Can somebody let me know whuch are the top 5 suburbs to invest which will give great capital growth for next 5 years and why?
py wrote:Can somebody let me know whuch are the top 5 suburbs to invest which will give great capital growth for next 5 years and why?
It depends what country you are talking about, if Australia then Darwin is about to boom and will provide great capital growth even in the next 2 years http://www.importantstuffyouneedtoknow.com
Steve's Market Update for April 2012 was sensational and he gave great insights about the Australian Residential market.
Amongst the indicators he mentioned are:
- Median house prices
- Jobs and employment
- Housing Finance
- Housing Approvals
- Consumer and Business Sentiments
Using the indicators above it appears that the best capital cities to invest in for Generic Growth are Brisbane and Adelaide since they have overshot to the downside below their trend channel. However, having said that, Steve emphasized that 'buy and hold' is not the best strategy in today's market, and it would be preferable to manufacture growth e.g. via renovations, subdivisions or developments. If you are going for generic growth nonetheless, it is recommended you buy <85% median house price, and <1.5km of a railway station to minimise downside risk.
Just buy any of the popular magazines. They run articles on top places for CG, yield etc every few months.
yeah – many of the top property magazines talk about spots with higher potential CG.
for me on the other hand, i prefer going for properties that give cash flow…
I'm in the United States and investing is great here depending on the income producing product and location. But to answer your question; You may want to reach out to a local guy by the name of Nigel. He is on this site often and has a great insite as to the market there. I've only recently come to know Nigel myself but my first impression is that he is very hands on in the marketplace and has the best interest of the investor in mind when giving advice.
Best of LuckJohn-USA-CommercialRE
Email Me[/quote] It depends what country you are talking about, if Australia then Darwin is about to boom and will provide great capital growth even in the next 2 years http://www.importantstuffyouneedtoknow.com [/quote]
Here are some notes on Darwin:A few thoughts on Darwin 2012.
I think most Darwin watchers would be calling the bottom of the market.
It is feasible to predict an increase in land values as we go through what ever land has been ear marked for development before developers can get more ready.
I will look for the statistic but there are a known number of blocks for sale in Darwin and it would seem that $227k is the floor.
I remember a while back the newer blocks were significantly cheaper than blocks over the road as the old blocks had sold for a premium due to limited supply and the new blocks had no buyers due to GFC.
So those with land ready can be expected to pressure prices, perhaps it will take 12 months.
So what is available:
• Units in Darwin, expensive units were/are being sold cheap, mid range units are starting to achieve high rents, anything with guaranteed view would be my call.
• Units in Palmerston, the cost of building them is high, so buyer pays a premium and they will not be rare, but over time they bring tax benefits and a ready stream of renters.
• Second hand stock across all Darwin, limited tax minimisation benefits, strong renter demand. I would buy an elevated situated at the front or back of a 1,000sqm block if I was a mini developer based on the granny flat change that is coming http://www.abc.net.au/news/2012-03-0…blocks/3862312. Our Karama property valued at $420k the other day, we had thought $450k, but when I looked there were at least 3 sales since Christmas for $430k so bargains have been going through.
• Block and Build – cheap but comes with some stress option
• Purchase from developer – pay a premium but hands free.
Cheers
Nick
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