I've used a Direct Cash Flow (DCF) calculation to compare an average property in Sydney (2 bed unit) versus 2 bed townhouse in Brisbane. My key assumption in this exercise is that all cash injected (deposit, holding costs) into the property requires a rate of return of 10%. This benchmark is the equivalent of what we would expect to earn by simply buying an index fund. Based off this, I get a required selling price in 10 years to achieve the 10% return on the money injected.
Whenever someone wants to compare averages and huge markets with other markets imho i personally find it a useless exercise. There are so many unique variables that can change the entire conclusion. Sydney Vs Brisbane doesn't make sense to me. It's always markets in markets, chosen strategies, buying well etc that makes all the difference . My 2 cents.
I agree can't compare the two... That's like comparing a Ferrari to a Hyundai. By the way..buy the Hyundai..it will have more cg
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