What will stop the BOOM in Sydney and Melbourne

Do you think Melbourne is still a good market to invest in?

I'm thinking outer sub 600k suburbs, like Frankston, Deer Park, Albanvale, Kings Park, will still see decent growth in the next couple of years.

 

But with such high immigration, cca 100k people a year, would it really matter? Wouldn't this still cause a supply/demand disbalanca? All these people have to live somewhere.

 

Yes, people need homes, but to rely on growth/immigration is wrong
But want V's need is another matter
In the last major depression we had generations and their partners (with children) living under the same roof.

These days any divorced couple have their own place, along with anyone from 18 to past retirement

We no longer "make do" WE WANT NOW

If things literally revert back to several families living under the one roof to be able to exist
Then we the investor are

 

I have made no secret Melb is my favourite market.

I would be looking at markets that still have steam, I believe Geelong may fit this bill? Need to find out how long this market has been rising, I think the ripple effect

 

Any thoughts on

Just had a quick look, median price for geelong is 540k. I'm thinking for that price I can afford something in Melbourne that's 20-30km from cbd..

Suburbs on my list: Frankston, North Frankston, Carrum Downs, Albanvale, Deer park and Kings Park.

 

Equivalent of those melb suburbs is more like corio, norlane where median is close to 250 at a guess

 

Been going at least a year. It all happened very quickly. Bust to boom overnight for Geelong.
No stock on market and a spill over from Melbourne is why.
The actual economy in Geelong is up the brown creek.

 

Ok just shows do homework don't follow herd

 

A lot of areas have moved 50% very quickly.
I cant find much value at the moment
I was looking in north geelong less than 2 years ago and places in mid 2s was not uncommon.
Norlane corio had a lot for mid to high 1s
The better suburbs like west geelong were low 4s now over 6
Many including myself a few years bavk thought geelong was going to stagnate due to closures to all their main industry.
As Dave from Norlane points out, Newcomb is the best value area in terms of position and price.
However as Gtown points out the housing stock is fairly bland which is why the area is significantly cheaper than East Geelong

 

Wow, hopefully those that have jumped in earlier have made some great gains

 

Some of the gains have been amazing.

A 2/1/0 art deco unit in North Sydney went from $730k to $950k in about 7 months. 30% gain. No obvious improvements that I could tell.
2/177 Walker Street, North Sydney, NSW 2060 - Property Details

 

It's a mediocre market. Why do people always try to invest whencthe market is on fire turbines? Baffles me.

 

Nature of the beast, many like to watch and wait and when they read about the gains or know people who have made money from property market they are finally convinced it may be a good idea, however they don't consider the time frame that the market has been booming
The thing is no one knows when a boom will end you can only make an educated guess by reviewing previous booms and then it comes down to whether you feel lucky.....

MTR

 

Hey, I only really started thinking about property investing 6 months ago or so. Before that, I've never even thought about investing. Never existed. Realistically we didn't even have money to think about it a couple of years ago.

However that all changed a few months ago we started thinking whether we can get better return on our money than just keeping it in a high interest savings account. Then we purchased in Brisbane in Jan this year. Had some more cash and thought about where next to invest. My research indicated outer Melb suburbs.

 

Sydney house prices looking cheap apparently.

Why Chinese investors keep buying Australian property: it's cheap - Business - ABC News (Australian Broadcasting Corporation)

 

Welcome to the club, Be aware of market cycles, but the best time to invest is when you can. If you get bored with property or want some diversification at some stage, come and join us on the "other asset class" thread.

 

If I don’t buy a PPOR for 1.3m this year I will definitely look at 2 builds under 600k each. Take advantage of FHB incentives and on sell to them later this year. Thinking the west part of Point Cook.

How long do I need to keep a property as PPOR to avoid CGT?

 

@zed_kid ,
https://www.propertychat.com.au/com...ment-but-move-in-as-ppor-for-cgt.18145/unread

 

How long as Melb outer suburbs been moving?

 

About Q3 2015 onward. 2016 was a great year for point cook, Werribee, Williams landing etc. I think they still have legs as FHB incentives kick in this year.