Opinion Poll

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From: Robert Longmore


Ok a little friendly opinion Poll.

where do you believe the next Boom suburbs will be and why? In Melb and Syd.
 
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Reply: 1
From: Steve Navra


Hmmmmmmmpf,

Will certainly let you know AFTER we have purchased there!

Ha ha,

regards

Steve
 
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Reply: 1.1
From: Rasputin .


hmm , whilst appreciasting the humour, that is the probelm with IPs . no one is going toi tlel you where or wha tto buy as they think that gives you sn edge over them buying it @@@@@@@@@@
 
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Reply: 1.1.1
From: Owen .


Residex are quite happy to let you know - and anyone can get that information.
 
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Reply: 1.1.1.1
From: Sergey Golovin


Bis Shrapnell or something as well?

Serge G.
 
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Reply: 1.1.1.1.1.1
From: Sergey Golovin


Yes it is true.

As they say - if someone talks about the hot stock, it means that someone already made money on it and it is now available for wider audience.

Serge.
 
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Reply: 1.1.2
From: Sergey Golovin


I guess it is two sides of the coin here.
One - it is a competition and other - if you gave wrong advise they will say that you an idiot or it might even go further...

This is why they always say check with your financial adviser. Why the adviser is so bold to give such risky advise? I guess they have indemnity (professional) insurance. So, even if you lost everything, they not liable when you failed.

I know the world is cruel. Everyone is looking after his/her own interest. But you have to protect your self somehow.
Serge G.
 
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Reply: 2
From: Mike .


Hi Robert,

It seems that the message from previous posts is that discussion of favoured suburbs is off-limits online. However, to my amusement, this apparently is not the case offline. I site, as my example, David T's Melbourne thread where he alludes to an apartment block in a 'booming' suburb. David didn't post any explanation as to which suburb was booming and why. Presumably those details were given offline.

It's quite ironic that most people value the free exchange of information on this forum except for a couple of key areas. The use of investors organizations and best suburbs to buy into. So, this forum it seems, can't protect the investor when choosing who to source the property from. Nor can the investor get help online to avoid choosing a bad location. It seems this forum is useless for helping the investor in two important decision-making areas. So, forum newbies, no more questions regarding investors orgs and hot suburbs, please.

However, market trends, as a topic, seems to have been acceptable in the past, so why not give that a go? What trends are happening in the Melbourne market? Properties in established inner and bayside suburbs have performed extremely well. (Not naming them, of course, as I don't want to fly in the face of conventional forum wisdom.)

Undervalued areas such as (sorry, no names) should continue to see further growth as buyers' seek areas of relative affordability. Other factors to play a part are reduced interest rates and steady inflation, greater competition in the marketplace and larger numbers of people taking up the First Home Owner Grant.

What about trends in dwelling choice? Well, David T seems to think inner-city apartments are the go. It's true that greater numbers of first homebuyers are opting for higher density housing, such as semi-detached dwellings, flats, units, terraces or rows. Couples and singles, already in Melbourne, are relocating closer to the city and young professionals from regional Victoria are moving to Melbourne. The rental accommodation of choice seems to be one-bedroom apartments.

I personally avoid apartments like the plague due to the low percentage of owner-occupiers and rental competition. Buying demand is what pushes capital growth, not rental demand.

Speaking of rental returns, the rental returns for well selected, quality residential investment properties in key suburbs in the inner north, inner north-west, inner east and inner bayside suburbs range from 4.8% to 6% gross of market value. Not flash figures, are they? The proponents of capital growth, however, will argue that the main game is capital growth which compensates for the low yield and builds equity faster.

What about price trends? It's young people on the move mainly looking to rent but those looking to buy are looking in the affordable range between $150K - $300K. As an investor looking for growth, this price range offers the best opportunities. Buildings with security features seem to be the most popular.

Anybody else willing to talk on trends or is this taboo, also?

