perth or brisbane?

[eyespy]

I;m looking at investing again sometime next year and am tossing between the Perth and Brisbane markets. I see that both markets haven't had much growth of late and there are a lot of properties on the market.

Which do you think would be a better pick ?

And for the locals, which areas would you recommend for a property sub $400000 ?
This will my first interstate property, time to diversify from nsw market.

 

[stephenb465]

Interesting question,
I really don't think you are going to get the true answer, my observation on this forum is that not many know about the perth market where there is more knowledge about eastern side of Australia.

 

[Rixter]

Eyespy,

What and where to buy is dependent upon your chosen investment strategy.

You see property is merely the vehicle.

The strategy is how you intend driving that vehicle. Unfortunately the mistake I see newbies and sometimes not so newbies is that they are property focused instead of strategy focused which is like putting the cart before the horse.

Property investing is not about property rather about the strategy and the way you intend to use the vehicle to get to where you are wanting to go. No good buying a small shopping car if you intend driving interstate on a family holiday.

What strategy/s are best for you is determined by where you are wanting to go, the time frame you want to get there in and how hands on along the way you want to be ( manual/automatic etc)

What is your chosen investment strategy?

 

[BV]

eyespy
Why not 1 in every state?

 

[eyespy]

Thanks for all the constructive input.

BV....i do intend to buy one in each state, but for now, i guess which one first ? i can't see myself being able to buy 2 in one yr, most of my purchases are about 2 years apart.

Rick, my strategy is to buy properties and with good capital growth prospects and decent yield. I don't expect positive cashflow initiallly as my income can support something slightly negative geared though i don't want to be burdened with something highly negative geared. I believe in diversification: i guess bc i am not confident whether a house in the burbs or a city unit is better, so better just have a variety and see which turns out better.

 

[Rixter]

Eyespy.....being in your position I would opt for a villa/townhouse in Brisbane in the southside to bayside areas.

 

[eyespy]

HI rick,

thanks for the brisbane recommendation. is there there a reason why you would pcik brisbane over perth for next yr ?

 

[Rixter]

Yeah mate I reckon there is more chance of CG in the sub $500k market.

 

[MTR]

I;m looking at investing again sometime next year and am tossing between the Perth and Brisbane markets. I see that both markets haven't had much growth of late and there are a lot of properties on the market.

Which do you think would be a better pick ?

And for the locals, which areas would you recommend for a property sub $400000 ?
This will my first interstate property, time to diversify from nsw market.

I live in Perth however I see greater opportunities East and would pick Brisbane market hands down over Perth.
I believe the Syd market will take off again within the next 18 months, once this happens both Syd and Melb will be too expensive and investors will see Brisbane as cheap and start buying and we should see prices moving again.


CHeers, MTR

 

[eyespy]

thanks rick and mtr.

brisbane it is then ! will start doing more research on areas now.

 

[Rooster]

thanks rick and mtr.

brisbane it is then ! will start doing more research on areas now.

You're going to base your entire decision on which state to invest in, from 6 replies to your post, from people you have never met????

Seems slightly flawed thinking.....

Cheers

Rooster

 

[BV]

You're going to base your entire decision on which state to invest in, from 6 replies to your post, from people you have never met????

What are you talking about?

eyespy is not exactly buying the opera house and if it was a stupid suggestion people here would have said so.

In my opinion MTR's and Rixter's posts are spot on.

 

[Rooster]

What are you talking about?

eyespy is not exactly buying the opera house and if it was a stupid suggestion people here would have said so.

In my opinion MTR's and Rixter's posts are spot on.

My suggestion was not that Rixter or MTR's posts were wrong or that it was stupid advice.

It was that somebody would choose a state to invest in, based on 6 posts in an internet forum, from people they know nothing about.


Cheers

Rooster

 

[INVSTOR]

I live in Perth however I see greater opportunities East and would pick Brisbane market hands down over Perth.
I believe the Syd market will take off again within the next 18 months, once this happens both Syd and Melb will be too expensive and investors will see Brisbane as cheap and start buying and we should see prices moving again.


CHeers, MTR

So you think Bris will be declining and flat for about the next 3-4 years?

I think some area's in Perth (below the median) will achieve faster growth than Bris due to lot's of mining activity taking off next year and higher wages in Perth. Historically Bris real estate takes off after Sydney gets too expensive as MTR has stated. There's opportunities to buy discounted properties in Bris at the moment. My cousin just sold his house for $650,000 after getting it valued by three valuers for $850,000.
My friend just sold her investment property/house for $340,000 in Stratton, Perth (the good side of Stratton!) and it was rented at $350/week to long term tenant. I think a property like that would be a safe bet.
Overall, I think you'd do OK in 5 years in either Bris or Perth.
I'm currently looking in Bris as I don't want anymore WA Properties.

 

[Ausprop]

i think Perth has been thumped a lot harder than Brisbane, which would make Perth a better contrarian purchase?

 

[Aaron Sice]

Perth? Brisbane? try Darwin.

 

[bene313]

With out knowing the what the future holds for capital growth in any given city, but knowing that long-term investment in property is your game, I would suggest simply investing where you can currently acheive the best return. By that I am refering to yield.

Which city is currently offering well located propery at good yields?

 

[eyespy]

best city for yields as i see it at the moment is Sydney. vacancy rates also extremely tight.
only problem i have with Sydney is that i have a few properties there and accumalated land tax is an issue.

 

[Rixter]

only problem i have with Sydney is that i have a few properties there and accumalated land tax is an issue.

Another sideline bonus for spreading your portfolio exposure interstate.

 

[Player]

best city for yields as i see it at the moment is Sydney. vacancy rates also extremely tight.
only problem i have with Sydney is that i have a few properties there and accumalated land tax is an issue.

Agree with Rixter.

Spread the love around and diversify your exposure to different markets that sometimes track in different cycles as we are currently seeing.

Sydney has strong rents with tight vacancies at present, however if I were looking at resi now, I would go Brisbane. Melbourne yields are rubbish and I think it's taking a breather so cap growth potential is going to be restrained for some time.

Brissy didn't really get the run that Melbourne had and now Sydney is enjoying, so there should be decent upside when it gets moving. S/E Qld in a generic sense is on the nose, a bit like Sydney was in 2006/2007.....look at it now.

Just my 0.02