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

Yep... And we bred them tough down here

 

So why should I buy in Adelaide when the economy is slowing and they have very high unemployment rate (even before the carmakers shut down)?

 

Because when everyone realises that Brisbane prices are being driven up mostly by southern state Investment $ and it doesn't sustainably provide as much growth as rapidly as everybody is banking on (comparative to Sydney and Melbourne markets) Adelaide will be the next affordable Capital City to invest in.

I could be horribly wrong, and let's hope I am, but for me personally to be able to keep purchasing at this stage I like houses 400k ish, near new, well located, that get decent rent easily. To keep things near neutrally geared. Getting harder to find. Sydney is out, Melbourne same, Brisbane almost there. Where to next?

 

and become the next failed bubble?

If people don't wanna live there what's the point?

 

If you look at the employment trend (Corey posted a graph in one of the Adel threads), its actually better now than it was previous in real terms. So yeah its high relative to other states, but not relative to Adel norms.

 

Well that's the gamble of investment we all play isn't it? People didn't want to live in Penrith a while back either but look how that went. Adelaide may not be for everyone granted. But if like me you're in accumulation phase and being priced out of "the big 4" cities, Sydney, Melbourne, Brisbane and Perth, Adelaide starts to look not so bad. I'm not interested in buying units for their affordability just yet as I'm still a believer in freestanding houses with land content being important. There are a few on the forum that live and invest in Adelaide and I'll be asking them plenty of questions shortly.

 

I'd be happy to buy in Adelaide , BUT , we know Brisbane , have invested there before .

I'm surprised you think you're being priced out of Brisbane . It has moved since we started buying again a few months ago , but we've still been able to get ( what I classify as ) good buys with our last settling a couple of weeks returning over 6%

We're buying cheapies at the moment , having bought some nicer properties in last half of 2013 .

Cliff

 

Last finance figures showed an increase in OO's . We've been outbid by FHOB's recently .

Cliff

 

Agreed there are still cheapie properties in range in Brissie. But I've maxed out my Land Tax. No biggie. Will buy more when we're back to 2 incomes and can put a couple in my partners name as she currently has room for more. Planning the next move after we are done in Qld and holding off on Joint Purchasing as long as we can. I would dearly love to get into Melbourne, but may be too late for that one.

 

Worth having a read of the Adelaide specific threads on the forum if you haven't already.

In terms of your Brisbane situation, you could buy in a trust there and have a separate land tax threshold if land tax is your only concern.

 

Thanks @D.T.
Trust is set up and ready to go just in case.

 

I think you are too late for Melb, it started rising after Syd and close to peak.

 

That's pretty much Standard Operating Proceedure though isn't it?

 

When PCers talk about cheapies (properties) what falls under cheapies? Under 300k?

 

Really depends on the area; usually its relative to its own median. Also relative to the person e.g. a cheapie for me might be <180k vs <300k for another person.

 

We're buying in trust funds in Q'land . Each trust has a separate threshold . in the previous Cycle we had 15 properties in Q'land and didn't pay any land tax . We do have one trust that makes money so can distribute from that to make up any short fall, but most of our properties are close to cash flow neutral .

124.10 for each trust . Given the current land values , we're doing one property per trust . We're using the same company as trustee.

Seek professional advice if you go this way.

Cliff

 

Area specific as @D.T. said. An Adelaide cheapie might be 150k, Brisbane might be 400k, Sydney, Melbourne, it goes on. Also depends on the type of property as the pricing is different. Freestanding house, townhouse, terrace, unit, high rise apartment. Below Median for an area is a good place to start I think as you're starting "cheap"?

 

Ok , six months on , Brisbane and Adelaide are the two leaders at the moment , though there are ( as always .... ) those who seem to think that the roof is falling , or is about to .

Melbourne is still subject to much attention , but is further into its upswing , the question being how much is there left to go.

Many of the forumites like to get in at the start of a cycle , hence the attention being paid to Brisbane and Adelaide , rather than Melbourne . Personally I wouldn't be surprised to see Melbourne out perform the rest this year , but it's already moved a fair amount so there is less potential for growth this cycle

Tasmania has its own little thread slowly ticking away , and interestingly Hobart has recently posted some positive results .

Cliff

 

Nice summary except you left off the part where Canberra out performed Bris

I can't really blame you since it was annexed to NZ early in the thread

 

Oops

I suppose it's my natural inclination to ignore the ACT , given the amount of crap that comes out of there ...

Anyway , are there any posts about Canberra on the forum ? or do I have blinkers on about that as well ....

Cliff