Where to Buy ? Sydney - Brisbane

[monalisa]

Rental returns around 5 % which I think is a good return for nice properties in a nice area.

Might sit back and watch for a while to make sure that the current strength continues before we make our next buys .

Cliff

Hi Cliff

Thank you for sharing your experience purchasing interstate.

So far we have acquired high yielding properties in Sydney which are neutral to positive after tax (with 105% finance).

We are hoping to be ready to acquire next two IPs hopefully later this year / early next year. Really torn between whether we should stick to high yielding IPs (ie Logan and surrounds), or buy in a nicer area in Brisbane, or buy a potential development site in Sydney. Buying away from Sydney, and for SANF, I am inclined toward nicer areas - but nicer areas do not always make good investments.

We are in accumulation phase, and whilst we are 27, we do want to move on from full time work and focus on real estate side of things full time at some stage. I am thinking if a nicer area will be around 5% yield (and likely cost money to hold) - why not just bite the bullet and purchase a dev site in Sydney - which is likely to be yielding similar. MsAli and I are likely to hit the land tax threshold too with our next purchases if made in NSW.

I know it depends on one's strategy - I am feeling that I will definitely get bored with just buy and hold, and think development is something that may keep us going and stretch ourselves (mentally of course!).

Having said that - is it worthwhile just buying in Brissy - riding the wave, and by that time Sydney may cool down, so we will still be able to acquire dev sites with the growth we experience in Sydney on our current properties, as well as in Brisbane.

Feeling lost!!!

 

[MsAli]

Already bought .

That was quick see_change. Congratulations!!

 

[see_change]

When we bought out first IP we looked for around about a year before we bought . Now we make decisions quicker

That's one of the reasons why I like trying to get in just ahead of the herd , so that was part of the reason why we went to Manly Wynnum where there wasn't as much competition.

When ever we've been serious about buying properties , I've always found that there were opportunities available . I think this is part of the reason why I feel timing is so important .

For me , at the moment , it's just about getting into the market with properties that are standard for the area we're looking at as I expect everything to go up.

A few thousand cheaper might be nice , but it's not critical , and if we spent a couple of months looking , we run the risk of increasing competition and prices increasing .

Cliff