Hi Everyone
I have been investing in US and also interested in Syd market. However decided to look in my own backyard over the last month or so, pleasantly surprised.What I am seeing is some areas doing very well, with listings getting snapped up within 2 week time frame, seems to be little stock in certain areas. With rents going through the roof my thoughts are that we may be looking at a modest rise in the lower end and perhaps investors/first homes buyers will start jumping in.
I am in the process of negotiating a deal only 12 kms from city, vendor under financial stress, think I can get this one for $310K, with a tidy up should be worth around $375K.
I am keen on comments from those who have been watching this market closely.
WI
Saw a report recently saying that the medium house price in Perth had only changed by $1,000 since 2006.
Not saying that their isn't opportunity there, but with only 1,000,000 living over that side of the country and 21,000,000 odd living over this side, you can understand why it fluctuates so much.
I was out at Gregory Hills, SW Sydney the other day. Amazing how much is going on out there. Over 100,000 homes going in over the next 10 – 15 years or so. Good infrastructure and no stamp duty in NSW makes it good value.I guess it comes down to the old rule. Look for where there is Infrastructure, Government spending and Population growth and that's where the gold will be.
I thionk the Perth market is one of the best in the country, along with Sydney. The population growth in Perth is the highest out of any capital city, and with lots of mining activity there is quite a bit of money floating around.
However Perth does not have the geographical supply problems that Sydney does so I think that while the inner areas of Perth will do well, the outer areas may not do as well in the medium term. There is supply of new suburbs being developed in close proximity to transport and within a 30 minute or so drive to the city. I think these suburbs will weigh down the appreciation of older established suburbs that are nearby and other outlying suburbs.
Cheers,
LukePISTORE wrote:Saw a report recently saying that the medium house price in Perth had only changed by $1,000 since 2006.
Not saying that their isn't opportunity there, but with only 1,000,000 living over that side of the country and 21,000,000 odd living over this side, you can understand why it fluctuates so much.
I was out at Gregory Hills, SW Sydney the other day. Amazing how much is going on out there. Over 100,000 homes going in over the next 10 – 15 years or so. Good infrastructure and no stamp duty in NSW makes it good value.I guess it comes down to the old rule. Look for where there is Infrastructure, Government spending and Population growth and that's where the gold will be.
This is good feedback, I certainly like Western Syd and I purchased in this area about 18 months ago. This property provides excellent cashflow as it has a self contained granny flat which was already in place.
To replicate this again in Syd would not be difficult, however as far as I am aware you can not get bank finance for the granny flat and trying to refinance would not be worth the effort.This is my dilemma, I like Syd and I like to chase cycles, I feel this will be the next boom area, who knows when but its a case of positioning yourself.
As far as Perth goes I am finding properties about 12-15km from city where rezoning is occuring and I have the opportunity to purchase in low 300s and its a matter of sitting and waiting (land banking). This will not be cashflow positive, however in the interim you will get reasonable growth, its already happening. If you can keep the front property and build at the back you will have a great little money spinner down the track.
Cheers, WI
luke86 wrote:I thionk the Perth market is one of the best in the country, along with Sydney. The population growth in Perth is the highest out of any capital city, and with lots of mining activity there is quite a bit of money floating around.
However Perth does not have the geographical supply problems that Sydney does so I think that while the inner areas of Perth will do well, the outer areas may not do as well in the medium term. There is supply of new suburbs being developed in close proximity to transport and within a 30 minute or so drive to the city. I think these suburbs will weigh down the appreciation of older established suburbs that are nearby and other outlying suburbs.
Cheers,
LukeI agree Luke inner will do well… I hope so anyway.
I have watched my suburb/area free fall for the last couple of years (Mt Lawley)….. units have held their own but period homes have definately taken a hit.
Cheers, WI
Money spinning is is great in theory, but remember, Communism works in theory also….
If you want growth in NSW, the the only real place is the Hunter Valley region.
It's the only area in NSW where there is any REAL money being spent of Infrastructure and Government spending and there is amazing population growth taking place also.
600,000 people live there now, thats more than live in the ACT, Tasmania, the Gold Coast or Darwin, so it's very strong area.
And 160,000 of them drive from the Gosford and Wyong shire to work in Sydney each day!!!
The fact is, people want to live where there is value for money and lifestyle. Up that way your not really more than 10 mins away from water no matter where you live and its a very nice area, with QLD like infrastructure going in (thought out properly in other words).
You must be logged in to reply to this topic. If you don't have an account, you can register here.
