Where to buy in Sydney/Brisbane? with 2.2mil budget (Capital gains)

yes i would. The performance has been as good if not better than a lot of houses in the whole of brisbane. As long as you buy well - position, potential and price...

 

With a $2.2mil budget, I wouldn't even bother with resi. Depending on deposit size, you can probably get a lease doc loan on a decent commercial property with a decent (possibly A grade) tenant.

You will be able to pay the property down in 10-15 years, and still borrow against the equity built up by paying down the loan, and the lease payments to you increasing.

I always wonder why people bother with resi when they have so much potential capacity to make real gains.

pinkboy

 

From what I heard. Capital gains on commercial properties are not good and if tenants leaves, vacant period can be long. I know tenant shouldn't be a problem if its a great location but where can I buy a good one for 2.2

 

Diversification might be a reason.
I have always thought that commercial property is like "wholesale", it's big amount but rare transaction, where as residential is like "retail". It's always good to have the combination.

I like commercial property, in fact most of mine are commercial, but lately I feel the need to diversify. The strategy is to buy development site and build as many units.

 

Castlecrag etc. is nice too.... buy a foothold...
Or what about Maroubra? I think it's a touch undervalued if that's possible.
Finally, Denistone and Eastwood are also options.

 

I would be splitting it and buying multiple investment properties 2.2 can get you an awesome property portfolio
I d be going syd Adelaide and Brisbane

I also think the Bra is undervalued

 

Not true .

I've seen it go down . Eg house in Pymble Ave sold for over 1 mill in late 80's . We saw it on the market in 600's during " the recession we had to have "' in early 90's . Still regret not buying it ...But at that stage I don't think we'd realised we could afford something like that . Was a nice house .......

If anything adverse does eventuate in China , Chatswood might be a bad place to hold , especially if it turns out to be close to the top .

Personally if I had another 2.2 mil I'd invest in Brisbane .

Cliff

 

Ok. I am yet to see a whole cycle... 40% price drop in Sydney then is very scary!!

 

Many ways to skin a cat
I agree why limit yourself, buy a mix
There is also the option of developing resi you can achieve best of both, capital and higher returns

 

Not a 40 % drop in median or average price , BUT , when the market is dead and you have a motivated vendor , individual properties can drop significantly .

Cliff

 

I'm so happy we bought our house... I thought it was worth a lot more than we paid for it. Of course, beauty is in the eye of the beholder. But if a couple of people think like I do, it could have sold for a lot more. Luckily for us it was a dead market at the time.

 

@William W - are you buying outright with cash or borrowing some of the funds?

Agree with @See Change - worth considering Bris with that budged. You could pick up 2-3 large blocks 5-10km from the city for that, and reasonable rental income or 5-6 a bit further out with even better rental income.

Probably more sensible than dropping it on one (or two) IPs in Sydney which is clearly about at its peak.

If this was 2013, different story

 

Sydney inner eastern suburbs

 

If you were looking at Sydney , that's about the only place I'd consider as historically it tends to keep on moving up between the boom periods , but IMHO , brisbane will move more in the next 5-7 years than that section will .

Cliff

 

BTW ,, If you have 2.2 mil cash . I'd still borrow something to improve you potential gain . 50 % LVR and most things will be cash flow neutral at least .

CLiff

 

Has it dawned on you to wait...just a tiny weeny bit?

 

@See Change @Cimbom which suburbs would qualify as "inner east"?

 

City to Bondi , down to Coogee . That's what I'd be thinking .

cliff

 

Yep, pretty much

 

You can't get much further east than Bondi/Coogee either.