Best place to invest for long term ?

Hi what in your opinion is the best place, state etc to invest in if your looking at 10-20 years plus ?

 

Well after my valuation came back yesterday from the bank - I'm more than 100% confident you should invest in North Brissy.

Closest to the CBD as possible but I'm seeing great revaluations coming back around the Bald Hills, Bracken Ridge, Strathpine and Petrie areas. That area is going to go bonkers soon.

 

Are thoses areas you listed all in north brissy ?

 

Yes. Google maps is your friend.

 

20 year horizon will see lots of places do well. I'd go Brissy, inner to middle ring home in good OO area with above average land size. Get it at a good price for value or fair price . With a 20 year outlook you'll unlikely be disappointed .

 

OO areas ?
Well what about 5-10 years ?
And what about cashflow areas ?

 

In todays environment you need to consider cashflow as much as you consider capital growth if you want to continue to grow your portfolio. You need to look for good balance that will provide both.

A place that doesnt cost much to hold or zero to hold + provide the opportunity for significant growth within the next 5-10 years is what you want. You dont want to be putting in $2-3k out of our own pocket simply holding the house and paying the interest to the bank.

 

Yeah exacly thats what i want , would u say logan is the best place for thoese properties? I got one in logan that looks after it self , i was just wondering if there are other areas with similar results

 

Good that you thinking of holding long term..

But more important question is, what's the current cash flow like and what's the end goal?

Cheers,

 

Can you please define what you mean by "best"? Best CG? Best cashflow? Best <fill in the blank>?

And what is your end goal?

Edit: @jazzsidana beated me to it with the same question lol - you can just answer it once to keep two guys happy

Cheers,
David

 

loL.. let's say the question was on behalf of investors community .. to help another investor

Cheers,

 

I don't put a single cent into any of my properties i hold in Brisbane thats how I can grow my portfolio so large. This is why its important to identify areas before the growth otherwise your already paying premium.

Like I said go north. You can still find value add potential homes at a great price and your yield will be high enough for you to easily hold the property.

Do your own research and you will know why.

 

hmm
positive cashflow is very much a furphy
I have one that is positive and I can assure you it ain't in a capital city
only capital city suburb in Aus where positive might be possible would be Elizabeth and surrounds

Just to clarify - I'm talking positive based on 100% lend and based on current market value.

Even on 80% lend I dont think there would be any other capital city properties that qualify

I think a log of people who talk about being positive or neutral are just thinking of best case scenario

 

I'd largely agree from the ppl ive spoken to. After maintenance, vacant periods and all fees, there isnt much if anything left.

Personally I'd never invest in residential properties if I was after cash flow from day 1. There are much better options available for that .

 

If an investor doesn't consider cashflow these days your in for some serious trouble. Majority of people fail serviceability these days. You will NEVER get a loan without serviceability.

There is no ifs and buts about that. Unless you have massive massive capital its never going to work without cash flow.

And I think Brisbane is the city where cashflow is more important - its not Sydney where we just had the biggest capital growth in generations in a very short period of time so people buying stuff with massive holding costs still came out on top. Brisbane is steady growth over longer periods.

The longer you hold massive loans without significant capital growth or growth not far exceeding holding costs is asking for trouble. That is real money your losing or money eating into your real profits.

 

Just as well you can buy much closer the the CBD and be fairly neutral than buying as far north as Petrie or Bald hills

Also depends on the OP goals, could be on a high income or the ability to service a better growth property, Inner /middle ring should far exceed outer in the long term -

Since OP is also asking 5-10yrs - I’d say Get as close as you can on the best block you can - depending on your budget of course. 8-12km a good compromise without compromising..

 

Thats what I said. Buy closest to the CBD you can afford but make sure you take both capital growth and cash flow into account.

My recommendation was purely based on my revaluation that came back to me yesterday which came back at a big increase even from the number I expected. That is all. Dont care if he invests up there or not obviously plenty of others are - hence driving up the price even more than my expectations.

 

And here’s me thinking that B&H investing was so last century .

Put your money into shares. Even after today’s bloodbath, my share portfolio has yielded total returns of 18.2% pa (11.3% pa growth + 6.9% pa income) for last 16 years ago (started 22nd Oct, 2002) .

My property portfolio definitely hasn’t achieved that and it is a lot more work (than shares) .

 

But is ur share portfolio leveraged like a typical mortgage in the main capital cities?

 

Nope. No borrowings for share portfolio and the returns, growth and income, are tax-free as the shares are owned by our SMSF which in pension phase .

Our property portfolio is hugely negatively geared. In fact, we use some of our SMSF pension to cover the shortfall in our property portfolio .

I would love our property portfolio to achieve the same returns as our share portfolio, especially income .