As we all know the WA property market is booming at unbeliable standards. But this will nto happen forever so i’m just interested in what you people think will be the next place to invest in…..I’m hearing Sydney???
Yep, the cycle is just about complete. Even bush hovels are down to 5% rental yields.
Sydney is the next place to invest for the next cycle. Ideal time is in about 2012. Can’t wait!
Check out this chart.
http://forum.globalhousepricecrash.com/index.php?act=Attach&type=post&id=4
Pretty obvious to me.
Good luck.
… and NSW prices appear to have passed their low point and are on the up again! See attached graph:
Linked Here
Oh, no they’re not. The rate of price falls is just starting to accelerate!
Cheers, F.[cowboy2]look melbourne is booming
just an example
buxton RE sold a place 18 months ago $520k
back on the market expect $540k
wow thats a gain over 18 months of 20klets not tell them about the odd $40k in cost to buy
the $20K in costs to sell
and the costs of interest to hold it for 18 monthsTassie you fools tassie!!!!!!
Well east coast anyway, with little or no reporting and lots of new jobs happening down there its a hidden sector of the market few even think about. House pricing there……we bought a 3 bedder for $116,500 in Oct last year, val came in at $125k. Last week a house 2 streets away that looked identical sold for $145k wooohooo!!
Rent for that is $170/wk too, not your perfect ratio but with the cap potential it still looks good to me.
DD[thumbsupanim]
Buyers Agent (Dip Financial Services(FP)
Don’t sweat the small stuff,and it’s all small stuff!!nice one dd
tassie’s a lovely spotbut just doing some quick calc’s on your gems, looks like selling today at $145k would make you about $15k after all costs..
(if at val $125k you loss -$4k)
if instead had you got some bhp shares today you would have made 40k
then you could have bought maybe 2 IPsall to do with timing
Hi carl.alexander,
At a macro level WHERE is very very important.
At the moment I am sifting through deals in my old stomping ground. Speculators will jump out as quickly as they jumped in. We all know that property is a long term gig so getting out quickly is not always profitable.
Once the multitudes move out of the way there is again room to do business, have proper conversations and buy well – this will happen no matter what city or country you are in.
Try looking for excess development stock in your local area and then compare it to the price of established housing. Keep watching these ratio’s and it will be a big help for you in determining how much fat is in your market.
Regards,
Don
D&L Property Projects Ltd
Sourcing Quality Investments in New Zealand.Email to receive current deals & New Zealand Information Sheet.
[email protected]Don Nicolussi | Mortgage Broker - Home Loan Warehouse
http://homeloanwarehouse.com.au
Email Me | Phone Me"I think of finance as a technology, a way of getting things done." Robert Shiller
I hate people who mention how great BHP shares have done in relation to owning property.
About 5-7 yrs ago BT Funds used to have a resources managed fund. They closed it down and started a TIME fund ie.technology fund.
The resources fund was closed – no interest in the resources sector and obiviously the gurus at BT did not predict much of a future for our resouces sector. And now look at the TIME fund. Another dog.
So dont compare owning BHP shares to owning property. Why not look at Telstra eh
I agree with yack.
My parents have invested in blue chip shares that have turned into dogs. Their houses may have dropped a wee bit but that drop is just a tiny slice of the HUGE increase that went before it.
Like shares, they only lose if they sell. They lost $26K in on day on shares. After several years they got back $8K (from memory) after the company was taken over by someone else. It didn’t put them off shares though, but most of their wealth is in property. It did put them off the licenced financial adviser who investigated and told them all was well about two days before the fall, after they questioned some rumours in the wind.
I am not against shares, but I have been burnt by shares, never by property.
Wylie
Originally posted by yack:So dont compare owning BHP shares to owning property. Why not look at Telstra eh
Ok, sure… ~8% dividend yield… vs residential real estate…
~4% Canberra
<4% Adelaide, Perth, Brisbane, Melbourne
<3% Sydney
[blink]
I guess it’s all about how you look at it!
Cheers, F.[cowboy2]if instead had you got some bhp shares today you would have made 40k – then you could have bought maybe 2 IPsThis is of course assuming that the same deposit could be leveraged to purchase that same value in shares as the property.
e.g. If the property was purchased at 90% lend, this would mean a $12k deposit (+ costs of maybe $8k with LMI inc.). Would you be able to buy $116k of shares with a $20k down payment? If not, then the amount of $40k profit might be somewhat over-stated, yes?
But I agree that resources certainly have the sun shining on them ATM,
Benny
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