A good article by Terry Ryder & an interesting experiment

http://www.propertyobserver.com.au/hotspots/a-quality-property-investment-is-not-dictated-by-prestige-or-price-but-by-growth-and-returns/2014021267753?utm_source=po&utm_medium=aida&utm_campaign=upperright

Here's a good article by Terry Ryder - 13.02.14 and an interesting experiment.
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A quality property investment is not dictated by prestige or price, but by growth and returns. People often fail to see value if they can't relate to the setting.

In 2007 a Grammy Award-winning musician - violinist and conductor Joshua Bell - stood in a metro subway in Washington DC and played for 45 minutes on a $3.5 million Stradivarius. Over 1,000 people walked past. Only seven stopped, briefly, to listen. A three-year-old boy was the only person who paid any real attention to the world-class violinist, who two days earlier had sold out a concert hall in Boston at $100 a seat.
 
Totally agree with this article.
I have and know many somewhat privileged people and most of them think that way too. Some even consider Surrey Hills as a rough suburb so they would not invest there, can you believe that!
I think the main reason is that they do not know that they need to distinguish their attachment as most would think they wouldn't live there! Well, that's just it, I tell them I'm buying a product (the property) that services a client (the tenant) so I am running a business. I never plan to live there!
Some will get it and some will not, so I just do my thing and not worry about it!
 
Yes, I agree with this, though its over the top sensilisation (I can't spell) with his example... let's maximise marketing.... and get everyone sucked in

The question is how to identify an area that will take off and is not blue chip???? Anyone know??;)
 
The question is how to identify an area that will take off and is not blue chip???? Anyone know??;)

"spillover" suburbs is the quickest way I know. e.g., Richmond VIC is becoming "bluer" by the day (if not already), next to old money Kew and East Melbourne. Non-traditional money suburbs 7-10 kms out of the CBD in Melbourne are gentrifying day by day and have changed their old image.

It depends on how long you wait. Anything in the 10 kms inner circle for Melbourne is a safe bet for 15-20 years time. Anything shorter term is a little bit harder to say. Also, future infrastructure projects, which has already been mentioned.
 
There is also a sort of reverse snobbery I've seen on this forum at times by some people who don't realise what some people will happily pay for rent.

There are good buys to be had in all parts of the market at different times of the cycle.

We've bought in Logan , rockhamptom , mosman and manly ( sydney ) and done well in all of them.

Cliff
 
I'd disagree with terry on one point .

If Blacktown has been the best performer , it is unlikely to stay the best performer . Typically when one area has gone ahead , others will catch up.

Interestingly this cycle is totally different to the last one . Then central sydney move up first and then it spread out from there . I remember a time when Blacktown had moved but Mt Druitt hadn't . I talked to a Mt Druitt agent at the time and he said the area never went up.....

Cliff
 
I'd disagree with terry on one point .

If Blacktown has been the best performer , it is unlikely to stay the best performer . Typically when one area has gone ahead , others will catch up.

Interestingly this cycle is totally different to the last one . Then central sydney move up first and then it spread out from there . I remember a time when Blacktown had moved but Mt Druitt hadn't . I talked to a Mt Druitt agent at the time and he said the area never went up.....

Cliff

I agree this cycle is totally different in Syd from previous cycles. My understanding is that many professionals from India/Immigration was a major factor that pushed prices up in the West as it is affordable, not for too much long though.

I also think there are many myths and snobbery associated with regards to blue chip properties and am sure lots of investors get caught up with this and miss out on many opportunities.

Some of my best buys in the main have been properties in State Housing areas, these areas change and if one looks at infrastructure, proximity to city and if the median of surrounding areas are much higher it could be a winner.

Cheers
MTR
 
Some of my best buys in the main have been properties in State Housing areas, these areas change and if one looks at infrastructure, proximity to city and if the median of surrounding areas are much higher it could be a winner.

Cheers
MTR

Agree with this - I've had good results (in Melb) with ex-DHS property and long term there's plenty of room to move up. However when this area (for me) was 10% down 2 years ago, my inner-city & inner-Bayside property performed really well to pick up the slack.

A bit of diversity in the same city seems to works quite well. Hopefully both the top end end and lower-end markets move this year.
 
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