NSW Broken Hill for first IP?

They are both part of Ipswich City Council, would hardly call this metro to Brisbane...

Or would you call Gold Coast and Sunshine Coast also metro, if so why not throw Toowoomba in?

Goodna is 25km (drive) from Brisbane City
Bundamba is 34km (drive) from Brisbane City

Compared to being 15km and 5km from Ipswich.

Kangaroo Point Investment Property Market Data
This doesn't look to bad for last 5 years - 21% but remember the floods happened in 2011 (5 years ago) but last 4 years has been 41% and is a lot closer to Brisbane Metro than Ipswich Metro...

Toowoomba - 30%
Bathurst - 22.6%

Regarding better cashflow, it is only better cashflow if it is rented.

Toowoomba City has between 400-500 people p/m looking for rentals with 27 properties currently listed for rent (464 taking Toowoomba City and surrounding)
Bathurst has 80-140 p/m - 110 properties currently listed
Kangaroo Point has 750-1,300 p/m - 14 properties currently listed for rent (120 including surrounding)

At best there is 18-1 people per property in Toowoomba (or 1-1 with surrounding suburb), at best in Bathurst has 1-1 ratio at times there could be 2 property to 1 renter. However KP has on average 73 people per rental (or 8.5 including surrounding).

So there is more demand for KP than Toowoomba so getting a better yield yes will give you more money but if it takes you longer to rent you could end up being worse off from a CF perspective...

 

The point I was trying to make is we can show current stats to pick winners and losers and try to falsely extrapolate that one state/city/capital/regional as the only place to invest.

I could have picked practically any Brisbane suburb 2 years ago and looked back 6 years and falsely stated that regional property is the only viable option and ignored cycles.

Addressing your points in order:
Greater Brisbane doesn't only include BN LGA it includes surrounding areas. Toowoomba is regional under any definition. This wasn't what I was trying to highlight, I was showing how figures can support any position.

Goodna is part of the Greater Brisbane Metropolitan area. To say otherwise is like saying The City of Botany Bay or Hornsby is not part of Sydney.

Toowoomba was as affected by flooding as much as anywhere in Brisbane, that footage of an inland sea racing through the main street is hard to forget.
Surely this would have affected market sentiment as much if not more than Most of Brisbane?

Regarding Kangaroo point the $905k median with a median rent of $550 is horrible, this would wipe out many investors serviceability fairly quickly. Interest repayments on this look pretty ugly, glad I don't hold anything like this.

I would question why the median rent is so low if demand in the suburb is as high as you suggest.
Only one tenant is required not 100, if the demand was so strong the yield would be a little better, many are probably development sites. I'm getting that sort of rent in Carina.
The huge increase in supply of new developments is going to lead to higher vacances very soon. I would think that finding a tenant might be about to become a challenge here.

Back to Toowoomba, even with a couple of weeks vacancy the cashflow postion cannot be compared.

I'm not advocating regional over capital cities at all, both can do well, to say otherwise is to fail to look objectively.
I have a few regional places in NSW and Qld but I have mainly invested in Brisbane and recently Adelaide over the last 20 years.
Just my 2c.

 

Your back big will

You challenged me to find the 20 years stats, i found 14 years in about 5 minutes
The stats showed that south gladstone and salisbury had the same growth from 2002 to 2016

So you ignored that post and started ranting about kangaroo point

I guess the example of bundamba/ goodna vs toowoomba/bathurst was because they all started with median house values in the low 200s
but you really cant compare totally different markets over a 4 year period

 

I never left, I choose not to spend my weekends on PC. You will notice I very rarely post on weekends (I think my weekend total post would be less than 5) or even check PMs during this time.

I did however choose to ignore your post as you failed the 'challenge' as 14 years =/= 20 years, you only achieved 2/3 of the brief. Let me know once you get 20 years...

