Where to buy 2016?

Discussion in 'Where to Buy' started by Daves2074, 28th Dec, 2015.

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  1. Steven Ryan

    Steven Ryan Well-Known Member

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    There's two ways to look at this.
    1. Surface level: Risky by default due to concentration in one area.
    2. Below the surface: Low risk because @Taku Ekanayake feels he has enough information about the growth prospects in Brisbane being higher than elsewhere in Australia and also has specialised knowledge of the market (having been buying there already) to identify and make great purchases.

    Risk is relative right?

    It would be risky for me to take on a challenging ski run because I have never skied. I could die. For an experience skier though–walk in the park.

    Prior to 2015, I bought 3 apartments in the exact same suburb in Sydney (Marrickville) literally a stone's throw from one another. I could have purchased anywhere but I chose to buy there because of its growth prospects and my specialised knowledge of the market which allowed me to buy very well.

    Some called it risky.

    For them, without my knowledge and having not undertaken my research, it would have been risky to have all eggs in the one basket. For me, it was the safest thing I could do.

    It worked out well.

    Now don't get the wrong idea. I'm not saying "buy all your properties in Brisbane". I am however, suggesting you don't fall into the trap of diversifying just for the sake of it. Let your research point you in the direction of where to buy :)
     
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  2. Sackie

    Sackie Well-Known Member

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    A long time ago a mentor of mine told me something i never forgot and made good sense. He said 'risk lies within the individual to a much greater extent than it does with the proposition'.
     
    Last edited: 1st Jan, 2016
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  3. Gockie

    Gockie Life is good ☺️ Premium Member

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    I had all my eggs in the Sydney basket till mid 2015. It was excellent. I had looked interstate previously but did not go ahead with any purchases. Now Sydney has come off the boil thats ok since I've made huge CG over the course of the Sydney boom. If I was in a position to buy I would look at Brisbane now and I know where I would buy there too. (Melbourne areas are probably still good for CG but I don't know enough to confidently purchase there).

    We just bought a new Sydney PPOR and will sell two here in Sydney (1 IP and the current PPOR) to minimise new PPOR debt. I could be more aggressive and keep holding the IP but I'd rather sell and tip that cash into the PPOR mortgage. The current PPOR would only have a 2.5% yield as an IP based on current prices so that will have to be sold. Sydney is likely to do minimal growth over next couple of years so i'm happy to cut and take that profit.

    Once the dust settles I can see if i'm in any position for another IP purchase. :)
     
  4. Sackie

    Sackie Well-Known Member

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    ahh....care to share..? Us Sydneyfellas gotta stick together..nowatumsayin:D
     
  5. Gockie

    Gockie Life is good ☺️ Premium Member

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    Hehe... my picks are: (in no particular order)
    *Stones Corner area, its close to the city and hip. It also has train services.

    *Redcliffe Peninsula or Petrie with land because of the new trains and the new Granny flat laws based on info from @Tim & Chrissy ... the Moreton Bay Council region will allow leasing of secondary dwellings to unrelated parties from Feb 1.

    Of these, the reasons are Petrie for the transport (and future uni), Redcliffe Peninsula for the beaches...(there's also a hospital in Redcliffe). There are few beaches around in Brisbane and the new train line makes the Redcliffe Peninsula more desirable. Possibly Deception Bay but would have to see it.

    *And Wynnum/Manly or Thorneside/Birkdale/Wellington Point with land and water views if you can get it at a good price. They arent making any more land and they are simply very nice areas with a holiday feel, public parks and BBQ areas etc at the water and they still have train services. Its easy to get a boat and take it out on the water and visit the local islands and find a beach all to yourself. The climate is temperate relative to more inland areas due to the bay. A local said to me, once you live bayside you'd never live anywhere else, and I think its true. Its too nice.
     
    Last edited by a moderator: 4th Nov, 2016
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  6. Johann_

    Johann_ Well-Known Member

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    Time will tell :)
     
  7. Sackie

    Sackie Well-Known Member

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    I really like those areas for the reasons you mentioned. I think it could have great upside, especially if bought well. Thanks for sharing.
     
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  8. Finrod

    Finrod Active Member

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    There seems to be little consideration of non capital cities.

    Is that because people feel capital cities will always outperform non capital cities (Newcastle, Wollongong, Ballarat, Gold Coast, etc)? Or rather because these cities seem to get less press?

    Newcastle for instance has a population of around 550k - more than Canberra and Darwin combined !
     
  9. Steven Ryan

    Steven Ryan Well-Known Member

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    Nothing spectacularly wrong with looking at places like Newcastle, Wollongong, Gold Coast etc – they're not far from major capitals and are likely to experience the ripple effect.

    However, speaking for myself, I'm a bit of a wimp and given their smaller populations, more fragile economies, lower incomes and the trend toward bigger city living in this country, until I have double-digits of properties I'm not likely to take a punt on anywhere with under a million people.
     
  10. JDP1

    JDP1 Well-Known Member

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    Yeah, nothimg wrongwith regionals- just that there maybe better buys med and long term in cap cities. Short term < 2 years who knows... regionals are usually higher risk and higher volatility for the reasons mentioned above. Does not mean you cant make money there- just that risk-reward in buget may look more attractive elsewhere.
     
  11. Azazel

    Azazel Well-Known Member

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    That's a very good question Leo ;)
    ACT - canberra general
     
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  12. Taku Ekanayake

    Taku Ekanayake Well-Known Member

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    Fair point @pommy. However, as @Steven Ryan nicely explained, I don't want to diversify just for the sake of it. With the research I've done, Brisbane makes the most sense for me at this point in time. I'm confident of this, and that's why I've put all my chips in the area.
     
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  13. Coota9

    Coota9 Well-Known Member

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    But what if the "house" winso_O:p
     
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  14. big max

    big max Well-Known Member

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    Any thoughts on stones corner vs Paddington?
     
    Last edited by a moderator: 4th Nov, 2016
  15. Gockie

    Gockie Life is good ☺️ Premium Member

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    I don't know Brisbane well enough myself! I'm just a mere Sydneysider who is not familiar with all of Brisbane. Better to ask a local.

    By the way... if you asked me about Liverpool or South Western Sydney etc I'd have the same answer. Reason being, I don't go there, and don't know the subtleties of the areas. But the parts of Sydney I know, I know quite well.

    I hope that's cool!
     
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  16. D.T.

    D.T. Specialist Property Manager Business Member

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    An honest answer is always a good answer :)
     
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  17. Gockie

    Gockie Life is good ☺️ Premium Member

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    Thanks @D.T. :)
    Agree. I'm not going to pretend I'm knowledgeable on stuff I have no idea on.

    There are more knowledgeable people on the forum in many areas, and for example I have no interest in becoming a tax expert or a mortgage broker.

    Knowing when to refer a question on to someone else is the best and most helpful advice I can provide. :)
     
    Last edited: 2nd Jan, 2016
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  18. JDP1

    JDP1 Well-Known Member

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    Id prefer stones corner..only reason being that paddington is already expnsive. Id say stones corner has more upside cg potential than Paddington. For ppor, perhaps paddington though, ip for stones.
     
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  19. Bran

    Bran Well-Known Member

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    Gees. I wish you lot would shut up for a month or two. I was enjoying the christmas lack of hype. Now you are blowing out all the secrets. Can't we keep it a generic 'Brisbane'?

    ;)



    PS. I'm not really mad at you guys, just those damn owner-occupiers who have paid market value this month and limited my CG rockets trajectory.
     
  20. Bran

    Bran Well-Known Member

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    Paddington is already well-ahead on the locals 'I want to live in XXX' score, and priced accordingly.
     

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