Adelaide or Brisbane with my budget

Discussion in 'Where to Buy' started by rogerG, 31st Oct, 2016.

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  1. JDP1

    JDP1 Well-Known Member

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    Adelaide may be rising, but how much potential does it have ie how far can it go? Why is sydney ( which many say is already cooked) at the same place as Adelaide in HTW clocks. Simlarly, why is brisbane ( whch has done more than adelaide) lower on the property clock than adelaide?
    id suspect its because of 2 factors:
    1. How much gas in the tank it has
    2.which direction its heading
     
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  2. MTR

    MTR Well-Known Member

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    In the real world markets rising means you can actually make money. Showing a property clock with a prediction/estimation etc. is not the same, I don't care that they are valuers, same as economist they seem to get it wrong frequently.
     
  3. JDP1

    JDP1 Well-Known Member

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    im not saying they are right or wrong...
    just wanted to know what are the big factors that determine the position on the clocks.
     
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  4. Swamp

    Swamp Well-Known Member

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    Oh hi, are you talking to me? Not sure what your on about brokers? Releasing equity? Yes I did/used both of these.

    No we are talking about Brisbane or Adelaide to purchase, I explained my decision process and where I bought in both of these places, couldnt care less what you think of Newcastle that is a long way from both these places. Someone in the thread asked for recomendations so I gave some (sorry dont know anyone in Newcastle, but I would post that in the Newcastle thread :rolleyes:
     
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  5. Whitecat

    Whitecat Well-Known Member

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    In an AFR article I read yesterday which came out either yesterday or the day before it was not particularily bullish about Adelaide they felt that house prices in Adelaide would go sideways at best due to the outlook for the economy the same articles spoke about oversupply in Brisbane having some impact on rents and certainly AFR was not as bullish about Brisbane as it was last year however it was not as explicitly negative about Brisbane as it was about Adelaide.

    Out of Brisbane and Adelaide Brisbane offers a lot more security.

    The article is behind a paywall but what I do is I hit select all then copy just before the page times out and brings up the paywall block after about 2 seconds.
     
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  6. sash

    sash Well-Known Member

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    Yeah... know....not everyone can afford to sit at the pointy end of the plane. ;)

    Got to agree WC....I own 4 in Adelaide...they will not perform as well as Brissie.

    If you look at Australia something like 55% of the wealth sits in NSW/VIC..Perth/Brissie maybe another 20%....Adelaide maybe 5%.....that is how it is .....
     
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  7. Nemo30

    Nemo30 Well-Known Member

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    This is my experience, not advocating either way. Do your own research and buy what suits your own strategy.

    In the last 18 months we have been renovating houses in different areas of Adelaide. We project to make a conservative 25% profit after tax, renovation and selling costs on our current 4 projects.

    They are mostly cosmetic renovations which we have completed ourselves, however we have engaged a builder and the skills of others where required.
     
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  8. sash

    sash Well-Known Member

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    Good stuff which suburbs in Adelaide are you doing this?

    Are you including the high in cost from a Stamp Duty perspective...Adelaide and Melbourne have the highest stamps in the country.
     
  9. MTR

    MTR Well-Known Member

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    I am not surprised from what I have been reading, hence why I mention look at strong markets

    MTR:)
     
  10. sash

    sash Well-Known Member

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    OK...how are you getting 25% return on Adelaide renos?
     
  11. Nemo30

    Nemo30 Well-Known Member

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    Buying below market, well priced reno, rising market. Not rocket science.

    I have one with over 50% gross profit based on purchase/sell price. After taking into consideration all costs, including buying/selling and tax the net profit is above 30%.
     
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  12. RetireRich101

    RetireRich101 Well-Known Member

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    What a lovely evening :D

    Oh dear.... HTW have Sydney as a Rising Market in Dec 2016...it's HTW so it must be correct right? :p
     
  13. sash

    sash Well-Known Member

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    Fantastic...whereabouts in the Eastern suburbs or Western suburbs?

    Do share the deal...that is a stellar deal...puts all mine to date to absolute shame......I need to come see you and bottle your blood....
     
    Last edited: 12th Jan, 2017
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  14. Whitecat

    Whitecat Well-Known Member

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    They aren't the only commentators saying syd/melb are going to keep going for a bit.
     
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  15. boganfromlogan

    boganfromlogan Well-Known Member

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    recently sold a fixer upper in southern adelaide for a great price. Above expectations. To a builder who will make money on it by putting in new oven and other shiny things from harvey norman. Also have a house in a near city northern suburb which has appreciated in past 6 months. There are good things going on in Adelaide (despite negative of the taxes).
     
  16. MTR

    MTR Well-Known Member

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    Good point.
    The developers margins are tightening due to increase in land. Though the builder's margins are much fatter because building costs will be significantly less, that's why my DA sold quickly, builder is still going to make his 20%+ even at this stage of the cycle
    As far as Melb goes you can only work on the pockets that you are playing in and how much that particular pocket has moved and when it started moving.

    MTR:)
     
  17. D.T.

    D.T. Specialist Property Manager Business Member

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    Keep it on topic please , we're talking about the rising markets of adel and bris
     
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  18. MTR

    MTR Well-Known Member

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    No vested interest not selling anything in Melb:) sorry, but I am replying to your comment.... I am out of Melb, still think people are making money but not sure where now.

    oops:)
     
  19. HUGH72

    HUGH72 Well-Known Member

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    Stamp duty comparison:SA and QLD

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    Not much difference with cheaper properties, the difference is a little larger at $400,000 with less Stamp duty payable in Qld.

    More options in terms of suburbs in Adelaide at this price range. However at the same gross yield on going costs like insurance and rates are considerably cheaper in Adelaide.
     

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  20. D.T.

    D.T. Specialist Property Manager Business Member

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    Yup stamp duty sucks here, there's also a lodgement fee when you purchase as well that isn't cheap. Luckily its just a once off though so doesn't hurt too bad.

    From what I've seen council rates, insurance and strata fees are all higher in qld and these are all ongoing costs.

    Landtax here is fairly easy to avoid, I don't remember qld rules off the top of my head.
     
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