Selling my NSW properties - but what about QLD's prospects?

Hi All,

I'm selling my NSW properties as I think the market has peaked and I plan to reinvest when some bargains pop up and I can buy some properties I can add value to.

I've got 6 houses in QLD (2 in Ipswich area, 4 in Logan area) and wondered what that market is doing? What is the general consensus of the short to medium term (1-3 year) prospect for these regions?

I would have thought the difficulties in obtaining/keeping finance wouldn't affect these areas as much due to their low median prices, however I'm seeing a lot of mortgagee sales in QLD pop up.

Thoughts?

 

Low median prices attract owner occupiers who cannot afford anywhere else.
Or first time investors looking for a cheap property.
These people are often vulnerable to any change in their circumstances, and therefore forced or mortgagee sales can be more likely.
Marg

 

Good point.

I would think NSW may be more susceptible to a lot of mortgagee sales in the near future given a lot of young buyers in particular have over-stretched themselves, and given we have the highest mortgage-to-income ratio by far.

Do you think Ipswich and Logan will have negative growth over the next few years or continue to have slow growth?

 

I don’t see how it is worthwhile to pay agent fees, CGT, stamp duty, loan substitution fees
That is probably 15%-20% of your nett capital gone
And your new assets —- are they THAT MUCH BETTER than what you have already?

As you already own in qld, you just increase your land tax bill further buying more here

Can you not refinance the properties you have and buy more? If your nsw prop are in sydney surely now aint a good time to sell?

The biggest gains we have have been in long term buy and hold. Prices can be flat for 5-10 years and literally double overnight . It’s hard to time the market

 

maybe keep a few good quality Sydney ones. and use the surplus/profit to re invest in QLD.

IMHO, the quality of asset ( from long term capital growth PV), Sydney could have more CG potential than Brissy.

not a good time to invest in Sydney, but if you already have a few in Sydney, might worth keep majority of them.

 

I’ve watched logan on and off since 2001 and there are always mortgagee sales . People buying there often don’t know how to manage money .

We have sold our Sydney IP’s ( still own PPOR and weekender ) and currently own in Brisbane , Hobart , launceston and Adelaide . Hobart is booming , launceston is hotting up

Inner ring of Brisbane is hot . At some stage logan will boom but no crystal ball here on when , one year is probably too soon but I’ll be disappointed if it’s not moving within the next three years ...

Cliff

 

How's the property in Adelaide doing?

 

Has gone up slightly since we bought it . Same tenant , occasional maintenance but with DT as PM everything has been easy .

Cliff

 

In over 25 years of buying properties in Sydney my rule has always been that the best time to buy is when you see pretty much all properties having prices listed. This is happening now, it's a great time to buy.

 

You don't think further price drops are on the way?

 

I can relate to this. Sometimes, I kind of forget the one @D.T. manages
Moving my second one to him as well.

 

With you guys as landlords, how could it not be made to look easy

 

Slow

 

Long term capital gains of Australian capitals is equal They just rise at different times and at different rates

 

Stable Not hot.

 

Deutche Bank don't seem to think so: Sydney’s housing market downturn may be over
Looking at history, there could be an increase or there could be a decrease in the short term but when considering the high transaction costs for property, holding for the long term has always been the best strategy. Successful Ways | Australia’s median house price data

 

Not a great idea...throwing the baby out with the bath water.

I get that you need to take profits...but I would keep a few...at least 2.

You are seriously over exposed in Brissie is the market to get out when it goes up. I don't like Ipswich and Logan as longer term holds...they go up and drop off quite a bit.....also

 

@sash which area do you suggest then under 500k? @Jmillar how have your properties in ipswich n logan performed?

 

Agree! Taking profits may be the only way to move forward in this lending environment, but do it sensibly.

The more you sell, the more CGT you will pay. Selling all at once is a really bad idea, but so is selling in a falling market. Weigh up how much profit you will get once you take into account all the expenses as well as the costs of buying something else.

If you need/want to sell, pick ONE. The worst! Once you've done that, reassess the situation. Is the market buoyant enough for you to get the price you want if you sell another? Do you think prices will hold up until the next financial year? How much CGT will you be up for?

As far as buying another, think carefully about buying more in QLD at this time. You will be paying Land Tax, and you've got a pretty hefty exposure already. Maybe look to another market that hasn't moved, or is just starting to more. Maybe Adelaide, Tassy, Perth. Disclaimer......I have no knowledge of these markets at present, so please do some research.

 

Draw a ring around the CBD 10-15 klms. Looks at suburbs which are not too rough and under 500k....