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Perth property market correction?
- Thread starter neddy
- Start date
Do you have the means to "hold" ? My 6 sense tellsme after the dust is settled.. it will have a V recovery..
Holding ?
Trying not to.I will work out something. Anyway, I have already made alternative plans when Scroobal gave warning the last time.
Would like to seek some local expertise. A SG friend wanted to invest in OZ property.
My comments to him are
1.) unless he is working in OZ, else buying an OZ property cannot maximize his $, since he is not able to claim any tax returns for negative gearings.
2.) Any capital gains would be subject to 50% tax.
3.) unless he is looking at buy and hold strategy, but again once his investment property turns positively geared, his property income will again subject to the high taxes.
4.) the only good thing i can think of, OZ properties are still much reasonable compared to SG properties.
SG friend is just an average lesser mortal and holding an OZ PR.
Any inputs for him to invest or not to invest would be much appreciated.
Trouts - please stay away and keep the comments to yourself.
My comments to him are
1.) unless he is working in OZ, else buying an OZ property cannot maximize his $, since he is not able to claim any tax returns for negative gearings.
2.) Any capital gains would be subject to 50% tax.
3.) unless he is looking at buy and hold strategy, but again once his investment property turns positively geared, his property income will again subject to the high taxes.
4.) the only good thing i can think of, OZ properties are still much reasonable compared to SG properties.
SG friend is just an average lesser mortal and holding an OZ PR.
Any inputs for him to invest or not to invest would be much appreciated.
Trouts - please stay away and keep the comments to yourself.
Holding ?
I will work out something. Anyway, I have already made alternative plans when Scroobal gave warning the last time.
What warning he gave ? That knn never share his secret with me... What's the secret ?
Europe crisis ? It is confirmed liao lah.. selling Banks, selling Carrefour.. next on the list BP, ALDI... finally IKEA.. we shall see..
See my reply..
Would like to seek some local expertise. A SG friend wanted to invest in OZ property.
My comments to him are
1.) unless he is working in OZ, else buying an OZ property cannot maximize his $, since he is not able to claim any tax returns for negative gearings.
Yes, you can only negative gear from an "income"
2.) Any capital gains would be subject to 50% tax.
Should have a min stay of 1 yr.
3.) unless he is looking at buy and hold strategy, but again once his investment property turns positively geared, his property income will again subject to the high taxes.
No really. it depends on your level of earning.
4.) the only good thing i can think of, OZ properties are still much reasonable compared to SG properties.
It is sustainable. Plenty of room for growth in particular landed properties.
SG friend is just an average lesser mortal and holding an OZ PR.
Any inputs for him to invest or not to invest would be much appreciated.
Trouts - please stay away and keep the comments to yourself.
Would like to seek some local expertise. A SG friend wanted to invest in OZ property.
My comments to him are
1.) unless he is working in OZ, else buying an OZ property cannot maximize his $, since he is not able to claim any tax returns for negative gearings.
Yes, you can only negative gear from an "income"
2.) Any capital gains would be subject to 50% tax.
Should have a min stay of 1 yr.
3.) unless he is looking at buy and hold strategy, but again once his investment property turns positively geared, his property income will again subject to the high taxes.
No really. it depends on your level of earning.
4.) the only good thing i can think of, OZ properties are still much reasonable compared to SG properties.
It is sustainable. Plenty of room for growth in particular landed properties.
SG friend is just an average lesser mortal and holding an OZ PR.
Any inputs for him to invest or not to invest would be much appreciated.
Trouts - please stay away and keep the comments to yourself.
Scroobal made a passing comment and I took note.
Try not to bleed money.
Everyone seems to be interested only in the street-frontage unit.
Not many projects coming online, there are many local buyers, just that banks won't lend, so I am not overly worried. My partner brought in another agent. targetting Chinese buyers.
Chinese buyers - good.
Volvo is now a Chinese company.
Basically, Europe & US overspent, thanks to leverage and the financial toxic products. Now, esp the corrupt Greeks, are selling their assets to the Chinese.
Soon, the whole world will be owned by China. They have already conquer Africa & South America. USA and Europe are retreating.
According to Australian Property Monitors, Perth properties may go up by 10%, you stand to make 10% profit
"The median price [in Perth] is now $512,178, the highest since March 2008, while units have reached a record $385,001" - This is still far cheaper than Vancouver houses where the median price is $900,000.
Perth house prices 'could rise 10 per cent'
CHALPAT SONTI
January 28, 2010
Perth house prices might have just gone through their strongest growth spurt in more than three years, but even better news could be just around the corner.
An economist with Australian Property Monitors believes Perth house prices could rise by more than 10 per cent this year.
It follows APM research which shows a 3.1 per cent price rise in the final three months of 2009, the highest quarterly rise since September 2006, as the median house price surged back over the $500,000 mark - a level last seen nearly two years ago.
The median price is now $512,178, the highest since March 2008, while units have reached a record $385,001.
Median unit prices surged 15.8 per cent in 2009, including 12 per cent in the final six months and 6.6 per cent in the December quarter, the highest quarterly growth of the major state capitals, and outpacing the city's 8.7 per cent annual growth in house prices.
Despite the impressive figures, Perth was the only state capital not to notch a record median price by the end of 2009.
But APM economist Matthew Bell, who recently predicted the average weekly rent in the metropolitan area could exceed $400 this year, said there was plenty of upside for Perth, given an expected strong economy flowing through to employment.
"It's recovered all the losses from last year, and it'll probably be a pretty good year this year," he said.
"I don't have firm numbers but I expect prices will rise above 10 per cent this year. There'll be a few cities above that and a few cities below."
While first home buyers drove the market earlier in 2009, the upgraders, investors and top-end sales were ultimately responsible for the late surge, Mr Bell said.
