Investing sentiment in Australia over the next 2 years [Poll]

Well John McGrath reckons North Brisbane

 

Maybe Toowoomba,the new airport may well give that old money town the kick along ,and read up on the exports that are starting to fly out to SEAsia..imho..

 

Brisbane for sure. Also still some pockets in Sydney to make some CG

 

Yup. And most of Melbourne has also gone- the eg the inner and mid east Mel.

 

Agreed.

 

Considering how much talk there is of investing in the news, reno shows etc... I could see him being a thing - Due Diligence Man!

 

@Bran no mate, I'm not buying there in Park Ridge for sure. I was just wondering why the new property in that area is already sold out quick ?

There must be some reason behind it.

I adhere to the principle of not buying new & Off The Plan for sure.

 

My preference is:
Brisbane
Adelaide
Melbourne-Outer and regional
Central Coast and Lower Hunter

 

I ordinarily only play in cap-city markets, but this year I'm turning my attention to 'big' regionals (greater than 50,000 population; and multi-diverse economies).

The poll wasn't clear about it's definition of having the greatest CG. Was it greatest CG in terms of overall CG 'volume' or in terms of overall CG %? The answer is important when determining what areas will have greatest CG.

For instance; a $200K regional property could go up by $30K in one year (that's a huge 13% Capital growth 'rate' but of course only $30K of CG 'value'), versus a Sydney property which might just ride the last of the wave and 'sputter out' a little more CG. But if an $800K Sydney property only increases to $850K in the same 12 month period, well that is actually only a 5.9% CG 'rate' growth; but of course you've made $50K of CG as opposed to $30K, in the same year.

Of course there are other variables at play here; but I just wanted to highlight that folks should have a definition of what it is when they seek CG growth over the coming 12 months - %, or pure $$$ volume?

For this reason I'm eyeing off "Big, Diverse" regionals in the sub $250K buy-rate price range; that are yielding at 5% or higher, that have big CG prospects macro and micro-economically; oh, AND development potential as others have mentioned here (in the states I am considering, 800sqm+ size blocks are what I'm looking at).

 

Brisbane, Adelaide.

 

Giddy up 800sqms!

 

Based on your question - "best investment locations (for capital gains) over the next two to three years?"

Gold Coast. I certainly wouldn't be investing there - long term outlook is concerning - but short term is very positive.

 

Do you say that because of the Commonwealth Games, infrastructure etc... short term?
Why do you think the long term outlook is concerning?

 

Lord Mayor Tom Tate is doing a lot for the local economy, infrastructure and Comm Games are just two. New hospital, upgrade of universities etc are all part of this as well. Demand is increasing in the short term and has vacancies tightening which will see an upward pressure on prices.

Longer term though, Tom Tate is a developer by trade and is using the construction industry to help bolster the Gold Coast economy. There are more development/building applications this year on the Gold Coast since pre-GFC. These will (generally) flow into significant supply issues over the next 3-5 years. Furthermore, post the 2018 Comm Games they will be breaking up the athletes village and using it across the Gold Coast as affordable housing. Whilst affordable housing might not be the 'desired' investment you are looking for, it still contributes to general supply concerns for the Gold Coast.

Just a few things that astute investors should keep in mind.

 

I only see that as a negative for units, but that's already the case.

Long term: if that were the case, might be worth looking at old houses on big blocks where developers might be looking to build.

 

Agree that it is going to affect apartments more than houses. The problem with houses on the Gold Coast is price - I think for the amount of money you need to spend on a house on the Gold Coast - there are locations in Australia that have better potential and would be a better use of your capital and cash flow.

 

You're probably right, though for those familiar with the market there are plenty of opportunities.
Where's your buying tip Bryan?

 

That's the big question isn't it!!!

 

That's interesting. My brother in law has a property on the Gold Coast he has been trying to offload for a couple of years. I was wondering if it might be worthwile hanging on to it given the potential for capital growth. He can afford to hold as it is cashflow +ve.

Any guess as to when might be a good time to sell?

EDIT: I think the property is some kind of short stay accomodation, so in the lead up to the Commonwealth Games might be a good time for him.

 

Before the market peaks????

That's a wonderful crystal ball question - if someone knows that - please have them pass on this weekends lotto numbers as well!