澳洲Australia property WA Regional - a tale of conflicting stori


在澳大利亚 The pool at of an IP needs to be resurfaced (or so the pool doctor says), the cost was estimated to be $10K ($10,000), after recoverying from my impresssion of a cat coughing up a fur ball, it just seems far too much. Its just a standard poo I need some advice regarding a property purchase. Property - semi-detached house Bedrooms - 2 Condition - average needs internal reno to modernise Street - one of the best in suburb Location - excellent Close to schools - yes Transport - 50m


some of you may be aware that i'm involved with a few WA regional deals.

recently we picked up 2 blocks for what we thought was unbelievably cheap.

we did our figures on a final purchase and construct costing $210k, with a realistic, borderline pessimistic, sale price of $299k and/or realistic market rent of 300pw rent.

coming to the pointy end of the deal now - we find out our construction costs are on track and the borderline pessimistic sale price has now moved up to $339k and market rents are $350-370pw.

That's a 20% EXTRA return on capital.

210k construct with a 300k sell = 42% rate of return.
210k construct with a 340k sell = 62% rate of return.

all this on the back of reports like the attached

http://www.ibtimes.com/articles/107226/20110201/perth-housing-prices-post-biggest-decline.htm

makes me wonder if we have already passed 6 on the property clock :confused:  

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there's always a lag in these numbers. when the market runs really hot it is often hard to convince peole of how fast prices are moving.  

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Aaron Sice said: ↑
some of you may be aware that i'm involved with a few WA regional deals.

recently we picked up 2 blocks for what we thought was unbelievably cheap.

we did our figures on a final purchase and construct costing $210k, with a realistic, borderline pessimistic, sale price of $299k and/or realistic market rent of 300pw rent.

coming to the pointy end of the deal now - we find out our construction costs are on track and the borderline pessimistic sale price has now moved up to $339k and market rents are $350-370pw.

That's a 20% EXTRA return on capital.

210k construct with a 300k sell = 42% rate of return.
210k construct with a 340k sell = 62% rate of return.

all this on the back of reports like the attached

http://www.ibtimes.com/articles/107226/20110201/perth-housing-prices-post-biggest-decline.htm

makes me wonder if we have already passed 6 on the property clock :confused:Click to expand...
The property clock you allude to must be in that region or precinct. I am unfamiliar with WA market, however even allowing for lag, there isn't one property clock just as there isn't one property market in Australia or WA or even Perth for that matter.............but you guys already knew that ;)

That's great upside Aaron, if you have confirmation of it having passed 6 o'clock where you are playing and it goes into 7 and 8 o'clock, milk it for all the full fat cream you can. Ride that swell and yell yipee kayay as you go :D  

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it just doesn't make any sense - i think there was a stat in the west just last week about how regional WA fell 7.9%.

and yes, the clock is set to WA Regional time.  

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Awesome stuff Aaron. Well done. This just goes to show there are thousands of property clocks just in Australia. This is inspiring stuff and all the best to you going forward.  

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Aaron those are good numbers you have and l do believe your timing is going to be very good as well so there should be a bit more in it for you.
Can l ask who you will use to build and what town?
I am looking to do a knock down and build or nearly knock down and renovate/ extend in Mandurah. I already have the property. A fair bit of retaining to do on the block first though.
I am just about to embark on getting some figures together to see if its worth my while.
I have never built before and l will be looking at all the advice l can get.
cheers
yadreamin  

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let me just say it's not 100% me. there's another 'lurker' on the forum who I'm going halves with ... well, actually he's stumped up all the cashola to date...:eek:  

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yadreamin said: ↑
Aaron those are good numbers you have and l do believe your timing is going to be very good as well so there should be a bit more in it for you.
Can l ask who you will use to build and what town?
I am looking to do a knock down and build or nearly knock down and renovate/ extend in Mandurah. I already have the property. A fair bit of retaining to do on the block first though.
I am just about to embark on getting some figures together to see if its worth my while.
I have never built before and l will be looking at all the advice l can get.
cheers
yadreaminClick to expand...
if you're building to retain, there are a ton of options.

if you're building to sell, you need to meet the market, which means double brick... :rolleyes:  

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