Hi guys
I am looking to purchase my second investment property and while I was fairly confident about my decision to look at purchasing approx 50km out of Sydney CBD I am now having second thoughts after reading a lot of articles about the Melbourne and Sydney markets already hitting their peaks with Brisbane still having some growth left. What are your thoughts on this? My current IP is in QLD so I would like to diversify and be in NSW as well but am I too late or is the 50km distance out of the CBD enough to see a delay in the growth meaning that this area wouldn't have peaked yet?
Any thoughts on this or general input on these areas would be great and much appreciated.
Thanks
With 50km out of Sydney, you may be hard pushed to see any capital gains. You'd be looking at Campbelltown, the other side of Penrith or Wyong. Much of the areas closer to Sydney (western suburbs) have bolted but it would largely depend upon your budget and the type of property that you are considering.
Have to agree with SNM i am not convinced that the inner suburbs of both Sydney and Melbourne have not stopped to take a breather for a while whilst in Brisbane quality suburbs are really starting to pick and we are finding demand for our BA service in and around the inner 7-12km CBD radius to be a record levels.
In many cases we are finding that we are making offers on behalf of clients and are competiting against multiple other offers not just one or two.
Has to be good generally for the investor over the long term and i know which State i would choose between the 2 at the moment.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Thanks for your comments Scott, I'm interested in your thoughts on this, the reason being is that I too used to believe that properties this far out (30-50km) from CBDs didn't see the advantages of capital growth but after meeting a like minded investor who has now purchased quite a few properties 30-50kms out of VIC, NSW and QLD it seems that this conventional wisdom isn't always the case, with all of his properties and now even my property, 35km out of Brisbane, seeing good growth. Have we just been lucky? or are the widespread thoughts about growth away from CBDs inaccurate?
Anyones thoughts on this would be great.
Cheers
Thanks Richard, your comments are always appreciated. I would love to purchase 7-12km out from Brisbane but unfortunately my budget wont allow this, I am also looking for something with a long settlement period which will give me a bit more time to get the deposit funds together.
I am still struggling with the capital growth perception that these outer areas are receiving though, all the data I can find suggests that the areas I am looking at receive above average annual growth over the long term and all experiences with such areas confirm this data yet I still find that it is generally agreed that strong capital growth 50km out is not a realistic forecast.
Any thoughts on this would be great
Cheers
You must be logged in to reply to this topic. If you don't have an account, you can register here.
