Is Anywhere Currently Good Value?

Seems most areas have gone up massively since covid, does anywhere still offer value or is it best to wait on the sidelines until prices become more reasonable?

 

Prices now are primarily driven by govt/rba policy. Prices and debt are so high that any historical analysis would say this is a massive bubble. But its also too big to fail so our policy makers wont let that happen if they can help it. Whether they are able to help it long term is another question, but they have kept it going for 25 years so who knows.

 

In Darwin things are totally reasonable. It went nuts there for a minute but has now found a safe equilibrium.

I believe parts of Brissie and Perth are still good value too.

 

It's never a good time to buy property and nothing ever seems good value....until you wait a year or two and then everywhere seemed like good value.
You have absolutely no control over what will happen in the future with property prices, Covid, Government Policy, Monetary Policy, Fiscal Policy so don't get caught up in it.
What you can control is the research you do, the team you put together to assist, how much you want to invest/risk, whether you want high yielding property or happy chuck in some out of pocket $$, what contingencies you put in place to safe guard your family should something out of your control go wrong.
Just spend the majority of your time focusing on things you can control. And ignore the naysayers but listen to your team.

 

Did sydney houses look like value in 2017, 2018, 2019, 2020? Only if you look backwards.

 

after seeing this round of the governments willingness and efforts to keep the property market continually growing despite a global 1 in 100 yr pandemic and recession, i am now comfortable to say that the market medium to long term will never fall

I have always thought recessions are part of every cycle and balance the economy out but now im not so sure

 

How about QLD for good value?

 

One day I expect us to have a major military or terrorist incident somewhere in Australia. Our authorities tell us at the moment that the threat has not been greater since WW2. It's not a nice thought but the probability seems to be increasing. If something like this were to happen then disruption to commerce would have to be huge.

Having said that, it sounds like Darwin and parts of Perth offer good value.

 

Lots of good value still available in QLD. You can get places approx. 10km from the CBD for under $700k if you look hard enough. Places 25-30km away in the 300s.

Compare 50-55km away from CBD in Sydney and you're paying 900k for any decent blocks. Average weekly earnings in Sydney vs. Brisbane doesn't justify this at all. Same case with Melbourne.

 

Hervey Bay and Agnes Water have performed very strongly over the past 12 months but were stagnant for a quite a few years prior to 2020 though.

So they have only just commenced another growth cycle...as opposed to many other more well known locations...that were already reaching their peak before the COVID property boom.

 

Yes, policies like this dont create wealth or prevent hardship, it just transfers where the hardship is borne. In reality the recession is transferred to first home buyers who bear the cost for the rest of their lives ..... they do this in the hope that monetary policy down the track will transfer some of the pain to another batch of fhbs. Its quite disgusting actually but its what weve become. Our policy makers never let a good crisis go to waste .....

 

Plenty of opportunities left for medium term outlook. Especially in Brisbane but other places too.

Been saying this for almost 20 years. The few who took massive action have been reaping for a long time now.

Ignore the noise. If you find value, go for it.

 

No

 

The thing is a decade ago I looked at heaps of props, made a few offers, declined a few when I offered $150k for a $150k asking price prop with a counter of $152k, I let my ego and short sightedness get in my way.

10 years later these are worth $600k+

In hindsight I should have just bought everything I could get my hands on

I didn't consider them value at the time.....

 

Good value is when you shop at Kmart and get a three pack of kids tee shirts for $5.

Good investment is when you buy a blue ribbon property and watch it grow 10-50% per year, year after year. Real investors don’t ask for good value. They analyse future trends, yields, geopolitical pressures, government policy, population patterns.

 

Which parts of Bris/ Perth? Bris has gone up a lot in the past year.

 

I assume they do all that to ultimately determine value for a certain area/asset.

I can't speak for others but I've always looked for medium term value when assessing an asset from multiple points of view and it hasn't been a bad approach for me.

 

Lots of value in Melbourne. Buy a block of land for $1.6m, sub-divide then sell two 4bed 3bath 2car houses for $1.8 to $2.2 each.

 

Wouldn't it cost a lot more than that to build the 2 houses