Apartment in Perth CBD or House in West Swan
-
Presumably this is an investment property? Or are you looking at relocating at some point?
Have you seen this --> http://www.globalpropertyguide.com/Pacific/Australia
From a pure cash-flow and capital appreciation perspective, I am quite down on Australia properties. Quite a bit of restrictions on what you can buy, whom you can sell to, and also, capital gains tax. Presently, yields are also not great, tax is moderate and prices are high. Perth is probably a little better than Melbourne or Sydney right now as prices have moderated a little in the last year.
Whatever the case, be agnostic about what you are buying, if you don't eventually intend to take possession of it and make it your abode. You are just chasing the yield and neighbourhood location and so forth (apart from rentability) is not critical. I would suspect a centrally located property will be easier to find tenants for (including corporates, which are preferred in my view), with less down time. A good letting agent should be able to manage all of this for you, no need to lay eyes on the actual site, though if you are going to fly 5 hours to be in Perth the one hour drive out to the outskirts should not be an impediment.
I frankly wouldn't try to build a whole new house in a different continent unless you enjoyed the aggravation....or were willing to completely let go. (Yes, I've read your blog). -
Gee... thanks for weighing in. Nope... no intention to live there nor relocate. At least, not for now. We came to the same conclusions as you...
(1) apartment in CBD better
(2) BUT not in Sydney nor Melbourne
(3) spare me the aggravation of building another house
(4) wanna park the money somewhere as inflation hedge for the next 5 to 10 years... getting a bit old... dun wanna be too aggressive in risk management
(5) Perth properties have not moved much since 2008, looks like (your thoughts?)
Awwwww... you read my blog!! :love: -
Chenonceau:
But of course....
Awwwww... you read my blog!! :love:
I think there should be low volatility in Perth housing prices. The commodities story still has legs in it, although it's probably been overplayed a bit in the last couple of years. The capital gains tax piece is a little painful though, but is also serves to tamp down speculative behaviour.
How about a nice vineyard in the Margaret River region instead.....? -
3Boys:
Explored... strata title... returns no good. Land use very restrictive. Management fees high. A bit chicken too. Never looked at agricultural property before. Maybe next time? Unless you have lobang can PM me.
But of course....Chenonceau:
Awwwww... you read my blog!! :love:
I think there should be low volatility in Perth housing prices. The commodities story still has legs in it, although it's probably been overplayed a bit in the last couple of years. The capital gains tax piece is a little painful though, but is also serves to tamp down speculative behaviour.
How about a nice vineyard in the Margaret River region instead.....? -
Chenonceau:
putting in a chunk of money into a single piece of overseas real estate = risk concentration, unless that amount is less than 20% of your portfolio....20% is just an arbitrary number, but around there as a bench markGee... thanks for weighing in. Nope... no intention to live there nor relocate. At least, not for now. We came to the same conclusions as you...
(1) apartment in CBD better
(2) BUT not in Sydney nor Melbourne
(3) spare me the aggravation of building another house
(4) wanna park the money somewhere as inflation hedge for the next 5 to 10 years... getting a bit old... dun wanna be too aggressive in risk management
(5) Perth properties have not moved much since 2008, looks like (your thoughts?)
Awwwww... you read my blog!! :love:
my alternative view is hotel-apartments in central London near to universities with very stable rental income from uni students and / or working professionals in the City -
3Boys:
very good name wines' vineyard in Italy and France could be had for less than a million euros, in production, on-site winery, bankable .... Chateau Chenonceau cabernet sauvignon 2012 anyone ?
But of course....Chenonceau:
Awwwww... you read my blog!! :love:
I think there should be low volatility in Perth housing prices. The commodities story still has legs in it, although it's probably been overplayed a bit in the last couple of years. The capital gains tax piece is a little painful though, but is also serves to tamp down speculative behaviour.
How about a nice vineyard in the Margaret River region instead.....? -
Chenonceau:
Explored... strata title... returns no good. Land use very restrictive. Management fees high. A bit chicken too. Never looked at agricultural property before. Maybe next time? Unless you have lobang can PM me.[/quote]Forgot to add the tongue in cheek on the vineyard......
But of course....3Boys:
[quote=\"Chenonceau\"]
Awwwww... you read my blog!! :love:
I think there should be low volatility in Perth housing prices. The commodities story still has legs in it, although it's probably been overplayed a bit in the last couple of years. The capital gains tax piece is a little painful though, but is also serves to tamp down speculative behaviour.
How about a nice vineyard in the Margaret River region instead.....?
I was speaking to a wine-maker and Aussies producers are having a really bad time right now. Thanks to the commodities rush and the stratospheric Oz dollar, they can't export competitively and being slaughtered. Cheaper to drink a bottle of Bordeaux in Australia than Oz wine.
\"How to make a small fortune? Start with a large one and invest in a vineyard.\" - Unknown
Still, rolling hills with sepia tinted sky and neat rows of vines.....very romanticised hor? -
verykiasu2010:
I poked about Cambridge a bit... but didn't find anything that was a clear GO. I should poke about a bit more probably... Yes. Good point on risk concentration. We're watching that already. Thanks!!
putting in a chunk of money into a single piece of overseas real estate = risk concentration, unless that amount is less than 20% of your portfolio....20% is just an arbitrary number, but around there as a bench markChenonceau:
Gee... thanks for weighing in. Nope... no intention to live there nor relocate. At least, not for now. We came to the same conclusions as you...
(1) apartment in CBD better
(2) BUT not in Sydney nor Melbourne
(3) spare me the aggravation of building another house
(4) wanna park the money somewhere as inflation hedge for the next 5 to 10 years... getting a bit old... dun wanna be too aggressive in risk management
(5) Perth properties have not moved much since 2008, looks like (your thoughts?)
Awwwww... you read my blog!! :love:
my alternative view is hotel-apartments in central London near to universities with very stable rental income from uni students and / or working professionals in the City -
3Boys:
it is about a US$1 for each bottle of red, bottled, and exported, CIF landed price before import tax, vineyard's profit included
Forgot to add the tongue in cheek on the vineyard......
I was speaking to a wine-maker and Aussies producers are having a really bad time right now. Thanks to the commodities rush and the stratospheric Oz dollar, they can't export competitively and being slaughtered. Cheaper to drink a bottle of Bordeaux in Australia than Oz wine.
\"How to make a small fortune? Start with a large one and invest in a vineyard.\" - Unknown
Still, rolling hills with sepia tinted sky and neat rows of vines.....very romanticised hor? -
verykiasu2010:
very good name wines' vineyard in Italy and France could be had for less than a million euros, in production, on-site winery, bankable .... Chateau Chenonceau cabernet sauvignon 2012 anyone ?[/quote]Pardon my ignorance... doesn't one need to be at least somewhat interested in viticulture to think seriously about buying a vineyard in France? Or at least have some passing knowledge of how wine is made? At least the really old labels... No sarcasm here. I really wanna know if you know anything interesting... no harm casting my net wide.
But of course....3Boys:
[quote=\"Chenonceau\"]
Awwwww... you read my blog!! :love:
I think there should be low volatility in Perth housing prices. The commodities story still has legs in it, although it's probably been overplayed a bit in the last couple of years. The capital gains tax piece is a little painful though, but is also serves to tamp down speculative behaviour.
How about a nice vineyard in the Margaret River region instead.....?
And as I recall Chateau Chenonceau is known for selling sex in the time of Catherine de Medicis and homosexuality in the times of her son... been there 5 times... no got wine leh... plenty of scandals though.
1 million euros... whoa! Unless I can find a good leveraging financial mechanism, that's too much money in one basket... too risky for my stomach.
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