caminperth

INASNT, luke20t, Sweetleaf Read back a bit dudes.. I already asked if he was being sarcastic - as he often is - and the answer was yes. Read a bit more before trying to dish out l33t 0wnage....

Definitely. As long as it's tuned ok I wouldn't be stripping it down to prove something to a buch of people on some forums...

Thanks dude.. Any news on dates for this event yet?

The above mentioned things are just a few things to consider. Try to work out your cashflow so it's not going to catch you short. Read up some property books and check the net for some forums on property.. Be informed and get a feel for the area you want to buy in - not just property prices, but what it's close to, what it's renting for and the demographic of people as well. If you can learn more for yourself it means that you have to trust real estate agents, financial advisers and people like myself less..

Seriously depends on you budget and what you want it for. Do you want to live in it or rent it? If renting, do you need a high rental income? Balga has already moved pretty heavily last time I checked a few months ago. I haven't been following it much since then, though a good indication on how it's going to go in the future is to look at suburbs between it and the city. Say Nollamara or Yokine could be a good indicator. It's all very speculative, though with things going strong the way they are, you should be safe anywhere with either easy access to the city or water (sea/river).

Nah - I think it's the silver in the 4dr headlights that does it..

You'd go that far? Camry's? I would've said closer to Magna's...

Man - I'm running those terminal speeds, but my ET is way down! Gotta get that launch sorted...

Dan - you stay away from my dog.. And put your lipstick away!

Most agreeable then. For a second there I thought you'd lost it..

I didn't read that article Steve, but it sounds like typical irresponsible scaremongering by the Sunday Times. They'd probably calculated it using the highest possible growth that Perth has seen and carried that on for 15 years - which just isn't true. If you base it on the average capital growth rate of property for the last 15 years, you'd get the following.. Year Value 2006 300 7.5% average growth rate 2007 323 2008 347 2009 373 2010 401 2011 431 2012 463 2013 498 2014 535 2015 575 2016 618 2017 665 2018 715 2019 768 2020 826 While still sounding high at around 800k, think about what other things might cost by that time. Petrol seems to be something that everyone here can relate to and if that grows by the same rate, which is definitely feasible given the price rises seen over the last 20 yrs, then that would grow from around $1.20/L to somewhere close to $3.30/L. Also it's a median, not an average. There's a big difference between the two measurements! Everything will be more expensive by 2020. Anyone who thinks differently has got they're head in the sand saying to themselves "I remember when a can of coke was 20 cents", BUT it doesn't mean that things will be completely unaffordable.

Stuie - it's a shame that younger guys like yourself are in that position, but it ain't going to get any cheaper. It's like hoping that petrol will come down to under $1/L again - it just ain't going to happen. If you really really want to get a house, you can pay less than 300k. You just have to be prepared to accept something that is a bit further out, in a less desirable area or a bit smaller than you were really after. I think we're quite spoilt in WA with the price of housing and the proximity of houses to workplaces. Imagine how it would be if you were living in Sydney or Melbourne. You might be earning an extra 5-10k per year, but the houses would cost twice as much and you'd have to commute 2hrs each way to work. Try checking out a unit, townhouse or apartment instead of a house. At least that way you'd own something that is increasing in price along with everything else. Do the sums on it, see finacial advisers and mortgage agents and if you really want to do it, get into it.

I hope you're being sarcastic dude....

Agreed.. This is where we majorly disagree. The market probably will have a correction, yes - but a major drop? No. Why? Beacuse people always need a place to live. They can own it or rent it - either way someone's bought it.

That's a shame man. Not a good thing to happen to anyone. I hope you can get something worked out. Balga houses are selling around 280-340k last time I looked. I'm kicking myself I didn't buy one to develop 18 months ago as I the one I nearly bought was 180k. It tells me the price ripple is moving outwards, as it always does. You just gotta work out where it's going to hit next.

Sounds like sour apples to me.. Why are you loosing your house? There must be some major reason as nothing really has changed in the last year or two on what your repayments should be? Not good news man - there must be a way to keep it?

