I have heard people saying Sydney is not the place for investment, Brisbane is attracting many investors. Whys is that? is it because the QLD state have other benefits that are not offered by NSW state? IS there a state that do not have or have considerably less stamp duty?
cha
Stamp duty fees do vary by state.
However, I doubt that's the reason you're hearing people in NSW say that Brisbane is the place to invest.
There has been a bit of talk about the Brisbane market being in a recovery stage. Check out resources like the Herron Todd White month in review.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Even the projections in last week’s AFR had Sydney and Melbourne as the preferred options for growth over the next 3-5 years.
Must admit if the number of applications coming in from investors buying in Brisbane are anything to go by then we are certainly in for some exciting times.
Personally i think the Brisbane – Ipswich corridor has some exciting opportunities as well as Toowoomba.
We are launching our Buyer's agency service in early 2013 along with an exciting new 100% investor loan and i think the demand for SE Qld will be keeping us busy for a while.
Every property I own is in Qld but that is not to say there are not other opportunities
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Cha,
Don't forget to look at areas within a state too. Some parts of some states do better than others.
On top of this various media organisations and property research groups such as APM, Residex, RPData etc all make predictions about various states. It is not an unusual occurence to see contradictory predictions being made.
ANZ also do a series of bi-annual property reports which may be of some help (hindrance) to you. These can be found on this page
Thanks Derek.
People tend to forget that property is cyclical.
That means one area has a bad time .. while the other area has a good time. And this can swap at a moments notice.
People often dont move until they see other people starting to move as well. And following them .. they make their decisions too.
Brisbane and the Gold Coast got hit badly for a whole series of reasons .. one being the idea that there was an unlimited number of people who were prepared to pay nearer to a million dollars plus for an apartment.
Well .. there arent that many people. And people who are usually in that bracket .. are reasonably fussy about what they will purchase too.
So in both Brissie and the GC .. you had million dollar plus apartments sitting on the market as the market went sour. And in some cases .. developers literally turned heel and ceased some developments due to an oversaturated market (against existing demand). The ripple from that went right through the market .. as developers sold to recover costs .. reducing the value of existing apartments .. devaluing pre-owned apartments (you could buy new at a significant discount) and as a result .. the whole market declined significantly. There were also changes in government regulation .. but thats another saga.
There comes a time when a devalued asset matches return .. and affordability .. again .. to become a VALUED asset. People tend to oversell .. until the whole situation goes too far in the depreciated direction. People then percieve value to be had .. and jump back into the markets. Low interest rates .. are also going to influence these sorts of decisions. And in my lifetime … rates have NEVER been lower.
I read that Brisbane area has been in recovery, but I would not say that Sydney is the bad place to invest. It just all depens on what you are looking for.
Hi Cha,
Just coming back to your comment "Is there a state that do not have or have considerably less stamp duty?"
Stamp duty calculators for all states can be found on numerous websites so you can compare the various states. If tax is an issue for you do not forget to consider land tax.
Trying to save stamp duty by compromising your property selection is the wrong way to approach property investing.
Get the right property in the right location – stamp duty & interest rates etc are simply the cost of doing business.
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