KiasuParents - Parenting in Singapore

Am looking at 2 different sets of Australian properties and would apppreciate advice...

3 bedroom condo in Perth CBD
(1) Easy to rent out
(2) Higher rental
(3) Condo developer builds my apartment together with all others, so I won't be short-changed even if I can't be there to oversee the construction
(4) Easy to administrate because I don't need to drive out to the suburbs after flying into Perth (is this an important consideration at all?)

BUT...

(5) Crime?
(6) Tenants whom I like are families... would they prefer the suburbs instead of downtown CBD lodgings?
(7) Over supply of small apartments in CBD that will affect future capital appreciation?


4 bedroom house in West Swan
(1) Only area with fertile soil around Perth... and a garden is nice
(2) Attracts family rentals?
(3) Potential for better capital appreciation as Perth grows outwards?

BUT

(4) House is built to order and I must oversee (which I can't)
(5) Place is far from Perth CBD. Google Maps says 30mins. My friend living in Perth says 1hr... anybody got other advice?
(6) Less crime?
(7) More neighbourliness?

TIA for advice. Am quite lost at present.

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!!

Chenonceau wrote:
Awwwww... you read my blog!!

But of course....

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 wrote:

Chenonceau wrote:
Awwwww... you read my blog!!

But of course....

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.....?

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.

Chenonceau wrote: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!!

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 mark

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 wrote:

Chenonceau wrote:
Awwwww... you read my blog!!

But of course....

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.....?

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 ?

Chenonceau wrote:

3Boys wrote:

Chenonceau wrote:
Awwwww... you read my blog!!

But of course....

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.....?

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.

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 wrote:

Chenonceau wrote: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!!

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 mark

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

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!!

3Boys wrote:
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?

it is about a US$1 for each bottle of red, bottled, and exported, CIF landed price before import tax, vineyard's profit included