regional Vic vs Brisbane

Hi forum members, I was wondering if you could clarify something for me. What is the difference between buying a CF+ IP in a rural Victorian town or one in a Brisbane suburb. I read about lots of forum members buying in QLD as it is in a rising market but if you are buying a CF+ anyway how is it different? If the numbers stack up is that all that matters?
 
Hi forum members, I was wondering if you could clarify something for me. What is the difference between buying a CF+ IP in a rural Victorian town or one in a Brisbane suburb. I read about lots of forum members buying in QLD as it is in a rising market but if you are buying a CF+ anyway how is it different? If the numbers stack up is that all that matters?

Hi there,

A simple answer is that Brisbane is a large capital city and perhaps third largest growing city in Aus behind Syd and Melbourne, it has significant population growth - infrastructure growth which is obviously providing demand in metropolitan Brisbane.

Regional Victoria - well it depends which town, there are many and the towns will differ significantly as will the driver for growth. Personally I do not invest in regional victoria for two reasons:
1. Population growth: Stats show that by 2050 Melbourne will exceed Sydney as the largest city in australia, whilst regional victoria does not see the same growth over the journey.

2. Sector reliance: regional victoria is dominated by industries where towns have a reliance 'generally speaking' on an industry and if that industry falls down so does your investment.

Prices will differ in each town, by all means I can sell property in Mildura, Ballarat or Albury, however, I would see a better return in metropolitan melbourne. Actually the point of the post is to compare it to Brisbane. Brisbane is hot, many Vic developers are heading up north to meet the demand of the apartment market of inner city Brisbane - as a result - you are seeing a massive increase in development in inner city brisbane and unfortunately the prices are around the $8k per sq metre mark which for me is ridiculous. There are great opportunities in Brisbane - but not in the inner city.

In summary, Brisbane, move out, go to logan etc and find the right pocket with the right amount of due diligence, may be more expensive than mildura but two different markets with capital growth impacted by different factors.

Cheers Ivan
 
Farmerjo, the real wealth from Property Investment is generated from Capital Growth. CF is what allows you to cover the holding costs along the way.. Now add multiple properties in the equation and the compounding CG is extraordinary..

I hope this provides some food for thought.
 
Back
Top