I agree, I looked at a few places in Brisbane 2013 and 2014 that were selling for pretty much the same price 5-7 years earlier, and with the current yields made them no brainers to purchase......to me anyway,
A comparable property to the one we bought in 2013 has just been relisted for $100k more than it sold for 2 years ago. It's an asking price only, but I have it on watch list, if it sells close to what they are asking then the area has definitely started to move a bit. It is not high end for Brisbane it's in the $400k range, so it's a big % gain IF it happens.
The ones we bought in 2014 were late in the year, there is nothing comparable that can be bought today for prices a low as we did, but it's too early to tell if there's been any real market movement.
I'd prefer to buy in the long term but with my current finances I rent. I get $290 a week rent from my IP but only pay $120 a week renting with my gf and 1 of her friends in a suburb where the median house price is around 475k. Me and my girlfriend could buy a place together but than we'd be living in a location in the opposite direction from my work and all her family so we'd be spending an extra $100 a week in petrol just commuting. Makes more sense to rent atm.
I am currently living almost rent free... BUT in the near future I will likely have to move for work! Most likely I will look at getting a PPOR so I can enjoy all the benefits (okay mostly CGT exemption) but will then rent as where I want to rent is not a great place to buy... A building that I have my eye on has strata of about 5k per year... So over $90 a week on top of building insurance/rates/mortgage.... It makes the rent seem pretty cheap.. Not to mention the pool/gym/spa all look very appealing and a great 'free' way to enjoy my free time. On this building.... The rent is $400 a week... I/O + costs would be over $470 a week! So to me... that is not worth it...
