Which State?

[JFisher]

SA IP's

I'm with Bulldog
All of those unloved suburbs mentioned made it into the latest top 100 Residex Rent Report. When they are competing with suburbs nation wide that counts for something. The name of the game is investing; not about where we all want to live. The criteria may (or may not) be different!

But, whatever floats your boat!

 

[Angelo]

Hi Flutterby

I think you may want to seriously consider looking at Adelaide as a place to invest. If you tracked the median house prices in Adelaide and Perth between 1993 and 2004 the prices movement was almost identical. Between 2004 and now, when the resources boom took place, the median house price between Adelaide and Perth has diverged and Perth median house prices are now about $120,000 more expensive.

We are currently in the midst of a global push to reduce green house gasses and despite what our environmental views may be, nuclear power reactors are very much on the cards for a lot of countries including China.

South Australia currently has one of the largest uranium deposits in the world and is considering opening these mines right up. If the world does begin moving away from coal derived energy and towards nuclear derived energy, South Australia may very well find itself is the same position as some of the oil rich nations and it is certainly conceivable that what happened in Perth may also happen in Adelaide.

This taken together with the fact that Adelaide has, some of the lowest median house prices in the country, a progressive government with policies in place to have population of 2 million by 2050, infrastructure projects in place to facilitate industry and many other localized projects happening, I believe make Adelaide a great place to invest.

All the best and good luck with what ever you decide.

Angelo

 

[Xenia]

Why would you even think of looking anywhere but Adelaide

 

[Xenia]

Seriously, if anyone want's a list of top 10 suburbs in Adelaide please email us for our last newsletter or if you can't wait for me to email back (sometimes I take a few days ) you can download a March newsletter from our webpage (members area!).

 

[BV]

Hi Flutterby

infrastructure projects in place to facilitate industry and many other localized projects happening, I believe make Adelaide a great place to invest.

Angelo

I heard in the news that a company was considering constructing a nuclear power plant in VIC or SA.
Do you thing the government of SA would accept nuclear power station/s
in your state and how would people view this?
From memory, Nuclear power is not exactly cheap, so why would someone
want to build these here when in Northern Europe they have started the countdown and are planning to shut them all down in the future.

Cheers

 

[Patosan]

Well guys you have got me curious about Adelaide now.

Some suburbs are untouchable and thus have potential for great cap growth in the future, this is something that we all want. However the timeframe for these these turnarounds is relevant to an investor ... no use holding IP for ages to see them jump massively in value after you're dead ... unless you're already over 80.

So speaking of Elizabeth which I know nothing about, what are some reasons to expect growth there above that of Adelaide in general over the next 5 - 10 years ?
Are there reasons Salisbury should move 1st and or more ?

 

[Angelo]

Hi BV

I totally agree with you about the sentiment in Australia probably being against going down the track of nuclear power plants. But in the grand scheme of things you may want to consider what the rest of the world is thinking.

The resource boom didn’t happen because the other states in Australia were buying what WA had to offer, it happened because the rest of the world wanted to buy what WA was offering.

Their still remains a global outcry to reduce CO2 emissions and, yes, although nuclear power, with the current technology isn’t cheap, is their any other form of technology, other than nuclear power which could economically take the place of coal fueled power plants? If I remember correctly, solar derived electricity, as wonderful an idea as it is, is only about 1/10th of the efficiency(taking into consideration the cost of the solar panels etc) of coal derived electricity. This being the case could you imagine what the consequence of electricity at 10 times the cost of todays price would do to the world economy.

It certainly is a tough decision that needs to be made, however, if the world is thinking that nuclear power is an alternative, it is probably because it is economically one of the only real alternatives we have now. This being said, I’m not a fan of nuclear power either and what the possible down stream consequences could be, but I’m also not a fan of the world turning into an oven nor am I a fan of 100’s of sq KM being dedicated to solar panels and having to pay ridiculous prices for electricity.

I vaguely remember reading in the Financial Review last year that China was thinking of putting in some nuclear power plants. If CO2 emissions are in fact related to the green house effect and given that China is growing at the rate it is, could you imagine what the consequence of global warming would be if they didn’t use nuclear reactors.

Based on the above I still think that nuclear reactors are an alternative to coal generated electricity and given the debates that are happening all around the world, I think that there are many others that think the same way. Hence, Bring on the Good Times for SA.

Angelo

 

[natedog]

Hey Guys,
Melbourne had an approx population growth of 49,000 people in the year to june 2006, according to the ABS in an age article yesterday...greater than any other capital (37,000 for sydney was the next highest and perth and brisbane both approx 30,000.)

a similar report the year before had Melbourne leading the way again about 42,000 i think from memory...all these people have got to rent or live somewhere...cant hurt values round here.

