Michael,
Yes, the posts can be emotive as you are on a property forum....and your commentary on the Outer Sububrbs may be on the nose like CBA's recent announcement on interest rates.
Anyway, I digress...having properties in the double digits and having invested for 10 years...my comments are:
1. Having said that I'm sure the regular members here know that 90% of all investors never get past their 2nd investment property and recent research from Michael Matusik shows that 25% of investors sell their property within 1 year and 50% sell within 5 years.
Yes...being a property investment forum....there are people who own over 40 properties on this site. Would be interesting to do a poll of how the high net worth individuals on here made their money...on blue chips or bread and butter property. We know that Jan Somers made it on 3/4 out of ten properties.
2. However I would rather own a 1 bedroom apartment in a high growth area than a house and land package in an outer suburb with poorer growth.
Yes...have a some 1 & 2 bedrooms in high growth areas (Dulwich, Marrickville, Meadowbank) in Sydney believe it or not a property I own in Werribee doubled in 4 years. The one bedder in Dulwich tripled in 11 years. So growth is not dramatically different.
3. Your argument about investment grade property is flawed. Buying a 1 brm in Eastern/South Eastern suburbs of Melbourne will return about 4-4.5% instead of 5-6% on the outer suburbs. The cost will also be about 100K more. If you look at this from a loan serviceability view, you won't be able to buy another better suburbs unit for longer. I think you missed the point about also portfolio holding size
4. You have forgotten that the growth in Melbourne has been driven by Chineses and Indian immigrants and there is evidence alot of them are heading to the Southwest and West. Also affordability will drive prices. Also just because there is land, the developers do not have the resources to develop all of it at once so supply is artifically constrained.
Michael, also it would be incorrect to say that you do not a have a vested interest as it is natural for people to promote their businesses.
As for Bernard Salt....his track record whilst not perfect has been quite good. As always do your due diligence.
Cheers
Sash
Yes, the posts can be emotive as you are on a property forum....and your commentary on the Outer Sububrbs may be on the nose like CBA's recent announcement on interest rates.
Anyway, I digress...having properties in the double digits and having invested for 10 years...my comments are:
1. Having said that I'm sure the regular members here know that 90% of all investors never get past their 2nd investment property and recent research from Michael Matusik shows that 25% of investors sell their property within 1 year and 50% sell within 5 years.
Yes...being a property investment forum....there are people who own over 40 properties on this site. Would be interesting to do a poll of how the high net worth individuals on here made their money...on blue chips or bread and butter property. We know that Jan Somers made it on 3/4 out of ten properties.
2. However I would rather own a 1 bedroom apartment in a high growth area than a house and land package in an outer suburb with poorer growth.
Yes...have a some 1 & 2 bedrooms in high growth areas (Dulwich, Marrickville, Meadowbank) in Sydney believe it or not a property I own in Werribee doubled in 4 years. The one bedder in Dulwich tripled in 11 years. So growth is not dramatically different.
3. Your argument about investment grade property is flawed. Buying a 1 brm in Eastern/South Eastern suburbs of Melbourne will return about 4-4.5% instead of 5-6% on the outer suburbs. The cost will also be about 100K more. If you look at this from a loan serviceability view, you won't be able to buy another better suburbs unit for longer. I think you missed the point about also portfolio holding size
4. You have forgotten that the growth in Melbourne has been driven by Chineses and Indian immigrants and there is evidence alot of them are heading to the Southwest and West. Also affordability will drive prices. Also just because there is land, the developers do not have the resources to develop all of it at once so supply is artifically constrained.
Michael, also it would be incorrect to say that you do not a have a vested interest as it is natural for people to promote their businesses.
As for Bernard Salt....his track record whilst not perfect has been quite good. As always do your due diligence.
Cheers
Sash
It's been so long since I posted here I forgot how emotive topics like this can be.
Let me say I recognize there are many ways to invest and different strategies suit different people - their stage along their investment journey and their cash flow situation.
Having said that I'm sure the regular members here know that 90% of all investors never get past their 2nd investment property and recent research from Michael Matusik shows that 25% of investors sell their property within 1 year and 50% sell within 5 years.
So what I have written about for 10 years now is different from what most others say - and I don't apologize for it. You are welcome to disagree
However I would rather own a 1 bedroom apartment in a high growth area than a house and land package in an outer suburb with poorer growth.
The suburbs we have been recommending in Sydney and Melbourne for the last 18 months have averaged over 15% growth per anum - many 20%. Obviously you can't just buy any property or anywhere.
I only recommend "investment grade" properties.
While Melton may be a great place to bring up your family - to me it's not an investment grade area. The demographics of these suburbs are not what I look for when selecting an area to invest -there is not a wide demographic group of tenants and there is no scarcity of supply - lots of homes all very similar.
Your money will run out before your opportunities will - buy in the best areas you can afford - even if it is only a 1 bedroom apartment