flag of convenience Posted November 12, 2013 Share Posted November 12, 2013 Perth is starting to look like Spain. It's a down turn away from a crash. It will be the cloned fringes that get hammered. That and the units which are popping up everywhere. Yep. An accident waiting to happen. How it all unravels could be rather painful. Increasingly many folk can't afford more than a unit, if that. The outer burbs require caution in all cities, but again all that many can afford. Still not the levels of building found in Spain in 2001 when I looked at property there. Thank goodness I concluded then it wasn't feasible. OZ has an affordability crisis. I understand it has the second most over valued real estate in the world after Hong Kong. As many countries have over inflated real estate due to low interest rates, that the OZ market is so over valued really suggests something is very wrong. Link to comment Share on other sites More sharing options...
flag of convenience Posted November 12, 2013 Share Posted November 12, 2013 I cannot believe the amount of strata fees some places charge! Saw one that was $1,700 per quarter - I mean I know there was a pool and a gym, but if you think how many apartments in a block then surely the strata company is making an absolute fortune! Puts me off buying anything in strata that's for sure. Sound point. Green title only way to go. I was tempted by some of the ultra modern apartments in the inner city but always check out strata rates and in cases where a little more serious have examined the papers into meetings and attendance and issues discussed. Surprisingly so many get burned by the fees especially the rate of increase, or big one off jobs. Link to comment Share on other sites More sharing options...
HappyHeart Posted November 12, 2013 Share Posted November 12, 2013 Im sorry but thats rot. Average earning couples can afford to buy a modest home, the cost of housing and a mortgage is relative to income and relatively affordable ....for many...if you want to live in the centre of Perth on a builders or sparks wage however...you may be in for a surprise..much as in London..or any other big city...scaremongering at its worse.. Link to comment Share on other sites More sharing options...
flag of convenience Posted November 12, 2013 Share Posted November 12, 2013 I was was there last week. Perth looks like Spain before the crash. But by all means fill your boots if you think there is money in it. I don't see it like Spain or Ireland were whole areas where over built and left empty as not the folk to fill them. Here population is booming. The whole issue is around affordability. Come a downturn though and many exit Perth it could resemble Spain in certain respects. Hopefully the legacy left will have made it all worthwhile? Link to comment Share on other sites More sharing options...
flag of convenience Posted November 12, 2013 Share Posted November 12, 2013 Im sorry but thats rot. Average earning couples can afford to buy a modest home, the cost of housing and a mortgage is relative to income and relatively affordable ....for many...if you want to live in the centre of Perth on a builders or sparks wage however...you may be in for a surprise..much as in London..or any other big city...scaremongering at its worse.. Not rot Perth is highly unaffordable to an increasing number of people. Nothing to do with scaremongering in the least. Of course in outer areas it is still affordable with a large loan and two salaries but the cost even in cheaper areas has escalated in recent years. Builders and sparks earn pretty decent money at the moment. Tradies shouldn't have too many issues ....at least until the expected downturn. Link to comment Share on other sites More sharing options...
HappyHeart Posted November 12, 2013 Share Posted November 12, 2013 Ok..let me know when it happens...its been predicted for years...things have stabilised and are again on the up...I'll eat my hat if the Perth Market crashes in the next ten years. I earn average wage as does the OH, we don't have a big loan, its more affordable than renting...its a no brainer??? Link to comment Share on other sites More sharing options...
dxboz Posted November 12, 2013 Share Posted November 12, 2013 Oh Rubbish! There are so many outer burbs in Perth that you can still buy a really nice house for $300,000 - how is that unaffordable??? Link to comment Share on other sites More sharing options...
flag of convenience Posted November 12, 2013 Share Posted November 12, 2013 Ok..let me know when it happens...its been predicted for years...things have stabilised and are again on the up...I'll eat my hat if the Perth Market crashes in the next ten years. I earn average wage as does the OH, we don't have a big loan, its more affordable than renting...its a no brainer??? You haven't lived in Perth during a recession.Work can be very hard to find. Don't take it so personally. So you don't have a big loan. Good for you. For now it may be more affordable than renting but wait until interest rates rise. Cycles come and go in resource states and downturns are tough. While you may not be impacted others will be. Housing in Perth did decline but from a very step increase in a very short time. Link to comment Share on other sites More sharing options...
