All about moving to and living in perth, news and informattion.

Which Area is Best to Invest In

Sat, 8 Jul 2006 21:45:21 +0800

A question investors often ask Real Estate Agents is "What is the best area to invest in'?

In Western Australia we have seen exceptional growth in both regional and the metropolitan markets.

When buying an investment property the fundamentals for long term growth include the following:

An area that has an efficient public transport system.

An active local government that is pro-business.

A variety of retail outlets.

Good schooling

Location, such as beaches, restaurants, shopping centres etc….

One area recommended for investment by Russell Poliwka, Principle of First Western Reality, is Joondalup City Centre. Joondalup City Centre is still young but has all the right fundamentals alongside a strong short to medium term commercial and residential growth potential.

Like many other centres the Joondalup City Centre is experiencing exceptional capital growth and ever increasing levers of amenities.

Education in Joondalup is second to none in Australia with a variety of primary, secondary and tertiary institutes. Joondalup is also home to the Police Academy.

Over the recent years the quality of commercial and residential buildings has shown remarkable improvement over what was envisaged in the early stages of the City Centre. There are currently a few and there will be more high rise buildings.

The commitment by the Lakeside Shopping Centre to the expansion on the corner of Boas Avenue and Grand Boulevard will make this particular Shopping Centre one of the largest in Western Australia.

Another area which is seeing expansion within Joondalup is the student numbers, which will increase over the next five years as Edith Cowan University finalises the relocation of their administration centre to the Joondalup campus.

For investors there is a strong case to be made for investing in Joondalup City Centre

It should also be noted that there are other growth areas within the Northern corridor adjacent to the railway line and freeway which are also experiencing huge growth, Clarkson, which is better know by its marketing name of Somerley being one.

Prices being achieved are much higher than was expected by the Developers in the not so distant past. Land sales in areas such as Butler and Jindalee are experiencing massive demands. The demand for land has seen a rapid price increase, which while good for investors, is not so good for the young home owners on the first rung of the ladder, it is becoming more and more difficult to make the decision to buy and develop your first home as the cost to join the ranks of home owners has accelerated to such an extent where it has created different classes. It is essential that people who have the income and capacity to acquire property should do so as a matter of priority.

The principle residence of home owners is one of the few genuine tax free investments left. The family home is exempt from capital gains tax and is probably the best form of "superannuation' for those planning retirement. They can cash in on their family home and downsize with surplus capital to enable them to have a quality lifestyle in retirement.

Source Realestate WA (North) Friday 7th July.
Russell Poliwka, Principle First Western Reality.

If you are a Brit lookingto Holiday or Migrate to Aussie Land now is a good time to buy those Aussie Dollars

Wed, 14 Jun 2006 13:28:27 +0800

Just happened to noticed that the British Pound/Aussie Dollars exchange rate is sitting at 2.49, a high based on the last six months.

January	2.35441 AUD	(21 days average)
February	2.35648 AUD	(19 days average)
March	2.40132 AUD	(23 days average)
April	2.39955 AUD	(20 days average)
May	2.4468 AUD	(23 days average)
June	2.48901 AUD	(9 days average)

So if you are in the progress of migrating to Australia now is a good time to buy. If you are still waiting for the sale of your UK home before you have the cash then don't worry. If you have funds available to cover the deposit you could always put a forward contract in place.

A forward contract will allow you to lock in the exchange rate immediately. Payment can be made at a later date when the funds are exchanged. They are a good way to reduce your exchange rate risk because once the contract is secured the rate is fixed.

Bid to Overcome Perth's Land Shortage

Sat, 10 Jun 2006 22:03:30 +0800

In order to prevent the chronic land shortage in Perth, Planning and Infrastructure Minister Alannah MacTiernan wants developers to impose restrictions such as buy-back provisions on sales of new land.

Investors may be forced to build on the land or else sell it back to the developers at the price they paid for it. It is hoped that this would stop the short term investors making fat profits as they buy blocks of land just to sit on them, selling them on later to make a fat profit.

The Minister believes that tradesmen using inside information about the building industry are leading a growing band of speculators who are forcing up land prices.

Developers and builder are in agreement something needs to be done to crack down on the speculators and are considering options to boost the chances of genuine homebuyers buying blocks.

Satterley and other big developers have put ballot systems in place limiting speculators from buying large pockets of land. For example Peet asked buyers at its Lakelands estate near Mandurah to sign declarations that they intended to build and live on the lot when they went on sale last week. Those who did not sign could not buy. They will be using the same system at the release of the next release of lots at its Wellard subdivision.

