Brisbane&Sydney

Unit would probably make more sense for IP, but I still think I would look elsewhere, the lower to mid end would be less tax wise and easier to offload in a downturn, if more wealth is backing you up, it may be easier to do these places.

When you think of it, if you buy at the bottom or before the rise, Sydney is awash with good growth, even the crappy suburbs that you would not live in have done very well.

 

Agree mate and its horses for courses.

But also they can't move a beach to another suburb; )

 

They have a big slip and slide out @datto s way....

 

Hey @trinity168 all good mate. All the units are held, bought them all in....ah... end of 2013 if my memory serves me correctly. Yeild ranges from 6-6.5% approx now but all had decent renos . I just refinanced and get as much of the equity out to reinvest rather then selling them. I plan to turn all 3 of them into BnB because of the location and 2 of them are actually higher spec than many hotels. All within 5 mins from Bondi and Coogee beach. I remember at the time I was having dinner with a friend and had told him the market was ripe for units etc etc. He said hes not buying because he is waiting for it to drop even further and doesn't want to pay extra. It was literally like a few months later the market took off. He didn't buy any.

One of the funniest things I ever heard was from another person who refused to buy a property because she didn't want to pay stamp duty and was waiting for it to be abolished. This was pre Sydney boom. She was earning at least 200kpa that time. Also didn't buy anything.

 

Please share, how can you "easily" see this.

Quite risky? Wow please do enlighten us, exactly what is the risk?

There is a train line going in the area, the entire Kellyville area plus Parklea market is being revamped and I can name at least 5 major projects happening in Parramatta. I had an investment property being rented in Feb in the area and had a Brisbane couple inquiring for rental there as they were trying to find employment in the area.


Brisbane promoters here have nothing to say other than what others have told them about these fantastic things that are happening in Brisbane or are are written on some government website somewhere. Yet some of them are either already out of Brisbane or are trying to get out looking for jobs. I laugh every time one person talks about these "great things" that are happening in Brisbane when the mining is belly up and the government is broke.

Ah well, maybe santa is real after all.

 

Lol..there are many cranes in the sky and big ass holes in the ground with machinery everywhere...construction is happening. Not hot air based on govt websites and heresay...
Thats real evidence...i would think.
..and santa is real. He has delivered a decent 6figure plus equity gain a lot of inner brisbane in 3 years. look at rp data stats for evidence.
Eg YIP mobile

 

If it was bne they would

 

Well, Sydney had already done it. And its not too hard to go from 400k to 500k in a market. I've got Sydney property that went from 300k to 500k, it took some time, but it happened. Easier than 800k to 1mill in Brissie anyway since you are going from below median to the median.

It's not really the time to be bullish on Sydney. My sister and her husband bought the perfect home in Castle Hill in 2012 - flat very wide land (must be over 20m frontage), near 1000sqm, quiet street, walk to a new train station, excellent solid ~1980's house. Only paid about 868k - 880k for it because they bought at a time that noone else was looking.

In the top of the boom (mid last year) it would have easily resold around 1.4mill or more, so a lot of instant equity. I doubt it will get much higher in the next 1-2 years. Pricewise it is not really any cheaper than any areas closer in so there's not too much reason for it to do better than anywhere else.

If I had the budget I'd choose to go closer in. Yes the Hills district is nice (I like the green leafiness, there's low crime and the people are nice) but I'd still try to go closer in. And if you don't have the budget then the Blacktown area (which is adjoining) represents much better value with much lower prices. Its got potential for gentrification - Parramatta's getting better and so I think it will spread West and you don't have to wait for the train line to go in.
Ps. Re: Parramatta. If someone buys there, I know what I like, unit wise. That area north of the River bounded by Victoria Rd, Macarthur Girls and Wilde Avenue that becomes Smith St. Its a very quiet area but is handy to station etc if you dont mind a bit of walking. Hardly anything in there seems to come onto the market and it looks to be full of pleasant and larger looking ~1980's low rise units. But note, I haven't seen the insides of too many since they hardly ever come onto the market!

But otherwise it has to be a house. The land is too valuable.

 

It's a she I'm rethinking about the whole thing of buying in Sydney as it's obviously not the great time to buy atm. Brisbane might never boom like Sydney and Melbourne did because it doesn't have such strong demand. But as the price is still reasonable it'll grow for sure just maybe not as high as Sydney. I wouldn't buy an unit in Brisbane tho as the oversupply. Will probably be a townhouse or house in Brisbane or GC.

 

Hi Clairal. Nice to see another gal here!
Look, there may still be growth in Sydney but you have missed the boom. I first bought in Sydney in 2005. While it didnt go backwards, it did nothing (was flat) for 3 whole years. Brisbane has more potential than Sydney right now. Other people may be right in that Melbourne maybe steadier. Who knows?
But Sydney's boom has finished and its going back to a more normal market now. There are buyers, but its not over the top crazy.

