Brisbane for non-Brisbanians

[Pumblechook]

From: Peter Martin


I'm hearing and reading an awful lot at the moment about how the Brisbane property market is all set to "take off".

Sounds great but I live in Melbourne and have only ever bought IPs in Melbourne, so I've got a couple of questions:

1. What do people think of the Brisbane IP market?
2. Any specific tips on buying outside your own state?

Thanks,
Pete

 

[Michael Yardney]

Reply: 1
From: Michael Yardney


Pete
Just a little word of warning. The Brisbane market has been about to take off for years!
You make your wealth in investment property through capital growth.
You will do well if you chose and area with a long history of capital growth rather than chasing the next trend.
Melbourne is a vibrant mature property market with the a strong history of capital growth. It's 20 year average annual growth is as high as Sydney's and much higher than Brisbane's and the Gold Coasts'
There are a lot of opportunities in Melbourne and I feel you would be better off getting to know this market well so that you can recognise a bargain rather than look further afield where it will be hard for you to become an expert
Michael Yardney
Metropole Properties

 

[WebBoard]

Reply: 1.1
From: The Wife


>my notes below covered by the ****, cheers!

Pete
>Just a little word of warning.
>The Brisbane market has been
>about to take off for years!

*** Michael, do you invest in Brisbane? If not, you should be saying, stick to what you know. I invest in Brisbane ( as well as Melbourne), and the Brisbane market has ALREADY taken off, property I brought at xmas, has now doubled in price, oooaaarrr, thats cap growth!****

>You make your wealth in
>investment property through
>capital growth.
>You will do well if you chose
>and area with a long history
>of capital growth rather than
>chasing the next trend.

*** OOOPS, the area I brought into didnt have any cap growth for decades.....however, it did have some new infrastructure, which made it boom, Lesson: know your area well***

>Melbourne is a vibrant mature
>property market with the a
>strong history of capital
>growth.

*** Not to mention you live,
and you make your living in Melbourne****


It's 20 year average
>annual growth is as high as
>Sydney's and much higher than
>Brisbane's and the Gold
>Coasts'

,****I dont recommend people invest in an area they dont know, however, if they take the time to get to know an area, Brisbane is a cheaper market to get into, but the research is essential***

>There are a lot of
>opportunities in Melbourne and
>I feel you would be better off
>getting to know this market
>well so that you can recognise
>a bargain rather than look
>further afield where it will
>be hard for you to become an
>expert
>Michael Yardney
>Metropole Properties



~Life is a daring adventure, or nothing at all~

 

[Michael Yardney]

Reply: 1.1.1
From: Michael Yardney


TW
You make some good points. I wrote my post late at night and maybe should have made myself clearer.
There are opportunities in most / every market. You just have to recognise them when you see them. So you are correct in saying stick to the market you know.
It's just easier too become an expert in your home state.
Unfortunately I have seen many more people complain about VERY poor performance of their Queensland property investments than any other area. This is usually because they have been ill advised about where to invest and property values. I guess it comes down to becoming a real estate expert in your "geographic patch"
Michael Yardney
Metropole Properties

 

[Robert]

Reply: 1.1.1.1
From: Robert Forward


Hi Michael

I also invest in Brisbane and I'm local to Sydney. I grew up in Brissie though so yes I do know my town.

What has me though, is the outlook you believe Brissie to be in. I have received good Cap Growth on my properties, the last purchase is currently averaging 15%pa (not to mention it was purchased at 60% of FMV).

But is your outlook on the Brisbane market traumatized by all the 2 tier marketiers the have existed in QLD at one time or another. If so, then of cause you aren't going to get the best cap growth because you have lost it with your purchase price.

If however you research properly and learn your farming area then there shouldn't be any problems.

It all comes down to Due Diligence and how much you do for your expected return.

Regards
Robert

 

[WebBoard]

Reply: 1.1.1.1.1
From: Douglas K


hi guys

i read with interest your posts. you are all right and nobody is wrong. ultimately though, if your current strategy is working for you then why change?

as my dear old grandpa used to say.

"speculate, then accumulate, but only ever buy where you wanna die!"

cheers


dougie

 

[propertyworks]

Reply: 1.1.1.1.1.1
From: George M


Q. How much money did he have