Strong Growth in Brisbane

[Andrew_A]

Originally Posted by boomtown

My experience of chatting to agents is that they have no idea regarding macroeconomic conditions which drive the Australian economy. Try asking any REA about a Spanish sovereign debt default, the recent fall in global coal prices or US employment figures and you will just get a blank look.

Not the best source if you are looking for this forecasting! What agents are excellent for is a reasonable survey of 'current' market conditions, if you talk with enough of them and ask the right questions you can get a good grip on what is happening in their patch of the woods, or.. you can talk to someone who does this already for a job (saves having to talk with lots of agents!)

[Rixter]

Originally Posted by boomtown

Not soon enough to cover my interest carrying expenses and still make a profit - no.

Prior to purchasing, what date did you put on making a profit by? Sounds like you purchased badly.

[rookie101]

So question? What figures do residex prediction reports use? Any tips for the next 2 years?

[rookie101]

Originally Posted by Andrew_A

Not the best source if you are looking for this forecasting! What agents are excellent for is a reasonable survey of 'current' market conditions, if you talk with enough of them and ask the right questions you can get a good grip on what is happening in their patch of the woods, or.. you can talk to someone who does this already for a job (saves having to talk with lots of agents!)

The information I got about the current market is don't sell or youll walk away at a loss, hum we already knew that!

[virgo]

Hiya
So I made an offer 25percent off asking price and got accepted
Flew up to Brisbane to do inspections and now has an offer to flip and make 25k

Very tempted.....
Interesting mkt Brisbane ATM some areas cheaper to buy than rent....

[eyespy]

Where, where, where Virgo ? I'm hanging out to hear the details. Most places I've looked are poor yields. Only good yields iveseen are flood affected areas

[Dean1337]

Originally Posted by virgo

Very tempted.....
Interesting mkt Brisbane ATM some areas cheaper to buy than rent....

Originally Posted by eyespy

Where, where, where Virgo ? I'm hanging out to hear the details. Most places I've looked are poor yields. Only good yields iveseen are flood affected areas

Ditto! I'm looking in Brisbane too would like to know where you are referring to virgo.

Woodridge comes to mind at first. It was not flood affected either. Of course this comes with an added bonus of being in a low social economic area.

A quick search on Eagleby and there are a few possibilities there too.

This of course was done with a quick search on Real Estate looking at both advertised prices and rents. The real story could be different.

[gottabespotless]

Originally Posted by eyespy

Most places I've looked are poor yields. Only good yields iveseen are flood affected areas

Agree. We're looking at purchasing a house (already reno'd for immediate best rent) in inner city suburbs yet the poor rental yields mean too much of our 'hard-earned' will have to fill the gap between net rent and mortgage repayment. It's a turn-off when I see beautifully renovated homes with 3+ bedrooms, 2 bathrooms, car space, sometimes even a pool, etc, in suburbs less than 5km from the CBD or closer only asking $650 - $700 in rent - considering what these types of homes are on the market for. Not interested in renting out by room to students (been there, done that) so thinking of holding off and looking at other areas but keeping an eye on Brisbane nonetheless.

[rookie101]

Well dont buy in north lakes/mango hill there's a tip! Too many IP properties for tenants to choose from and not enough infrastructure to prevent the commute to CBD to work

[boomtown]

Originally Posted by Rixter

Prior to purchasing, what date did you put on making a profit by? Sounds like you purchased badly.

I was referring to the ascot property (which i do not intend to buy) not my own portfolio re carrying expenses. My own properties have much higher yields.

As for purchasing badly, probably most people that bought in Brisbane in 2007 / 08 "purchased badly " from a cg perspective and most that bought in Brisbane in 2001 "purchased well". All with the benefit of hindsight which is 20 / 20.

[boomtown]

Originally Posted by Andrew_A

Not the best source if you are looking for this forecasting! What agents are excellent for is a reasonable survey of 'current' market conditions

100 percent agree. It's more "the market has bottomed and is going to climb back up over the next 24 months" that gets me. REAs can tell you what current conditions are. But they can't tell you what is going to happen in six months time.

To answer my own questions, if there was an easy fix to the European debt crisis they would have done it by now which can only mean that tight credit conditions will be with us for awhile. Thermal coal prices have been slowly falling for 12+ months which means the mining boom is still a boom but is slowing at the moment. Thermal coal is used to generate electricity so global electricity demand must be down which means a slowing global economy. So with tight credit conditions and a slowing global economy there is not going to be a house price boom any time soon. But don't expect a REA to tell you that.

The closure of Norwich Park mine should be a wake up call for anyone that thinks the mining boom is going from strength to strength.

[boomtown]

Originally Posted by Dean1337

Ditto! I'm looking in Brisbane too would like to know where you are referring to virgo.

Woodridge comes to mind at first. It was not flood affected either. Of course this comes with an added bonus of being in a low social economic area.

A quick search on Eagleby and there are a few possibilities there too.

This of course was done with a quick search on Real Estate looking at both advertised prices and rents. The real story could be different.

Carole Park is cheap.

http://www.realestate.com.au/propert...park-109801751

[Rixter]

Originally Posted by boomtown

I was referring to the ascot property (which i do not intend to buy) not my own portfolio re carrying expenses. My own properties have much higher yields.

As for purchasing badly, probably most people that bought in Brisbane in 2007 / 08 "purchased badly " from a cg perspective and most that bought in Brisbane in 2001 "purchased well". All with the benefit of hindsight which is 20 / 20.

Yeah my last purchase in Brisbane in 2007 I bought for $328k...today it sits around just under $400k I reckon.

[boomtown]

Originally Posted by Rixter

Yeah my last purchase in Brisbane in 2007 I bought for $328k...today it sits around just under $400k I reckon.

Congrats if you did that with no work at all. If you put sweat equity into it well then the price reflects that. Incidentally, you are probably not in the same category as "most people".

[Rixter]

Originally Posted by boomtown

Congrats if you did that with no work at all. If you put sweat equity into it well then the price reflects that. Incidentally, you are probably not in the same category as "most people".

I dont know what same category as 'most people' means. Can you elaborate?

I dont know if jumping on a plane from Perth, hiring a rental car & accommodation for 10 days in Brisbane, then conducting my Micro Due Diligence and then locating IP's and pitching offers is classified as hard work or not.

For some it may be out of their comfort zones (as I know it was for me years ago when I was pushing myself for the first time) but now a days its just something I do.

No sweat equity for me either over those 10 days tho..I simply locate a good deal, buy, hold and then set it on auto-pilot and basically duplicate the same elsewhere.