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I think you'd be crazy to buy in Sydney right now.
I would be looking at Brisbane now in suburbs that haven't had huge growth already.
Who wants to buy when you have heaps of competition?
John, you should say thank heavens you did NOT do that. Better to educate yourself first.
This sounds about right, give or take 6-12 months. I think Brisbane will be next to boom after Sydney, and then Perth kicks off another year after Brisbane. My plan is to offload a couple of Sydney IPs sometime around 2017 and then buy into Perth around 2018. I think once this Sydney boom ends, Sydney will be going nowhere in real terms for a decade, so it makes more sense to move capital elsewhere.Yes. I reckon from Jun 2015-Jun 2016 Sydney dwelling prices will grow more (percentage terms) than Brisbane, and from Jul 2016-Jul 2017, Brisbane dwelling prices will grow more (percentage terms) than Sydney.
This sounds about right, give or take 6-12 months. I think Brisbane will be next to boom after Sydney, and then Perth kicks off another year after Brisbane. My plan is to offload a couple of Sydney IPs sometime around 2017 and then buy into Perth around 2018. I think once this Sydney boom ends, Sydney will be going nowhere in real terms for a decade, so it makes more sense to move capital elsewhere.
^^ what about exit/entry costs in terms of offloading Sydney IP's to stock up on say Perth? The equity release would need to be pretty massive to offset those sydney exit and Perth entry costs (agent commission, cgt, then stamp duty when entering Perth).
That's my thoughts exactly. I prefer to borrow against Sydney to purchase Perth and not trigger any of those in or out costs including cgt and increase the asset base at the same time.
Ultimately it depends one's chosen investment strategy.
By 2017 I would have held those IPs for over a decade and they would have more than doubled in value, so there would be quite a lot of equity to release. I just don't see the point in continuing to hold them for another decade in a flat market when selling would give me the ability to leverage into a larger portfolio in a growing market elsewhere.^^ what about exit/entry costs in terms of offloading Sydney IP's to stock up on say Perth? The equity release would need to be pretty massive to offset those sydney exit and Perth entry costs (agent commission, cgt, then stamp duty when entering Perth).
Property is pretty illiquid in that regard. Unless you are developing or subdividing, the prohibitive admin costs would make it hard to move portfolios around so easily.
Also for those at the limit, you may find that with the new serviceability rules, you may not be able to "redeploy" that money. The last thing you would want to do is sell, then find out you can't buy another, even if it's cheaper than the one you just sold. That would be a disaster.
Also for those at the limit, you may find that with the new serviceability rules, you may not be able to "redeploy" that money. The last thing you would want to do is sell, then find out you can't buy another, even if it's cheaper than the one you just sold. That would be a disaster.
Perth prices are about half of Sydney prices (Perth median house price is $530K vs $946K in Sydney), and the difference will be even greater when this Sydney boom peaks, so selling two or three houses in Sydney and buying three or four equivalent 'half the price' houses in Perth with the proceeds should be easy enough.
A patient of mine from the northern beaches , is selling and going north . Retired so he's not concerned about jobs , but he might help create some .
Cliff
Perth prices are about half of Sydney prices (Perth median house price is $530K vs $946K in Sydney), and the difference will be even greater when this Sydney boom peaks, so selling two or three houses in Sydney and buying three or four equivalent 'half the price' houses in Perth with the proceeds should be easy enough.
I think you'd be crazy to buy in Sydney right now.
I would be looking at Brisbane now in suburbs that haven't had huge growth already.
Who wants to buy when you have heaps of competition?
That maybe true.
My issue with perth is that the depth of contributions made by non mining is just too low. It's going to take perth ages to develop significant non mining industries. Sydney and Melbourne are already there. Brisbane is trying to get there and is closer to that goal than perth is.
What do you see Brisbane trying to do that Perth isn't?
It's a combination of what it's done in the past and what it's currently doing.
Things in past include biomedical research and institutes, etc...the so called smart state strategy. Quite a few are market leading.
Current = infrastructure, tourism devt with portside wharf, casino with the crown/echo developments etc, the develop ment of tradecoast and direction to attract logistics, and not to mention a fair amount of new commercial buildings and thus tenants currently in progress of being built... Don't see perth have that scale nor aggressive intent.
The very last point in my post is the real kicker. The past is the past...it's really about future intent. Perth is happy to compete with the likes of brisbane and Adelaide whereas brisbane wants to compete with the likes of Melbourne. See the difference in intent.