Darwin

Geoff wrote:

Hi allI live in Perth and currently looking at buying and investment property in DarwinHas anyone brought a investment property in Darwins Muirhead Breezes, im looking to buy an investment property up there , I have a few concernsConcerns include, like Perth, property, jobs etc are going backwards at a rate of knots due to the downturn in mining, whilst I agree Darwin has a lot going for it, agriculture, defence etc, but, it cannot remain immune from the downturn, I believe that next year, it will still continue to come off, so a property worth $600K say might only be worth $550K or thereabout in 6 months, and then, how long is a piece of string for recovery – I do understand it’s a long term investment but wouldn’t it be better to adopt a wait and see approach re-visiting investment in the area say around April next year to see how the market is travelingAny advise would be much appreciatedRegardsGeoff

Welcome @geoffslingsby – good on you for being prepared to invest, and even consider interstate. I love counter cyclical investing, meaning its great to buy when no one else wants to as you have the option to get in cheaply. However in a falling market if you get in too early you will be punished, and the opportunity cost of capital losses that need to be recovered is quite expensive. Personally I think its too early to invest in Darwin. I would be taking the wait and see approach. I would want good data showing that it had bottomed out, at the very least even if it hasn’t started rising yet. Would it not be worth considering another market in the mean time to catch some rises and then in 6-12 months re evaluated Darwin? Just a thought.