flag of convenience Posted November 12, 2013 Share Posted November 12, 2013 Oh Rubbish! There are so many outer burbs in Perth that you can still buy a really nice house for $300,000 - how is that unaffordable??? Another believer. Good for you. But here's some more rubbish. When the boom dims a number of those outer suburbs may well be found to be over priced. $300,000 probably would have been $75,000 before the boom. But while the money comes in I agree quite affordable as it goes. Point being far more are being forced far further out than may have desired all in the name of affordability. Link to comment Share on other sites More sharing options...
gpo1971 Posted November 12, 2013 Share Posted November 12, 2013 Im sorry but thats rot. Average earning couples can afford to buy a modest home, the cost of housing and a mortgage is relative to income and relatively affordable ....for many...if you want to live in the centre of Perth on a builders or sparks wage however...you may be in for a surprise..much as in London..or any other big city...scaremongering at its worse.. Name of the game on this website. Link to comment Share on other sites More sharing options...
Bibbs Posted November 12, 2013 Share Posted November 12, 2013 Name of the game on this website. Yup. In the UK I waited for the "housing crash" from 1999 onwards. Waiting, waiting .. When it actually "happened", I didn't see a crash in my area, only stagnation for a year (or at worst a roll back of 2 years growth) and then the prices go up again. $300k for a house in the burbs is very affordable. Not every house is a million and in the city (as some people will tell you). It's like people saying London is unaffordable, and only thinking of Kensington. Well most the houses have people living in them, therefore they must be affordable. And if it's not affordable to you, there are other places to live. Link to comment Share on other sites More sharing options...
Bibbs Posted November 13, 2013 Share Posted November 13, 2013 $300,000 probably would have been $75,000 before the boom. And your now 80k household income would have been $20k before the boom. Point being far more are being forced far further out than may have desired all in the name of affordability. Look how far people in the UK are "forced out" of London, but still work there. I know/knew people commuting from Essex/Kent/Hants/Berks/Bucks/Ox. Some lot further than the 40miles to Mandurah, especially in commute time. Link to comment Share on other sites More sharing options...
flag of convenience Posted November 13, 2013 Share Posted November 13, 2013 And your now 80k household income would have been $20k before the boom. Look how far people in the UK are "forced out" of London, but still work there. I know/knew people commuting from Essex/Kent/Hants/Berks/Bucks/Ox. Some lot further than the 40miles to Mandurah, especially in commute time. Thing being of course is that your household income prior to the 03 /04 so called boom was way above $20,000. Even a single low wage earner would have been on $30,000+ as a rule. Hence it would be fair to say an average household would have brought in around $70,000 . An inner city two bedroom flat could be purchased for around $75,000 in 01, I know because I looked at a few. A three bedroom Californian type house in Victoria Park, again close to Perth City, went for $175,000. Further out but close to the train line in Queens Park, only several train stops it was around $120,000.... Today while we can say a household of that calibre may have doubled their income, that inner city apartment is $320,000, if new even more, Californian type house in Vic Park $600,000 and in QP $ 375,000+....Hardly an improvement and remembering a lot of white collar positions have not increased to the degree of blue collar trade positions did. I know folk that used to commute from Home Counties to London as well. The idea though was a better life surely, not the same or worse living in soulless suburbs with few amenities with long and costly drives and poor public transport alternatives. In fact looking at London living in St Albans and commuting into London or a similar alternative isn't necessary a bad trade off. Rather different from the ever growing suburbs on the outskirts of Australian cities, I'd have thought. But each to their own. Link to comment Share on other sites More sharing options...