The data showed the western suburb of Churchlands had the most spectacular house price growth of any suburb in 2009, with the median rising 43.8 per cent, or $160,000, to $525,000.
East Fremantle did best for units, with the median increasing 37.2 per cent, or $127,500, to $470,000.
There must have been at least 20 sales in a suburb for it to make the list.
Best performing Perth suburbs 2009
Houses
Churchlands, up 43.8 per cent
Guildford, 30.6 per cent
Attadale, 25.4 per cent
Nedlands, 25 per cent
Darlington, 23.5 per cent
Units
East Fremantle, up 37.2 per cent
Shoalwater, 13.3 per cent
Bayswater, 12.6 per cent
Como, 12.5 per cent
Mosman Park, 10.8 per cent
Perth house prices 'could rise 10 per cent'
CHALPAT SONTI
January 28, 2010
Perth house prices might have just gone through their strongest growth spurt in more than three years, but even better news could be just around the corner.
An economist with Australian Property Monitors believes Perth house prices could rise by more than 10 per cent this year.
It follows APM research which shows a 3.1 per cent price rise in the final three months of 2009, the highest quarterly rise since September 2006, as the median house price surged back over the $500,000 mark - a level last seen nearly two years ago.
The median price is now $512,178, the highest since March 2008, while units have reached a record $385,001.
Median unit prices surged 15.8 per cent in 2009, including 12 per cent in the final six months and 6.6 per cent in the December quarter, the highest quarterly growth of the major state capitals, and outpacing the city's 8.7 per cent annual growth in house prices.
Despite the impressive figures, Perth was the only state capital not to notch a record median price by the end of 2009.
But APM economist Matthew Bell, who recently predicted the average weekly rent in the metropolitan area could exceed $400 this year, said there was plenty of upside for Perth, given an expected strong economy flowing through to employment.
"It's recovered all the losses from last year, and it'll probably be a pretty good year this year," he said.
"I don't have firm numbers but I expect prices will rise above 10 per cent this year. There'll be a few cities above that and a few cities below."
While first home buyers drove the market earlier in 2009, the upgraders, investors and top-end sales were ultimately responsible for the late surge, Mr Bell said.
The data showed the western suburb of Churchlands had the most spectacular house price growth of any suburb in 2009, with the median rising 43.8 per cent, or $160,000, to $525,000.
East Fremantle did best for units, with the median increasing 37.2 per cent, or $127,500, to $470,000.
There must have been at least 20 sales in a suburb for it to make the list.
Best performing Perth suburbs 2009
Houses
Churchlands, up 43.8 per cent
Guildford, 30.6 per cent
Attadale, 25.4 per cent
Nedlands, 25 per cent
Darlington, 23.5 per cent
Units
East Fremantle, up 37.2 per cent
Shoalwater, 13.3 per cent
Bayswater, 12.6 per cent
Como, 12.5 per cent
Mosman Park, 10.8 per cent
I'm assuming your friend still live and work in SG, then the first thing to consider is the mortgage risk. Assuming if your friend gets a foreign currency mortgage from an Australian bank (they are more stringent after GFC), his property could actually positively geared with the low SG interest rate; however, its extremely high risk if the exchange rate swing the other way, he would have to be asked to top up in cash(or other assets) to offset the differences thus making losses.
My advise is avoid off-the-plan and those marketed by real estate agents in Spore which largely sell at premium prices to oversea investors and those properties are usually less desirable to the locals.
Oz properties price increases a lot in the last few years so he might have to do a lot of research before committing, and those suburban houses or units might provide better return than the city apartments. A trip to assess the property / surrounding is absolutely neccessary, don't make the same mistake like me!
I agree about IWC2000 on the issue of Off-the-plan project. Even the locals have their fingers burnt on this. Stay away if you are not familiar.
Buy properties that are built by reputable builders.
You can visit online reputable property websites such as aussiehomes.com.au for Perth properties. The website is run by a ex-Singapore expat (UWA lecturer) and his Singaporean wife.
If you are getting strata properties, go for survey strata, usually those with less than 5 units and have not common walls between the houses. There is no strata levy.
Please explain this..??
[COLOR="_______"]Ah-but-then !.. this the reason why I live next to the Chinese -> Balwyn, Kew & Camberwell.. sure win ~![/COLOR]
[COLOR="_______"]Ah-but-then !.. this the reason why I live next to the Chinese -> Balwyn, Kew & Camberwell.. sure win ~![/COLOR]
The best value properties are often second hand with potential for renovation/subdivision, you usually pay a hefty premium for new properties. What choice is best for your friend's situation, only he can decide.
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The local banks are carrying too much housing loans, and tightening the lending requirements.
For first home buyer, saving up for the deposit is a problem if the parents do not help.
For investors, the rental yield is low, even if we can book depreciation. But cost of maintaining the properties have gone up.
So, looking for downgraders and migrants and those who are upgrading from apartments or one-bedroom type.
There are *ongoing* bank interests to be paid on this investment. Hope this answer your question.
Partially agree. If you believe you are good at your area, work your sum, you do not need to provide an explanation to the rest. To know if it is a good tree, look at its fruits. There are heaps of guru everywhere.. look deep into what they buy and the returns they have
A few points for you to note.. before you decide..
a) Are you at 40-45% tax bracket claiming negatively gear ?
b) Do you have an offshore lending at under 3%
c) Do you aim for rental yield or capital gain..
Everyone's circumstances is diff.. Ppl said cannot 'time' the market, I said 'time' is important for $$$ a gain.
i beg to differ.
take sunnybank in brisbane. it is a chinese densely populated area, and no local aussies will consider to pay good prices for them. and you can only sell to chinese. and that has cut your potential buyers down dramatically. perhaps the chinese in melb are richer than those in brisbane.
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