Wednesday, July 29, 2009

Perth's Best Suburbs according to experts (part 2)


Here is part two of the post we had on what the experts are tipping to be the must see suburbs in Perth
Travis Coleman, valuations manager, Propell National Valuers
Safety Bay

YOU can still buy established houses in this coastal suburb for less than $400,000. Block sizes can be more than 800sq m. The area is undergoing urban renewal, with a major redevelopment
planned for the nearby Waikiki Hotel.

Warnbro

Another Rockingham coastal suburb that has a large selection of affordable properties for sale.
The suburb has the attraction of having a railway station nearby. Older-style homes that are not
yet renovated can be bought for near their land value. The spread of urban development in
areas farther inland, such as Baldivis, should make coastal homes in areas such as Warnbro more valuable over the longer term.

South Perth/Como

A prime inner-city location where you can still buy older townhouses and apartments for under $500,000. Historically, property owners in this area of Perth have enjoyed high levels of capital
growth. Astute investors should target older-style rental properties that appear ‘‘tired’’. These properties can be transformed by some minor improvements, such as paint and carpets.
The suburb has easy access to the city centre and a high level of social infrastructure, including schools and parks.

Greenwood

A well-established suburb in the northern coastal area where the median house price is $440,000. House prices in the area are very affordable relative to its distance to the city centre. The suburb also has the attraction of having a railway station. Block sizes are large and land values
should continue to increase as a result of urban developments to the north and east of
Greenwood.

Beldon/Heathridge

Another very affordable coastal area of Perth where the median house price is under $400,000.
Properties in these nearby suburbs have recorded high levels of capital growth over the last decade, with an annual price growth rate of over 13.1 per cent. The homes are generally on big blocks and first-home buyers should benefit from rising land values because of the scarcity of building blocks in this area of Perth.

James Limnios, chief executive, Limnios Property Group

East Perth

ASTUTE first-home buyers can buy onebedroom apartments in East Perth for under $400,000. After significant private and government investment, East Perth is now becoming a very desirable area in which to live. Social infrastructure, such as shopping, is also improving. The median price of a house in East Perth has increased 16.6 per cent on average each year over the past 10 years.
Northbridge

An inner-city area of Perth that will directly benefit from the massive new investment planned after the sinking of the railway line, which is now finally a reality after more than 40 years in the planning. There is still a large selection of two-bedroom, two-bathroom apartments in Northbridge for couples looking for larger, inner-city homes.

Tuart Hill

One of the more affordable near-city suburbs, which offers easy access to the city centre.
There is a good selection of established villas and townhouses in Tuart Hill for under $500,000. You can even secure a smaller villa for about $300,000. The suburb has good public transport links to the city centre and a high level of social infrastructure, such as schools and shopping. The
demand for homes in Tuart Hill is underlined by the fact that the Limnios Property Group is now achieving record prices for homes in the area.

Mt Lawley

One of the premier suburbs in Perth, which still has very affordable options for first-home buyers. Older-style two-bedroom, onebathroom apartments can be bought for about $300,000. With
cosmetic renovations, the value of these olderstyle apartments can be substantially enhanced. The median price of a house in Mt Lawley has increased by about 12 per cent on average each year over the last decade.

Maylands

A near-city suburb that also has the benefits of a pubic railway system, which residents can use to access the city centre. Maylands is also growing in popularity because of its riverside location and the growing focus on ‘‘lifestyle’’. There is a big selection of apartments and villas in Maylands
for under $500,000.

Tuesday, July 28, 2009

Perth's best suburbs experts choose

Taken from www.news.com.au/perthnow is a list of expert tips for buying a home in Perth:


Alan Hancock, chairman, Ausnet Real Estate Group

Greenfields

ONE of the more affordable suburbs in Mandurah where you can still buy older homes for under
$300,000. The suburb is near the Mandurah District Hospital. Rents in the area are also high, which means that at a later stage you can rent out the home if you
decide to upgrade to another property.

