I'd like some opinions on whether I should buy my first IP in Sydney or Queensland. My aim is to hear out different reasonings for why I should do one or the other that I may not have considered.
I would be buying now with an aim of benefitting from the investment in 30 years time (either through passive income or selling off the property) and so this would be a long term decision with an aim to grow capital growth in the short to medium term to help in the purchase of future properties.
If I was to buy in Sydney I'd be willing to go more "all in" and purchase something up to about $1m. If it was Queensland purchase I'd be a bit more reserved and look at something around 500-600k. I reside in Sydney so I'm willing to take a bigger risk in Sydney.
I've written up a list of pros for each state below. I guess my aim is to add to the lists with other factors I haven't considered.
Queensland
* Cheaper less capital invested
* Gives us a bit more flexibility for a second investment in a shorter time span quicker.
* Complications would be hard to handle. Finding a property manager etc would be harder to do remotely
* Potentially better capital growth in the short term
* Better rental yield
Sydney
* Better long term capital growth prospect
* Easier to manage
* Second purchase would potentially be at a later point in time as we'd be more financially invested.
* Potential dip/correction in the next 5 years; however if there was no dip the market would be harder to enter later.
Atm I am leaning slightly more towards Sydney as I believe long term capital growth would favour Sydney more.
Hey there,
Seeing as you live in Sydney, I would suggest that maybe investing in Sydney as your first choice is better than investing in Queensland. Even though right now, there are lots of cheaper investments in Queensland, Sydney has a higher yield rate which is better for the long term.