Forums / Property Investing / General Property / Which state to buy

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  • Profile photo of fredo_4305fredo_4305
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    Hi all what are peoples thoughts on which state to currently put your cash in to?

    Profile photo of sam2011sam2011
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    i have always looked in the state i live in, but would love to invest in other states, just dont have the confidence…..have looked at vic, qld and sa….but i think its a very general question to ask as at the end of the day you need to drill down to suburb level.

    Profile photo of fredo_4305fredo_4305
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    Im tossing up between QLD and Melbourne at the moment but can't make a decision lol

    Profile photo of illuminatiilluminati
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    fully agree with shahabr. you can get property trend graphs for the different states etc, but when it comes down to it, its what you feel confident in doing, what the suburb stats tell you, etc.

    If there is somewhere you wanted to take a business holiday trip to, then think about where you like!!
    but if its purely for investing, then there are a range of areas and building types in every state, so maybe just compare a few similar housing types or prices, in suburbs from different states and see what that tells you.

    Profile photo of CatalystCatalyst
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    fredo_4305 wrote:
    Im tossing up between QLD and Melbourne at the moment but can't make a decision lol

    Why have you picked these? Do you think that's where the next boom will be? Or other reasons?

    I'm still buying in Sydney and will keep doing so while I keep finding bargains. Also I think prices are still rising.

    Profile photo of Jamie MooreJamie Moore
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    Canberra – consistant, reliable and I can self manage :)

    I'm also keeping an eye on QLD – Logan.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
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    Profile photo of sam2011sam2011
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    what are the rental returns in canberra, anything upwards from 7%?

    Profile photo of Jamie MooreJamie Moore
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    It would be difficult finding upwards of 7% but not impossible. You'd have to be a little creative.

     – purchase something that can do with a cosmetic reno to increase the rent.
     – purchase something that will provide two income streams – ie. house with granny flat/separate studio out the back
     – perhaps rent out indiviual rooms to students if the IP is close to one of the Uni's
     – some of the OTP deals could possibly generate decent yields upon their completion

    For the most part, Canberra is "buy and hold" territory – prob not the right place to look for CF+ deals. Accross the border in Queanbeyan……now that's a different story.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
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    Profile photo of JT7JT7
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    fredo_4305 wrote:
    Hi all what are peoples thoughts on which state to currently put your cash in to?

    IMHO I like NSW at the moment. I think Sydney is on a rising market although it has softened of late however, I do think it will pick up again early 2011. I think that there is also value out of town in some of the rural locations such as Orange and the Hunter Valley. However, NSW has been hampered by a state government that has simply failed it’s people when it comes to developing infrastructure….perhaps a change is needed after all these years?

    However, I also think for some there maybe an opportunity to consider investing in areas influenced by the resources industry such as the Bowen basin, Surat basin, and Gladstone in Qld and areas of WA…..I think the money being invested in some of these areas is immense and demand from China, India and Indonesia in the short and in my opionion the long term is just as impressive but you must pick your mark and time your entry….perhaps the time is now? I have put my money where my mouth is on this one.

    I also like Adelaide, especially south and think there is some growth to be had…just MHO.

    I don’t mind deversifying my assets across the country although buying in a different state to which you live in can be daunting at first.

    All of the above is just my opinion but hope it provides some thought to the conversation.

    JT

    Profile photo of sam2011sam2011
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    Have a property in orange which is going great, good return and the area is growing.. definitely recommend it

    Profile photo of JT7JT7
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    shahabr wrote:
    Have a property in orange which is going great, good return and the area is growing.. definitely recommend it

    Yeah Shahabr,

    I really like Orange. I’ve been keeping a real close eye on it for a while now. I think you are right…the market is starting to pick up and could see some really good growth. The gold mine a real string to it’s bow. You could even say gold has replaced the US dollar as being a global currency…figure of speech but there is some truth to that statement I think. Orange also has thriving health and retail sectors and attract people from towns nearby. Positive cashflow too depending on your vehicle of choice.

