Property Investing Tips in a Changing Market..

Although I agree.

But like some most of my portfolio is in Sydney and for more than 1 cycle my rentals have never gone backwards.

I have seen it before even in Bondi where post Olympics created a glut in the rental market.

My comments are if @euro73 primarly needs rental stability for theory to work well maybe it might.

It may not time will tell.

No one know the future not even @sash as much respect I have for his knowledge even he doesn't get it right some times.

If you look at the post in 2015 and Sydney. One will understand we are not always right. So being cocky on PC and shouting down a different opinion doesn't make you smarter.

 

Ppl missing the Sydney boom ( who would have otherwise wanted to invest in Sydney) made a pretty woeful mistake. Huge . Signs were everywhere.

 

The only certainty is uncertainty so I alway try to keep an open mind.
The past have demonstrated everything is connected by a web of influence that we can not isolate the individual regional markets from each other, especially from a main market such as Sydney.
If I am to invest in regional towns, the first thing I would do is look at the past behaviours. It might be different this time, but would be difficult to justify risk base on one's yet to be proven theory.

 

@Illusivedreams, another thing is that rental return is as dynamic as prices if not more so. The Sydney rental market is softening as we speak, My friend rented out his Castle hills home 2-3 years ago for about $900, Just recently he had to reduce it to $750 to get it leased out.

Another example was that 3 years, about 30 people line the streets for a rental apartment to open up. Just last Saturday, an almost identical apartment was showing for rental and no one was in it.

For one of my Brisbane properties I had to reduce rent from 600 to 550 a year and a half ago. Thankfully it has been stabilising but I imagine it will take a while before it gets back to that leave.

All I want to say is that it does not take much to shake the rental return either.

 

Yep.....looking back Sydney peaked in 2016...

You experience with rents is pretty mild.....

Lots properties in the Eastern suburbs and North shore where people are knocking off 100-150k.

Too many amateurs on this site who have no clue about cycles they have no experience....on what happens when a market like Sydney turns. This is very dangerous...as this when people loose serious money.

 

Yeah, my rent reduction was nothing too dramatic. Also know many who has been burned by both dropping in value and rental return. The worst I've heard was one guy brought couple mining town properties base on its rental return and vacancy rate and thought it can't go too wrong! omfg!

 

Article had me right up to the point that they cited Steve Keen

 

For the naysayers....

https://www.facebook.com/video.php?v=973151899557278

https://www.facebook.com/video.php?v=1563737397071291

 

$820 million spend: Jobs, growth to flow from Cadia mine expansion plan

 

So when are we buying H&L in brissy?

 

I will let you know when i get started with h&l there. Already have 7 in brissie.. and land tax is already a killer!

 

For the naysayers-

We TOLD YOU there was a clear trend starting to emerge. Finally someone has done some work to identify it and quantify it, and as we suspected there is a clear migration to larger regionals underway .

Homeowners are ditching big cities for regional communities

 

I just wonder whether there will be a migration back to the city in five years? People are creatures of habit and love "home" wherever that may be.

 

See it a lot just in Sydney suburbs people move west for affordability being able to get a better quality property at lower price but then a few years later find a way to move back closer to where they started

 

I've read a few analysts on property economics that state that recently. People tend to migrate out of the city only to return. The country and 'burbs are not the perfect existence they were going for.