Source: Lee-Anne Petchell - Western Australian Saturday 10th June

Extended Drinking Hours During World Cup

Sun, 4 Jun 2006 13:12:11 +0800

Australia's first World Cup finals qualification in 32 years is expected to draw big crowds into the city. Seventeen venues have been given permits to extended hours during the soccer World Cup. With 3am match kick offs some venues will be staying open all night. The World Cup will have a bigger worldwide television audience than the Olympic Games.

The largest local gathering will be at Members Equity Stadium for Australia's showdown against Brazil on June 18th. Perth Glory will kick of the festivities with a match against Malaysian under-23 side, followed by musical entertainment and the brazil game on a huge screen from midnight. Tickets cost $10.

Strict conditions have been imposed on the pubs to stop drunken loutish behaviour. Drink specials will not be available during the games, there can be no live entertainment, and light food and non-alcoholic drinks must be available.

For the fans that leave during the late-night match they will not be allowed to re-enter the pub.

WATERING HOLES WITH EXTENDED HOURS DURING THE SOCCER WORLD CUP
	The Deen, Northbridge
Bally’s Bar, Ballajurs	Durty Nelly’s, Perth
Elephant & Wheelbarrow, Northbridge	Rosie O’Grady’s, Northbridge
The Mustang bar, Northbridge	The Waterfront, Mindaire
Woodvale Tavern, Woodvale	Albion Hotel, Cottesloe
Leederville Hotel, Leederville	Paddington Alehouse, Mt Hawthorn
Rosie O’Grady’s, Freemantle	Windsor Hotel, South Perth
Woodbridge Hotel, Guildford	Royal Perth Yacht Club, Crawley
Greenwood Hotel, Greenwood	Harbourside Hotel, Freemantle

Football Australia

Source - Sunday Times - 4th June 2006

Cashed-Up UK Migrants Boost Prices

Sun, 4 Jun 2006 12:49:15 +0800

Perth is a popular location for UK migrants because of its lifestyle and affordability and the fact that coastal properties are still affordable. WA has the highest proportion of UK residents with more than one in 10 residents born in the UK.

Many of the migrants coming to Perth from the UK are cashed up from selling their UK home. Rising prices in Britain saw the median price in Greater London during the December quarter in 2005 at $630,000, Brits can afford to buy property in a coastal location and still have cash left over for living expenses.

In the past financial year , WA gained more than 16,000 migrants and many went to Perth's coastal areas. Many of the migrants from Greater London migrant are used to travelling long distances to work and therefore attracted to buying in coastal areas such as Mindarie because the travelling time into the city is not an issue.

In recent months many homes have been sold to migrants from Scotland and Northern Ireland where house prices are soaring.

Source: Hermione Stott Sunday Times 4 June 2006

If you want a property near water in Perth then you can look at parting with $1 million just for the block.

Sun, 28 May 2006 23:29:17 +0800

Gone are the says when a $1 million house in Perth is anything special. Once you could buy a mansion in a prize Perth location. You have no such look today if your buying in a riverside suburb you can expect to get a fibro shack or an old brick cottage.

The property boom has seen luxury homes selling with price tags over $5 million. last week saw the a property in Claremont sell for $15 million. In fact the boom has launched many river and beachside suburbs such as Bicton, Scarborough, Rossmoyne and the inland suburbs Southern River, Mt Lawley and Beaconsfield into $3 million territory.

In Perth there arenow 134 suburbs with houses selling for the $1 million price tag, while sales of $2 million occured in 42 suburbs, 18 suburbs with sales of over $3 million and 7 suburbs clearing sales of over $5 million.

MILLION-DOLLAR-SUBURBS Sales over $5m
Suburb	Highest Sale Price
Claremont	$8,850,000
Bedfordale	$8,200,000
Dalkeith	$7,000,000
Applecross	$6,800,000
Mosman Park	$5,350,000
Bicton	$5,100,000
source reiwa (year to March 2006)

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Next Stage Land Release in Success in July Expects a Huge Response

Sun, 21 May 2006 21:21:37 +0800

Stage 10a of the Magnolia Gardens precinct with just 12 home sites available is expected to sell out quickly. If you miss out then you will have to wait until a further 150 lots are released in the two final stages later this year.

During the current boom having more buyers than blocks at Thomsons Lake has become the norm, said David Gibbons, Land Sales and Marketing Manager.

"With our most recent release, we sold about 50 home sites at Magnolia Gardens in just six hours - and we could probably have sold the lot over again, to people on our database."

"That sort of response may be a general reflection of the supply-and-demand situation in the metropolitan area just now but a high level of demand has been the case for a long time at Thomsons Lake."

Richard Noble & Company launched the estate in early 1993, when prices for lots started at just $42,000. More than 2020 lots have been sold since then and the most recent sales averaged $190,000. Prices for 10a, yet to be released are expected to exceed that amount.

Mr Gibbon said land at Thomsons Lake still represented excellent value, particularly with its proximity to the CBD and a full range of services and facilities was taken into account.

