Darwin?

[sam_oz]

Hi Nick,

Being located in the Gladstone area I can say I'm confident that there will be a resurgence in rental prices here as the three major projects here are yet to really ramp up, the QCLNG plant is yet to reach peak employment and it is the site that has progressed the furthest.
Although quite a lot of the workforce will be FIFO the camp on this site is almost at full capacity so the rest of the new members of the workforce need somewhere to live if they weren't already local.

Gladstone market is died nearly and there is no sign of recovery for at least another 5 year. This is my experience. My IP is with 7% rent with Construction Company and lease will go for another 18 months but trust me even with 30K loss I could not find anyone in Gladstone who is confident to sell this property now. Not only with Vantage , my work mates having same issues with other premier estates like little creek and emmadale. They could not get the tenants for weeks. I wish to forget about this IP for another few years.

Now I would like someone here to suggest me on Darwin IP. That looks really promising

 

[one world]

Now I would like someone here to suggest me on Darwin IP. That looks really promising

Darwin is a lovely place. If you want a home there for visiting etc its fine. But if you want capital gain, its hardly cheap. The trains has left the station, the time to get in was a decade or more ago.

Its outrageous and irresponsible to suggest that the the median price, currently over half a million, could easily double. Peoples incomes cannot justify such an increase.

I don't see Darwin prices falling. But I do see stagnation. I have 9 houses in Australia, not a single one is in Darwin. Love the place, just won't buy there.

 

[one world]

Now I would like someone here to suggest me on Darwin IP. That looks really promising

Darwin is a lovely place. If you want a home there for visiting etc its fine. But if you want capital gain, its hardly cheap. The train has left the station, the time to get in was a decade or more ago.

Its outrageous and irresponsible to suggest that the the median price, currently over half a million, could easily double. Peoples incomes cannot justify such an increase. Personally, I don't see prices doubling in Darwin for at least two decades. But that;s my opinion.

All that said, I don't see Darwin prices falling either. What I do see is many years of stagnation.

I have 9 houses in Australia, not a single one is in Darwin. Love the place, just won't buy there.

 

[sam_oz]

Darwin is a lovely place. If you want a home there for visiting etc its fine. But if you want capital gain, its hardly cheap. The train has left the station, the time to get in was a decade or more ago.

Its outrageous and irresponsible to suggest that the the median price, currently over half a million, could easily double. Peoples incomes cannot justify such an increase. Personally, I don't see prices doubling in Darwin for at least two decades. But that;s my opinion.

All that said, I don't see Darwin prices falling either. What I do see is many years of stagnation.

I have 9 houses in Australia, not a single one is in Darwin. Love the place, just won't buy there.

Hi Mate

This was my question !

"Last week I completed a 4 bed house in new suburb Muirhead. I received lot of interest on the property from sales agents, and the range they are talking is exactly the same I would sell it after 1 year. I am happy that already I got CG what I expected after 1 year but on the other side I have to think about Tax on full CG because it is sold before 1 year hold time.

Any suggestion? Is it good to hold or sell it without worry about additional tax? I am talking about roughly another 35K on tax"

 

[datto]

Sam, it depends on your circumstances. Does it worry you to pay the extra $35K in tax? I mean can you reinvest the proceeds of the sale and make more than $35K on another investment?

Alternately, can you hold off until the one year is up,and save on tax? From what has been posted it doesn't look like prices in Darwin are going down.

Me personally, I would hold till one year is up. I'd take the bet prices would go up instead of down. And stuff giving the govt extra money. But as I said in beginning it depends on your situation.

 

[Bhp19]

Darwin is a lovely place. If you want a home there for visiting etc its fine. But if you want capital gain, its hardly cheap. The train has left the station, the time to get in was a decade or more ago.

Its outrageous and irresponsible to suggest that the the median price, currently over half a million, could easily double. Peoples incomes cannot justify such an increase. Personally, I don't see prices doubling in Darwin for at least two decades. But that;s my opinion.

All that said, I don't see Darwin prices falling either. What I do see is many years of stagnation.

I have 9 houses in Australia, not a single one is in Darwin. Love the place, just won't buy there.

Would I be right in assuming your 9 properties are in or around capital cities in other states?

 

[nkirlew]

I think property does double in price

Darwin is a lovely place. If you want a home there for visiting etc its fine. But if you want capital gain, its hardly cheap. The train has left the station, the time to get in was a decade or more ago.

Its outrageous and irresponsible to suggest that the the median price, currently over half a million, could easily double. Peoples incomes cannot justify such an increase. Personally, I don't see prices doubling in Darwin for at least two decades. But that;s my opinion.

All that said, I don't see Darwin prices falling either. What I do see is many years of stagnation.

I have 9 houses in Australia, not a single one is in Darwin. Love the place, just won't buy there.

Hmm, I think the fact that prices went from $100k to $500k in 20 years shows that Darwin works the same as any other property market. Property doubles in price over time. If you are a long term investor you are going to win. So just like any other city the price of real estate in Darwin is set by what people will pay.

 

[C-mac]

Your Investment Property Magazine is currently running a story on 'top #5 cash-flow positive investment suburbs'; interesting to note Darwin's Nightcliff (for units) as pretty cash flow positive:

'(Median unit price: $348,000) (Rental yield: 7.46%) (Vacancy rate: 0.43%) '

 

[one world]

Would I be right in assuming your 9 properties are in or around capital cities in other states?

I am originally from the USA and thankfully got out of real estate there at the top of the market.

I've deliberately put all my Aussie eggs in one basket, in my case in the outskirts of Melbourne. Everything I own in Australia is highly unfashionable, outrageously cheap and on re-developable blocks.

I'm not into high-prestige properties, I'm into capital gain. By my reckoning, a $275,000 house on a dual-occ redevelopable block is more likely to double than a $600,000 house on a single residential block.

 

[datto]

Yeah, your type will be more appealing to developers. All properties in major centres will double and triple in price. Its hard not to make money in real estate.

We havnt yet experienced an American style property crash. But now property prices over there are on the way back up.

 

[Bhp19]

I'm not into high-prestige properties, I'm into capital gain. By my reckoning, a $275,000 house on a dual-occ redevelopable block is more likely to double than a $600,000 house on a single residential block.

Agreed, although if you compare apples to apples Darwin also has plenty of options for developable sites and I think you will find return on investment ratios to be relative to your $275,000 sites.

 

[nkirlew]

Truth in advertising...

I was reading my NT News last Saturday and I saw a deal that looked pretty good. A two Bedroom unit in Parap, Darwin from $565,000 on lease for $900 per week for three years. Set and forget investing with a good return, so I rung the agent and was told to come on round on Sunday for an inspection. We get there, and what a surprise, there are no more units at $565,000 and there is no current price list! The agent promises to send a price list on Monday. I get the price list and the cheapest unit is $650,000 plus $21,000 for the furniture pack. Truth in advertising...

 

[devo76]

Darwin love it. That is I love going there for work a few months a year in 2 week blocks. Stay in the CBD and frequent the pubs. But I tell ya. I'm happy to go home after two weeks. I even have a worker with me on the south coast tha left Darwin after 10 years. Too expensive. Not much to do if you don't want to sit in a pub each arvo and the big one. He really didn't want to raise his young family there.

Cheers