Medina

One of the cheapest places in Perth to buy a house. There is a growing selection of established threebedroom, onebathroom and twobedroom, onebathroom houses in the suburb for about
$250,000. Over the long term, property values in Medina will benefit from the major investment
planned for the Kwinana town centre.

Thornlie

An undervalued suburb next to the more expensive Canning Vale. It has a railway station providing easy access to the city centre and a high level of social infrastructure, such as schools and shops. You can buy a three-by-one house in Thornlie for under $350,000, and a four-by-one house for
under $400,000.
Midland
An established area that has a high level of social infrastructure, including a railway station. It is
undergoing a major transformation, which will make it a more attractive property market over the
coming decade. You can purchase a well-located villa or duplex in Midland for under $300,000.

Ellenbrook

A ‘‘lifestyle’’ suburb in the Swan Valley, which is growing in popularity. It also has improving social
infrastructure. Newer family homes can be bought in Ellenbrook for under $400,000. When you add up the total costs of building a new home, buying a near-new, established property in a well-designed suburb such as Ellenbrook can prove a more attractive option.

Jay Wood, director, pfr.com.au
Victoria Park/East Victoria Park

INNER-CITY areas that will soon rival Subiaco for social infrastructure, such as restaurants and cafes. Older apartments and villas can be bought for under $450,000. The suburbs have
historically delivered high rates of capital growth and can be an important stepping stone for first-home buyers wanting to climb the property ladder.

Cloverdale

An affordable near-city suburb where the median house price is just $400,000. In the past decade, the median price of a house in Cloverdale has increased on average by 13.8 per cent. The suburb has a good selection of older homes that offer redevelopment opportunities. It has a high level of social infrastructure, such as shopping, schools and good transport links to the CBD.

St James

A near-city Perth suburb where older houses on large blocks can still be bought at prices near their land value. The median price of a home in St James is just $420,000. Over the past decade, the annual price of a home in St James has increased on average by 12 per cent. It has a good level of social infrastructure, such as shops and schools, and access to the city centre.

Wembley

One of the most affordable areas in which to buy a property in the near-city area. First-home buyers on a limited budget can still purchase older-style apartments in Wembley for under
$300,000. This suburb can offer a useful stepping stone for first-home buyers into neighbouring
Subiaco. Property owners in Wembley have enjoyed annual capital growth rates of more than 12 per cent on average each year in the last decade.

Palymra

An undervalued suburb in the Fremantle area with property available for under $500,000. The
suburb is near Fremantle and has easy access to the CBD. Many first home buyers have bought in Palymra and later upgraded to neighbouring Bicton and East Fremantle. Over the past 10
years, the annual capital growth for properties in Palymra has been an impressive 12.4 per
cent.

Wednesday, July 15, 2009

Dodgy tricks Real Estate Agents use

There are some of us who do not venture into the Real Estate market because our lack of understanding aoubt how the whole industry works. In every business, there are ways that agents charge an "idiots tax" on those who don't know what they are doing. Here are some dirty tricks that are used by real estate agents.

Dirty little secret #1


There is an old adage among real-estate agents, ''quote 'em low and watch 'em go. Quote 'em high and watch 'em die". The practice of under quoting is widespread and has surged again in recent months. It is when potential buyers are told a price much lower than a property's true market value and the owner's reserve. Unfortunately, under quoting is rife because it works. Every weekend hopeful buyers are lured to an auction thinking they can afford, for example, $850,000-plus for a four bedroom house in Templestowe, Melbourne, only to be broken hearted when sells for $1.51m, as happened at 45 Taparoo Road last month.

Dirty little secret #2

The reverse of under quoting is over quoting, a ploy some agents use to win business. In this case, agents promise a vendor their house will fetch a price well above its market value, whether to convince them to sell or to beat others for the right to sell it. Once the contract is signed, the agent begins to groom the owner to accept a lower price. Adding even more insult to injury is the fact that many times property is actually sold for less than it is worth. This happens when the agent can not be bothered with the hard yakka to get, for example, an extra 5 per cent for their vendor. Such agents have a churn mentality, simply finding a price the owner will accept, selling the house and moving on to the next campaign.