'When people see what an attractive community has been created at Thomsons Lake, they realise it is a very good place to live," he said. "Success has primary schools, high schools, the Gateway shopping centre and now a train station at Cockburn Central.

"The estate is only 20 minutes from the CBD, and the recent completion of Roe Highway makes access to other areas significantly more convienient too. The railway will make a big positive impact when it is created around Cockburn Central."

Stage 10a home sites will range from 371sqm to 669sqm and will face public open space - either a bush park with vegitation and paths or a passive recreation area with play equipment, seats and mature trees.

Mr Gibson said it was worthwhile for potential buyers to put their name on the database before the next land release.

Details of stage 10a and future land releases at Magnolia Gardens are available from selling agent Gina Monaham, +61 08 9214 777 or +61 (0)407 945 834.

Maureen Eppen - Sunday Times - 21st may 2006.

source

Keystart home loans in decline

Sun, 21 May 2006 21:06:13 +0800

The State Government cut its allocation for Keystart home loans by $115 million in last week's State Budget

But Housing Minister Michelle Roberts says the cut shows applications are falling and it did not indicate falling support for the concept.

Keystart loans are low deposit home loans for people struggling to get commercial bank loans.

For this financial year, the Government allocated about $780 million to the fund, which charges normal variable rates, but next financial year it expects to lend $665 million. "There are vastly less applications for Keystart loans than there used to be and there are also a whole lot of mortgage discharges,"she told Parliament.

But opposition leader Paul Omodei said the Government was cutting the scheme when low income earners where finding it increasingly difficult to buy a home.

WA Council of Social Services executive director Lisa Baker said the Government assured her the scheme could be expanded if applications outstripped funds but the decline indicated the scheme could be marketed better.

Robert Taylor - Sunday Times - SUnday 21st May 2006. source

Snow Dome Planned for Perth

Sun, 21 May 2006 20:29:20 +0800

If dreams turn into reality then the brain child of businessmen Nick Foster and Steve Pretzel could be operating by 2009.

The $45 million West Coast Snow Dome is planned to include a beginners snow play area and a 400m slope with intermediate and expert zones. Facilities for free style skiers would also be available.

Funding would mainly come from the private sector with some government funding and small-scale individual investments being a possibiity.

The snow dome would not just be for ski enthusiasts. "Many West Australians lead an active life-style and there are natural crosovers to tap into other sports and recreational activities such as cycling, surfing, skateboarding, in-line skating and mountaineering". Mr Foster said

Areas under consideration for the snow dome location include Midland, Armadale, Kwinana, Rockingham and Joondalup.

"Bringing a major capital-intensive project to fruition in a state relatively small in population is never an easy task' . He was under no illusion about the magnitude of the project.

Feasibility study for a snow dome last year had been positive and further studies would now be carried out. The pair believe that Perth's distance from traditional snowfields and its climate make it an ideal location.

Mr Foster said, "Our research indicates there are more than 50,000 snow-sport enthusiasts living in Perth."

"These people regularly travel across the country or across the world to particiate in the sport they love and would surely welcome the opportunity to have a world class indoor facility in the Perth metropolitan area. "Can you imagine how refreshing the ice cold snow park would be on a baking hot Perth summer's day?"

Nick Taylor - Sunday Times, SUnday 21 May 2006. source

Perth Housing Market Still Going Strong

Sun, 21 May 2006 19:51:34 +0800

Perth's median house price has grown by 5.1 per cent since December 05. This brings the Perth median house price up to $353,000, a $17,000 increase since December.

In the year to March the Perth per cent increase was almost 24 per cent, while in regional WA it was higher at 26.4 per cent.

Mr Rob Druitt, REIWA Vice President said "Demand is still outstripping supply and the number of days between homes being listed and sold has plummeted to just 18, down from 48 days 12 months ago.

The median price for homes throughout WA now stands at $340,000.

Median rents have also grown in the metropolitan area increasing by 4.5 per cent in the quarter to $230 per week.

Land sales has seen the strongest area for growth with residential land values increasing by 32 per cent.

The market price pressure has generated a continued interest in units and apartments, a lower priced alternative. Median price for a unit is now $275,000, a 22.2 per cent increase over the year.

Mr Druitt said that despite the rising prices and low stock availability the WA market was still robust and the month of January broke the record for new building approvals. "This illustrates that the property market is not just confined to established homes, and the pressure is on the housing sector to release more land and create more stock".

"The recent increase in official rates of 0.25 per cent might be a good thing for the first home buyers in particular; and those trying to enter a tight market with very low stock."

"The modest rate rise may have the effect of causing some investors to withdraw from the market, freeing up more stock for first home buyers, who have struggled to compete with them,"Mr Druitt said

reiwa.com Home Buyer - 19 May 2006 source