I've just had another thought, and while I'm hanging around killing time I thought I'd share it. The people in the above scenario would more than likely have owned their house for a long time. Perhaps they have paid it off, or the loan is minmal at most. They also haven't had an increase in wage so they can't afford that new 600k house and it's associated loan repayments. What if they kept their existing house and rent it out? The rent would help suppliment their income to make the new bigger repayments on the new bigger house. They would also get capital growth on both houses. Alternatively, they could sell their house, buy a newer one around the same value as an investment, borrowing the entire value including purchasing costs and rent it out. Then they could use the cash they made from selling their old house to buy that new 600k house with a minimal loan. The rent would help cover the repayments, as would the tax breaks associated with the interest repayments on the loan for the rental property. The second plan works better for income tax and because they lived in the original house as their primary residence, they wouldn't have to pay capital gains tax on it. Does this sound like a bad thing? If not - perhaps you should be looking at what you're doing with your property and thinking outside the box.. no pun intended.. Maybe I'm just getting old and have too much time to think about this stuff..

Apologies for the off-topic btw. I know of a few of my friends who are building - I'll have a chat and find out who they're using..

WA does follow the trends of the East to a point - but there are so many other factors that come into play in the East that don't affect WA pricing. Take Sydney for example. Most of it's industry is based on finance and services, which follows the money market quite closely. This makes the highs very high, but also makes the lows very low and overall makes it a very sensitive market due to it's international connections. Note - this is only one facet of the Sydney market - I'm not saying this is ALL it depends on. Another factor it is also a very sought after place to live by both Australians and Ex-pats alike, but when the ex-pats leave, demand falls a little, which also affects prices. As for the recession comment - what are you basing this on? Our exports are strong as is our currency and interest rates are steady. I see no problems on the horizon that could cause interest rates to jump 10% and our currency to be worthless. Can you? I don't think associated purchasing costs would prohibit most people from changing houses and I don't believe the situation you mentioned above actually exists. To give you an idea on purchasing costs - they should be no more than approimately 5% of the purchase price. If I was currently looking at housing around 400k, I would allow 25k purchasing costs. Given the current market and based on that I would be buying in a high growth area (or even better, one that is about to see high growth! ) the purchasing costs would be easily eaten up within the 1st year by an increase in capital. I think what may generate the situation you've mentioned - people not changing housing - is either no change in income, so they can't afford that new 600k house loan, being happy where they are or fear of what the market may do. I disagree entirely. Perth is a desirable place to live and is growing faster than it ever has. Current mining booms feed some of the growth, but there are many other factors as well. City size and average house price compared to other Australian centers is one of many I can think of. Take a look at any of the big houses in Cottesloe. You could get into the most sought after beach suburb in Perth for around 1.5~2M. Try doing that in Sydney and Melbourne and you'd be paying at least 10 times that amount. If people can't afford to buy, they'll have to rent, won't they? And who do they rent from? Property investors! More people who can't afford housing will just push up the rental rates, making it more profitable to invest in property, generating demand for property by investors and keeping capital growth at sustainable levels. Agreed, not as high as some rates we have seen in the past, but it will even out eventually. All these arguments aside - figures don't lie. Take a look at the average capital gain rate across Perth since 1950. It's 8~9% depending on sources. Now look at the average interest rates across Australia for the same time period. It's 6~7% depending on sources. Now join the dots. Property as a commodity can be insured against and will never completely dissapear. I know of many shares and managed funds that have done exactly that. So which one sounds safe eh? Again, none of this post is an attack on anyone in any way. I just hate seeing fear being bred like this about one of the safest markets around.

Kym you've got it all wrong.. I DRIVE your granny..

Factoring in design, drawing, approval and then finding a builder to build it on top of all that could prove costly...

Haha - true.. Maybe I'm getting old too.. but I'm trying to gather enough $ so I can afford that open top Ferrari for the mid-life crisis and property is definitely one way to do it..

To get back on topic - I can strongly advise against Domination homes. The ethics of their owner leaves ALOT to be desired. If you want the full story I'll tell you over a beer one day..

Yup. The only thing to be very aware of here - and I'm sure you are - is that 99% of building contracts allow the builder to increase his price if his costs go up. Though if you factor this in you should be fine building. Main problem is that the building association protects builders, not consumers, and it's the one that regulates the contracts that you sign..