Wish I had more deposits for beach bargains
- Thread starter Propertunity
- Start date
What's your point?
So lifestyle locations in nsw haven't grown. Doesn't represent the market at all
Do your research!
P & B
Prices with no details on location / Property details really tell absolutely nothing.
My thoughts . Now is a good time to buy weekenders / waterfront etc out of Sydney.
we did so one year as a lifestyle decision and ( so far ) it's one of the best decisions we've made .
Had a long chat to a local agent ( from Tea Gardens , he lives a few houses down from us in North arm cove - 1 hr 50 north of sydney on the water ) a couple of weeks ago about how the market works up there.
He says it takes a year or two of strong growth in Sydney before people start having the confidence to start buying weekenders in any significant numbers . His opinion was the market was still at it's bottom and he thought there would be very good buying for around another 6 months.
Cliff
Prices with no details on location / Property details really tell absolutely nothing.
My thoughts . Now is a good time to buy weekenders / waterfront etc out of Sydney.
we did so one year as a lifestyle decision and ( so far ) it's one of the best decisions we've made .
Had a long chat to a local agent ( from Tea Gardens , he lives a few houses down from us in North arm cove - 1 hr 50 north of sydney on the water ) a couple of weeks ago about how the market works up there.
He says it takes a year or two of strong growth in Sydney before people start having the confidence to start buying weekenders in any significant numbers . His opinion was the market was still at it's bottom and he thought there would be very good buying for around another 6 months.
Cliff
BTW Propertunity
Did you buy anything ?
Cliff
Did you buy anything ?
Cliff
I have just bought beachside wa in hillarys based on similar considerations.
For all it's worth, what I found is that coastal is just much more cyclical than a bit further inland /closer to town. Everyone wants to live near the beach, no one really needs to. So when job security suffers, coastal suffers considerably. When the share market and businesses are buoyant, coastal overshoots. What I'm trying to say, to me coastal is a higher volatility proposition therefore a lower deposit may be a risky idea.
Rents and vacancies are also incredibly seasonal. You don't want to go to market in winter. If you end up in that predicament, expect reduced rent or weeks of vacancy.
Overall, I would apply a higher risk premium to any prospective coastal deal. And mine is just 20km north of CBD.
For all it's worth, what I found is that coastal is just much more cyclical than a bit further inland /closer to town. Everyone wants to live near the beach, no one really needs to. So when job security suffers, coastal suffers considerably. When the share market and businesses are buoyant, coastal overshoots. What I'm trying to say, to me coastal is a higher volatility proposition therefore a lower deposit may be a risky idea.
Rents and vacancies are also incredibly seasonal. You don't want to go to market in winter. If you end up in that predicament, expect reduced rent or weeks of vacancy.
Overall, I would apply a higher risk premium to any prospective coastal deal. And mine is just 20km north of CBD.
Yeah just because there isnt a real property growth in areas over 10 years doesnt mean they will never grow. Areas in Western sydney has barely grown in the last 10 years like mt druitt but now is booming. Different times of the cycle. Darwin and Perth have kicked Sydney and Melbournes butts in terms of growth in the last 10 years but now its slowing down. Houses in my area of the coast have gone up by 10% or more. I reckon thats the same with western sydney. These areas boom with low interest rates
I did the same and a house settled two weeks ago, on Sunshine coast, Maroochydore, for less than A$420,000 with a tenant moved in next day after settlement who is paying A$420 per week.
This house has some desired features:
1. about 8 minutes walking to the surfing beach;
2. another 8 to 10 minutes walking distance to shops and new Maroochydore CBD;
3. Brick and Title structure.
4. Affordable with just over 5% return.
In terms of investment, it might not be the best because the population over there isn't big enough to have a sustainable housing market. However, this house gives me some imagination of a good retirement living style.
I did buy some houses which didn't grow for almost 10 years in Western Sydney. Am I having a wrong investment?
I find out that if the market is down for 4 or 5 years, that is the best time to buy into that market. In other words, if the market (not mining town) is down for long time already, it won't be wrong to buy over there subject to the population in the target areas isn't declining.
I did have some houses bought in year 2009 which are almost doubled today in Western Sydney.
This house has some desired features:
1. about 8 minutes walking to the surfing beach;
2. another 8 to 10 minutes walking distance to shops and new Maroochydore CBD;
3. Brick and Title structure.
4. Affordable with just over 5% return.
In terms of investment, it might not be the best because the population over there isn't big enough to have a sustainable housing market. However, this house gives me some imagination of a good retirement living style.
I did buy some houses which didn't grow for almost 10 years in Western Sydney. Am I having a wrong investment?
I find out that if the market is down for 4 or 5 years, that is the best time to buy into that market. In other words, if the market (not mining town) is down for long time already, it won't be wrong to buy over there subject to the population in the target areas isn't declining.
I did have some houses bought in year 2009 which are almost doubled today in Western Sydney.
This sounds so nice if you wish to live there but what demographic of customer would these IPs suit? If the purchase is to eventually to live in them, then yes, but if I never wish to why would I buy a property with the pool and provide the maintenance (my strategy is never to buy with a pool)?
I suppose it depends on the supply/demand formula and it must seem that the demographic customer there is one not so much for the rent (I heard somewhere that most rent from 25-40 year olds).
Anyway, they do seem attractive if one wishes to live there, right?
