Brisbane Boom: Has the boat been missed?

[Finrod]

Hi All,

I posted on these forums nigh on a year ago requesting some advice. I considered upon all the input from the community here, and purchased my first IP early this year. It is a 3 bedroom house in Sydney's Oakhurst, procured for 285,000 - now being let for $260 pw, and thus far is going well.
I would like to give out a big thank you to everyone for sharing suggestions, thereby contributing toward my financial freedom!

It's now a bit later in the year, my income situation has improved and I am looking for IP 2, this time in Brisbane.

The old axiom suggests that it's best to buy at the bottom of the cycle, and sell at the top. Brisbane appears to be well on the way toward booming. Does this mean that I've missed the boat this time round, and should focus my efforts on Sydney since it is *just* starting to pick up now?

Also, are buyer's agents worth using? Do they really help you get 'that perfect deal' or are there charges relatively exuberant, thereby offsetting the benefit of the fantabulous property they managed to dig up for you?

Any information will be very much appreciated.

Cheers

F

 

[anrke]

The old axiom suggests that it's best to buy at the bottom of the cycle, and sell at the top.

Is this a long term investment? If so, the property is likely to see many booms and bottoms across the term of it's life in your hands.

 

[Finrod]

Hi Anrke,

It is a long term investment yes, with a view to sell in approximately 20 years. That said, I wonder if it would not be a better investment to buy somewhere which is just starting to boom, than somewhere where I'll be coming in more than half way through this cycle's rises.

 

[Tim]

From what I have read in API and on Michael Yardney's sites, Brisbane is in a rising market and still has a way to go.

Tim

 

[BoatBoy]

I would'nt say you've missed the boat, but all the so called bargains have been well picked over IMO.

Dave

 

[Finrod]

Tim,

Thats what I hear, but what Boatboy has pointed out is my fear!

Thanks for the input guys.

What about buyer's agents? Are they worth it?

 

[CairnsAgent]

You may not find a bargain as such, but can still find good value..you do have to look a little deeper than usual tho!

cheers

 

[Andrew_A]

Nobody I know of predicted the type of strength in Brisbane we have seen in 2007, so I'm not sure why they will all be better at predicting where it will end. Won't stop them trying, and charging for their advice though.

Not that I'm very good at it I have discovered but property seems to easily allow value creation at any stage of the cycle, just like a skilled trader can make money in a bear market.

Another story from my suburb I heard from a tradie this morning. Friend of his bought an 1100m block for 370, sliced it up and moved the house which is now renting for 340 on a smaller block size... so he has the decent yield and IP + a new block of land to do something on. No shortage of ways to make money it seems.

 

[EstatePreneur]

Did anybody watch the Today Tonight program on Channel 7 yesterday / 2 days ago about real estate.

Basically, it says that the promising and fastest growing value suburb is Logan. Can't remember the other 2 suburbs, but I think they're around on the northside of brissie.

 

[Finrod]

Thanks for your input guys.

Every little bit helps

 

[willair]

Can't remember the other 2 suburbs, but I think they're around on the northside of brissie.

EP,from memory I think one of the three was Waterford just down the road from Logan Central..willair..

 

[eggnog]

I personally wouldn't take the "Journalism" of Today Tonight and A Current Affair too seriously. And in general, by the time media starts reporting on properties/shares the market has already moved and most of the gains already past.

 

[WinstonWolfe]

Finrod, there's still a lot of money streaming into SE Qld. Brissy has copped a flogging since November last year, but probably still has a way to go. Can't see anything to stop prices moving higher.

Here's a few random thoughts:
- I honestly see the water crisis getting worse, and expect a popn cap may have to be applied within 3 years, even if temporary. A developer friend has already seen evidence of the Pine Rivers Shire Council delaying DAs because they cannot guarantee water supply to a planned sub division. That is the first concrete example of the water crisis decreasing supply of new housing. If SE Qld gets a pop cap, I'd love to be holding 10 times the property I am now.

- If Brisbane is looking a little toppy, consider the Sunshine Coast, Toowoomba, or Hervey Bay (3 great retirement foci). I hear HB's recent surge kicked off around 5 mths after Brisbane, and is going strong still.