. On the ground, the market in Perth is improving from week to week. Some quick Carramar stats, in 12 months, median days on market has dropped from 75 to 33 - meaning homes sell in half the time they used to. Listings have fallen from 115 to 90 and vendor discounting has reduced from 5% to about 2.5%. As an absolutely shameful plug, one of the businesses I own would love to find you a tenant: www.rentchoice.com.au
Thank you Kent,
That gives me some hope and a little more confidence to hang in there a little longer 😊
I am one year late but I love your content. ☺️
Great videos so far, Kent! Do you do in-person consulting for people in Perth?
Not formally, but happy to have a chat and point you in the right direction. Email me kent.cliffe [at] gmail.com
Im in Melbourne now (2nd wave lockdown currently) - wish i was back in perth, this corona virus actually Makes Perth looks MUCH better to buy now:)
Perth has been lucky, but we can't get too complacent.
Perth supply numbers are incorrect. If you scrap realestate.com data, some Bayswater properties aren’t counted in the Perth supply, but is counted in Greater region WA. If there’s more demand, wa Government won’t be doing stimulus.... but they are...
I love a sceptic on the data, a person after my own heart ❤️Are you talking listings for sale or rentals? Comparing and contrasting SQM Research, REIWA and CoreLogic they are all different and come from a range of sources. I'd dare say they'd all need to be in collusion (like the suggestion by RBA 😉) to sell us a dummy of reducing stock levels (as they all show a downtrend). I'd agree, the WA Govt. stimulus is nothing to do with stock on the market, it is to drive construction up ⬆️ Building homes creates jobs, there has been very little home building in WA, so they need to stimulate demand. There is no stimulus to reduce stock on the market (as it is for new, not established properties). However, I do want to take on board your comment about scraping data and not everything appearing in stats. This type of stuff interests me, did you have a link to a source/article?
Hi, been renting in Butler for over a year with a view to buy established property near the coast. Heaps of properties gone under offer recently in the area, causing the supply to reduce and prices increase slightly. Should ww buy if we find something and pay more or wait to see how things pan out once government Covid help runs out? Cheers, I've subbed :)
The narrative around the property market slowing once govt. stimulus ends is something that may impact the East Coast markets. However, the Perth market is coming off a depressed period that was already improving pre COVID, but now we also are having strong construction / mining activity helping Perth along quicker than I'd anticipated when putting out this update.
@@KentCliffe Thank you! We have seen a property we love so think I will put in an offer. Things are picking up out West that's for sure.
@@Fancypants1973 It's been a long time coming.
Thanks Kent
Hi Kent great vids , Ive got a 1216m R100 down in Mandurah 2 units on cox st , see unit prices have risen 16 % apparently , I have on market for $450k what do you recon I could do to make bank on this ? , Mandurah seems to be benefiting from the lithium plant and the state of the art shopping mall with extra wide walkways which are perfect for a covid world
Hi Colin, I've had a look at the scheme / area. The locality has seen limited development despite the block having a high density - R100. My view is that clause 2.3.2 in the Local Development Plan is an issue, "A minimum scale of three storeys is required for Grouped Dwellings or Multiple Dwellings fronting the street". Land in the locality is fairly cheap and easily available, but by putting a minimum height on the development, construction cost is the main prohibiting factor. Mandurah continues to be in a world of pain as dwellings are selling below replacement value. The factor of construction being the main cost (with a minimum height) and the dwellings selling below replacement value would make it hard for me to justify any form of development on this site. The only action from here would be to speak to a planner (someone who understand the council's rules better than me) and see if there is any way to have that clause varied or look into some cheaper framed construction methods for the third storey.
@@KentCliffe Cheers for that love to build a cheap sea shipping container development there, but I'm sure it wouldn't be allowed
@@chlyon Unlikely, councils aren't too fond of them.
