Another where to buy. Brisbane vs. Sydney
- Thread starter eranhor
- Start date
I'd ask why.
With NAB being used early, you always need a good justification as it generally doesn't make sense from a structured investment lending point of view. They pay the highest trailing commissions and really support the broker business - it irks me seeing it if its just broker incentives. The only legitimate reasons why I can see it being used so early are:
1. Great valuation result that makes you go there over other lenders. I've got a few upside anomalies from NAB vals for some reason.
2. 90% no genuine savings requirement.
3. Servicing - you need to squeeze that last dollar out early. This is very marginal as their servicing calculator only really becomes powerful for those with larger portfolios.
4. Other niche reasons that they cater too.
I once mapped out the commission difference between NAB and another big4 over a 30 year mortgage (as an example) for a client - it ends up being massive.
Don't get me wrong, I use them a fair bit, but its for the specific reasons above (particularly genuine savings).
I wouldn't be 'tapping' out with NAB unless there's a specific reason to.
You could switch to another lender that takes the NAB debt you have at actual repayments (e.g. AMP, Macquarie, MEbank, Adelaide) and you should be able to extend your journey.
Cheers,
Redom
You mean see_change and moneyman 85 hype the Brissie market???
Plllease
Sorry to disappoint you wattleIdo but you won't see a lets hype Brisbane thread . The Sydney thread was an observing what was and is still going on in my own back yard and specifically done due to innuendos from various people that I was hyping the market.
Bought in Brisbane in 2013 and probably not as much growth as every one ( including myself ) was expecting , though anything we've bought in the last few years has been bought from a long term perspective , with any short term gain an added bonus . Interestingly the best performed one has been the OTP which gets finalised in the next few months . Close to 20 % up on that .
Currently just moved into our downsizer , so busy organising the house , then our youngest one has his 21 st planned as a welcome gift to all our new neighbours ......
Will be buying more this year . Gradually narrowing the field down at the moment , but I do have a short priced favourite
. Maybe a lets hype .........middle of the year when I finished buying up the town and want to sell for a quick profit
. Maybe I should talk to Gina to see if she wants to come in with me Cliff
The free Residex suburb reports include pie graphs, one of which is "Dwelling Type" that shows relative percentage of houses, semis and units.
Stick this link in your IP Toolbox..
Its has everything you want to know plus more..
http://www.sqmresearch.com.au/free-statistics.php
Just enter your suburb/area code.
Enjoy.
I thought this was a great post but has Melbourne really peaked? Thought prices still rising there, albeit a fair bit slower than Sydney. Thought Melbourne was around '10' with Sydney at '12'. I am looking at both Melbourne and Brisbane so keen to understand if members feel this is a poor time to be investing in Melbourne.
Cheers.
GG
Thanks, thought they had free ones
If your choosing btw Sydney and Brissy...it means you probably don't have a lot of cash/equity to buy both...so without going into your financial i would probably still suggest IF you have the ability to buy Sydney and fund /hold it...GO for Sydney it will have better CG over the long run- always has and always will.
CG = more cash/equity = ability to go again ( presuming you have serviceability)
Cash is king> CG> Equity> Serviceability.
Serviceability can be fixed...CG/equity not so much.
CG = more cash/equity = ability to go again ( presuming you have serviceability)
Cash is king> CG> Equity> Serviceability.
Serviceability can be fixed...CG/equity not so much.
Michael...if you have $2m in property....you will probably need to calculate it based on 3.75% net return. So you will need about $2,666,667.
Why...because there are maintenance and other costs associated with property even after debt is paid off.
On Blue Chip shares, Fixed interest...the 4% or 25 times the income needed rule works quite well. So if you want 100k you will need 2.5m...that will keep up with inflation for life!
The other thing to consider is that a 100k net or pre-tax. If is pre-tax after taxes you will have about 75k! By splitting the income and buying properties with depreciation you could possibly only need 85k.
My net wealth is 64% property.and 26% cash.and the rest in super and shares..my plan is to change this mix over time to where I can reduce this to a 40-55% property and 45-60% shares and cash.
Why...because there are maintenance and other costs associated with property even after debt is paid off.
On Blue Chip shares, Fixed interest...the 4% or 25 times the income needed rule works quite well. So if you want 100k you will need 2.5m...that will keep up with inflation for life!
The other thing to consider is that a 100k net or pre-tax. If is pre-tax after taxes you will have about 75k! By splitting the income and buying properties with depreciation you could possibly only need 85k.
My net wealth is 64% property.and 26% cash.and the rest in super and shares..my plan is to change this mix over time to where I can reduce this to a 40-55% property and 45-60% shares and cash.
A lot of property for not much income :s
I guess to increase the income, you need to continue to work on leveraging the existing equity and buying more etc
thanks mick c
so what u r saying is that if you were able to provide deposit for 2-3 properties now, u would buy in sydney now rather than brissie, if u consider long term capital gains.
Even despite where sydney is in the property cycle around 12pm compared to brissie maybe 7.30pm, u believe sydney will outstrip brissie long term
If so for this favourable growth, due u think houses will outstrip apartments for CG, or was this for both
And if u were to buy a few properties in sydney now, which location and what type be it houses or a parts would they b for high capital growth?
thanks
so what u r saying is that if you were able to provide deposit for 2-3 properties now, u would buy in sydney now rather than brissie, if u consider long term capital gains.
Even despite where sydney is in the property cycle around 12pm compared to brissie maybe 7.30pm, u believe sydney will outstrip brissie long term
If so for this favourable growth, due u think houses will outstrip apartments for CG, or was this for both
And if u were to buy a few properties in sydney now, which location and what type be it houses or a parts would they b for high capital growth?
thanks
In terms of the property cycle, Sydney is now at peak, Brisbane is at around 7-8 o'clock. Might need to wait for the next cycle (maybe in a few years time) to kick in for CG if you buy in sydney now....although i think CG in long term is better for sydney
Let say for 600k budget, it will get you a 3/4 bedder house within the 15km ring of brisbane CBD, while you can only get a 2 bedder unit within 15km south of sydney CBD. with comparable rental return
At this point I will definitely go for house in brisbane rather than a unit in sydney due to the better potential CG in short term
Let say for 600k budget, it will get you a 3/4 bedder house within the 15km ring of brisbane CBD, while you can only get a 2 bedder unit within 15km south of sydney CBD. with comparable rental return
At this point I will definitely go for house in brisbane rather than a unit in sydney due to the better potential CG in short term
Hi Sash
what do you do to reduce to 40-55% property and increase shares and cash to 45-60% ? (by selling down properties?)
if you do not mind, could I ask how long did it take for you to accumulate $2 million of net worth? (just want to get an idea of whether i am on the right track)
thanks again
