NSW Confused. which city is the best bet Next ? Brisbane, Adelaide, Canberra or Hobart ?

Hi, All,

I am talking about a non-new house investment.
Have 350K or so to redraw, need to invest now. Which one is best bet for the next 5 years ?
I know Perth is at 3Pm in terms cycle/clock or whatever you call it, and still down for the next couple of years. Melb and Syd are at or near tops.

I am not concerned about 1 or 2 years performance.
Personally not very comfortable with regional towns. Then from the below, where should I go ? The more research I read, the more paralyzed I am.

Brisbane, Adelaide, Canberra or Hobart ?

 

That is 64k question.....
I think Brissie is next ..but I don't think it will hit the straps like Sydney did.

Adelaide will follow again it will be lower growth but growth none the less.

Undecided about Canberra and Hobart....

 

I'm going to start a thread soon where I will finally reveal the next hot spot. Stay tuned.

 

With the current environment, federal government policies, federal election, current economy, people's confidence, low wage growth, banks hacking interest rate, APRA changes, business confidence, investment growth stagnating. Can't ser any clear sign of moving much, but it could well be the clam before storm in Brisbane. It is the 3rd largest city in Australia, on the east shore, not far Sydney or Melbourne, still very low media price. Hm....., anyway still hard to tell

 

Gold Coast.

 

Is it a Brisbane suburb?

 

Land tax is an issue in the ACT , so I tend to ignore it

it depends on what you're looking for .

Purely growth . Brisbane > Adelaide > Hobart .

We hold a house split into units in Hobart and have done very well with it so I'm not adverse to Hobart . We have looked at Hobart in the current , but haven't found anything that gave such a good return that it stopped our plans to buy in Brisbane .

Our centrally located Brisbane properties have already started moving , while some outer areas are only just starting to move .

Ask D.T and daveM about Adelaide . I think it's a viable alternative .

Cliff

 

Why do you need a hot spot?
Purchase investments to fit your individual financial circumstances and increase your own net worth.

What works well for one person could be a disaster for someone else.

Relying on external market factors is financial gambling.

However, just to get with the trend - Adelaide western suburbs would be my bet.

Landlocked geographically by the beaches so there can be no further land release.

Very undervalued compared to the eastern suburbs located the same distance to city.

Councils are re-zoning for higher density development in some western spots - we just listed a property for sale along Anzac highway where it has just been zones for 8 story development. This is only the beginning of urban infill and this property, I would bet, will sell for over a million which will begin a new precedence for the area.

I see lots of growth in these areas but again - people need to purchase what fits not what is speculated to appreciate. Capital appreciation is long term.

 

I think Canberra houses will do well over the next year, but you will struggle to find houses in your price range. Don't even consider a unit.

I'm not sure about capital growth in Adelaide, but certainly seeing lots of opportunity to make money. Have been to a number of open homes today and lots of ppl about.

 

Great hope Paralowie, Parafiled Gardens, and Elizabeth North all move....

 

Land tax in the ACT needs to be factored in, but wouldn't prohibit me from investing there. There is no threshold, so you pay on every property. But it isn't cumulative, so the more properties you own won't push you into a higher bracket.

Allhomes lists how much land tax is payable on a property - a cheaper outer suburb such as Dunlop, you might pay $1500-$2000py depending on land val

 

@Xenia which particular Adelaide Western Suburbs are you referring to? I know this is weird but I've always shied away from Western Adelaide burbs due to the aircraft noise across some of them. A silly reason, but with your mention of infill medium density, I might take another look.

 

Aircraft noise has been an issue for me too. There's a gap between that and the city (e.g. mile end etc) which could be good, but very old stock here. At the opposite end is the beach of course - I think the beach side suburbs will do great as they're significantly cheaper than other city's beaches.

Stuff like Kurralta Park has high supply with tons of units and the rezoning allows even more.

 

My suggestions are

1. Run the cashflow numbers for each of these areas. Can you achieve the rental returns you are comfortable with? This will fine tune the suburbs you target.

2. Spend a weekend visiting the cities.I had some clients come up from Sydney today. Made the world of difference seeing the properties in person. Gave them the confidence to put in an offer, and couldn't believe it got accepted. I am certain had it not been for the trip, it would have taken them much longer to make an offer.

Helped that @Lu Bracher came through each of the properties and gave rental appraisals on the spot!

Cheers,
Michael

 

Hi C Mac - I'm talking about west Torrens areas. Glandore, Richmond, plympton, Kurralra park, Ascott park, Marleston.

Most of these are not directly in the flight path, some of the ones closer to air port tend to be, cowandilla etc.... But they are not the ones with the greater potential.

Have a look at some of the west Torrens council plans and rezoning. There are only 2 properties zoned for high density development at the moment. One is for sale, through us, the other one is not.

This is only the very beginning - it begins with one and once it is developed to an 8 story commercial/residential mix building (what I'm betting would happen) it will set a precedence for the area.

Unlike northern suburbs where there is new land released further and further out, you cannot go any further west than the beach so geographically it is poised for urban infill.

I personally invest in western suburbs and manage lots and lots of properties in those areas too so I'm very biased to the area because I'm there often.

 

Something like this @sash ??
27 Grevillia Drive Parafield Gardens SA 5107 - House for Sale #121224018 - realestate.com.au

 

Nice, this property could have a decent yield. I just did a quick search on RE.com.au and the cheapest 3br in 5107 is renting for $275/week and $290/week.

 

Shhhhhhhhhhhhhh

 

And vacancy rates in 5107 is 0.8% (SQM). From my thorough 2 sec DD it looks like it's stacking up

 

There are still plenty of affordable options in Melbourne west.
Purchase a piece of land in one of the new estates and then build on it. You'll have a good new 4 bed home under 450K. And they are in the Melbourne's planned growth centre areas so will definitely perform.