NSW Who wished they purchased in Sydney

Discussion in 'Where to Buy' started by MTR, 24th Jul, 2015.

Join Australia's most dynamic and respected property investment community
Page 6 of 13
  1. See Change

    See Change Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    5,151
    Location:
    Sydney
    Draw some equity , buy some cheapies in Brisbane and when those go up , sell and pay down loan.

    Cliff
     
    See Change, 27th Jul, 2015
    #101
    OC1 and Sackie like this.
  2. Sackie

    Sackie Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    25,059
    Location:
    Vaucluse, Sydney.
    I know a person who had his dream goal of paying off his unit asap. That was his only mega dream. I helped him buy 2 ips and 4 years later he sold both to pay off entirely his ppor mortgage. He is 1 happy camper. Dream fulfilled. He lives everyday to the max.
     
    Sackie, 27th Jul, 2015
    #102
    Gibson, Property Twins and Mayjong like this.
  3. euro73

    euro73 Well-Known Member Business Member

    Joined:
    18th Jun, 2015
    Posts:
    6,129
    Location:
    The beautiful Hills District, Sydney Australia

    Yes, I did say that, but to be fair I also said that a huge drop in rates, passed through to borrowers vis servicing calcs, would be the only way Sydney could do that. And I spoke at the time about LVR restrictions or DSR restrictions being very likely if rates were to be cut. I guess I should have accounted for the regulators being 3 years behind the curve, but they have certainly caught up now. Had they acted 3 years ago, do you believe Sydney could have seen the gains it has?
     
    euro73, 27th Jul, 2015
    #103
  4. See Change

    See Change Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    5,151
    Location:
    Sydney
    Yes , but they didn't did they and it did go up sharply AFTER A LONG PERIOD OF MINIMALR GROWTH .

    My observation is that this forum is ahead of the curve .

    Cliff
     
    See Change, 27th Jul, 2015
    #104
    Sackie likes this.
  5. Sackie

    Sackie Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    25,059
    Location:
    Vaucluse, Sydney.
    While many people are saying the government should do this, that and the other, - others are just making use of the favourable conditions and buying. And when those conditions are gone, investors will look at other opportunities to make money. There will always be opportunities to make money.

    Don't forget, a lot of the people who make policy have a vested interest in the real estate market :D
     
    Sackie, 27th Jul, 2015
    #105
  6. devank

    devank Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    1,670
    Location:
    Inner West - Sydney
    It is all about Supply & Demand. Nothing more.
     
    devank, 27th Jul, 2015
    #106
    MichaelW likes this.
  7. euro73

    euro73 Well-Known Member Business Member

    Joined:
    18th Jun, 2015
    Posts:
    6,129
    Location:
    The beautiful Hills District, Sydney Australia
    Yes, prices did surge - but in Sydney only (and some parts of Melbourne) and it took massive capacity increases to fuel it. What now though, with the fuel being rationed and capacity being curtailed?






    Of credit.
     
    euro73, 27th Jul, 2015
    #107
  8. Sackie

    Sackie Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    25,059
    Location:
    Vaucluse, Sydney.
    I guarantee you, there will be people in all states of Australia in the next 12-18 months who will make good deals and realise great profits in time. I guarantee it. The philosophy you currently hold will blind you to all the different opportunities there are out there to make money via property.

    No disrespect intended mate. Just my opinion.
     
    Sackie, 27th Jul, 2015
    #108
    See Change likes this.
  9. Tonibell

    Tonibell Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    1,108
    Location:
    Sydney
    Have drawn out some equity and purchased in Brisbane - however just not cheapies.

    Renovating a cheapie does not add enough value for us.
     
    Tonibell, 27th Jul, 2015
    #109
  10. See Change

    See Change Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    5,151
    Location:
    Sydney
    I'm lazy ... I let time do the work for me , though based on this and the previous cycle I'm expecting the cheapies in Brisbane to have the greatest percentage as a class .

    Cliff
     
    See Change, 27th Jul, 2015
    #110
    Gibson and Sackie like this.
  11. See Change

    See Change Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    5,151
    Location:
    Sydney
    Like Leo I'll agree to disagree . I think Leo summed up my thoughts to a tee .

    Cliff
     
    See Change, 27th Jul, 2015
    #111
  12. sash

    sash Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    15,663
    Location:
    Sydney
    Tonibell...IR reductions maybe around the corner...I am already savouring that dinner you will be owing me! :)

    Anyway back on topics...yep I did say that you are better off with more properties so long as you get capital gain....let me compare what I have done with mine in Sydney since 2010:

    1. Brand new 3 Brm T/H Watanobbi more like a house- bought in 2012 for 232k....now around 380k.
    2. House in Woy Woy - bought for 263k on 2010...now knocking on 550k
    3. House in Barrack Heights - bought for 232k in 2012 now over $450k
    4. House in Tenambit bought for $205k in 2012 - now over $330k.