flag of convenience Posted November 13, 2013 Share Posted November 13, 2013 Yup. In the UK I waited for the "housing crash" from 1999 onwards. Waiting, waiting .. When it actually "happened", I didn't see a crash in my area, only stagnation for a year (or at worst a roll back of 2 years growth) and then the prices go up again. $300k for a house in the burbs is very affordable. Not every house is a million and in the city (as some people will tell you). It's like people saying London is unaffordable, and only thinking of Kensington. Well most the houses have people living in them, therefore they must be affordable. And if it's not affordable to you, there are other places to live. Perhaps because the crash hasn't materialised it. While I agree not every house is a million the rise has been enormous in recent years. As such the debt taken on has increased enormously as well. Houses are available in the outer areas for those that don't mind paying prices that several years ago could have been obtained close to the city. Depends how you want to live and just what options are open to those not so flush. As for London, it is a city seriously over priced largely due to foreign investment and there we are talking serious money. One doesn't have to only look at Kensington to realise the city is out of reach for the average worker. Not only that but often very poor quality what may be termed affordable. Link to comment Share on other sites More sharing options...
Bibbs Posted November 13, 2013 Share Posted November 13, 2013 I know folk that used to commute from Home Counties to London as well. The idea though was a better life surely, not the same or worse living in soulless suburbs with few amenities with long and costly drives and poor public transport alternatives. Better life? Most of them cursed their daily commute and the expense of season rail fares. What's the point of living somewhere 'nice' when you spend 4 hours a day on a train? I reckon they would have all moved closer, if they could afford it. Okay, Perth used to be cheap. But the population was half the size, and you couldn't live in these outer suburbs then, as they didn't even exist. As the population grows, places will become more desirable due to their location and therefore expensive. I keep saying. If housing was REALLY unaffordable, no one would be buying them. But as that isn't happening, I'd suggest that housing is plenty affordable. Also, if you buy a house to actually live in (with a long term loan) it's usually not an issue if the price goes up/down over time, as over 25/30 years inflation will have an effect. It's only an issue if you try and sell in a dip. Investment properties? I'd personally look for apartments in Syd/Melb/Bris .. but that's to just have somewhere 'else' and not put all my eggs in one basket. Link to comment Share on other sites More sharing options...
flag of convenience Posted November 13, 2013 Share Posted November 13, 2013 Name of the game on this website. Sometimes reality checks don't go amiss. Labels don't altar the fact that Australia has ever increasing affordability issues. Link to comment Share on other sites More sharing options...
Guest Posted November 13, 2013 Share Posted November 13, 2013 Gotta agree with you Flag, get too far out of the city and Australian suburbs are terrible. Likely a westfield shopping centre and a couple of bland food chains and have to drive everywhere. Link to comment Share on other sites More sharing options...
gpo1971 Posted November 13, 2013 Share Posted November 13, 2013 Sometimes reality checks don't go amiss. Labels don't altar the fact that Australia has ever increasing affordability issues. Not reality checks though, some of it is pure sensationalism; has been for a while on this site. I'd say 90% of what I read on here about Perth, I don't experience and have never experienced. I reckon the same goes for most, it must do for all the people I know because they never discuss it in 'real life'. That's my reality check. Link to comment Share on other sites More sharing options...
flag of convenience Posted November 13, 2013 Share Posted November 13, 2013 Not reality checks though, some of it is pure sensationalism; has been for a while on this site. I'd say 90% of what I read on here about Perth, I don't experience and have never experienced. I reckon the same goes for most, it must do for all the people I know because they never discuss it in 'real life'. That's my reality check. Your reality is obviously different. Good for you. Fact being many folk are impacted on what has occurred in Perth over the past several years. Not all but many. While some don't mind the estate lifestyle in our distant suburbs others would detest it. Fact being choices are far less and the cost far more to achieve less. Must be an inner city thing then I guess I hear the gloating over how much our houses have risen with a degree of frequency sad to say. Link to comment Share on other sites More sharing options...
flag of convenience Posted November 13, 2013 Share Posted November 13, 2013 Gotta agree with you Flag, get too far out of the city and Australian suburbs are terrible. Likely a westfield shopping centre and a couple of bland food chains and have to drive everywhere. It wouldn't be for me but we are all different. It's just a little sad for those that are forced into those places due to no choice owing to the cost factor. Link to comment Share on other sites More sharing options...