Auction clearance rates have been in the 70-80 percent range according to the Herald suns sunday wrap up, since auctions have gotten underway this year also,

there seems to be demand...with the population growth mentioned above it seems to be logical enough...mini boom perhaps...pent up demand???

i dont know...
Cheers,

 

[the.j]

Holden slashes 600 jobs

What's the sentiment with Holden reducing the workforce by 600 in Adelaide?
http://www.abc.net.au/news/newsitems/200703/s1863680.htm

On the surface the number seems large, but would this unfortunate situation change the investment equation?

Thanks
J

 

[YLC]

FNQ is looking pretty good at present. The rents are flying through the roof, and the population is increasing. Also Cairns Airport is lobbying to get Singapore's Tiger Air as we speak.

Hi Sailor,

What do you mean by the rents are flying through the roof? Is the Cairns market still steady or is it starting to grow again? If it's moving upwards again, which areas should I look at for approx.$300K?

Thanks in advance
YLC

 

[Ray Brown]

YLC, perhaps you should ask what areas in Cairns will do well and then getting whatever you can for your $300K.

If you invest your $300K in a crappy suburb then it may well be worth $380K in 5 years. If you invest your $300k in Cairns North, Edge Hill, Stratford or Freshwater, then you might be looking at say $600K 5yrs.

Have you never heard the overdressed people with the flashy 4WD and the sunglasses with the gold bits on them going "Location....Location....blah blah"

Well, it's true.

 

[YLC]

YLC, perhaps you should ask what areas in Cairns will do well and then getting whatever you can for your $300K.

If you invest your $300K in a crappy suburb then it may well be worth $380K in 5 years. If you invest your $300k in Cairns North, Edge Hill, Stratford or Freshwater, then you might be looking at say $600K 5yrs.

Have you never heard the overdressed people with the flashy 4WD and the sunglasses with the gold bits on them going "Location....Location....blah blah"

Well, it's true.

Yes, I should have asked my question differently. I know that I have to pay more for the areas you are talking about because the median price was close to $400k. I need better yield to make up for cf- I've got.

Thanks

 

[sailor]

Hi Sailor,

What do you mean by the rents are flying through the roof? Is the Cairns market still steady or is it starting to grow again? If it's moving upwards again, which areas should I look at for approx.$300K?

Thanks in advance
YLC

Hi YLC, the rents around Cairns just seem to be steadily increasing and not showing any sign of slowing down, same with prices. You used to be able to buy a decent 3-bed house at say Holloways Beach (good rental area 12 mins from CBD) for $300K a year ago...now you are looking at hight $300's - $400+, same for Smithfield.

Good areas to buy would be Edge Hill, any of the Northern Beaches, Redlynch/Freshwater. These places typically considered Blue Chip. People are looking further out of town now at Edmonton and even Gordonvale, where land is bigger and prices on the move.

Suggest you do a search on realestate.com.au and see what you can get for $300K, and ask the Cairns forumites what they think of the locality. There are always gems to be found in some of the less Blue Chip suburbs.

 

[karina]

Sailor, can you tell us what is driving the increases in Cairns, are more people migrating to the area, from where are they coming and why?


I have 2 duplex pairs in Cairns one in gordonvale and the other in westcourt, both returning very nicely and growing in value

 

[sailor]

Sailor, can you tell us what is driving the increases in Cairns, are more people migrating to the area, from where are they coming and why?
I have 2 duplex pairs in Cairns one in gordonvale and the other in westcourt, both returning very nicely and growing in value

I don't know...I haven't researched it yet.

 

[YLC]

Hi YLC, the rents around Cairns just seem to be steadily increasing and not showing any sign of slowing down, same with prices. You used to be able to buy a decent 3-bed house at say Holloways Beach (good rental area 12 mins from CBD) for $300K a year ago...now you are looking at hight $300's - $400+, same for Smithfield.

Good areas to buy would be Edge Hill, any of the Northern Beaches, Redlynch/Freshwater. These places typically considered Blue Chip. People are looking further out of town now at Edmonton and even Gordonvale, where land is bigger and prices on the move.

Suggest you do a search on realestate.com.au and see what you can get for $300K, and ask the Cairns forumites what they think of the locality. There are always gems to be found in some of the less Blue Chip suburbs.

Many thanks Sailor.

 

[lowb]

Hi! just read the herron todd report:

If you look at regions in a state, they differ significantly. according to the report (in information resources section), cairns is at its peak with brisbane and the gold coast recovering...

This thread has been good reading. SA seems to be attractive too...

 

[mikeyk]

Hi everyone

Thank you for your replies....

We already have 2 in WA.

SA or QLD?

i'd say qld for sure. from what my parents say. (but i also live in qld so probably a bit biased)

 

[kskyring]

SA looks like HUGE private and gvt investment will see strong economy over next 5-10 years. Potential areas that will see increased population associated with increased mining activity include Port Augusta, Whyalla and Roxby Downs to name a few. Best to do some reaserch, but its pretty hard to go past a state with such potential in its economy and low median prices. My mates are already leaving the mining towns in WA and heading to SA to work where the demand is exected to increase over next few years.