The PChat score ... The king is dead , long live the king

No one in particular. The media can always spin a story.

 

I can add that she also commented recently that she doesn't think its the right time to be concentrating on regionals when there is presently good buying opportunities in a couple of capital cities.

 

Yes, and I have heard her comment recently that the ships probably already sailed for Toowoomba but likes Deception Bay and Kallangur

 

DBay & Kallangur should rocket with the news of MBRC purchasing 200Ha for a university at Kallangur/Petrie, along with the Moreton Bay Rail.

 

Is there a reason that we are ONLY discussing capital cities as viable investment opportunities?

There are 550 Local Government Authorities (LGA's) in Australia - FACT

139 of these are in capital cities.

Over the last 15 years, only 30 (of the 139 capital city LGA's) were in Australia's Top 100 performing property markets, the other 70 were regional locations - FACT

Sydney, Melbourne and Canberra account for 75 of the 550 LGA's in Australia and NONE of these feature in the Top 100 performing property markets over the last 15 years - FACT

There is something to be said for studying property market's Australia-wide before making an investment decision.

 

My sister has an IP in Mount Austin, Wagga Wagga. It has gone nowhere in the years she has owned it. Bought 170k, maybe 4 years ago, it still wouldn't be worth over 200k so if she sold, it would be a capital loss. While the rent covers the mortgage and all it hasn't been a great investment. I know this isn't representative of all regionals, but i'm just sticking to bread and butter, always in demand capital cities where people want to live and will pay the money to live there.

 

I'm certainly not saying ALL regional locations will perform better than capital cities Gockie - I was just trying to open the discussion that there are more opportunities out there than many people are lead to believe.

That being said, had your sister bought in Brisbane 4-5 years ago, her property would be worth the same today as when she bought it as well.... Just food for thought.

 

I agree but depending on where they are in their own cycle I think there are only about 20 regionals which are what you could call investment grade. These are the larger centres with populations greater than 30-40 thousand with growing populations and with diverse economies or at least not one industry towns.
Once you whittle out the others the list isn't that long IMO.
I think there's plenty of threads on these or at least there is on SS.

 

Couldn't agree more Hugh - investing in locations with diverse economies and a variety of industry drivers is very important (whether they are capital cities or regional locations).

I also agree that population movement in any particular location is an important consideration, but worry how many investors take the approach that you can't go wrong by investing in a location with good population growth. This is just one tiny factor to consider when selecting a location. Ultimately, the outer suburbs of Melbourne have seen some of the best population growth in Australia over the last few years - which in turn would mean you would expect to see good capital growth. However, given the significant oversupply issues in these locations, they have been some of the worst performing property markets in Australia.

Some Australian locations with very little (or even negative) population growth over the last 15 years, when coupled with very little supply over the same period, have been our best performing property markets.

There are regional locations which we are very confident will perform better than most, if not all Australian capital cities over the next 10-15 years.

 

Bryan , There's nothing wrong with investing in regionals , but this thread is about areas that are the subject to debate / opinions on the forum that they are a good place to invest , hence the " pchat score " . Read the opening post .

No regional is going to get that much debate / opinion that it is a good place to invest , certainly not at this stage of the market when there is obvious weight of forum opinion ( what this thread is about ) that there are capital cities that are good to invest in .

When Brisbane and Adelaide have boomed , regionals will come under widespread scrutiny , including Rocky .... Note that thread was started in 2003

Cliff

 

Appreciate your comments Cliff, however always get concerned that people read these threads and take them as gospel. All I want to do is make sure people are making astute investment decisions with as much information as possible.

Brisbane is going through a major construction period. Vacancy rates WILL increase and rental yields WILL decrease over the coming years. The long term fundamentals for Brisbane maybe sound - however there are certainly locations which will perform better. Brisbane is also heavily reliant on the Mining/Resources sector. Many investors don't consider this when buying in Brisbane as there are no large mines in Brisbane. However, for every 1 mining job in western Queensland, there are 8-9 supporting office jobs in Brisbane.

Melbourne and Adelaide to a lesser degree, are in for some significant pain over the coming years. Melbourne has well publicised over supply concerns, not only with the inner city apartments but the outer suburb housing markets. More of a concern though is the reliance that both Melbourne and Adelaide have on the manufacturing industries.

FACT: 98,000 people in Victoria and South Australia will be losing their jobs over the next 18 months when Toyota, Holden and Ford close. This isn't a 'might happen' scenario - this is confirmed.

To put a bit of context around it, Brisbane lost 14,000 public servant jobs 2-3 years ago and the market still hasn't fully recovered from that. The impact on property markets in these locations that 98,000 job losses will have is greater than people realise.

 

Bryan wasn't the 14000 public servant figure for Qld not BN?
The demise of the car industry and the associated support jobs definitely is ugly but staff shedding has been going on for a number of years. For Adelaide in particular many suburbs appear to have properties valued close to where they were 5+ years ago so at least some of this seems to be priced in.
Where are you suggesting is viable?

 

Bryan

As stated , this thread is not designed as a thread to debate the pro's and cons of where to invest , but as a reflection of opinion on the forum , nothing more , nothing less .

There are many other threads that debate the pro's and con's of where to invest .

This is more an " insiders thread " . If you are genuinely interested in creating a debate about the pro's and con's of where to invest , a thread with the title of this one is unlikely to be where someone will go to look for that information .

You'd be better off starting a new thread , rather than taking this on off tangent .

Cliff

 

Ooh not too nice.... I'm sure all the Tasmanians are going to gang up and lynch you dear Cliff LOL

 

The Taswegians are probably buying up the bits of the state they don't already own , anyways , Perky's got a paddle out and paddling as hard as he can for Melbourne to stop the drift.....

Cliff

 

Maybe if they had bought a flood job in Rocklea a few months after the floods in 2011 for between 150-175 k spent 40 k on a refit most of those are in the 375-450 k mark depending on the new zones,
and just looking at the BBC rates notices that all have come in and paid early next months some of the ucv's have gone up ,all my successes have been through a few windows of opportunity not the arrow of causality backwards..

 

Just need to keep in mind when looking at UCV's - that doesn't necessarily mean that property prices have increased. This is how councils and governments calculate rates and taxes which together are the biggest income sources for them!

Agree you could have purchased very cheaply in certain areas after the floods and people have very short memories - but as a property market - Brisbane is seeing prices today which were being achieved 4-5 years ago. No real growth over that period.

 

And 4-5 years ago the somersoft score was pointing towards Western Sydney, not Brisbane.

 

Going by number of posts and investor interest Brisbane's due for a lift. Perth's gone a little quiet, Sydney has exceeded expectations, Adelaide's attracting interest but not enough to move it yet. Melbourne I have no idea but sounds positive.

 

And that paid off big time ...

Just to reiterate the opening post

Personally I'm not seeing much mention of regionals at this stage . They will come up at some stage , but historically they move after the relative capitals .

Cliff