Melbourne or Brisbane for 1st IP: CG Strategy

[Green Grass]

Hi all. Where do members consider Melbourne and Brisbane to be in the current cycle? Is it fair to say that Melbourne prices are still generally rising but are close to peak and that Brisbane is rising but is nowhere near peaking?

Looking for 1st IP. CG strategy. Keen on 5-10 year old houses in middle ring suburbs.

Cheers
GG

 

[Rixter]

Brisbane if you are looking to leverage against the CG sooner.

It's basically been going sideways since 2007 and is due for a cycle correction.

 

[moses]

brisbane..

 

[Peter_Tersteeg]

Both Melbourne and Brisbane will always be great locations over the very long term.

However, by every metric I can thing of, Melbourne is nearing the peak of the investment cycle. Rental yields are terrible (despite being strong rental demand), median price is well above any affordability metric, clearance rates are at record highs. I wouldn't say Melbourne is a bad investment if you have a long term outlook, but there are definitely better opportunities out there.

Brisbane is definitely hot and has been for some time. There are still good opportunities however and whilst it would be best to proceed with caution, it's one of the better prospects for investors in capital cities at the moment.