Regards, Mike
 
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Reply: 2.1
From: Dave :)


Hi Mike,

Great post, I really enjoyed it - logical and well communicated. By the way, I'm the David T you referred to in your post. *grins*

You raised several very interesting points. I don't think the reason people don't post their "Boom suburbs" opinions online is because they are afraid everyone else will cash in on their little secret. Far from it. It's because everyone has a different strategy and different opinions - always. Someone's high yield strategy may see investing 20 km West of Melb, out in the suburbs, a great "Boom Suburb" for THEIR strategy. This, however, may seem ludicrous to someone primarily concerned with capital growth. Again, same goes for type of property. For example, houses is Essendon, have performed fantastically. And yet, in my humble opinion and the research I've done, the apartment market in Essendon has been quite ordinary. I've just recently been talking to a developer in Essendon who has been marketing his complex for a year - and not one has sold yet. He's now selling the entire, still unbuilt complex to another investor...the third owner now.

So, it's not that we don't want to share our "little secret", because there IS no little secret...it's just that there will always be reasons why MY boom suburbs won't suit everyone's strategy and there will always be knockers putting you down, no matter what you do.

As long as I do something. If I try to figure it out perfectly, this futile yet self-justified procrastination will set me back years.

I like to buy new property for reasons that suit me. That's enough for me. As long as the property is in a growth area. I place equal importance to yield as I do tax deductions. To some, this is crazy, I know. However, I'm paying a *$@#load of tax each year and if I can get an extra $500-$600 p/mth in my hand every month, this SUITS me just fine. It's the cap growth that's most important to my wealth creation. So yeah, I'm negatively geared..sorry Steve McKnight...but positively cashflowed. So what?? It suits ME.

Ok, I'll stick my head out BIG TIME here. I personally like to stick to a certain geographic area I know well - ala Michael Yardney and others - and become an expert in the area. The area obviously must show good growth and continued growth prospects..

The areas I invest in are Footscray/Seddon/Yarraville locations.

*OUCH*..I can feel the shoes being thrown at me already! :)

See what I mean?..we all have our reasons why we chose certain areas and will all have different opinions on certain matters.

Why these areas? My reasons are: only 6-7 km from the cbd, currently CHEAP compared to any other suburbs this far from the CBD in any direction, has nowhere near peaked in terms of growth (I buy and hold..so long term is more important to me), the demographics of the area are such that 49% of the population is aged between 25-39 and is University educated and profesionally employed. This high percentage of GEN X means good rental demand and high disposable income in the area. Also, some distinguished property investment magazines have flagged at least one of these suburbs as a definate BOOM suburb. The other two neighbour this one...so they too will eventually be as great.

Mike, I agree with your opinion about what causes capital growth, particularly in apartments. It's buyer demand - not rental demand. That's why I decided against several other blue chip suburbs when looking for apartments - there are just too many of them!

The suburbs I've mentioned are close enough to the CBD to attract Gen X renters and there are increasing numbers of professionals moving there because of the Universtity and Hospital. But there are virtually no (new) apartments/units there. This causes buyer demand for them - investors know they are rare, in demand, and are prepared to pay good money for them when they DO find them.

Now there you have it...I've spilled my guts. What have I got to hide? Of course there are other, possibly better, ways of creating wealth through IP. But this is the one I'VE chosen...and am going to go full-steam ahead until I leave "the job"....can't wait to the day when I email that letter of resignation (maybe with a virus..lol)

I now dare anyone else to leave themselves as exposed as I have and give YOUR view on what YOU think.

This could now be the end of an otherwise great thread..because no-one else is willing...or it could be the start of an invaluable source of info/advise that both the amateurs and experienced investors can all benefit from.

#@%$^...!! I waffle to much...blame the bottle of red!

Cheers,

Dave
 
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Reply: 2.1.1
From: The Wife


My first thoughts where, why didn’t Robert post HIS tips to get the ball rolling?


Robert, I’ll give you my tips, if you give me yours :eek:)


You guys are right, the point and purpose of this forum is to ‘share’ ideas, but there’s an awful lot of blood sucking going on out there.



For those who think they have nothing to contribute, you’re the ones I most would like to hear from, We would just like to hear your thought and opinions on whatever the current topic would be.



I’m not sure of Mike’s investing style (I personally think he would have more time for property it if he didn’t do so many monster postings on here, but shhh, don’t tell him that, or he may stop, and I like Mikes postings.)


I’m not fond of Dave’s investing style, as I feel he has minimal control over his assets, and yes, I am a control freak. How ever, I applaud Dave for doing what he is doing, I think doing anything is better than nothing, and yes, Dave may just make that squillion, I sincerely hope he does. May the growth gods smile fondly upon your building Dave. But do you mind not saying the word Footscray again until I have secured my deal there! Do you know how many people read this forum???? Sheesh!

