IR Rises - Are You Still Investing?

Indeed.
On the whole but not entirely.

 

For the ones still investing, I'd also be interested to see what strategies they are using.

Interest rates are rising and I think have more to go. Property prices in Syd and Melb are at their all time high, while I honestly can't remember yields as low as they are today.

Yet despite this, pretty much all the areas I keeps tabs on in Melb are flying. Many properties are receiving multiple offers and are selling very quickly.

So for anyone still investing, they must be pretty bullish on the current market despite the rate rises.

In addition I'm expecting to see the FHB's markets in Melb kick off again from mid year after stamp duty is abolished. Expecting more federal gov help for them in the May budget too.

Personally, I'm finishing off 2 developments this year. Any more investing i do will be low cost developments..manufacture equity and manufacture yield. I look at it as creating a safety margin in case of a market pull back.

But from what I'm seeing out there... People a buying up in a very buyer competitive market.

 

I'm just getting in to property, so yes, I am buying in Brisbane. There's always a reason to wait...

 

Hey, I know nothing about Adelaide but comparing Brisbane to Perth is pretty straightforward.

Median Perth house is 30k more expensive than a median Brisbane house. Historically it was the other way around. Also, population growth in Brisbane was 1.8% last year compared to 0.9% for Perth. Significant difference in available jobs as well.

I could be terribly wrong though.

 

What do you think will happen to prices in 10 years and 15 years? That's the time frame I invest for as a minimum.

 

@Realist35 Great that you're looking at stats but you're over generalising what you're seeing. You can't just say an ip in Brisbane will be a better buy than one in Perth based on those stats. You do realise there are many markets in both cities? It's more than feasible that an investor could build more equity in Perth purely due to the deal, not the city.

Also, there is a whole world outside the Australian capitals where people are making fortunes investing. Look more at specific deals, wherever they are.

Interest rate changes as above are cyclical. You can buy when the herd is buying (low rates) and pay more or just keep looking for indivdual deals. And yes, current rates are low for those who've been around a while but still managed to build a very tidy profit from property investing.

 

I think it's highly likely all major capitals will have very similar growth over the next 20 years due to the cyclic nature of RE market. However I also think it's very important to create equity as soon as possible and from that perspective I see more potential in both Melbourne and Brissy.

I am interested to invest in Perth when it starts recovering. Hopefully another year or so..

 

Good points. What I meant though is "a good deal in Brisbane is better than a good deal in Perth".

Oh, I agree about good deals all around australia. It's just part of my risk management to invest in major capitals only.

 

But yields were higher too 10pc plus

 

How on earth do you know? Either you're speculating or you really do have a crystal ball...amazing! Is Brisbane hot now? I thought some suburbs had moved but not all by any means and not exactly booming. Some suburbs with high vacancy rates due to high investor presence. So many markets in both cities as far as I can see.

 

Some suburbs in Brisbane are very very hot! At one home open in Geebung there were 20 groups and multiple offers. The yield was 4.5%, 10km from cbd, 530k price. I'd be interested to find suburbs like that in Perth as I am interested in buying there.

 

Hmmm yes very smart time to buy when 20 groups are fighting over a house

 

Every time I think we are at the top the government talk about meddling and do meddle. Every time the gov meddle they stuff it up and have the opposite effect. I am therefore bullish on growth especially in the outer growth areas.

 

They sure do. Every time they decide to incentivise and help FHB's, it's brings them all into the market... And we all know what demand does to prices.
Add to that the already limited stock in the outter Melb areas....it's only going to push prices up.

 

Run. Run fast.

 

Like a few others in here - "yes" to continued investing, but not in property (shares and LICs have my attention at the moment).

 

Why now given the recent share price growth?

 

Sorry I should have been more clear. This question refereed only to property. So your answer would be no.

 

Have noticed lots of properties in Perth selling quickly, however price sensitive

 

I think Perth is still some time away from the recovery phase. Oh I'll just follow HTW clock