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

Yep, Canberra for sure.
Might even be a bit too late...

 

Mr Fluffy saga pushing Canberra along nicely.

Naturally geared property there too so don't have to reach into your own pocket like you would in Sydney or Melbourne

 

@Toon I was surprised to read that ABC News article about Chinese interest in Canberra.

Chinese buyers typically love the 'land ownership' component of purchasing residential property in Australia. With Canberra and all of the ACT, it is 'leasehold' ownership, not freehold. It's surprising considering the nature of generational ownership in Chinese families. a 99-year lease would surely be seen as a deterrent in that regard, no?

 

That's interesting - I thought that the lease time started when the subdivision began, so the inner suburbs would be up for lease renewal in about 30 years (not 99), and others coming along after that. Is that correct though?
It's one way to get more blocks for embassies in Yarralumla - don't renew the lease on a few of the large blocks .

 

I think that property is sold for $215k in the end. Any PCer got this in the end? Still a good buy if you can do the reno yourself.

 

Which subs in west? How far from CBD?

 

Truganina, 25Km from city. Next to Laverton north industrial area and planned to be part of Business centre. Tarneit train station is also closeby. Tarneit itself is also an option which is about 30Km from city.

 

not sure i agree! maybe in newer suburbs where the land is smaller, and hence rates and land tax lower, you might come closer, but something on a standard 700 odd sqm block in middle ring type suburbs, yielding say 5.5%, you would still be out of pocket 4 or 5 k a year imo before tax. better options elsewhere imo.

no one seems to care..its never even mentioned (aside from in tax discussions). everyone just assumes the lease will be renewed every time...i assume the same and don't give it a thought...ignorance is bliss?

 

@S1mon I suppose you are right! Wealth creation strategies are usually designed for the immediate remainder of one's life (and possibly to pass on to a second generation of children). Still, the Chinese buying community really do value "dynasty" portfolio-building and generational wealth strategies, I wonder if Canberra would be a deterrent to them as a result?

Local buyers of course won't be phased (and shouldn't!, and neither should any buyers, for that matter!) of leasehold property ownership. Really, you have 99 years to make your wins, if you can't do it in that amount of time you probably should never have bought it!

 

215.. Bloody hell.. Is there really enough in it at that price?

 

@Kangaroo
There has been various information and opinions on this thread which should be useful ...
Are you still confused?

 

My opinion is that nowhere in Australia will do a Sydney and Melbourne type boom in 2016... therefore it will be a year where you have to apply some:

• creativity and/or
• some value add and/or
• some amazing buying etc.

strategy to do well... It won't be so much of a timing lord year where you just go out, buy something and next thing you know its worth 20% more than before...
Therefore.... if you can apply any of my points above, you might do as well as anybody else. I do however recommend staying clear of the markets going backwards (Perth and Darwin) until they show signs of positivity.

 

@Gockie I agree with you for the most part re: 'buy-hold-and-hope' not likely to fruit much CG growth in CY-2016.

I am curious about your comments on Perth and Darwin though. By mid-2016 it is likely that Perth particularly will be nearing a bottoming-out stage of its cycle, after having been in a downswing stage for the past 18 months or so.

I know it is pretty much impossible to call the 'stage' of any cycle in any market. We usually don't know when/how to call the 'bottom' or 'top' of a city's cycle, until that phase is over or transitioning. But with Perth, I think if anything, buying opportunities will start to emerge in 2016.

By 2017 Perth will be working hard to transform itself and transition out of mining-dependent industries (Well, hopefully!). Will be a good one to watch!

 

Ta @C-mac! I just think when there are signs of positivity, its worth buying. No point buying if the market is still going backwards.
So.. if you see signs of the markets in these places picking up... go right ahead.
I know Darwin was really expensive for a while (like, second most expensive capital city in Australia) and I feel it is now in the correction phase. Will have to watch and see.
Perth... again... you should be able to notice when it has bottomed out and there's more confidence.
My first place I bought in Sydney in 2005 did nothing for 3 years... and because of this, I think its worth only buying when there is a signal of price growth. Money was going out, but not much growth... till 2009 and 10 came... increase of over 40%.
the next place I bought... the vendor was in SA and she hadnt realised the market had moved so much in Sydney.... I snagged an outright bargain...

 

Totally agree with you on buying just when there are positive signs.

Perth is one of the markets I am LEAST knowledgeable on - I've done little due diligence on Perth or anywhere in WA for that matter.

However, I think the smart observers should be watching WA's macro-economic news over the next 12 months. That's what I'll be keeping an eye on. It'll be interesting to hear what the politicians, chambers of commerce, etc. are going to vocalise as being Perth's economic/business strategy for "life after mining".

There hasn't been much in the media in terms of mentioned strategies to re-build Perth's economy, and that in itself is pretty frightening. Again, I don't know the ins and outs of what drives Perth's economy outside of mining and resources. The city's completely remote location (it is actually the most remote metropolitan city of more than 1 million people on the entire planet...) makes it difficult for Perth to compete against the Eastern states in many sectors and industries to try and re-stimulate their local economy.

Seriously, where is Perth's re-build going to come from? And please don't say "construction industry" as we all know this a band-aid economic solution. Population growth as ceased, so the current construction of more houses/roads/hospitals etc. appears highly unsustainable as an economic driver, if their population is flat-lining.

Very much a wait-and-see but who knows, WA could pull a rabbit out of the hat and surprise us all with some kind of innovation in their economic growth strategy.

Once this kind of stuff gets announced (and better, actually actioned) maybe then there'll be a turning point for Perth