    JT

    Profile photo of sam2011sam2011
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    you can definitely get a positive cash flow property if you do enough research….there are a few areas i would watch out for as they are not pleasant even though they are extremely cheap i personally wouldnt go there, and im very open minded

    have a look also at sqm research at the vacancy rates in the area and how low they have become

    Profile photo of JT7JT7
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    shahabr wrote:
    have a look also at sqm research at the vacancy rates in the area and how low they have become

    Yeah, rentals are getting pretty tight in Orange ATM. Some good buying closer to the centre and property seems to stay on the market for a while which can also lead to some good buying through negotiation….not sure about east of the rail line though? Thoughts?

    Profile photo of sam2011sam2011
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    north east not so good, but i bought in glenroi which is east of the station and getting a pretty good return. general discount is about 14% mine was advertised for 190 and negotiated to around 160, and took the rent up from $150 to $210

    so really does depend on what you are after, west of the station price goes up but so does quality, though not necessarily rental

    Profile photo of JT7JT7
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    shahabr wrote:
    north east not so good, but i bought in glenroi which is east of the station and getting a pretty good return. general discount is about 14% mine was advertised for 190 and negotiated to around 160, and took the rent up from $150 to $210

    so really does depend on what you are after, west of the station price goes up but so does quality, though not necessarily rental

    Sounds like good buying Shahabr…I like those numbers! Would also agree with your general comments about East – West. I’m still flirting with the idea of buying a house on a >450sqm block and building a granny flat on the back…havn’t taken it further though…should make some inquiries with some PM’s about the market. I’ve been distracted lately! :)

    Profile photo of Johnny1974Johnny1974
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    Confused?
    Consider the ageing population? the masses of retiring/cashed up baby boomers with city/near city properties, looking to down size, free up some cash and escape the rat race you would think regional areas/coastal areas? Add to this growing crime rates? Global warming=hotter weather, I would have thought places like Tassie would be on everyones lips?
    I have 2 IP’s in Tassie, both returning 8-9% and growth of close to 10%PA. Neither has ever been empty for more than two weeks and with lower purchase prices and lower stamp duty it seems the logical place to invest.
    Am i wrong here?

    Profile photo of JT7JT7
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    Johnny1974 wrote:
    Confused?
    Consider the ageing population? the masses of retiring/cashed up baby boomers with city/near city properties, looking to down size, free up some cash and escape the rat race you would think regional areas/coastal areas? Add to this growing crime rates? Global warming=hotter weather, I would have thought places like Tassie would be on everyones lips?
    I have 2 IP’s in Tassie, both returning 8-9% and growth of close to 10%PA. Neither has ever been empty for more than two weeks and with lower purchase prices and lower stamp duty it seems the logical place to invest.
    Am i wrong here?

    Hi Johnny1974,

    I would agree with you in parts…Tassie does offer some great oportunities depending on the particular investors strategy. I think maybe there are some issues with population growth and the right demographic migrating to or staying in Tasmania (younger generation). I also agree with you about Tassie being an ideal spot to migrate to escape the hussle and bussle.

    Perhaps now is not the right time for Tassie if your looking at timing the market or the economical wellbeing just at the moment….you or others may disagree. However I would certainly consider Tassie sometime in the future. All just my humble opinion.

    JT7

    Profile photo of Scott No MatesScott No Mates
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    i wouldn’t mind buying tassie but it is a small state, victoria too is small but there are just too many people to buy out. ;)

    Profile photo of Graeme FreerGraeme Freer
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    I agree with Scott No Mates. Tassie has had a great decade but unlikely to be repeated due to slower pop growth. Same thing happened with regionals in NSW & Vic. Urban areas get too expensive so OO's and investors look for a more affordable option outside preferred city/state. Too late in the current cycle for Melbourne/Vic. I was recommending Melbourne from 2005. For a countercyclical play I like Brisbane/Qld . Not too late for Sydney, but need to be selective.

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    Profile photo of CatalystCatalyst
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    Tasmania actually had declining population growth this year (admittedly only in the hundreds) but still a consideration.

    I like Sydney still. Or Adelaide is looking good (but be quick).

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