Browse Forums General Discussion 1 Jun 24, 2021 6:55 am Hi, I am looking for long term capital gains what is a better options 1- buy one house around sydney for $1.2 mil OR 2- buy 2 houses around brisbane for 600K each roughly please suggest Re: Buy one house for $1.2 mil around Sydney or 2 houses aro 2Jun 24, 2021 11:33 am Do the math The money is made on rezoning properties, building and adding value, eg There's no weekly currency in paying $5000/m2 for an investment yielding <$5week /m2 ( generous) return as a rental here, Capital growth 10 year cycle < 15%? New Build Journey By Comparison Shopping centres yields investors $20 week/m2 The big Green shed yields investors $2.50- 5.00 week/m2 Post back if you need more info Cheers Chris Designer,Engineer (Civil,Const & Envir),Builder,Concrete & Masonry Contract.Struct Repairs Re: Buy one house for $1.2 mil around Sydney or 2 houses aro 3Jun 24, 2021 6:45 pm adcomprise Hi, I am looking for long term capital gains what is a better options 1- buy one house around sydney for $1.2 mil OR 2- buy 2 houses around brisbane for 600K each roughly please suggest If you look at the growth in Sydney, its mainly driven by two things: 1. Immigration - we are between 30-40,000 dwellings short per year on average 2. The blue mountains mean there is a limit to the amount of land available and the NSW govt is very slow at releasing new land. Always invest in something they arent making any more of, like gold, limted edition baseball and hockey cards and Sydney land! But think long term and near public transport. For that budget I would be looking northwest like the ponds or anywhere along the new rail line, and no apartments. Anyway, good luck with your decision Simeon Architectural Homes & Duplexes - specialising in custom designing homes to your budget Get a Free Onsite Consultation Today or send a PM for information, questions or advice. Re: Buy one house for $1.2 mil around Sydney or 2 houses aro 4Jun 25, 2021 7:35 am StructuralBIMGuy Do the math The money is made on rezoning properties, building and adding value, eg There's no weekly currency in paying $5000/m2 for an investment yielding <$5week /m2 ( generous) return as a rental here, Capital growth 10 year cycle < 15%? New Build Journey By Comparison Shopping centres yields investors $20 week/m2 The big Green shed yields investors $2.50- 5.00 week/m2 Post back if you need more info Cheers Chris Stick to concreting mate. There's plenty of ways to make gains from investment property. Even the right place will make money with nothing done to it. https://www.realestate.com.au/news/fami ... nca:dt:spa This is one of at least 10 this month that have had these types of returns. Dark matter scientist, can breathe underwater, mind reader and can freeze matter just by willing it. Trust me, its in my sig. Re: Buy one house for $1.2 mil around Sydney or 2 houses aro 5Jun 25, 2021 8:53 am Stop being a troll and brush up your math.. you might learn something about value time rate of investments The investment return on a dilapidated house in an expensive area is <50c m2/week ..lol, thats probably why they are selling it prognosis ...LAND Asset rich income poor I gladly take all your money on your " Hope springs external" investment .. and you deserve to have your pants pulled down on site with the concrete slab and footing.... He,he,he ..you wont even see it coming dude (Humour) Cheers Chris Designer,Engineer (Civil,Const & Envir),Builder,Concrete & Masonry Contract.Struct Repairs Re: Buy one house for $1.2 mil around Sydney or 2 houses aro 6Jun 25, 2021 11:55 am hah, my maths? here's a summary of why your maths is so far out its laughable. "<50c per m2/week" lol indeed. 10 months=43 weeks 400k/43 weeks= $9302 value increase p/w $9302/484sqm = $19.21 increase per week per sqm That's an ROI of 30.3% with an annualised ROI of 37.56% (investment length 0.83 years). That type of no effort return is literally the type of investment return that people dream of. As an engineer, how did you get the most BASIC of maths wrong? I've said it before, and I'll say it again. You're a clown. Stick to concreting. The other aspect you fail to account for in your "advice" is that somone looking to invest in residential property is generally not looking to invest in a shopping center or a bunnings. These are not even in the same league. Also "capital growth of 15% over the last decade"? Have you been living under a rock? The average growth in Greater Sydney has been 5.5% per YEAR for the last TEN YEARS. some parts its been averaging at +7% per year for the last ten years. To contextualise that to your "15% capital growth over the last decade" comment - here's some more math for you -
