I know everyone will have a different opinion, but what state would you currently invest in and why?
I have wanted to invest in SA, Adelaide in particular for a while and have noticed a steady increase in the values for my suburb of interest. It's just that 20km out of most capital cities fetch huge prices but Adelaide is still low in comparison.
Hi, Cocobean
Thought I start things off. Live in Melbourne so bought my first IP here. Settlement in Jul 09. We had first hand knowledge of the local area, so it allows wife and I to snap up a good deal with we saw one a next wks back. Also, being the 1st IP, we are dipping out toes into PI and wanted to be conservative about it.
Being Singaporeans, we also purchased a off-the-plan 'premium public housing' apt in Singapore as a second home, to be ready in mid 2011. We researched and understood the local area there as well; having been born and breed there helped. Note though, the standard of a 'premium public housing' in Singapore is similar to an above median priced apts in Melbourne.
Future plan is to buy the next home around 2013-14, convert current home into 2nd IP. After that, will look interstate for next 3rd IP to diversify into a different RE market, and also the spread out the land tax.
The April 2009 edition of API has an article on the pros and cons of investing in the local area vs interstate. Check it out.Regards
Daniel LeeHi coco bean,
Could be any where for your first investment…..no worng or right, but bear in mind distance can make things tricky if things dont go as well as you would have liked. If the sums add up and it is a good, sound deal, and you are familiar (or know someone who can hlep you/or is) with the area, does not really matter.
Bear in mind though, land tax can be a n issue to watch out for, depending on the state, and how many properties you have.
What is your budget like? Cos another factor can be the costs to buy, such as stamp duty etc – each state is different, and also each price point also affects your buying/closing costs. Go to one of the major banks, or the MFAA websites, and check out a 'home buying calculator' , run a couple of scenarios and you will see what I mean.Cheers
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