Dirty little secret #3

Vendors can be cheated in another way too. Very naughty agents have been known to withhold good offers made before auction, even those well above the reserve, for several reasons. Sometimes, the offer comes through another agent at the firm and the original agent doesn't want to share commission. So, the bid is never put to the vendor or is put to them but at less than the real offer to be knocked back. Other times the agency wants to promote its brand by pushing ahead with the auction no matter what. It wants the vendor to spend the full amount on advertising because it is a lighthouse to attract other buyers and sellers to the business.

See the other two secrets of dummy bidding and fake buyers at TheWest.com.au.

Friday, July 10, 2009

Perth houses up $15,000?

Preliminary data released today by the Real Estate Institute of Western Australia show that Perth's median sale price for homes grew by $15,000, or around 3.5 per cent, in the June quarter.

This growth rate brings Perth's median house price to around $445,000, on the revised median of $430,000 for March.

REIWA President Rob Druitt said the growth trend was being helped by a return to the market of the trade-up buyers.

"Much of the recovery in the median house price over the last six months can be attributed to increasing trade-up activity, and this is reflected in the distribution of sales tending towards more expensive properties," Mr Druitt said.

Thursday, July 9, 2009

More tips to buying your first home

* Spend time researching all aspects of property market before even looking for an investment property. Issues, such as negative or positive gearing, rental returns and depreciation are key matters that have to be considered by a first time property investor.

* Past trends in property values generally are an indication of future trends and therefore it is wise to examine the long-term capital growth rates of the suburb. REIWA can provide property values trends for most Perth suburbs for the last 10 years at least.

* Take a broad approach to buying an investment property. Most first time property investors buy a property in their local neighbourhood because they are familiar with the area. By taking a narrow approach to the location of the investment property, first time investors therefore severely limit their options.

* Try to target suburbs in lower priced areas which have a higher number of properties for sale. A simple tip is to check the weekend papers and identifying areas which a larger number of newspaper advertisements.

* When you have selected a suburb, don’t make an emotional decision when choosing a specific home. Most first time investors purchase a property they would like to live in. It is important to remember that the investment property must appeal to a tenant who will be paying the rent.

* Check out any planning changes proposed for the suburb. Many local governments are undertaking reviews of zoning which could have a major impact on property values. For example, a property that was purchased for a single residential use and then rezoned by the local council, as a triplex site will increase substantially in value. The planning department of a local government can advise first time investors of any proposed zoning changes.

* Check out any planned infrastructure changes for an area you are interested in buying. For example, an upgrade of a local shopping centre or sitting of a new railway station can have a major impact on local property values. This trend occurred in Rockingham following the extension of the southern freeway.

* Make sure that there are tenants prepared to rent your property. Rental income is a key factor in serving the loan so if you cannot find a tenant then you will have problems keeping the investment property over the longer term.

* Check your finances before you consider buying an investment property. If you have pre-approval finance it will allow you to move more quickly to secure the right investment property.

Tuesday, July 7, 2009

The best rental suburbs in Perth

Recent research has been released that reveals the best yield suburbs for rental income. They are listed below

Units

Suburb, distance from GPO (km), median price, median rent, gross yield (per cent)
Glendalough, 5km, $250,000, $310, 6.3%
Jolimont, 5km, $300,000, $350, 6.1%
West Perth, 2km, $290,000, $330, 5.9%
Stirling, 9km, $520,000, $580, 5.8%
Perth, 1km, $269,500, $300, 5.8%

Houses


Suburb, distance from GPO (km), median price, median rent, gross yield (per cent)
Tuart Hill, 7km, $425,000, $420, 5.1%
Mirrabooka, 10km, $340,000, $330, 5%
Redcliffe, 8km, $415,000, $390, 4.9%
Ashfield, 8km, $385,000, $350, 4.7%
Nollamara, 8km, $390,000, $340, 4.5%

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