Which state to buy

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.

what are the rental returns in canberra, anything upwards from 7%?

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

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

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?

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!

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

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.