Where to buy next Investment property?

[Suraj]

Hi every one I am loooking to buy my next investment property and bit confused where to buy? I think Sydney and Melbourne have already gone up, Perth has low rental return and adelaide is slowing down. Brisbane is at the bottom of the Market and has higher rental return. Is it good to buy in Brisbane now to get immidiate capital gain or where to buy pls your idea and advice is appreciated.

Thanks for your comment.

Suarj

 

[Deltaberry]

London..... No brainer.

 

[mja]

Seriously how can you put the entire Sydney and Melbourne markets into a "they've already gone up" statement?

There are markets within markets within markets. And then streets within markets. Look in your own backyard and you'll find the deal of the decade.

 

[Suraj]

I think the price has gone up everywhere, we can see the median price rise and also the recent sales data. Definitelt price has gone up everywhere. You can get houses or units in last year price anywhere I believe. If you have any idea about the suburbs where the price has not gone up much pls share it, I would appreciate it.
Thank you very much.

 

[Marni Lawrence]

Hi Suraj

I was listening to a financial adviser who specialises in property for wealth creation speak yesterday and he seemed quite certain that Brisbane was going to boom in the short term future.

If you are looking at a long term investment it may be worth looking into the NRAS scheme which gives some excellent tax incentives also.

 

[ttkpkh]

Hi,

Properties prices in Adelaide haven't been changed for the last 2 years, prices in some area are actually dropping.

Suburbs like Peterhead, exeter, Birhead, Port Adelaide, Semaphore have been in the top 100 hot suburbs in the API many times since 2008.

I think Adelaide properties will catch up with other eastern cities, the properties in the above suburbs may go up more than average.

 

[devo76]

I believe my area(shoalhaven) has regained it's lost ground which suprised me . Some areas are still down a bit but the more desirable areas have regained lost ground.

But to put it in perspective the falls began in 2003 so that's 7 years to get back to those highs. So I would not call what we are seeing a boom. More like a recovery. This is why I have faith that values in our are sustainable. If anything values are still below where they should be.

If you looked back further the 2001 boom also looked sustainable due to the decade of flat growth before hand.i don't see now being any different.

I can see no growth or modest falls but a crash is unlikely.

 

[mattnz]

Gladstone is my #1 pick

My number one pick for growth in the next 5 years is Gladstone.

I just purchased there myself. Huge growth potential with all the massive projects about to start and the significant number of employees required to build and run them.

A town of 40,000 people where they are spending over $40 billion, thats $1 million per person in the town!! It also has significant diversity of industry, a rapidly expanding port, university etc. You get all the advantages of the mining boom without the risk of buying into a small mining town.

 

[Rooster]

My number one pick for growth in the next 5 years is Gladstone.

Was just in Gladstone the past few days and things are starting to slowly move again.

New land releases and building in them is churning ahead and the rental market is shortening up very quickly.

This seems to support the views of my property manager as well.

http://www.sqmresearch.com.au/graphs/graph_vacancy.php?postcode=4680&t=1

Cheers

Rooster

 

[mattnz]

Gladstone growth

Was just in Gladstone the past few days and things are starting to slowly move again.

New land releases and building in them is churning ahead and the rental market is shortening up very quickly.

This seems to support the views of my property manager as well.

http://www.sqmresearch.com.au/graphs/graph_vacancy.php?postcode=4680&t=1

Cheers

Rooster

Thanks for this Rooster.

It is interesting to note the high correlation between the vacancy rate in this chart and the house capital growth rate for Gladstone that was published in June's "Your Investment Property".

2005 +9% growth with 2-3% vacancy rate
2006 +15% growth with 1-2% vacancy rate
2007 +27% growth with 1-2% vacancy rate
2008 +5% growth with 2-3% vacancy rate
2009 +0% growth with 2-7% vacancy rate

High growth seems to occur when the vacancy rate is at the 1% mark. Now that we are back there again it appears that approx 20% growth year on year is likely. Due to the large projects and high numbers of employees needed over the next 5 years at least, keeping the vacancy rate at or under 1%, this would result in average house prices moving from $350k to the following:

2010 $350,000
2011 $420,000
2012 $505,000
2013 $606,000
2014 $727,200
2015 $872,640

Not a bad expected return within 5 years, $520k on the average house.

 

[Rooster]

Not a bad expected return within 5 years, $520k on the average house.

Matt,

While i'd love to see that outcome eventuate, there's a few too many 'ifs' in that equation.

Growth in Gladstone is never a guaranteed or smooth path as seen previously.

Rooster