That's an ROI of ~62% over a decade. Capital growth of 15%? That figure doesn't even account for the stupid double digit swings that have occurred in various years in the Sydney market. Why do you think people are investing in the Sydney property market? You think they're doing it for 50c per sqm p/w or 15% cap gain over 10 years? Mate....SMH Dark matter scientist, can breathe underwater, mind reader and can freeze matter just by willing it. Trust me, its in my sig. Re: Buy one house for $1.2 mil around Sydney or 2 houses aro 7Jun 25, 2021 12:26 pm Noname That type of no effort return is literally the type of investment return that people dream of. Get a real Job on a building site mate and stop scamming battlers and punters of their life savings You remind me of the real estate agent scouring Social media for the 3D's ( Death, divorce and dementia) TRYING TO MAKE A KILLING Designer,Engineer (Civil,Const & Envir),Builder,Concrete & Masonry Contract.Struct Repairs Re: Buy one house for $1.2 mil around Sydney or 2 houses aro 8Jun 25, 2021 12:34 pm mate I'm not scamming anyone because I'm not selling anything. I don't even have a vested interest . I'm calling your comments out for being plain wrong. That's not "scamming". Your "advice" or outlook is just wrong (and borderline dangerous) which I've proven, with maths. What I've actually done is I've called you out on your inability to perform basic calculations with proof. Your response is to try to deflect by accusing me of scamming? Typical nonsense response from you. Ive added some more maths for you in the prior response, seeing as you like it so much. Mate how DID you get the basic maths wrong? answer me that Dark matter scientist, can breathe underwater, mind reader and can freeze matter just by willing it. Trust me, its in my sig. Re: Buy one house for $1.2 mil around Sydney or 2 houses aro 9Jun 25, 2021 2:15 pm Save the Bullsh!t Capital growth for the Foreigners with the bags full of money that aren't flying into and investing in Sydney. The Western locals aren't stupid enough to think that's sustainable.. stop sucking them into wheeling and dealing in the property market ? IMO, Sydney needs a price Correction Goodluck in convincing the banks Noname has a business plan based solely on Capital growth, lol locals paying Back $3 m2/week by the way of rent on min. wage...Goodluck when interest rates go up Designer,Engineer (Civil,Const & Envir),Builder,Concrete & Masonry Contract.Struct Repairs Re: Buy one house for $1.2 mil around Sydney or 2 houses aro 10Jun 25, 2021 2:34 pm StructuralBIMGuy Save the Bullsh!t Capital growth for the Foreigners with the bags full of money that aren't flying into and investing in Sydney. The Western locals aren't stupid enough to think that's sustainable.. stop sucking them into wheeling and dealing in the property market ? IMO, Sydney needs a price Correction Goodluck in convincing the banks Noname has a business plan based solely on Capital growth, lol locals paying Back $3 m2/week rent on min. wage...Goodluck when interest rates go up How did you get basic maths wrong oh great and knowledgeable "engineer"? Your comments about me make a lot of baseless assumptions. You don't know me or what I do. Though we know a lot about you. Did the big boys at vectorworks kick you out or did you leave after you realised you didn't have the requisite knowledge to have meaningful conversations with real engineers? Then you decided to come here, where you could feign knowledge to an audience that that in general wouldn't question you because they aren't engineers? Everytime you open your browser to mindlessly tap away what you think is a Gold retort, you just look more silly. Please continue. But PLEASEEE explain to me how an engineer such as yourself got multiplication and division so wrong? Got any apps for that? Dark matter scientist, can breathe underwater, mind reader and can freeze matter just by willing it. Trust me, its in my sig. Re: Buy one house for $1.2 mil around Sydney or 2 houses aro 11Jun 25, 2021 2:44 pm I'm flattered you take an interest in me, I couldn't give a cr@p with what you do. Designer,Engineer (Civil,Const & Envir),Builder,Concrete & Masonry Contract.Struct Repairs Re: Buy one house for $1.2 mil around Sydney or 2 houses aro 12Jun 25, 2021 3:41 pm as to the other rubbish statements you've made above, ill break them all down for you so others can understand why they are rubbish. 1. Save the Bullsh!t Capital growth for the Foreigners with the bags full of money that aren't flying into and investing in Sydney Your comments on cashed up foreigners with bags of cash is borderline racist. The stats actually show that the majority of residential purchases have been made by Australians. There is an argument that some of those Australians are acting as proxies for foreign investment, and I have certainly seen evidence of that. However its not the rule, but more of a semi regular exception. Capital growth has been a fact of property in every capital city in Australia since forever. To a lesser extent in regional areas. The only places where there has been any significant downturn is in areas where the local economy is reliant on mining or tourism (WA mining towns, Mackay in QLD and Airlie Beach in QLD to name just a few and to a lesser extent Perth, you know due to heavy mining influence in the state). Foreigners have been restricted from making purchases of established homes except to live in, then then I believe only one, thanks to some regulations that were passed to cool the markets. NZ did the same, but even more restrictive. Didn't really do much. What that should tell you, at least anecdotally is that foreigners alone are not the cause of the exponential ramp in prices alone. Now given we've had no meaningful immigration into the country for about 12 months, why are our price rising so fast? its certainly not the "cashed up foreigners". But when we open back up its going to go bonkers again thanks to immigration and demand factors. Capital gains are a fact of property investment regardless of where you buy (unless its in one of the aforementioned mining/tourism economies). Why wouldn't it be part o the conversation? I was merely proving to you that your statement of "15% capital growth over a decade" was wrong. Very very wrong. 