VIC Is positive cash flow possible in wider Melbourne or only regional Victoria?

Carlton has median yields which would indicate cash flow positive properties. That's right at the CBD doorstep. However, with the type of property you would have to buy in that area I don't think there would be much in the way of capital gain. You would probably be looking at units in large tower complexes and possibly student housing.

 

because there are and have been better markets in Australia over last 3 years to jump into for growth and cashflow. have not seen this in Adelaide

MTR

 

Surely that sold price is a typo?

 

This property is power lines affected.

 

Different cities are at different stages of the cycle. Jumping on fast growth is speculating, prefer to invest where there's sound fundamentals.

 

I wonder how you reconcile that logic with someone considering buying properties in Sydney in 2012? Or a person looking at Perth 6 months ago? Past performance doesn't guarantee future results.

Personally I drive a car looking through the front windscreen, than the rear view mirror.

 

@Corey Batt
I am not reconciling anything.

Don't understand why buying in Syd in 2012 is a bad idea, many on this forum doubled their money? That is the point, there have been better markets than Adelaide..fact.

I am stating some facts regarding the Australian property market over the last 3 year, and there were much better markets than Adelaide. If you don't like the facts, then just ignore them, your choice, and it's not a personal issue whatsoever it's about property investing.

MTR

 

I agree with @MTR. If someone had the money, Syd was 1 of the best places (not the only 1) to invest in the last few years. If someone's budget was really small then that's another story. But for the people who could easily afford IPS in Sydney 3 years ago and decided to go to cheaper areas in SA and the like, well for many it wouldn't have been the best move imo. Especially once there were clear signs some of the markets were moving, if someone can afford to buy in those markets, imo it makes sense to and not look at cheaper markets.

 

Syds west at start boom around 2012 could buy sub 300k and high yiields, the boom started in these ugly duckling areas.

Nothing wrong with Adelaide, just pointing out there have been better markets to buy into because we have has 3 booming markets -Perth, Syd, Melb over last 3 years, and all lower entry levels have experienced growth.

IF investors want to ignore facts then that's their choice.

MTR

 

When I was looking to buy at those times, my research also led me to the syd and melb markets, as opposed to SA, NT, Tassy etc. Even at the end of 2013 there were clear signs of some good, moving markets and those who could afford to buy, should of in those state cycles imo.

 

Exactly - a perfect to buy in Sydney. But if an investor applied your same logic of looking at the previous three years, they would have dismissed the Sydney market as a complete dud.

Counter to that, an investor looking at the last push in Perth buying at the peak could very well be kicking themselves now by relying on previous growth stats, where it's now falling.

 

I thought Sydney was a good place to buy in early 2013 and bought. By early 2014 it was clearly confirmed that it was a great place to buy (as well as Melb) and I bought a lot more then. It just made sense from a state cycle standpoint for me, when compared to other places.

 

Corey

I get what your saying, but this would be silly, just like anyone buying in Perth now, they need their head read. Falling markets are dangerous, especially when the economy is still going pear shaped.

I am talking about buying on a rise, capture growth, when stock is tightening, greater demand than supply, that is why we had the 3 booms.

those that purchased at peaK for example Syd 2004 got stuck with falling prices, they got timing wrong

We clearly have different strategies

MTR

 

Nope. I was there... It's on a big block, but directly in front of power lines. Still, very cheap for whoever bought it (if they can keep it rented out...) Very trashy looking house, but nothing a spot of paint and elbow grease wouldn't fix.

If that house wasn't near power lines, it would have sold for at least 850k - based on land size alone.

I walk the dog past it every morning and it constantly has a For Lease sign in front of it. They can ask 190 rent per room but it sure hasn't been full!

Having thought about it for a grand 15 minutes now, I wonder if anyone thought to bulldoze this place and put units up on the block? Could easily fit 3/4 decent size ones if the planning permits it. Is it hard to get permits next to power lines?

 

If a location had been going up strongly for the past 3 years, I'd avoid it as you won't know how much steam is in it.

I'm in this to make money, so utilise timing to buy at low points in cycles.

I'm not a gambler.

 

@D.T. I know what your saying Dave but we're not talking abut buying at the peak of any of the booms, but rather once there were some good signs of the market moving with steam left. Of course no one knows when the peak will come but I argue there was decent evidence in some markets that it still had a way to go, and I don't see buying in at those times as gambling. just my opinion.

 

@Pins

bought/found anything yet??

 

If possible, Do you mind sharing datils of the area in Melbourne

 

Just settling on a place in the West Monday. Will start the research and finance process after that.

 

as a newbie id love to know what are some of the signs (specific ones?) one would look for as telltale signs of the market reaching its peak?

eg todays Sydney market