Hi experts out there!
I bought one IP a year and a half ago in Kingston (QLD). The area did really well and prices are still going up. HOWEVER, due to the growth, yields are now quite poor in most cases. That has prompted me to have a quick look at the bottom end of the Sydney market as an alternative to QLD and my impression was that Sydney is now getting reasonably cheap (at the bottom end) when compared to other Capital Cities.
Also, rental yields are getting better due to lack of rental properties in the market.
Do you share the same view?
I think that investors will soon realize that other places have already cought up with Sydney and their attention will soon turn to Sydney again as a place to invest in for good yields and future growth.
Do you agree or do you think I'm dreaming?
Your opinion will help me decide whether to get back into the Sydney market or not!
Cheers
MCGJHi Scott No Mates,
I read this article last night and Adelaide is and will do really well with the resources boom. Sydney is still not in investors radar, but I wonder how long it will be for that to change.
As an example, I was scanning properties in Domain.com in suburbs around Parrammatta and found some flats for under $200k returning around 6.5%. This is better than what is currently available in Logan/Kingston etc…
Medium unit prices in Lakemba are around 180k. I'm not suggesting I'm buying in these areas, but these prices caught my attention. Add to that rental yields going up, I think it will be a matter of time for Sydney to become good value again.
The question is how long before that happens???
MCGJ, dont think anyone can tell you which way to go you could always buy the Residex report for Sydney and see what they reckon. if it was me and i was going to buy outside of SEQ then Adelaide might get my interest.
With respect to the news article its interesting that all the pundits are talking about Roxby Downs being a major driver for Adelaide. The expansion has not yet reached FID (Final Investment Desicion) so it is not a certain project. The project has some huge capital expenditure blow outs to deal with before it gets the green light so it is not a certainty that it will. I think it will go ahead but it is misleading for the pundits to talk as if it is a done deal.
bardon wrote:
With respect to the news article its interesting that all the pundits are talking about Roxby Downs being a major driver for Adelaide. The expansion has not yet reached FID (Final Investment Desicion) so it is not a certain project. The project has some huge capital expenditure blow outs to deal with before it gets the green light so it is not a certainty that it will. I think it will go ahead but it is misleading for the pundits to talk as if it is a done deal.That's interesting information. I thought that is was a certain project. I'l stay away from Adelaide until Roxby Downs becomes more certain. Will stick with SE Qld for the moment. Don't know much about Sydney but it will have to start going up soon when investors start moving back due to the dire shortage of rental properties/
Hi MCGJ,
A lot of areas in Sydney are for sale now; your intuition is serving you well. As for investors, sophisticated investors are buying like crazy. By the time you hear “investors are back in Sydney” that is the moment you should be taking profit, I will.
Happy Investing
Encouraging words Jon!!!
That is what I thought but wanted some confirmation from other investors out there.
Cheers
Hey,
Not an expert in property but saw the examples that you gave such as lakemba.. lakemba is a dump of epic proportions. I should know i lived there. I would have to say its 80percent (no joke) muslim/arabs and 20 percent other. I dont see that changing at all in the next 5 or so years unless developers change the landscape a bit.
From an investment point of view i suppose if the figures stack up why not. But i gotta say its a dive and ive lived in some shoddy places.Maybe you could look to the outskirts of lakemba and market the property under a different suburb for whatever reasons.
You might want to wait for the next 2 maybe/probable rate rises in the first 6months of 2008 and look for properties foreclosing. Its a fact that there will be record foreclosure levels if the predicted rate rises come.bad for many.good for some i suppose
Here is a copy of a post from Steve McKnight from another thread: Comments???
Hi,
To throw in a different opinion, if I was betting on the next city in Aus to experience above average growth, I'd be putting my money on Sydney.
Adelaide is at the tail end of a recent boom, Queensland is experiencing a increase in prices, but when Sydney goes again, it will make both look insignificant by comparison.
All in all, there is money to be made everywhere. Your choice is best determined from your experience and skill base rather than picking a location and trying to strike it lucky. That is, what you do is more important than where you do it.
Cheers,
Steve McKnight
His comment but when Sydney goes again, it will make both look insignificant by comparison is interesting. Not exactly sure what he mean but maybe Sydney is getting cheap
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