Brisbane surely is a bargain.

[barney8]

Just up there recently and saw double block houses ~ 400K approx 10kms from the city on good transport links(train and bus).(not flood zone property either).

Surely when you compare this to Sydney/Melbourne property, it is way out of whack?

Either Brisbane is incredibly cheap, or Sydney/Melbourne markets are both well over cooked?

Historically there has always been a good mark up on prices...but not by that sort of dough(and that size). Thats prob at least a 40% markup(or more)

 

[YPG]

Yep I agree with you, I think they look promising.

I think Salisbury and Cannon Hill sites are good buys for future 2 lot subdivisions while renting the current house on it.

 

[wobbycarly]

Even without taking the land content into account, 12-18 months ago, our townhouse in Brissy was valued at about $385k. We've now got it on the market for $359k (would take $345k)! With a $430/week rent. (OK, the BC is about $70/wk )

That's a BARGAIN!

 

[INVSTOR]

Even without taking the land content into account, 12-18 months ago, our townhouse in Brissy was valued at about $385k. We've now got it on the market for $359k (would take $345k)! With a $430/week rent. (OK, the BC is about $70/wk )

That's a BARGAIN!

So why are you selling?

 

[wobbycarly]

So why are you selling?

Timing... We've just upgraded our PPOR and would like to reduce our non-deductable debt. We can manage to hold, but if we can get our minimum return from this one, we'd be satisfied.

 

[INVSTOR]

Timing... We've just upgraded our PPOR and would like to reduce our non-deductable debt. We can manage to hold, but if we can get our minimum return from this one, we'd be satisfied.

I know what you mean! I'm tempted to sell my townhouse in Bris to upgrade PPOR too, even though the cashflow is neutral, and quite high compared to lots of other properties, just not the right time to sell. Could have sold it 3 years ago for $30,000 more than what I'd get now. Plan now is to sell in another 2 years.

 

[mattnz]

All of Australia, with the exception of mining boom towns with positive cashflow are grossly overvalued.

Have a look at what you could get in USA for US$400k
http://www.msnbc.msn.com/id/4257311.../five-homes-you-can-get-or-less/#.T2hjGMXZBm0

 

[luce.rocks]

Have a look at what you could get in USA for US$400k
http://www.msnbc.msn.com/id/4257311.../five-homes-you-can-get-or-less/#.T2hjGMXZBm0

Yeah but none of those places are in big cities. If you look outside our capital cities, you can find some equally lovely, big houses for $400K.

 

[Indifference]

Yeah but none of those places are in big cities. If you look outside our capital cities, you can find some equally lovely, big houses for $400K.

Really??? Well, I "live" in the US. Is Baltimore (~2.7 million ppl) or Philadelphia(~1.5 million) or Pittsburgh (~2.3 million) "big" enough?

I could go on..... and on..... How about Atlanta (~5.2 million).... yeah, that's definitely not a big city...... & yes, $400K will buy a truly great home in any one of these "towns"..... I can't say the same about Australia where I have/do own property in Brisbane, Canberra, Melbourne, Nth Qld.....

Perhaps my definition of "big" is actually "small"?

IMO, Brisbane is definitely NOT a bargain..... unless of course your world begins & ends with the shores of Australia. Comparatively (to the rest of the world) Brisbane is rather expensive. But I guess the world is not "big".....

 

[mattnz]

The first one is in a suburb of Atlanta, a similar sized city to Sydney.

The fourth one down is in Portland, Maine, population 500,000, larger than Canberra.

 

[Andrew_A]

The Sydney-Brisbane and Melbourne-Brisbane price differential or premium has been growing strongly in the last few years, I have a few charts around the place showing the relationship and forward five year growth for Brisbane. Solid fundamentals driving trend here as we know most migration is into Sydney and Melbourne and interstate migration heads north following affordability.

 

[pieman]

All of Australia, with the exception of mining boom towns with positive cashflow are grossly overvalued.

Don't categorise all aus property as "grossly overvalued" just because you can't afford it

 

[luce.rocks]

Really??? Well, I "live" in the US. Is Baltimore (~2.7 million ppl) or Philadelphia(~1.5 million) or Pittsburgh (~2.3 million) "big" enough?