I have already mentioned previously that each market performs differently but choosing something at best on the fringe of Brisbane metro in a low demand and lower quality tentants (generally speaking), higher crime, and is part of ICC (Ipswich) does not yield the same results as BCC.

If you think being part of a different council has little to no effect than the same should be for suburbs yet there is distinct difference in neighboring suburbs e.g.
Robertson Investment Property Market Data - Median 890k where as the highest neighboring median is Macgregor at 734k (21% difference) and the lowest being Coopers Plains at 520k (71% difference). These are neighboring suburbs that are both roughly the same distance to city (as a crow fly's) and not different councils.

Also the population of Toowoomba is about 110-120k, Gladstone is ~65k and Bathurst has ~42k. We are talking about up to 5-6x BH population here compared to BH, which are not fair comparisons to make for the OP.

 

Never once said to ignore cycles the debate started on BH chances of increasing and the demand and why if you don't know what you are doing it would be safer choosing a metro compared to regional.

RE: LCA Syd City Council area is 25sqkm, BCC is 1,367sqkm... Just a minor difference.

To visualize this


Sydney 25sqkm


Brisbane - 1,331sqkm


Sydney - 1,347sq km (still smaller than BCC actual area).

So to including ICC (another ~ 1,200 sq km)



You are basically at Wollongong!

At least compare apples with apples and not comparing a council region that is basically 1/55 of the other.

 

FYI the source of my area maps...

Area Calculator Using Maps

 

she bought in BH. Investor of the Year Awards 2015: Esme Chin

 

What is she doing now ? there are some gems on that list !



I have to wonder why some people beat up on regionals, unless they have none

 

How did they calculate those yields?

$69,000 purchase, $170 p.w. rent = gross yield of 6%?

 

No, it is over 12%

rent x weeks occupied / buy price x 100

They may be using the latest valuation, or adding reno costs, this will drop the yield

Depends on how you look at things, yield often drops as capital grows.

 

Enjoying her time now on the dating scene? I just saw a stone house in Albury... Woah...

 

Wonder how the US buys are performing, Texas was mentioned here recently.

I am not sure, but I do not think Broken Hill would be all that volatile, so she is probably doing ok, could end up being more volatility in the Western Sydney holdings, time will tell.

 

I know it's over 12%, that's why I questioned the figure.

Why would they calculate yield using current value against the rent in 2008? I don't even see the logic in calculating the yield on current value instead of the figures at the time of purchase.

 

Yeah, I guessed you may have known, never sure though

Depends how you look at it, but it should be calculated from what the actual rental income is at the time, the variable when you own it is do you use your buy price, buy price + costs like renos of 40k, or current value.

When you go to buy a place, do you calculate using the sale price or 7 years prior ? If advertised for sale, we all know how people will do the calc.

People always have different ways of working things out.

 

"Gross rental yield (current)" Why did they calculate this way? Beats me.

 

Id ssy thats a very risky portfolii

Her regionals are very regional

Plus those west sydney purchases are near the end of the cycle.

Not a good balance for short to med term in my opinion

 

Hey there TMNT

Well, I did not like some, welly, condo, and the silver city (probably later is not so bad)

Also no doubt, Sydney is not near peak in SW and West, it is well past, but without knowing the financial position today, it looks not too bad.

I would not like the NSW land tax, apart from that, you can't really shoot it down too much, I do not want to get into tearing her down. We all do different things, makes it interesting and better to be spread out.

 

Disregarding renno costs our yield in broken hill is 21.6%....
Although when you own a property that cost 48k the difference between a yueld of 13% and 20% isnt as much as it sounds

 

For what its worth her portfolio seems really risky even by my dodgy standards

I would hazard a guess and say all of those regionals are way overvalued by the magazine except for the gunnedah property

So take a couple of hundred k of the equity and then take anoyher couple of hundred of for tge south hedland property
Then throw in the risk of the priced properties in sydneys worst suburbs and faaarrrrkkkk

Timebomb

 

I hear you, your not renting for 2k a week