Reply: 3.1.1.1
From: Stirling Reid
The hypothesis is that the inner city areas have high capital growth and the outer areas have low capital growth.
But looking at the statistics from Residex for the "Brisbane Average Capital Growth for Houses for the Last Ten Years" (as at March 2001) this hypothesis does not hold up.
Based on Local Government (Council) Areas.
Brisbane City Council 4.38% pa
Redcliffe 4.12
Pine Rivers 5.29
Logan 2.68
Redland 5.04
Gold Coast 5.47
Ipswich 1.62
Calboolture 8.3
Kilcoy 3.55
Caloundra 5.18
Brisbane City Council 4.38% pa Capital Growth
Non-Brisbane Council average 4.58% pa
For Average Rental Yield for the last ten years.
Brisbane Council 6.7% pa
Non-Brisbane Council average 7.68% pa
This can be explained to some degree in Brisbane, by the fact that there are 3 major growth areas (Sunshine Coast, Gold Coast and Brisbane). This means that there is fairly uniform growth over Brisbane. This growth has been low in the past 10 years but is increasing.
So why not go for gold, high yield and high growth. Buy in an area of high yield and there is also a high probability of getting high capital growth, subject to other criteria of high land content etc.
(As I do not have the Sydney data, no data for Sydney has been analysed)
Any comments? Stirling