QLD Brisbane, Moreton Bay, Logan, Ipswich Vs Perth - 20 year investment horizon

Discussion in 'Where to Buy' started by Property123, 26th Dec, 2021.

Join Australia's most dynamic and respected property investment community
  1. Property123

    Property123 Well-Known Member

    Joined:
    26th Sep, 2021
    Posts:
    83
    Location:
    Sydney
    I have the below approximate % growth of houses in different regions in the last 10 years based on the data I got

    Brisbane 80-90%

    Moreton Bay 60-70%

    Logan low end suburbs 40-50%

    Ipswich 35-45%

    Perth 0-10%

    if you already have $2m properties in Brisbane/Moreton Bay/ Logan, and $500k in Perth, and you can purchase another $ 1.5M properties in 2022. How would you allocate your fund? The investment horizon is 20+ years.
     
    Last edited: 26th Dec, 2021
  2. thunderstrike888

    thunderstrike888 Well-Known Member

    Joined:
    6th Jan, 2021
    Posts:
    2,018
    Location:
    Sydney
    Some places in Ipswich/Logan and even Moreton Bay have more than doubled from looking at recent sales prices of homes compared to even 2015/2016 prices. If your looking 10 years ago there has always been slow steady growth in Brisbane just no booms until now so the growth since 2010/2011 would be even more.

    Even my own house that I bought in Logan for $260k a 3/2/1 on 650sqm is worth approx $550k+ and I expect that to move into the 600s next year and that was bought in 2016. Thats doubled in price.

    My places in Moreton Bay have done amazing as well. Heck even my Ipswich house has seen upwards of 40%+ now. I have not seen an up to date website that is currently in-line with market values.

    RE, Domain, Onthehouse, Propertyvalue and all the banks online valuation systems are lagging bigtime. They are way off as in $100k+ or more off in prices.
     
  3. Nando Lee

    Nando Lee Well-Known Member

    Joined:
    3rd Apr, 2021
    Posts:
    109
    Location:
    Melbourne
    No one has a crystal ball. However, I see there is plenty of lands surrounding in Logan and Ipswich. Just google then you will find it. Moreton Bay probably bit better but not great. I strongly believe over supply is an enemy of capital growth in long term games. Rising tide lifts all ships now...

    Last 50 years all Australia capital cities had good capital growth.. You know Sydney isn't King in terms of % in capital gain when we look back an half century. Probably looking at last 50 years may give us better insight. Refer to the link below.

    Australian house prices over the last 50 years: A retrospective


    I am a fan of Jeremy Sheppards DSR DATA. His analysis of Market Cycling data is one of my references. It may help you to make better decisions.

    My personal choice would be limited in Perth and Brisbane City Council but only time will tell. Good luck.
     
    Last edited: 27th Dec, 2021
    craigc, Property123 and Noobieboy like this.
  4. Noobieboy

    Noobieboy Well-Known Member

    Joined:
    10th Aug, 2017
    Posts:
    2,172
    Location:
    Utopia
    DYOR but I do agree. My personal choice would be also Brisbane or Perth. Seems like immigration to Perth is restarting. Brisbane is very attractive to me and will remain so for a long while, with Olympics and the $10billion investment. Plus a huge move from south to QLD.

    Another benefit of Brisbane is it being on East coast. I think importance of the East coast will only continue to grow as time passes. In my view, it’s the economic powerhouse of Australia, place where most people live and will continue to be attractive for a while.

    Finally. 100% of 200K (say Logan ) and 50% of 700K (BCC) is 200 and 350 respectively. Brisbane needs much less % to overtake Logan and similar in quantum.
     
    TheRons likes this.
  5. Property123

    Property123 Well-Known Member

    Joined:
    26th Sep, 2021
    Posts:
    83
    Location:
    Sydney
    Thanks for sharing. I agree that oversupply is the enemy of capital appreciation. Properties closer to the CBD tend to appreciate better in the long term largely due to its higher land component and lack of supply. However, the Brisbane inner and middle ring markets have moved so much, I do not see great value in the short term. Logan and Ipswich have not moved as much and still have some great deals with decent cash flow. It could be a good idea to buy before the ripple effect completes its course.

    Perth offers better value for money, but it heavily relies on mining. I am still cautious of the city's long-term prospects.
     
  6. Property123

    Property123 Well-Known Member

    Joined:
    26th Sep, 2021
    Posts:
    83
    Location:
    Sydney
    Thanks. I used the median house prices on the pricefinder.com. I added 10-15% on top of 2021 median price to make the data more aligned with the reality. I bought in Logan and Moreton Bay this year and know how quickly the market is moving.
     
    TheRons likes this.