gpo1971 Posted November 13, 2013 Share Posted November 13, 2013 I guess it must be true, you either say it or reference it in every single post you make. I do think that the service this site offers to people is being undone by unbalanced and unrepresentative negativity. A lot of the negative comments on this site aren’t actual experiences, they’re hypothetical consequences of events that have never happened, this 10-page thread is a great example of that. The OP must wish they hadn’t bothered asking, am sure they won't be rushing to ask another question. If you read the jobs forum, there are no jobs. If you read the finance forum, there is a recession coming. And somebody paid $50 for a tin of beans once. If you read the weather forum, we’re all lying when we say it’s sunny. If you read the real estate forum, houses are garbage, overpriced, about to become worthless and half the suburbs are like Beirut anyway. If you read any post to do with Perth, it’s the worst place in the World. All a load of rubbish to be fair. I think I’ll leave it there, it’s a largely pointless debate and after 5 years of reading it, a bit boring. All the best! Link to comment Share on other sites More sharing options...
flag of convenience Posted November 13, 2013 Share Posted November 13, 2013 I guess it must be true, you either say it or reference it in every single post you make. I do think that the service this site offers to people is being undone by unbalanced and unrepresentative negativity. A lot of the negative comments on this site aren’t actual experiences, they’re hypothetical consequences of events that have never happened, this 10-page thread is a great example of that. The OP must wish they hadn’t bothered asking, am sure they won't be rushing to ask another question. If you read the jobs forum, there are no jobs. If you read the finance forum, there is a recession coming. And somebody paid $50 for a tin of beans once. If you read the weather forum, we’re all lying when we say it’s sunny. If you read the real estate forum, houses are garbage, overpriced, about to become worthless and half the suburbs are like Beirut anyway. If you read any post to do with Perth, it’s the worst place in the World. All a load of rubbish to be fair. I think I’ll leave it there, it’s a largely pointless debate and after 5 years of reading it, a bit boring. All the best! A classic exaggeration of what has been said. The OP asked if now was a good time to buy in Perth. Their is a very valid opinion that Perth is over valued but continuing an uneven rise but will correct in the medium term. Hence it is over valued. Economic cycles don't play out according to plan nor a time frame. Don't see much rubbish in stating the rather obvious with regards to Perth. The over emotive post does not contribute to debate and none would state Perth as being the worst place in the world. You are right that is indeed rubbish. Expensive it is though. Link to comment Share on other sites More sharing options...
Bobj Posted November 13, 2013 Share Posted November 13, 2013 Has been said umpteen times before, supply and demand. You want to live in a certain area, be prepared to pay the going price...Simple. Cheers, Bobj. Link to comment Share on other sites More sharing options...
Bibbs Posted November 13, 2013 Share Posted November 13, 2013 Has been said umpteen times before, supply and demand. You want to live in a certain area, be prepared to pay the going price...Simple. Cheers, Bobj. Agreed. They'll only sell for what someone thinks it's worth. Prices can go up and down, but over a 30 year loan, inflation will mean the "price" will generally go up, but the "value" generally stays the same. Link to comment Share on other sites More sharing options...
newjez Posted November 13, 2013 Share Posted November 13, 2013 A classic exaggeration of what has been said. The OP asked if now was a good time to buy in Perth. Their is a very valid opinion that Perth is over valued but continuing an uneven rise but will correct in the medium term. Hence it is over valued. Economic cycles don't play out according to plan nor a time frame. Don't see much rubbish in stating the rather obvious with regards to Perth. The over emotive post does not contribute to debate and none would state Perth as being the worst place in the world. You are right that is indeed rubbish. Expensive it is though. My short term worry with Perth is how tapering in the US will affect the market. Syd and Mel are being driven by overseas investors. Bris and Ad will pick up some overspill from Syd and Mel. But Perth has been in idle mode for several months now. Personally if I was going to buy in Perth, I'd spend the next six months doing a lot of research, find out where the value is and then see how the market has performed over that time. If it hasn't dropped in that time - then it probably won't drop. If it is dropping, you may want to wait and see or come in with a low ball offer. If we can get through the US tapering without the world ending, then Perth could be a good buy. But I would watch how things pan out over the next 6 months. Link to comment Share on other sites More sharing options...
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