Les said:They weren't wrong were they?
I love it - how about you? Although I work in Sydney, I've only bought in SEQ (where I've lived for over 15 years, and think I sort of understand it).
When I kicked off, Bne property was returning 8 - 9% (that was 1999) and the best was yet to come. Today, of course, returns have sunk (as values have screamed upward) to 4 - 5% Par for the course, I guess.
In retrospect, yes, it was a great time to buy, and turned out to be a great start for a newbie like me. I didn't buy before or even at the start of the boom, but managed to catch the back end and still made some good gains. I had the same experience with my perth house: bought it for $165k in 2003 (after the same properties sold for $120, $130k in 2001-2) and now it has to be worth around $250k+. Buy the unloved markets. Wait until people really start deserting the eastern states and Sydney market tanks: that will be a great time to buy.
My IPs are now sitting there waiting for the next boom (and most likely a bust in between).
Partly because I saw what returns were like back then, I'm very wary of the low yields now (especially in Sydney - I saw 3% yields back in 2002 - 2003 and thought, 'These people are nuts!'). I'm especially worried for people who have only seen the last couple of years' markets, and thinks 3-5% yields are the norm. My Perth IP yields about 3.5% based on the market price, and that's nuts. I'm going to get it revalued and get a LOC.
To be honest I don't see myself living in Brisbane. It's a great place, and I'm sure I'll visit often, but I grew up in Sydney, and want to live in Sydney for the long term. I'd like a summer house on the Gold Coast, though!
Alex
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