    The total gains are around $775k....selling this one by one with deductions and paying some IR in advance would manage the tax liability if you sold one at a time. The land tax liability on these is less than 5k.

    But for example if you bought a place in Sydney Northern suburb for say 650k plus added a granny flat for say 100k...your total spend would be $750 and let say you get 1.6m on the sale in the current market ...you would realise a profit of 850k. Even after the 50% deduction you you are up for 425k added to income even if split it would be 225k. You would still pay at least 150-200k in tax. That would leave you about 600-650k in profit. The other thing is every year you hold it the land tax liability just on this property is about 8k.

    On mine...I would say the liability could be minimised where I would still get a better profit by managing the tax liability.

     
    sash, 27th Jul, 2015
    #112
  13. Tonibell

    Tonibell Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    1,108
    Location:
    Sydney
    http://www.asx.com.au/prices/targetratetracker.htm

    Currently only a 14% chance of a rate cut at the next RBA Meeting.

    With your example you compare an investment of $932K to an investment of $750K.
    Even after CGT the % return would be better for the $750K.

    But - I understand your point, but still not rushing out to get some cheapies.
     
    Tonibell, 27th Jul, 2015
    #113
  14. sash

    sash Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    15,663
    Location:
    Sydney
    Yep...Brisbane as a market needs jobs....for the higher price stuff to really take off. $1m is still a lot of money up there.

    A lot of people there are on 40-80k....they will be chasing the houses in the 300k to 600k range mostly. Once you go past the 800k mark...the market does thin down and people get fussier....at least for the moment.

     
    sash, 27th Jul, 2015
    #114
  15. sash

    sash Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    15,663
    Location:
    Sydney
    OK...but be also be aware if a property has surged from 650k to 1.65k...then there is room for a bigger correction.

    So something worth 1.65k...maybe only worth 1.2.1.4k when the market turns. Normal for more expensive houses. So your profit will be more like 550k to 650k.

    The cheaper stuff does not head down as much..it usually stabilises...that is the way the market works.....

     
    sash, 27th Jul, 2015
    #115
  16. See Change

    See Change Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    5,151
    Location:
    Sydney
    So if Brisbane booms and my 2-230 k properties double , they're still affordable ?

    Great ....:cool:

    Cliff
     
    See Change, 27th Jul, 2015
    #116
    wombat777 and Sackie like this.
  17. JDP1

    JDP1 Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    4,244
    Location:
    Brisbane
    Correct . the high paying stuff has traditionally been the domain on Sydney and Melbourne . Brisbane will need to compete with those two to attract higher paying jobs. It's making strides to do so, however.
     
    JDP1, 27th Jul, 2015
    #117
  18. jaybean

    jaybean Well-Known Member

    Joined:
    20th Jun, 2015
    Posts:
    4,752
    Location:
    Here!
    Depends on your demographic. That's why I target Asian areas. The guy buying 1-2 million dollar homes in Robertson, Sunnybank or Stretton isn't a highflying banker. He sits at home sipping tea and playing mahjong. I posted some stats back on SS a while back - some of these suburbs have really high unemployment, like 8%, maybe more I think. They don't need jobs. They've got mountains of cash. I've seen a few properties in these three areas sell in the 1-3m range recently (and they sell VERY quickly might I add). I remember seeing this one sell last last year when the market was a bit slower, if I recall correctly it was snatched up within days:

    http://www.realestate.com.au/property-house-qld-robertson-116156647
     
    Last edited: 27th Jul, 2015
    jaybean, 27th Jul, 2015
    #118
  19. Mick C

    Mick C Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    206
    Location:
    Sydney
    I have 7 in Sydney ( 7 other in Regional NSW) and i still wish i bought more....but the land tax is now killing me each year with this increase.,..

    I wish i bought some under my family trust sooner...
     
    Mick C, 27th Jul, 2015
    #119
    Gibson likes this.
  20. See Change

    See Change Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    5,151
    Location:
    Sydney
    In NSW , in a trust fund you pay land tax from dollar one so that wouldn't help in NSW . In q'land you have a threshold for each trust .

    Maybe time to take some profits and buy in q'land ?

    Cliff
     
    See Change, 27th Jul, 2015
    #120
    Dean Collins likes this.
Page 6 of 13