Sydney too expensive? Try Melbourne.

Yes brisbanites don't know how good they have it. They haven't had to compete and Stretch themselves in the same way their Sydney counterparts have.
But soon they will. ..

 

What's the average yield in Mel vs Syd?
What city will have best capital growth in the next 5,10,20 years?

 

As the world's most second exp, it's hard to see Syd growing much further. Melb faces a similar problem but has a tad more room to grow.

Can't see the average house in either making astronomical gains any time soon unless you were buying into quite unique deals.

 

Not too sure what's driving Bris' low prices. A combination of oversupply and is it just not on the radar for foreigners?

 

Not really too much oversupply of houses (apartments yes). But certainly not the same demand as Sydney.
Not on the radar for foreigners has had a big implication. Foreigners had a huge impact on the Sydney and Melbourne markets.

 

Waterfront? Yes. Beachfront? No. There is no beach there. But I understand where you're coming from, and it's so affordable coming from a Sydney perspective where that same money either buys an old 2/2/1 unit in a middle suburb, or a house in the Mount Druitt area, or in a few other suburbs.

 

I realised that after a while. So used to seeing a large body of water and assuming its a beach

There are so many bargains in Brisbane that it's mind boggling at times - a 600sqm house in a 1.2 million median suburb for $750k was another one I spotted the other day.

 

Nothing good in Melbourne.

Please believe me. Dont increase competition.

 

Yes see my thread list suggestion of all suburbs to buy in and you'll be jolly happy you did. You can still buy within 15-20km for great relatively/ comparatively fair pricing as compared to other capital cities worldwide.
Having saud that, note Melb is the top 10 most expensive city in the world but you can still buy a "house" not a "unit" as opposed to Syd for about $600k

 

Oh and QLD & SA are even better buying at the moment, much better value than Melb!

 

They will be at some point.. But when you can buy a 3/4 bedroom house 25-30min drive from of Melb in the mid 300's... That's where my money would be..
This price point is fast disappearing though.

 

What about Melton? Granted it's 35km from the CBD you can still buy a 3/4 bedroom house for that price or even less.

I'm not necessarily looking there myself but I know a couple that's currently looking to purchase their next investment property there.

 

Its a bit risky with insufficient infrastructure and growth drivers in my personal opinion. Your friend's may be better to choose elsewhere. Look around and even other states have great buying like QLD & SA if for an IP vs PPOR

 

They were at one point looking at South East Queensland but got cold feet as they've never invested interstate before and weren't prepared to hire a buyer's agent.

It's my understanding they can't borrow as much as they would like hence why Melton is looking attractive to them.

 

I haven't purchased there myself, but I think the part of Melton closest to Rockbank or even in Rockbank itself is where the opportunity is. This area is getting massive infrustructure put in place..shopping centres, train stations, employment hubs...etc
The estates in that part, especially the
Rockbank ones are selling out stages very quickly..

 

If your friend's are buying for investment then they need to treat it as a business thus outsourcing work, such as hiring a buyers agent (which is tax deductible), is part of the process.

"It's all about the numbers. It's not about the emotions". The most successful investors don't get emotional, they look at numbers.

 

They wouldn't mind hiring a buyer's agent, they just can't afford one. They have a couple of investment properties in Melb which have done pretty well for them but the banks aren't willing to lend them what they want.

They're now looking at SE Qld again as the husband is convinced there is 'huge potential there' (his words). He's due to fly out there at the end of this month but is hopeful he'll find something beforehand so everything can be finalised once he's on the ground.

 

Your friends could do the following:
1. Look at an alternate lender with better policies
2. Look to draw equity from current 2 x IPs
3. Save more or maybe get 2nd job or another form of income to increase for serviceability
4. Look further outside of MEL or try SA or another state.
5. Buy a Positive cashflow property assuming the 2 x IP in MEL are negative
6. Also if 2 x IP in MEL, probably better fir tgem to diversify to another state

Note - if looking at Weribee, be aware they just anmounced a few hours ago the new juvenile centre to house offenders will be in Werribee South!!!

 

It make far more sense to enter markets in Qld right now. Brisbane and Gold Coast especially will massively outperform.

 

True. The funny thing is those that are invested are ready for the boom and just patiently waiting. Meanwhile those blissfully u aware don't know what is about to hit them ...