perth property, page-5

I think in general terms, ie Perth-wide, prices will be stagnant for the forseeable future. And before anyone replies saying, "But my investment property is a scorching hot potato", remember that I'm talking Perth in a macro, big-picture fashion. Anyone living in Perth can point to one property selling quickly or not selling at all; individual anecdotes are kinda pointless.

The reasons I think Perth will stagnate is that although the vast majority of Perth real estate is horrendously overvalued, the strong ecnonomy etc will stop prices falling.

However, comments about the mining boom, tight job market, etc are irrelevant if people can't afford mortgages. 500K at 10% is a thousand bucks a week in interest. That's the average geared first home buyer. This is not sustainable.

So...my prediction? Stagnation generally for several (maybe 2-3) years overall, falling prices in the outer burbs, Western suburbs anaemic growth. And unless you are very experienced (which some people reading this may or may not be) and have spotted an opportunity, you would have to be crazy to buy an investment property here.