2. The Western locals aren't stupid enough to think that's sustainable. The western locals are the ones driving the market mate. The ABS publishes the stats, CoreLogic parses sales data daily and its all available through various free and paid services. Been to an auction lately? The locals that are cashed up from owning properties they bought at discounted rates decades ago are using their cap gains to feed the crazy market machine today. Its a wonderful crazy thing. Sustainable? well, some don't think so. But we've been saying its not sustainable since the 90's, and yet somehow the market keeps delivering. The split of buyers however is very quickly moving to the the more privileged though, but that's a different conversation. Demand is still there. 3. stop sucking them into wheeling and dealing in the property market Please explain how I'm doing that? by contradicting your false claims with proof? lol. The locals don't need me to wheel and deal in property. Those in the know are already wheeling and dealing, others are influenced by FOMO and the media. Calling you out on your BS doesn't mean I'm "sucking in" anyone to do anything. Get over yourself. 4. IMO, Sydney needs a price Correction Good on you for parroting the most stated comment in the media for the last decade and most shared opinion of any person who doesn't own property in Sydney already. At this point, the only meaningful correction will come if the RBA becomes responsible for housing prices as well as monetary policy. There are whispers but don't expect this happening anytime soon. There will be a riot before that happens. Expect further macro prudential regulation activity from APRA, such as those that applied a few years ago which slowed investment in property by instilling caps of new investment loans. It slowed the velocity of investment properties being bought, but it didnt do much to the prices. That was wound back a while ago now. 5. Goodluck in convincing the banks Noname has a business plan based solely on Capital growth, lol locals paying Back $3 m2/week by the way of rent on min. wage...Goodluck when interest rates go up. Aaaaaaand here is your dumbest comment to date. You're assuming everyone is using loans to buy investments. You're also assuming you know anything about banking and lending. Banks will lend to you if you can afford to pay the loan REGARDLESS of what the rental yield is. The rental yield offsets the amount you have to pay from your own pocket for that property. As long as your position is positive, the bank will lend you whatever you want. You could leave the property vacant for all they care as long as your financials stack up to show you can pay the loan and have enough cash to live and pay your expenses. There's also tax benefits to be had for some people with negative gearing, which in some circumstances actually increase your borrowing capacity (nice little perverse loophole there). Right now, no one is buying +1m properties in Sydney banking on yield. They're ALL banking on cap gains. Banks don't care as long as you can pay the loans. As to interest rates going up, banks and other lenders always asses at a stressed rate (usually around 2% above their rate they're offering you) so that they can be certain you have the capacity to mitigate against several rises. Some lenders today actually asses at a stressed rate of 7% because the clients they take on pose a greater risk (self employed, student, single parent with 5 kids, perm casual staff etc.) 6. I'm flattered you take an interest in me, I couldn't give a cr@p with what you do. aww come on, you've made several assumptions and assertions about what I'm doing enough to suggest that at least you think you know. That's gotta count. If you don't give a cr@p, why are you trying to front on me about stuff you've already proven to know nothing about? Is is an ego thing? Aren't engineers the top 20 most trusted professions? Let me ask you, would you trust an engineer that stuffs up basic maths in the same post they tell someone to "do their maths" and cant even provide a simple explanation of why they made such a basic mistake? I mean I've tried to force compute the error you made and I cant even come close. SO my only assumption is you pulled a number out of thin air and tried to give it some authority. Anything else you know nothing about you want to pipe up about? Dark matter scientist, can breathe underwater, mind reader and can freeze matter just by willing it. Trust me, its in my sig. Re: Buy one house for $1.2 mil around Sydney or 2 houses aro 13Jun 25, 2021 7:04 pm Get off your soapbox you are talking dribble Designer,Engineer (Civil,Const & Envir),Builder,Concrete & Masonry Contract.Struct Repairs Re: Buy one house for $1.2 mil around Sydney or 2 houses aro 14Jun 25, 2021 7:10 pm StructuralBIMGuy Get off your soapbox you are talking dribble How'd you get basic maths wrong mate? Dark matter scientist, can breathe underwater, mind reader and can freeze matter just by willing it. Trust me, its in my sig. Thanks again Simeon for being so elaborate. Appreciate it. Its gives us a very idea. 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