I could go on..... and on..... How about Atlanta (~5.2 million).... yeah, that's definitely not a big city...... & yes, $400K will buy a truly great home in any one of these "towns"..... I can't say the same about Australia where I have/do own property in Brisbane, Canberra, Melbourne, Nth Qld.....

Perhaps my definition of "big" is actually "small"?

IMO, Brisbane is definitely NOT a bargain..... unless of course your world begins & ends with the shores of Australia. Comparatively (to the rest of the world) Brisbane is rather expensive. But I guess the world is not "big".....

I was just going off the descriptions. First one is listed as being "45 minutes from the great city of Atlanta", the second is "small-town atmosphere near the big city amenities of Minneapolis and St. Paul". Third one doesn't mention a nearby city. Fourth one is Portland, not a small town but not a main city. The last one is in Palm Springs, which has a population of 44,000 and is 111km from LA.

So I'm sticking to my guns. If you went to the satellite towns of our main cities, you could find nice, big houses for a similar price. And while I don't know what the blue chip suburbs of LA, Atlanta or Minneapolis are, I'd take a guess that the median price in those blue chip suburbs would be a lot more than $400k.

 

[mattnz]

Don't categorise all aus property as "grossly overvalued" just because you can't afford it

Actually, I have plenty of property and am developing more, just not in main centres, but where there is real value and rental yield to support the prices in those areas.

In regards to distances from main cities, we are talking about locations similar to Sutherland and the Northern beaches. What would you be paying for similar houses in these locations $1-2M+?

 

[Indifference]

I was just going off the descriptions. First one is listed as being "45 minutes from the great city of Atlanta", the second is "small-town atmosphere near the big city amenities of Minneapolis and St. Paul". Third one doesn't mention a nearby city. Fourth one is Portland, not a small town but not a main city. The last one is in Palm Springs, which has a population of 44,000 and is 111km from LA.

So I'm sticking to my guns. If you went to the satellite towns of our main cities, you could find nice, big houses for a similar price. And while I don't know what the blue chip suburbs of LA, Atlanta or Minneapolis are, I'd take a guess that the median price in those blue chip suburbs would be a lot more than $400k.

I don't want to derail the thread but you can't be serious.... 1st one is 4bd, 5 bath with inground pool only 45 mins from a 5+ million metropolis for only 349k! .... only 21.64 Mi (34.8 km) from the CBD by road, not by crow. Now please show us all a "comparable" home the same distance from Brisbane CBD for under 350k.... You won't be able to, because it doesn't exist!

.... and Portland is 2.2 million! which I might add, could almost be mistaken for Brisbane even from a picture

BTW, I grew up in Brisbane.... I know it rather well. I have also lived in the US for a couple of years & know one thing for certain.... your assertions above are just plain wrong. Please stick to your guns by all means, but you are clearly out of ammo & pointing them in the wrong direction.

As for your comment about blue chip suburbs, I totally agree BUT the same is also true of Brisbane blue chip property which is not even remotely close to 400K.

Honestly, moving abroad has opened my eyes to many things, including property and I have "de-conditioned" my Aussie thinking on the subject. I am not trying to be abrasive to Luce here, but I can not let what seemingly is misinformed opinion go unchecked. Brisbane is only a bargain to those with a relatively short field of view.... Ie. the coastline. Even with that aside, I still think Brisbane has further stagnation potential & that better purchasing opportunities are still ahead of us.

 

[luce.rocks]

In regards to distances from main cities, we are talking about locations similar to Sutherland and the Northern beaches. What would you be paying for similar houses in these locations $1-2M+?

Are they locations similar to Sutherland and the Northern beaches? Because 45 min from Sydney could also mean Blue Mts, Camden, Richmond, etc., which all have much lower median prices than either Sutherland or the Northern Beaches.

Besides, I don't think you can compare Sydney to Atlanta just because they have similar populations. Sydney is one of the richest cities in the world. You would have to expect its suburbs and satellite towns to have higher house prices than most other cities.

I know there are many different types of lists that get published each year, but looking at this one for example:

http://www.citymayors.com/economics/richest_cities.html

Sydney ranks as the 5th richest city in the world (in salary terms), and Atlanta doesn't even appear in the top 73.