TW
~Life is a daring adventure, or nothing at all~
 
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Reply: 2.1.1.1
From: Jude H


Howdy all,

Very true what you say about the bloodsucking going on TW. I for one know I am guilty of that. In my time I have managed one or two intelligent suggestions but am held back from contributing? more because I don't know enough. Fear of ridicule? Of course. I can just hear you all now saying, but we wouldn't do that. Maybe not. Hence the word fear, irrational thought processes at work!!! However, having said that, if I were to post my humble opinion on a given subject and I was way off base, would you be gentle with me :)

My current thoughts:

I have seen the light!! (my light that is) I intend to buy/reno/hold (thanks for the light, you know who you are). I KNOW that, say, within 7-10km is the way to go. You think I can find it? Or what if I can't find exactly what is in my game plan? I know, I know, keep looking. But what if I go a tad outside the magical km radius, or change the plan slightly? What if I can buy well with no reno? Or reno and can sell well? Or buy/reno/hold 15km out? Then I'll do that too. It may take a little longer than I would like to be free, but at least I know that I'm doing something and not waiting for the perfect gameplan property that may take forever and a day for me to find. (remember limited time here with a PAYE).
I did a REALLY bad thing this year. New subdivision, bought one established, am building one and also live there. 3 properties in the one area. When the build is finished, total new equity on all 3 will be 115K. I love screwing up!!!!
For those that want the suburb, it's Caroline Springs in Melbourne. Out the West no less!
Well I've spilt enough for one day, if anyone can glean even some small fraction of help out of that, then the pleasure is all mine.

Jude
 
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Reply: 2.2
From: Ian Parham


Good Morning All
Some very interesting points of view coming through on this thread.
If I may, I'd like to offer my position on this forum and indeed my position on investing in IP.
I open this site whenever I have the available time to catch up on the huge amount of free info, suggestions, thoughts, and tid bits.
Although not contributing from an in depth or technical disposition, I do drop a line from time to time. More importantly, I have gone away on numerous occasions feeling more enlightened and often wiser.
I think I joined in the general chit chat of the forum back in early '99. Since then the issues of personal slanging, spamming, sledging, and warnings of discrimination have come to the fore. I started to get quietly P$%^&*# off with the diatribe from a few posters, long since gone!
At the end of the day, I still find this site a wonderful source of information, which I may or may not choose to act on. I will always make my own decisions and judgments on property, therefore avoiding using someone else as a potential 'fallguy' by alleging false or misleading information.
I agree that perhaps the use of a disclaimer on some information presented may be warranted, but hopefully people can continue to contribute whatever relevant info they so wish without fear of reprisal, or threats of being sued.
As for the newer, or perhaps not so well informed contributors to the forum, the embarrassment of someone shooting them down in flames when some otherwise well chosen words indicating the correct information to people may have been in order, is an unfortunate occurrence but one that I haven't seen all that often.
I firmly believe most of the people here are genuine in their endeavors. I for one greatly appreciate those members of the forum.
If however people contribute from a commercial perspective, then they should be fully aware of the ramifications of what they are doing.
Hot spots?
I like Sydney inner sth/west, most of St. George area...can't afford it though ;>)
Adelaide- Black Forest, Glandore, Warradale, Oaklands Park, Marion, Hove...and Somerton Park.
Perth- anywhere 5- 7kms from CBD!
Qld, Vic, Tas, N.T.- wouldn't have a clue!!
All the best to all!
Cheers Ian (NSW)
 
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Reply: 2.1.1.1.1
From: The Wife


Jude,

Thats great!

But the style you are using, you have taken from someone else, you need to take this, and make it your own style, add the special 'Jude" touchs, or it wont work, go with you gut instincts.

If the style your employing calls for NOT going out of a certain radius, then that is the comfort zone of the original styler, not you, you may be younger! faster! brighter! smarter! stronger! take the 'idea' of the style, and make it work for YOU!

And then package, it go sell it, and make a squillion more bucks, someone else did before you :eek:)

TW
~Life is a daring adventure, or nothing at all~
 
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Reply: 2.1.1.2
From: Paul Zagoridis


>do you mind not saying the
>word Footscray again until I
>have secured my deal there! Do
>you know how many people read
>this forum???? Sheesh!

