Best capital city to invest in right now & why?

Discussion in 'Property Market Economics' started by millie29, 2nd Jul, 2021.

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Best capital city to invest in?

  1. Sydney

    28 vote(s)
    12.3%
  2. Brisbane

    93 vote(s)
    41.0%
  3. Melbourne

    17 vote(s)
    7.5%
  4. Adelaide

    28 vote(s)
    12.3%
  5. Perth

    61 vote(s)
    26.9%
  6. Darwin

    5 vote(s)
    2.2%
  7. Canberra

    9 vote(s)
    4.0%
  8. Hobart

    4 vote(s)
    1.8%
Multiple votes are allowed.
  1. millie29

    millie29 Well-Known Member

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    Location:
    Sydney
    Lots of posts hotly discussing specific suburbs in different capital cities, so I thought I’d start this thread/poll to see what people think is the best opportunity across all Australian capital cities right now, and the rationale behind why they think this is the case?
     
    John_BridgeToBricks likes this.
  2. boganfromlogan

    boganfromlogan Well-Known Member

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    Location:
    Brisbane
    Brisbane in particular 4152 for well heeled and parts of Logan for lower budgets.
     
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  3. Gen-Y

    Gen-Y Well-Known Member

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    Location:
    Brisbane - Sydney
    Brisbane and Adelaide for OK growth, decent yield
    Sydney if you have deep pocket. It is expensive for a reason.

    There is no one strategy to rule all.
    You need to find what you can afford and what is your goal.
    I started investing in Sydney first. Then branch over to Brisbane as I saw potential.
     
  4. Chabs

    Chabs Well-Known Member

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    Location:
    Sydney
    Best as in how? Best returns, or easiest access, or most portfolio building friendliness?

    Easiest access: Melbourne due to least heat

    Portfolio building friendly: Brisbane due to yields

    Best overall returns: Sydney and Melbourne , always has beeen, likely will be for the foreseeable future

    most likely to have consistent/predictable returns: Sydney and Melbourne once again.. the others might be more likely to ebb and flow based on the demand that flows out of the big 2

    supply/demand is most in favour of Sydney/Melbourne.
     
    Last edited: 2nd Jul, 2021
  5. John_BridgeToBricks

    John_BridgeToBricks Buyer's Agent Business Member

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    Sydney
    Sydney, because I am biased.

    Seriously though, Sydney is the largest, deepest, most liquid market and the only truly international city in Australia (though I am not sure that this matters any more).

    There will be a lot of pro Brisbane sentiment on this forum and for good reason. But we have been talking about Brisbane for over 10 years now, and it has performed okay, but certainly below expectations. It does deliver yield though, which I admit is important.

    The problem with Brisbane is demographic. It attracts inter-state migration, true. But the interstate migration are generally older Australians at a different stage of their economic lives. Often retirees at the stage of "disinvesting" rather than family formation. Brisbane is an important city that is very livable and will always do well, but these factors need to be taken into account.

    When the borders open, most international travel will come to Sydney. Plus, Sydney always attracts big money first, so if we are in the age of monetary stimulus, capital will flow to Sydney first, even if at first blush, Sydney seems expensive. It always is.
     
  6. spoon

    spoon Well-Known Member

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    Location:
    Time-dependent
    If buy and hold for the long term, Sydney > Melbourne > Brisbane, given the same product and distance to CBD or whatever is the prime location. If buy and hold for a year or two, mining towns in WA.
     
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  7. datto

    datto Well-Known Member

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    Location:
    Mt Druuiitt
    Mt Druitt because it's still cheap while the rest of Sydney is way too expensive.
     
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  8. mickyyyy

    mickyyyy Well-Known Member

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    Sydney
    Why is Mt Druitt not an option here? It's a capital city...
     
  9. DadWealth

    DadWealth Active Member

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    Sydney
    Never considered the whole opening up of international workers back to the mining sector and the impact that would have on those towns. Given the scare stories you hear of single industry regional town investment you deserve the returns for the risk if you do it!