Nice channel mate. I've just subscribed. Thoughts on the suburb of Tapping? Have a small doublestory townhouse house and land package for $389,000 available at stage one release with the house next door (exact same) stage to recently being released at 409k. My initial research has found there is a community centre, small shopping centre and petrol station being built very closeby as well as the wanneroo rd/joondalup drive intersection almost at completion close-by. Other positives (having grown up in the same suburb are: Excellent schooling, parks, low crime rate.
Keen to know your honest thoughts
Great to hear you're enjoying the content. Tapping for me is a little too close to areas of high supply (lots of land subdivisions). But ignore that because you're buying there because it sounds like you want to live nearby. The older stock could have some potential, something like this: www.realestate.com.au/property-house-wa-tapping-133735894
It would have more land value being a 500sqm block of land, around the same price point of the town house and most of the new home premium has been depreciated off. You can add a little value.
If you're not fussed on area but want to stay north, check out Beldon and Cragie. Bit closer to the city and coast.
Kent Cliffe really appreciate the insight. I guess my situation is unique in having a low deposit and wanting to take advantage of the 55k grants (I’m a first home buyer) would you advise any other build locations? From what I’ve seen most tend to be outer suburbs like alkimos etc
Oh yeah, have you looked at split lots inner city? For example, I went out to Bullsbrook, all 350sqm lots were selling for $150k a few months ago (+ extra incentives) now the same lots (after the grant) are selling for $180k with nil incentives. This is before builders have dropped all incentives and some have increased their price 2%-3%. Be mindful that a lot of the grant money has been already taken in mark ups. From a financing POV it may make sense, but you may be in negative equity + LMI so it needs to be a long term plan to hold the house.
Nice video. Very informative. Tnx.
Great to hear you enjoyed it
Also in considering Darwin has "no community trans COVID" and relativly affordable housing, I'm hoping for a boom here too (I'll need the equity) ... Any thoughts?
Yeah, I'd like to go around the other capital cities and do a market update. It will take a lot of research to get it to the same standard as I want (like Perth's market update). I'll do some research and get back to you.
Thanks that would be awesome
Im a firsthome buyer and am seriously questioning building my 126sqm townhouse 3x2 in tapping for essentially $411,000 despite the 55k bonus:S Thoughts on waiting until the upcoming forced sales in the nxt two years?
The 'forced sale' downside risk in WA relative to other states is lower. Perth property prices have been falling for 6 years (pent up demand is there), WA's economy has restarted sooner, hospo industry is going well and commodities are pumping due to global infrastructure stimulus. BUT it's not going to be rosey, so make sure your personal situation is solid (to avoid a forced sale) and make sure this property suits you for the long term (ride out the market).
Hello, love watching tour videos I’m currently in my last year of high school what jobs would you recommend that can get me into the realestate field after I leave school. Thanks for any advice.
There are sooo many different jobs in the real estate field. It depends on what you enjoy, and then find out the pathway. If it's construction, go for a trade or study engineering in uni then ultimately apply for your building ticket. If it's finance related aim for a business major at uni, or get a diploma first and move into uni. At this stage early on in working out what you want to do, my best tip would be to try a few areas in real estate (casual jobs or work experience) and work out what you enjoy or find easy to be good at 👍
Don’t waste ya life in an office mate .
@@benjaminturner54 That's something we can 100% agree on.
Bought into onesubiaco and hope to have automatic equity once finished (2022) I guess time will tell. What do you think about subi?
Subi needs a BIG change. The footy brought a lot of retail dollars into the area. With that gone much of the cafe / bar amenity has died. To get back to the same activity centre catchment it needs many years of densification (One Subi is a start). Be mindful there are a lot of apartments in Subi in negative equity.
It mainly depends on how the state gov is going to attract more immigrants.
Yeah, I'd agree. I think the extra $20k to build is a good start, most importantly WA needs more jobs. Jobs = migration 👍🛬
Make no mistake people , a global depression has already started .
And Perth's median house price will still be higher than this time next year 😉
i want property to fall in price so i gave you a thumbs down :)
All good, any interaction is good for the RUclips algorithm 😉