after sydney boom

Personally I think 'after' the boom is too late, should be once Sydney has boomed and prices have grown massively which has already happened - time to move on. Buying now in many Sydney markets is just high risk if you're not super careful. So imo most investors should have left Sydney markets over 12 months ago and started looking elsewhere. Opportunities exist in Brisbane, Adelaide and Melbourne that I am personally aware of, depending on your chosen strategy. I think there needs to be a shift in the CG mentality investors seem so fixated on and start skilling up in adding value options to 1. reduce risk, 2, be able to manufacture equity and 3, not be 100% reliant on market movement. Adding value strategies need not be high risk such as development, there are other strategies. That's just how I see it. The formula for me ( although everyone is different to some degree) which has always worked well is 1: Buy bmv as much as possible, 2. Buy a deal where you can add/manufacture value 3. Buy a deal with overall good fundamentals with risk mitigation strategies in mind. I look at CG as a bonus.

 

@Leo2413
CG mentality! You hit me hard - that's been my strategy but now working on others! Not that easy

 

It's never easy - but achievable I still struggle at times to make it work, as you said its not easy, but its definitely doable and imo worth the rewards. Take it step by step and do what's within your risk profile with lots of help and you'll succeed.

btw love your avatar

Edit: I better add that I'm in no way saying CG is not important, just that being able to add value in some way is a great ace up an investor's sleeve to have.

 

I waited patiently for past 3-4 years and saw the growth play out in Sydney. Since we were invested in Sydney we took some equity out and moved to Brisbane. As Sydney stabilises it might be good time to go back and consolidate Sydney portfolio by adding value to existing holdings i.e granny flats.

In 2-3 yrs rates will go up. Brisbane may go up. Getting ready to snap opportunities in Sydney or Melbourne once again as buyers go out of the market or Just pay down current debt.

I am a LOOONG term buy and hold investor with 20 years horizon.

 

Thanks. Will be sending lots of PMs once I start developing. Working on it! I am following your parra and brisbane development threads too

 

True. Perth "market" is a myth. What I should say is that all the markets I am tracking are still falling.

With my latest purchase it is hard to tell. No comparable properties have sold and no comparable properties have listed in the area. Without this, I can't tell. Perhaps prices have dropped further but then our purchase price was under what the property would usually sell for. Also, it is being converted from a 2/3 bed, 1 bath to full 4x2, so this is going to change the value. Put it this way, compared to what is currently on the market, it is still looking like a good buy

 

More than happy to help where I can to someone as nice as you

 

interesting discussion. thanks all!

 

No...look at what's happening on the ground in Brisbane and what's in the pipe for Brisbane.
Then you will see the rationale why Brisbane is no Perth nor will it revert back to a Perth.

 

I have no idea of the future of Perth vs. Brisbane. That is why I would like to eventually own IPS in both cities