sw, w, nw sydney vs apart or house brisbane

R

remingbi

hi guys
My friend recently bought 2 house and land packages in Bingara Gorge and Schofields. i am deciding b/n brisbane and sydney
Given the current brisbane and sydney markets which do u believe would have the best long term capital growth

1)Schofields (nw)
2)Bingara Gorge (sw)
3) 2 older 2bedroom units 3-7km to cbd in brisbane
4) 1 house 4-8km ring to cbd in brisbane
5) existing house in penrith area(e.g. crane brook, werrington,cambridge park etc)
6) existing house in campbelltown area(e.g. mint, ingleburn, leumeah)
7) i assume kellyville and rouse hill in NW part of nsw is overpriced now?

thanks in advance
 
Long term wise it's hard to beat Sydney but is it the right time to buy in Sydney?

My assumption is you are buying for investment purposes?

Chatting to several experienced investors on Somersoft, they are either selling their stock in Sydney or buying elsewhere. They have been in the game alot longer than myself so I certainly listened.

What yields do you think you will get in those areas around Schofields, Bingara Gorge, Penrith, Campbelltown and Kellyville?

If it's around 7% then I say go for it, but my suspicion is it will be negative so do you want to be feeding the mortgage every month for the potential to have capital growth?

My concern is investors buying in these markets with 3-5% yield, hoping the prices will continue going up. One day it won't and that's when the tides turns, I wouldn't want to be holding negative cashflow properties then.

It's hard to say from the above where you should buy. That should be aligned with your goals, current situation, financial position etc. The places you listed close to Brisbane CBD, as long as it had decent yield could work.

Thanks,
Michael
 
Thanks Michael
So if you were going to invest in brisbane and say you could get 6% yield for both, would u invest in 2 older apartments 3-7km from cbd or a house with land 5-10kms from cbd, assuming similar budget
I ask this because i know u can get good capital growth from both but wouldn't, houses(with land ) outperform units long term

Your thoughts on melbourne and perth, atm and long term

thanks
 
remingbi said:
Thanks Michael
So if you were going to invest in brisbane and say you could get 6% yield for both, would u invest in 2 older apartments 3-7km from cbd or a house with land 5-10kms from cbd, assuming similar budget
I ask this because i know u can get good capital growth from both but wouldn't, houses(with land ) outperform units long term

Your thoughts on melbourne and perth, atm and long term

thanks
Click to expand...

I don't mind either houses or units. Both have pros and cons, it's more so on the deal itself and how they align with your goals.

If you aren't looking for major value adds and looking for higher yield then maybe go for units.

If you want to add value, don't mind a lower yield then maybe go for houses.

In between, villas and townhouses.

Personally prefer Brisbane over Melbourne and Perth at the moment, there are plenty of good discussion on those two cities on Somersoft. Also have a look at Adelaide, a few forumites have done quite well from there.

Thanks,
Michael
 
thanks mate
if u were looking at capital gain first as i am and then yield( provided it was positive,)for cash out later, would u get a house- possible reno's aside

I read your forum on the 10properties. fantastic post, very inspiring, well done

I was wondering at the later stages when you were using the "actual payment lenders" which did u use and in what order and why. I know the general pros and cons of each but just wanted your personal opinions on why u used them, in that order.( I am referring to amp, nab, macquarie and adelaide bk. Possibly me bank and any others)

Also when you did debt recycle to an actual payment lender, which one and why

thanks in advance
 
If that is your strategy to create equity early then renovating an old house is one way to do this. It worked great for me.

Then the question is do you want to spend the time to manage an interstate renovation - it can be done, just depends on time, resources, experience etc.

There is no right or wrong answer to lender order. There are so many factors at play that what worked for me, may be different for you.

In terms of personally, the banks listed

AMP - used up until IP10, after that you are toast with them
NAB - refinanced out of them at the start and then moved back to them later. My previous broker took me to them for the wrong reasons early on
Macquarie - using them for my recent purchases (IP11 & IP12)
MeBank - used them for IP9

If you haven't already, speak to a broker to map this out for you. It's not something you want to DIY.

For debt recycling, I don't have a PPOR so this hasn't applied to me.

Thanks,
Michael
 
Thanks mate
I am currently refinancing also, away from nab, my loans were crossed with them, so i am trying to clean this mess
so i 'm moving up the tree to anz and cba for ppor and ip1. as structured by my new broker
I will be able to get some cash out for future ips, but i am straight into the actual payments lenders for new ips, and as there r only a few viable ones, i suppose to get to 15+properties i would have to secure multiple loans with each of them, as well as equity/further deposits down the track, so i asked about ur experiences with them

Have u bought ip11,12 yet, if not r u looking in brisbane also
after maxing out macquarie, do u plan to have a rest, let equity grow and go again?

thanks
 
remingbi said:
Thanks mate
I am currently refinancing also, away from nab, my loans were crossed with them, so i am trying to clean this mess
so i 'm moving up the tree to anz and cba for ppor and ip1. as structured by my new broker
I will be able to get some cash out for future ips, but i am straight into the actual payments lenders for new ips, and as there r only a few viable ones, i suppose to get to 15+properties i would have to secure multiple loans with each of them, as well as equity/further deposits down the track, so i asked about ur experiences with them

Have u bought ip11,12 yet, if not r u looking in brisbane also
after maxing out macquarie, do u plan to have a rest, let equity grow and go again?

thanks
Click to expand...

Yep, I have multiple loans with most banks. As you continue down the order you basically take funds wherever you can get it :)

IP12 settled last week.

Moving forward the plan is to purchase two more using SMSF with folks and then let time do it's thing and work on my own business.

A few years later, go hard again. Crossing fingers Sydney will be a better market then. 4AM wake up for flights is something I could do without :p

Thanks,
Michael
 
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