Given how rich Sydney is, I think that being able to buy a house like this, for example, represents pretty good value, even if it's a fraction more than $400k:
http://www.domain.com.au/Property/For-Sale/House/NSW/Leura/?adid=2009518587

And there's lots of these sorts of homes for sale in the mountains.

 

[virgo]

Sydney

Hiya


It's all relative innit? Where i come from (Singapore) , Sydney (and lets not talk about Brisbane) is so cheeep....

 

[mattnz]

Are they locations similar to Sutherland and the Northern beaches? Because 45 min from Sydney could also mean Blue Mts, Camden, Richmond, etc., which all have much lower median prices than either Sutherland or the Northern Beaches.

Besides, I don't think you can compare Sydney to Atlanta just because they have similar populations. Sydney is one of the richest cities in the world. You would have to expect its suburbs and satellite towns to have higher house prices than most other cities.

I know there are many different types of lists that get published each year, but looking at this one for example:

http://www.citymayors.com/economics/richest_cities.html

Sydney ranks as the 5th richest city in the world (in salary terms), and Atlanta doesn't even appear in the top 73.

Given how rich Sydney is, I think that being able to buy a house like this, for example, represents pretty good value, even if it's a fraction more than $400k:
http://www.domain.com.au/Property/For-Sale/House/NSW/Leura/?adid=2009518587

And there's lots of these sorts of homes for sale in the mountains.

There is something screwy with this list. It has Manila at 72, but this report has average household income there at $400 per month. Having been there and my wife being from the Philippines, this is about right. http://www.ucl.ac.uk/dpu-projects/Global_Report/pdfs/Manila.pdf

There is no way that the average resident of Atlanta earns less than the average resident of Manila, so it has clearly been omitted from the list. In fact this report has it around $50k per annum http://www.city-data.com/city/Atlanta-Georgia.html

This compares with Sydney at $66k http://www.smh.com.au/business/the-...market-rankings-worldwide-20110123-1a18f.html Interesting to see it as the 2nd least affordable market in the world. Who really feels rich? The person in Atlanta with a $100k mortgage fixed for 30 years at 4.5% on $50k per annum, or the equivalent person in Sydney with a $400k mortgage floating at 7% on $66k per annum? I know which of these options I would choose any day.

 

[luce.rocks]

Who really feels rich? The person in Atlanta with a $100k mortgage fixed for 30 years at 4.5% on $50k per annum, or the equivalent person in Sydney with a $400k mortgage floating at 7% on $66k per annum? I know which of these options I would choose any day.

Either you've made a typo, or I think you've changed the goal posts here Matt, when you talk about $100k mortgages in Atlanta.

Anyway, we've hijacked the thread to a comparison of Sydney and Atlanta (funny where some things end up!), I guess we should bring it back to Brisbane.

A few years back, the ABS projected that SE QLD would be the fasted growing region in Australia in the next few decades and that the population of Brisbane and SE QLD would quadruple by 2030 (or was it 2050?). If that's still the case, then I reckon I'd rather pay $600K for a house within a few kms of Brisbane CBD, or a house on a splitter block a bit further out, than the same amount for a 2 br flat in inner Sydney. Be nice to know if those projections were still on track.

 

[YPG]

Either you've made a typo, or I think you've changed the goal posts here Matt, when you talk about $100k mortgages in Atlanta.

A few years back, the ABS projected that SE QLD would be the fasted growing region in Australia in the next few decades and that the population of Brisbane and SE QLD would quadruple by 2030 (or was it 2050?). If that's still the case, then I reckon I'd rather pay $600K for a house within a few kms of Brisbane CBD, or a house on a splitter block a bit further out, than the same amount for a 2 br flat in inner Sydney. Be nice to know if those projections were still on track.

What we've just been told over the last two years is that by 2050 Australia's population is projected to increase by 65%.

And taking Queensland for example - it is expected that the majority of this increase will be in SEQ primarily in Brisbane and the Gold Coast.

So yeah I agree I think that splitter blocks that close to the city will see some CG in years to come. The original post was comparing the affordability ofBrisbane to Sydney and Melbourne... not Brisbane to the rest of the world