    Have those areas specially had a covid worker shortage related dip?
     
  10. Steve90

    Steve90 Active Member

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    10th Sep, 2017
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    28
    Location:
    Melbourne
    What about Melbourne? I think that currently the migration is something in the negatives but pre covid melbourne had upwards of 120 000 people coming here. Everywhere else is going up heaps whilst places in Melbourne only going up 10% etc. Surely when people stop wanting to leave melbourne due to government, lockdowns etc and start coming back here things wil go up again. Melbourne was supposed to overtake Sydney as the most populous city in the near future before all of this
     
  11. MTR

    MTR Well-Known Member

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    This thread shows the bias….Canberra is killing it
     
  12. fols

    fols Well-Known Member

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    Sydney
    Depends on your personal financial capacity, goals and risk profile. It’s the worlds most boring answer I know- but it’s the right one!
     
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  13. alanyin

    alanyin Well-Known Member

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    Location:
    Sydney
    I’m surprised that people mentioned Sydney.

    The reason they stated about Sydney have ALWAYS been true.

    Sydney has ALWAYS been expensive. Of course there is a reason. But the reason is not ‘better long term capital growth’. The reason is that it came off a higher base a long time ago.

    Sydney has ALWAYS been the largest, deepest, most liquid market and has ALWAYS been the only truly international city in Australia. However if you look at its performance in the past 20 years, the only period it produced strong capital growth is 2013-17.

    I remember reading lots of posts from 2010-12 and I found it interesting that what people said about Sydney back then we’re exactly what people said about Brisbane, Adelaide and Perth a couple years ago (or even now).
     
  14. MTR

    MTR Well-Known Member

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    Well I have been around long enough to know markets also fall. :) Even Syd.
    Make hay while the sun shines

    Big fan of your avatar
     
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  15. Todd

    Todd Well-Known Member

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    16th Oct, 2016
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    Location:
    Canberra
    Sure is…. Canberra has returned average growth of 7.35% per annum for detached houses for 20 years!!!! And a better yield than Sydney or Melbourne. Not sure I would buy there right now as it has just done 18% growth in a year. But there will be a time again when market is not so hot that it will be a good time to buy.
     
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  16. Chabs

    Chabs Well-Known Member

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    Sydney
    buying in Sydney’s least desirable suburbs like mount druitt is likely to have outperformed Brisbane’s best suburbs...

    we talking 2012? Druie had houses between 200k-400k, there were even quite a few sub-200k! those houses now are 500k-1m minimum. Logan (Brisbane’s cheaper area) may have had 200k-400k homes that are 350k-600k now?

    the capital growth is better overall, because more limited land relative to the demand. Melbourne can spread more, Brisbane is similar, etc.
     
    Last edited: 2nd Jul, 2021
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  17. SuperOlaf

    SuperOlaf Well-Known Member

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    Location:
    Melbourne
    I think the answer should also depend on the budget. If you have $3m, of course, you would consider buying in Sydney. But if I buy an IP in Sydney for $1m today, I wonder whether it would perform in line with a $1m property in other capital cities.
     
  18. noneother

    noneother Well-Known Member

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    Location:
    Canberra/Sydney
    Great part of investing in Canberra is it's predictability with the political cycles and announcements. Job cuts / booms are announced before hand so you can essentially 'front run' the market. The market is very driven by political cycles.
     
  19. Sackie

    Sackie Well-Known Member

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    Location:
    Vaucluse, Sydney.
    People always want a 5 second answer easy fix. When folks in real life ask me ' where to buy' I always say "this is a couple of hours conversation". They usually ignore my comment and say something like " I heard Rainbowville is a good place, what do you think?"

    I'm pretty much disengaged at that point.
     
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  20. Kevbo

    Kevbo Well-Known Member

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    Location:
    Sydney
    Putting aside the issue of yield (any house in Sydney will generate abysmal yield compared to any other states), I think Sydney has heaps of potential to experience the most explosive growth in the next 10-20 years. International immigration will play an important role in this.
     
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