Sydney vs Brisbane

Discussion in 'Where to Buy' started by pwnitat0r, 9th Aug, 2017.

Join Australia's most dynamic and respected property investment community
  1. pwnitat0r

    pwnitat0r Well-Known Member

    Joined:
    27th Nov, 2016
    Posts:
    323
    Location:
    Sydney
    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.
     

    Attached Files:

    almostthere likes this.
  2. Sackie

    Sackie Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    25,035
    Location:
    Vaucluse, Sydney.
    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.
     
  3. JDP1

    JDP1 Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    4,244
    Location:
    Brisbane
    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
    :)
     
  4. Sackie

    Sackie Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    25,035
    Location:
    Vaucluse, Sydney.
    rofl :p
     

Buy Property Interstate WITHOUT Dropping $15k On Buyers Agents Each Time! Helping People Achieve PASSIVE INCOME Using Our Unique Data-Driven System, So You Can Confidently Buy Top 5% Growth & Cashflow Property, Anywhere In Australia