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Sydney or Brisbane?

Discussion in 'Where to Buy' started by puma1354, 27th Oct, 2015.

  1. puma1354

    puma1354 New Member

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    Hi all , looking for your feedback. Have up to $700k to spend on an IP.

    Looking for views on either a new place in Oran Park or Older in Kingswood or Seven Hills in Sydney or something in QLD?
     
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  2. Bryan Loughnan

    Bryan Loughnan Well-Known Member

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    Hi @puma1354 - welcome!

    Firstly - why are you looking to purchase only 1 investment property? $700k is a lot of money to tie up in one asset... in one location... which will expose you to one state government... and will significantly limit the industries that drive the economy effecting your investments?

    With that amount of money you could really diversify your portfolio, expose yourself to different state governments, different locations with different industry drivers. Will generally increase rental returns and decrease 'vacancy period' risks.

    Brisbane and Sydney are just two locations. There are 550 local government authorities in Australia. Whilst the mainstream media may focus on Brisbane, Sydney and Melbourne - as an astute investor you would do well to keep an open mind.

    Just a few things to think about.
     
    ej89 likes this.
  3. puma1354

    puma1354 New Member

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    Hi, i have 4 other IP's. 2 in sydney and 1 on gold coast and 1 in Brisbane. Looking for some feedback on the suburbs I've mentioned unless you feel there are other better options to think about?
     
  4. See Change

    See Change Timing Lord Premium Member

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    700k in kingswood ??

    There is a general perception on the forum that Sydney is peaking .

    Clearance rates dropping , esp west and south west . Last peak Sydney was flat for a number of years .

    We bought our last place in Sydney in late 2013 ( downsizer PPOR ) and according to pricefinder it's gone up around 70 % in the two years since we bought it . I don't expect any further growth in Sydney for several years .

    Apart from occasional properties , most of the forum regulars aren't buying in Sydney but have gone interstate

    Brisbane's starting to move in most places now , but only just in some places .

    Cliff
     
  5. Tekoz

    Tekoz Well-Known Member

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    @puma1354 if I were you, for the next 5 years. You'd be better off investing in South East QLD home in the Ipswich-Brisbane Corridor suburbs.
     
  6. Daniel007

    Daniel007 Well-Known Member

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    Park ridge?
     
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  7. JDP1

    JDP1 Well-Known Member

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    Nup..
    Try Mt Druitt. :p
     
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  8. Tekoz

    Tekoz Well-Known Member

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    no mate, Park Ridge is in Logan area ;).
     
  9. R377

    R377 Well-Known Member

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    Yields are not going to be great on a 700k house. If you stick around 600, you might get 450-500 a week rent which isn't too painful.
    Greenslopes, W'gabba, Mt Gravatt, Kedron, Enoggera.

    You could also buy two outer suburbs houses for $700k - one in Bris and one in Adelaide (which will be the next city to move)
     
  10. wombat777

    wombat777 Well-Known Member Premium Member

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    In my opinion, rental yield per dollar invested is better in the sub-$350k bracket so you might be better looking at 2 x IPs in QLD instead of one higher-value property in Brisbane or Sydney.
     
  11. The Silver Bear

    The Silver Bear Well-Known Member

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    What about overall gain, i.e. rent + CG?
    What about 2 boilers that can blow vs 1 in a bigger property, and other maintenance?

    I don't know the answer.
     
  12. Bryan Loughnan

    Bryan Loughnan Well-Known Member

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    Absolutely - also gives you the ability to diversify (2 different assets in 2 different locations) - minimises exposure to any one particular market and the industry drivers of that particular location. Also reduces vacancy rate risks (unlikely you will have both properties vacant at once)!
     
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  13. JDP1

    JDP1 Well-Known Member

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    this is the old question of whether to go with x # of cheapies vs y# of expensive ones ; where x>y.

    Both options have their pros and cons. Probably is discussed here in other threads?...
     
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  14. larrylarry

    larrylarry Well-Known Member

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    Good old arguments on Yield v CG.
     
  15. Nemo

    Nemo Well-Known Member

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    I'm going to be controversial and say Canberra is starting to move too. Seeing prices going up and stock moving quickly.
     
  16. JDP1

    JDP1 Well-Known Member

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  17. mcarthur

    mcarthur Well-Known Member

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    On the other hand, a single near-CBD property (higher buyin, lower yield) will always move before an outer ring property - look at the video out in the last week from onthehouse I think about how Sydney suburbs have moved over the past 35 years: there's certainly some indication of the ripple, but you've got to be very careful. A takehome message from that was that the bluechip suburbs will always move, they'll move first, and will always be at the top. A second message is that the suburbs that have moved first in the past seem to always move first when the time comes, and they generally maintain their CG advantage on surrounding suburbs.
     
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  18. Azazel

    Azazel Well-Known Member

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    Agree, it's flown under the radar.
    Will be interesting when people actually start taking notice
     
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  19. Nemo

    Nemo Well-Known Member

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    Not only has it flown under the radar, but experienced investors on here recently lumped it with Tasmania and Darwin as places not to invest.

    I think it will surprise many.
     
  20. MTR

    MTR Well-Known Member Premium Member

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    Time will tell ? did it get a mention in the recent QBE report posted on PC as high growth area over next 3 years, I don't think so?..

    Seems Brissy not missing a beat at the moment, so many posts, must be hotting up