Where to after Logan?

Channel 9 news in Brisbane story last night stating auction 'Queensland house sales stall'

http://www.9news.com.au/national/2015/10/01/19/40/queensland-house-sales-stall

 

channel 9 news and a current affair - 2 shows to not base my life decisions on!!

 

I know, but it is interesting....!

 

I agree. I thought they'd be doing the same old 'brisbane property prices sky rocket etc etc'!!

 

Brisbane still has a missing piece of puzzle for a boom. That is rental growth. Currently that is still slow. Investor can push the price higher, but without rental growth the price will stall or go down.

 

I agree somewhat but isn't it similar to Sydney? A unit now worth 1mill renting for 700 a week, prior to the boom was worth 650k and renting for 700 a week! (I'm using Bondi as an example as I know that market well).

 

Hi Cliff, which part of Logan would you buy at this time of the year? ( for CP gain)

 

North half has moved 20+% but more to go, how far no one knows...

 

Hi Rico, in last five years, the rental growth of most Sydney's suburbs are very good, for example: in Bondi, the rental price for two bedroom units rose $152 from $518 in 2009 to $670 in 2014. The continuous rental growth supported the capital growth of the suburb.

The rental growth of two bedroom units in Brisbane CBD is so so in last 5 years, it rose only $30 from $590 in 2009 to $620 in 2014.


You are right. The rental growth is something hindsight. However, it tells in the past, the suburb has house short supply, good economic growth and population growth.

I think currently people are positive about the fundamental of Brisbane. The low interest rate and cheap A$ will support the Tourist, Agriculture and Education. QLD also has large Gas projects which offset the down turn of coal projects. Those fundamental predicted a good economy growth, but it is not certain yet. It takes a while for the economy to recover and go into a boom. No one knows when the boom of economy will happen. But A boom will happen maybe in not long future. A boom of economy will transform to a boom of property market:

A boom of economy -> more employment and pay rise -> more people migration for the jobs -> houses supply not enough for the population growth and rental growth -> house price boom

If a lot of people see the boom of economy will happen and start to buy into the market, the property boom can be earlier than the economy boom. So the best time to buy is always now.

The affordability of Brisbane property market is very good. So when the economy boom happens, the property price rise will be awesome.

Will the economy growth be in full drive next year or will it take a few years more time? No one knows.

 

During a boom , capital growth outpaces rental growth and returns drop . That's happened in every boom I've seen. Ther was a property quoted on th forum selling in Mt Druitt which sold with a return of around 3.5 % . You can get better than that in Brisbane .

When we bought in Logan I was happy to look everywhere . As long as the area , street , house looked OK

Cliff

 

Druitt area was a 6% yield few years ago, now a 4%.

There's no doubt that Logan will get to a 400-500k and a 4% yield, but the question is when

 

Any thoughts on the next "Logan"... when, where or is it still the hot spot for a bit longer?

 

I would have thought maybe South Australia with Christines Beach and the surrounding areas maybe?

 

Sounds very formal, do the locals just call it christie's? lol. Looks like decent yields to be had down there

 

I just feel that with the low entry price and expected return, it looks pretty good at the surface level. I haven't completed an in-depth research into the area and I know that some people are deterred from the fact that there are many companies/businesses closing down in SA, but I think even if people are on Centrelink benefits, they still need a place to live. But once again, I haven't researched the area or SA and just my initial feeling!

 

Was probably just autocorrect

Sounds like a good option

 

Christies was all the rage a couple of years ago. It went up a fair bit, might have dropped a bit since but not sure
You could get 3 and 1 on a 600 plus block for mid to high 2s
Which was subdividable

Maybe werribee will be the next flavour of the month

Personally im not that bullish on our economy st the moment but i reckon townsville would have the cheapest real estate in aus when comparing population, lsnd sizes, incomes and build quality
It has a lot going for it but for some reason people only talk about cairns? They probably went on a holiday there or something

 

Saw you featured in YIP! Good stuff!

 

When I'm in S.A. I must meet @D.T.

 

Did you see the ipad version? It was there first before online / print versions.

I know some good spots for coffee!