It's a matter of buying the existing property in a gentrifying suburbs vs. OTP in a developing suburbs for investing.
Given the same amount of budget to invest, which one is suitable for long term CG ?
Hi John,
I tried to reply to your PM, however seems you've restricted yourself to not receive PM's. So here goes my message:
Is there a reason you are looking at Sydney right now? As you may be aware, the Sydney market started rising in January 2013 and has risen significantly. I personally can't justify the current rental yields. I don't have a crystal ball as to where the market will go and whether it will keep going, my gut feel is, most of the growth has already happened in Sydney.
Don't use Sydney as a dart board and buy anywhere, I think it might be a bit too late for that now. If you were buying start of 2013, in hindsight, you could have bought anywhere in Sydney and done well. I reckon it's going to be hard holding a property if you buy at the peak and don't see any movement for a long time to come (again I don't have a crystal ball).
If I was in your shoes, I'd consider Brisbane. Hire a local buyers agent who can talk you through the basics and show you the ropes. It will teach you a lot. Wombat777 used a BA in Brissy. Check his post out here:
http://somersoft.com/forums/showthread.php?t=108506
So what is encouraging you to buy in Sydney?
What's your budget? What deposit are you putting in?
Do you have a good broker on your side?
Are you buying a property as a one off, or do you intend on building a portfolio?
Why are you investing in property? What's your driver?
Have you read any investing books? Rich Dad Poor Dad by Robert Kiyosaki & Richest Man in Babylon by George E. Clason come to mind.
I learned within the first few years of investing that, there is no perfect investment property. It needs to tick boxes around what makes a good investment to you and you only. No one would be able to point out an area where you must invest. It would come down to gut feel and what you think about an area and whether it fits in with your criteria. Hence nobody can make that decision till you do settle on an area and research.
Cheers,
MsAli