Interstate - Not N.S.W

[Ridin-High]

G'day folk,

In the next 6 months i'd be looking to purchase another IP.
I have maxed out my land tax threshold in N.S.W

As apart of my stratergy to diversify my IP portfolio and minimise land tax i'm now looking to purchase a property interstate.

Now picking which state i will have to research, but as apart of that i thought i'd open it up for discussion (realising this may have been done before) as i did with the campbelltown/macarthur thread (got a 3/1/4 their now)

What am i looking for?

-House/good land content
-capital growth (as apose to c/f)
-price range 200-300k
-just one property per state at the moment


Now what do forum members think about the various states and territories for investment in the near future? I was reading that NT does not have any landtax which would be good. One of the blokes @ work said gunn/katherine/darwin are alright.

But yeah this isn't just about NT, but more each state on its own merits. Sapose for the folk that live interstate might be a good chance to brag about where u come from

 

[Ausprop]

strewth...

perth, exposure to resources downturn, long way away
melbourne, heart of the rust belt
brisbane, bit of this bit of that, has already run hard
adelaide, economic basket case
tasmania, share the wilderness
darwin, possible upside but what is built in already?
alice springs?? dunno never been there

hard to see where the next big industrial growth area will be. Still have faith in non-renewable resources surley? that or gold towns? or maybe just downsizer affordable retirement villas that the new-poor will aspire to

 

[INVSTOR]

I've been talking to a few people in building and banking industries lately and conclude WA is currently best state econimically followed by QLD. Adelaide has some increased employment opportunities. This is my opinion only. I'm not expecting anywhere to have huge growth for a few years.

Is this a long term buy and hold? For growth I prefer to invest about 10k's from city. I think this property will do OK in another 10yrs.

http://www.realestate.com.au/cgi-bi...mt=&header=&cc=&c=96405185&s=wa&tm=1229724068

Good street in a very average suburb but in time I think it will be recognised as close to city, river, and wineries.

 

[INVSTOR]

There was a mention too that Darwin was strong but an area I'm not interested in so didn't take much notice, obviously NSW in worst shape.

 

[Ridin-High]

Thanks for the input so far.

I was reading in either API or YPI today just a quick browse someone might be able to elaberate but it was saying NT in general cg may be limited in the future due to over supply.

Investor as to your question yes it is buy and hold. End game is LOE

 

[BayView]

G'day folk,

In the next 6 months i'd be looking to purchase another IP.
I have maxed out my land tax threshold in N.S.W

As apart of my stratergy to diversify my IP portfolio and minimise land tax i'm now looking to purchase a property interstate.

Now picking which state i will have to research, but as apart of that i thought i'd open it up for discussion (realising this may have been done before) as i did with the campbelltown/macarthur thread (got a 3/1/4 their now)

What am i looking for?

-House/good land content
-capital growth (as apose to c/f)
-price range 200-300k
-just one property per state at the moment


Now what do forum members think about the various states and territories for investment in the near future? I was reading that NT does not have any landtax which would be good. One of the blokes @ work said gunn/katherine/darwin are alright.

But yeah this isn't just about NT, but more each state on its own merits. Sapose for the folk that live interstate might be a good chance to brag about where u come from

I looked at Katherine about 5 years ago.

I tried to find a local agent on the net - there were none, and the ones I tried to contact who were representing the Vendors were all out of town in places like Darwin and Alice Springs.

The demographic of the town was very suspect as well.

Without a local agent/s I'd want very high rental yields - 10% or more, otherwise the grief wouldn't be worth the effort.

 

[Ike]

I looked at Katherine about 5 years ago.

I tried to find a local agent on the net - there were none, and the ones I tried to contact who were representing the Vendors were all out of town in places like Darwin and Alice Springs.

The demographic of the town was very suspect as well.

Without a local agent/s I'd want very high rental yields - 10% or more, otherwise the grief wouldn't be worth the effort.

We bought an investment property in Katherine just over a year ago. It has had good capital growth and for what we have spent on it (approx $1000 - painting and repairs) it's doing OK - 7.5% rtn. Matt Ryan (Ray White) is great, we did not buy the property through them, but they manage it. Vacancy rates are really low.

We have lived in Katherine for 3 years now. There are good and bad areas to buy (as with most places). For us to buy there again we'd need to find something to value add to.

Ike

 

[Propertunity]

just one property per state at the moment

One in each state sounds like a good long term strategy. If you intend to buy & hold & then LOE then each state will go through it own various cycles over the years....and having all your IPs spread around will give good overall exposure to the AU property market.

what do forum members think about the various states and territories for investment in the near future?

Your in the near future comment though is a cause for concern. No-body knows not even the people supposedly "in-the-know". RE is a long term (min 5 - 7 year) strategy. If you want "near term" good investments then look to the Share Market and do lots of DD there

FWIW, my personal views only on RE are closely aligned with Ausprop's.

However, if you look at the Herron Todd White Market Indicators report, you'll see:
For houses - every cap. city in a declining market with the exception of Hobart (start of recovery) and Darwin (peak of market) and Canberra (bottom of market).
For units - every cap. city in a declining market with the exception of Hobart (bottom of market) and Darwin (peak of market) and Canberra (bottom of market).

 

[Ridin-High]

Ike check your private msg's plz.

Thankyou for your generous reply propunity

Would you have a link to that report by herron todd? Is it basically saying that NT prices have peaked?

Anymore advice, theories, comments are welcome

Kind Regs,


RH

 

[Propertunity]

Thankyou for your generous reply propunity

Would you have a link to that report by herron todd? Is it basically saying that NT prices have peaked?

Summary appears in the back of each months API Mag. But here's a link to on the HTW site: http://htw.com.au/Downloads/Files/198_December_2008_Month_in_Review.pdf

See pages 42 & 43 - Yes HTW are saying Darwin has peaked

 

[Ridin-High]

I'm having a few different feelings at the moment based on emotion but also reason.

I presume its the step of actually buying interstate and managing my investment, yes i will have a properties manager looking after it and have to conduct my DD on them.

Having a quick look at the land taxes as well, if i was to purchase another property in NSW which has an unimproved land value of 200k, i'd be up for land tax of $3000 p.a
Down in Vic no land tax is payable for unimproved land value of 250k and under

 

[Y33]

Very difficult to say if Darwin has peaked but I don't think so.

There are numerous other projects to commence that haven't been brought to the medias attention. One thing that does concern me is the possible over supply of upper end units being built. Considerable marketing is being aimed at foreign investors especially promoting Darwin as a tourist destination. The dry season can see numbers swell 3 fold with tourists during this time and they all need somewhere to stay thus the high amount of service apartments.

The OZ govt would like to see 250K people living in Darwin and infra structure is being aimed at this figure with a possible 2nd Satellite city developed.

The last 10-15 years has seen numerous big developments that have been the driving force behind Darwin's growth and this could easily continue for another 10 years. Also another industry might be developing over the next few years that will see exports to the Middle East and other countries at a rate in comparison to our sheep and cattle exports.

It may not be that long before Darwin overtakes Hobart in population.

3 Industries I'm keeping an eye on are: Animal/meat exports, development of another water supply, and alternative power.