Household income!

Yes Corey that is my point - and what you have alluded to in a previous post.
Not sure what will drive Sth East Qld to any great "real growth", given that record low interest rates have not done anything much, unlike what has transpired in other markets.

Yes some investors are looking there who were previously buying in Sydney.
But the median term doesn't excite me given that it could be coupled with higher interest rates.

 

My thoughts exactly!

 

I've been watching Epping for a while now and unfortunately not in a position to buy at the moment.
While it has already gone up in the last 6 months I still believe it's undervalued and still some solid growth to come.

 

I've bought 3 in and around the new hospital. Looking to do 1 more in the New Year. Will let you know how SC growth has gone in the next 12 months or so. Seems plenty is going on.

 

So all around the 4575 post code? Mines in Maroochydore near the new CBD development so hopefully that sees some growth also.

 

Correct.

Sunshine Cove by chance?

 

My point yesterday about incomes and house prices wasn't so much to suggest that there is potential for income growth but more to say that the median income will seem low due to the massive number of retirees and currently unemployed people living there. Then pointing out that plenty of retirees and business people sea changing will want higher end properties. Market to this demographic rather than to the opposite demographic.

 

Don't forget certain professions tend to lend itself to cash-in-hand jobs. Those don't show up on census data

 

Think of this , middle class person from sydney or melbourne retires and sells the family home. With the proceeds they buy a house on the coast. They may choose to simply spend the rest of the windfall on living expenses or add it to their investment income

Either way their weekly income is going to look fairly low
Are tax free pension payments included in the stats?

I also look at the average income when buying but you have to be aware of the demographic of the area. Think of the motives of people who will be buying there for ppor

 

I totally agree but how many people would actually do that. Maybe 10%?

 

Not relevant to the sunshine coast. If wages rise they will most likely stay up as will demand

Mnining town prices were driven by yield/ investors
Income has probably only dropped a little bit there but a lot of people have lost their job and will move so no pressure on rents at all

 

A factor yes but we are also talking Sunshine Coast. There is a big chance the incomes are low due to retirees who have moved for warm weather. They may have little income but a massive asset base which could be liquidated to still pay a premium for property.

 

Similar Cairns

 

Hi Sonamic

How has your growth gone in the past 12 months?

 

I think median incomes is a good criterion to look at. Low income suburbs can be risky because if there's a downturn, that demographic group is at higher risk of default (for similar reasons, I think it's best to avoid outer fringe suburbs and tiny apartments, especially those recently built: these areas are already overpriced and tend to attract people who only buy them as everything more desirable is already taken. They also tend to attract a lot of speculative investors, so a higher number of people sell up if prices fall. By contrast suburbs with a high number of financially comfortable, established residents tend to be a bit safer. If prices fall the residents in those suburbs often aren't affected). Established, middle class suburbs in my opinion are ideal investments; they are always in demand.

 

Hey @Pepsi

Personally for the 3 in question, in the vicinity of 15% up. Not too shabby. Rents are steady.

Good memory.

 

Murphys law suggests that if you find high yield in a high income area then your tenant will lose their job soon after signing.

 

Clayton is now like a Chinatown (possibly another glen Waverley) in the coming years.

 

Bundoora is already in demand in the 600Kish and growing. Apartment complexes popping up like nobody's business along plenty rd. Went to see one launched 2 months already 70% sold out. Bundoora actually is in the middle of 2 universities Latrobe and RMIT and is rather not walking distance. the suburb of kingsbury is the one located directly next to Latrobe.