It said "Read 76 times" ;-)

Dreamspinner
 
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Reply: 2.2.1
From: Robert Longmore


Hmm ok, a little different to what i expected, but hey, Im all for shared opinions and information, i will quite happily tell all who listens. I am new to Property Investing, although i already own a nice unit in cronulla in Syds southern suburbs. Unfortunatly i didnt earn it investing in Property, I gained that property through Stock Investing, specialising in IPO's (now theres an interesting subject)

I am looking to make my first Investment Property purchase, looking to spend no more than 200k. so this pretty much rules out Inner city, unless i go the Studio path.

So far my areas are sutherland shire, around sutherland, up to Rockdale and the western corridor between Sydney and parramatta. My reasoning for this being a potential boom area in my opinion is there will be a oversupply of apartments in Syd and eastern suburbs. this oversupply will have the effect of lowering prices and there are plenty to go around and rental competition will increase. whereas the western area is relativly underdeveloped compared to similar areas east of the city.
I also like the Stgeorge and Sutherland shire, preferably Stgeorge area, as Sutherland shire is Over valued in my opinion, wheras stgeorge area is starting to clean itself up, has good rail links to the city, and is still within 20 Mins drive to the CBD.

ok better stop rambling now before the Big players move in and Move the market! :) :) :)

as i said before. i am a beginner in the Property game. so please dont take my opinions as gospel :)

The funny thing is, i can buy $250,000 worth of shares at the click of a button, and borrow $200K against those shares with 5 pages of paper, yet to buy a house of the same value, phew, what a nightmare!
 
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Reply: 2.2.1.1
From: Ian Parham


Hello Robert & All.
My apologies for the previous post, as it didn't answer your original question that well...alas I digressed.
I'm, as indicated, of the view that the St George strip is inviting. I reside in Connells Point near Blakehurst and have been prospecting through Hurstville Grove, Peakhurst bordering on Oatley, Oatley itself through to Mortdale Heights...I think Mortdale is apartment saturated, but older houses on land are 'reasonable' for Sydney.
I am not keen on Hurstville due to saturation. Heading back east, I agree pockets in Rockdale / Bexley are of interest.
My personal preference at the moment is to go house and land around Sans Souci / Sandringham. At worst I would possibly consider newer 2/3Br unit in these areas.
A penny for your thoughts on Sans Souci???
Did you read the Residex report on Menai in the last API magazine?
Look forward to your response...
Cheers Ian
 
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Reply: 2.2.1.1.1
From: Robert Longmore


well persoanlly i am living in Paddington, renting on a company subsidised terrace (138 yrs old)(the terrace that is) and family are in my cronulla unit.

Hmmm Sans Souci, plenty of potential, not really over supplied with units, nice relaxing area, close to beach, but unfortunatly no rail nearby, would love to get in that area if i could afford to on my limit. for some reason i like rockdale area, i think mainly for close coastal access, easy run to the CBD both road and rail, and has pretty much everything nearby.

Menai, personally, i hate it, poor road access, no rail, and a long way from any big shopping centre, i have a friends who bought in there, nice area, but lacks access. but then again this is probably makes it a nice area. cant see any units blocks being built there in the future.
I like sutherland shire as i grew up there.

just the opinions of a beginner real estate investor, How am i doing?
 
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Reply: 2.2.1.1.1.1
From: Glenn M


Being a Melbourne investor, I am currently interested in the following areas:

* Hawthorn-2 bedroom apartments still reasonably affordable
* Camberwell-Still some good blue chip properties that can be bought at a bargain
* Kensington-suburb really starting to boom, with townhouses still in the mid $200's
* Brunswick-The only suburb I know only a couple of Kms from the city where you can purchase houses in the low $200's.

But remember, this is just my opinion......

Is this specific enough???????


Glenn.
 
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Reply: 2.2.1.1.1.1.1
From: Robert Longmore


i was just driving through the Sans Souci and Brighton area again today, I never realised the average size of the blocks for sale are, Most i saw were approx 1,000 sm blocks, and i have noticed a few new big mansions going up. i think this is a good sign as it shows people in the area arnt willing to sell to developers to build units or town houses. and a large block close to the city is always good.
 
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