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

I think I found an answer to my own question and I edited my post as you replied:

"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."

I will pass this info on. I think he is watching the market very closely anyway.

 

Yeah, closer to the Games would probably be better than now.
Especially if he can rent it out to tourists at a premium!

 

Good to see this thread still ticking along.

C-mac I was referring to percentage growth, not nominal growth amount. I feel like that is a better metric for comparison.

 

I don't think the Gold Coast's prospects are that dire. Lets remember that the Gold Coast also has a tourism economy also, it will be well back on track with the falling dollar. We have an ageing population with a lot of baby boomers retiring over the next few years and who wouldnt want to spend their days on the Gold Coast? Developers are not entirely stupid, we all know about the supply issues on the Gold Coast but I actually think that this market will start performing better than it ever has.

 

True, these units might have a ripoff margin built into the price, but it still might look cheap to people selling up in Sydney and Melbourne.

 

Brisbane
Perth
Canberra

i still feel Perth has something going for it ?

 

Brisbane and major regionals, as I mentioned.

 

Im giving the Gold Coast a thumbs up too....the feeling on the ground here is very positive at the moment with all the new developments and infrastructure projects in the pipeline. Tourism is on the rebound and Jupiters is building a 5 star resort....Im in Mermaid Waters houses are getting snapped up very quickly and vacancy rates are low. Prices have not increased significantly yet but I think a house near the beach will not be a bad investment . Units have never been a great idea to buy on the GC.

 

Nice spot, my grandparents used to live opposite the water down there (not waterfront).
It doesn't seem to follow a regular cycle there, but when prices increase they really increase.

 

We moved here from the hinterland side of coast a few months ago....probably near now where your grandparents live lovely fresh water swimable lake down the road...beach 5 mins away. It is a tough life here ;-) Love and grew up in Sydney but dont think I could ever go back now. We have investments in Sydney and I said I would never buy an investment on the coast but I may be swayed .....Burleigh, miami, mermaid and Southport are my GC faves.

 

if you had 800k to play with, could you buy 4 200k properies and make $120k? Or is there something else at play that would stop this

 

Yeah, dawdle to the beach, Pacific Fair, Casino if that's what you're into. New tram stop not far away now.
Do you mean swimming at Pizzey Park?
Just make sure you stay out of the canals, they can look tempting on a hot day, but you will look tempting to the creatures.

 

Yep, new rules make it harder to to that: 1x800k will need a certain serviceability (bank dependent). But 4x200k will need a*lot* more serviceability since when you go for the third, each of the first the first three will (for first tier banks and even some seconds) be counted only at 80% of rent for income and 7.2% (or so) principal AND interest for expenses.
So you may easily find that the fourth one is out of reach due to serviceability yet a single 800k is fine.

 

No its a locals secret Lake Hugh Muntz....fresh water lake not connected to the canals . Surf life saving clubs practice there when surf to rough. Really lovely spot .

 

There are a number of variables to consider in that $800K example. As others have said, it comes back to serviceability, sure.

But longer term, the APRA rules will eventually be lightened up/lifted, and borrowing power will return again from lenders.

I'd argue that the flexibility and laget use / partial sell-off options of the 4 x properties might be am edge over 1 x $800K (generally speaking). Of course there are cons to managing higher volumes of lower-cost properties too... But if you are like me and envisage a day when you only need to work part time (or not at all!) as a result of a successful portfolio build; then finding time to manage a larger volume-size property portfolio likely won't be an issue