Edit: Damn. The edit button has gone from my post last night. I can't edit "s/he" to "she" now....

 

House in Brisbane, middle ring if you can afford it and if it fits into your plans. Just my opinion.

 

Girl power!
Hang around the forums and chat room. Lots to learn and, lots of mentors here.

 

@Clairal - aren't you glad you posted

With $800k to spend, you pretty much have you pick of properties in QLD - that'll get you a great house on a nice big block pretty close to the Brisbane CBD. Might have development potential too.

If you can afford a house, probably worth it rather than a townhouse.

Remember:

Land appreciates.
Buildings depreciate.

 

I think it is pointless for me to try and re-iterate the points that I have already stated. The trouble is some people are trying to pass personal opinion as factual information and their logic is based on a government website promotion or a crane they may have seen on their drive home.

@Clairal look at Perth. At one point it was surpassing NSW in an unprecedented growth. It crashed and burned and the sole reason behind it was mining and nothing else. Otherwise it is a great city and like Brisbane it has a local economy. Brisbane doesnt have much over Perth to be hopeful to do better or even stay where they are now.

The reason for some growth in Brisbane is really low interest rates and the false hope for people that can't afford in Melbourne and Sydney and are buying in Brisbane in hopes that it will go up. This pool of buyers will drain and thats when the growth will stop entirely. I was ready to buy in Brisbane over a year ago and I didnt because I know whats going to happen the moment interest rates start going up.

There is fad and buzzes with masses of people having a personal opinion. My suggestion is dont go based on personal opinions. Research facts about the economy, sustainability of the employment market, universities in the area, infrastructure and some other aspects that create demand for housing long-term and base your opinion on that rather than what me or someone else has to say to you on here.

 

If you were buying in many of the areas I was actively looking in, you would realise you were competing with locals, both investing and home buyers, it is not run just by Sydney investors, some areas may have more than others, but it is a mix.

 

Well said @Tenex as most investors on here tend to suffer from confirmation bias, in that it's virtually impossible to be objective when it comes to opinions on what/where/how to buy. Some of them can also be seen to be intentionally ramping to drive interest in their own recent purchases (good old herd mentality at it's finest ) Everyone is going to have an opinion and it's pretty easy to throw stats around to support/object certain areas/suburbs under the comforting delusion that none of us are biased

At the end of it all, it's up to the individual investor to base their decisions on as much information as possible (and I agree wholeheartedly with you about researching the macro and micro factors as this is key), and some of this may well include seeking out other investor opinions. The important thing is not to fall into analysis paralysis as a result, but instead work out what is best for them, as each individual's personal financial situation and SANF/risk profile is different.

@Clairal for what it's worth I can only comment on Sydney as my company works for buyers here and not in any other states, but it's a big place and you really do need to do your own research. The herd may well be crying that the sky is falling in our fair city, but (and please note here this is only my personal opinion ) we search daily and bid/offer on/buy property practically every week for clients and we've found this certainly isn't the case across most of the suburbs we frequent.

Yes, there's been a cooling with reduced clearance rates, increasing days on market, less frenzied activity but this is a normal part of the cycle. The growth rates of 2012-2015 couldn't continue indefinitely as buyer demand and supply (plus a number of other factors including low IRs, foreign ownership, increasing population, strong economy etc) is what set the market.

Only you can decide where/what/how to buy. Do your research, be aware of bias, seek professional advice where required, make as fully informed decisions as possible and remember that property should be an investment over the medium to long term. There are no guarantees with capital growth. There are no guarantees with future rental return. All investment involves a degree of risk. There is an element of luck and timing but there's also a lot of groundwork that needs to happen prior to the purchase. I wish you all the best in moving forward

 

+1.

 

Whilst I understand the confirmation bias points made above, myself ( and Id say the RE market in general) do not agree with the points @Tenex has made. This is backed up by 3 years of consistent growth in the brisbane market.

 

Yep, impossible.
Buy 2 x $400k instead... it will happen quicker

 

I am sure Brisbane will boom some time ? when I don't know?? I am confused I guess.... the problem is this Brissy boom has been talked about for the last 2 years on this forum and in various investor magazines...... and we are still waiting on it to actually happen. I have not seen any real figures on this forum, actual profits etc on actual deals on areas.

In a way....I guess similar to Adelaide, but this talk started on SS/PC since 2013 and during this time we have seen 3 actual booms happen in Sydney, Melb and Perth. So if anyone missed buying in any of these 3 markets then you perhaps you were possibly following the wrong threads.

Perhaps some areas have taken off in Brissy/Adelaide? but its not a boom yet, boom is where we are seeing 20%+ increases.

Its very basic and very simple stuff... you phone 4 agents in a particular area and you work out volume on the market, days it is taking to sell to determine demand, none of this fancy graph stuff because it could be outdated and in most cases it may be misleading and confuse the hell out of you just my opinion. No offence intended to anyone buying in Bris or Adelaide.

Happy investing to everyone

MTR