NSW Brisbane boom or Sydney boom phase 2 - which one will be sooner?

A lot of discussion in media and on this forum raise this important question. Many investors are on the boat where they need to choose one of these options for the next property. Most importantly, one can't go wrong in their choice here since the opportunity cost can be huge, particularly if Sydney bounced back and money is stuck in Brissy. Things get even more complex when you are after a PPOR in Sydney and you tend to think that the time isn't right yet. What do you think?

It's one thing to say Sydney market has started softening and another to see the actual price fall on the ground to the level where investments make sense (rental yield, further capital growth etc). So, answer to this question isn't just very obvious as yet.

By phase 2 boom of Sydney market, I am not necessarily referring to a bounce back from the prolonged low time but even if prices just continue to be at the current levels without much fall, it's still not an investment-friendly market for newbies! Sure, it's not a boom like the one we just witnessed in the last few years, but it's still not much better either at least as far as numbers go.

 

If you think that the price difference between Sydney and Brisbane and indeed between regional NSW and regional QLD-which has never been greater in percentage terms-will remain the same in the coming years subsequently you may decide to buy again in Sydney?

If, however, you think that Sydney and regional NSW are expensive compared to Brisbane and regional QLD- and thus you think that over the coming years Sydney and regional NSW may decline 10% and Brisbane and regional QLD may increase 20%- subsequently you may decide to buy in Brisbane and/or regional QLD?

 

You are thinking too small. Why only 1 option? If you think both have a good chance, buy 2 x IP's - 1 in each place and cover your bases.

 

That's a wise one but IP in both places will need a huge budget which I am not equipped with right now

 

As with most (not all) things in life, the answer is: "get more money".
Cheers,

 

It's definitely something one would think but not sure if there are enough forces favouring Brissy market as yet. Australia's 3rd largest city has had lame market for a bit too long.. that kinda creates some pessimism around it. But logically you are correct - it should/ must happen.