澳洲Australia property The good old city v's regional d


在澳大利亚 I need some advice regarding a property purchase. Property - semi-detached house Bedrooms - 2 Condition - average needs internal reno to modernise Street - one of the best in suburb Location - excellent Close to schools - yes Transport - 50m The pool at of an IP needs to be resurfaced (or so the pool doctor says), the cost was estimated to be $10K ($10,000), after recoverying from my impresssion of a cat coughing up a fur ball, it just seems far too much. Its just a standard poo


I am just wondering for those of you who bought in the city can tell me how and why you decided it was a good choice for you as opposed to buying regional with higher yields. I know CG is possible in both scenario’s.

We are about to buy in the city because it is easier for us to live in the property, do reno's and rent it out when the time comes and the bonus is we get the first home buyers grant. Although regional area's with higher yields and lower property prices seem to be a very good idea also but then we have to pay stamp duty and don't get the first home buyers grant.

Anyway, need some fresh perpectives as to why you choose city or regional.  

评论
nat7878 said: ↑
I am just wondering for those of you who bought in the city can tell me how and why you decided it was a good choice for you as opposed to buying regional with higher yields. I know CG is possible in both scenario’s.

We are about to buy in the city because it is easier for us to live in the property, do reno's and rent it out when the time comes and the bonus is we get the first home buyers grant. Although regional area's with higher yields and lower property prices seem to be a very good idea also but then we have to pay stamp duty and don't get the first home buyers grant.

Anyway, need some fresh perpectives as to why you choose city or regional.Click to expand...
why city? for a lot of people, the answer is simple: jobs, jobs, jobs.

More convenient to get to work ( less transport time as well), the variety of choosing what you want to do, a greater range of salaries/often career options, etc...For a lot of people, their careers are right in the top of their priorities list.

Examples worldwide: look at NYC, London, beijing/shanghai, Hong Kong, Dubai, Sydney ( and increasingly melbourne) etc...These cities with well deversified jobs and economic engines tend to be able to survive any market conditions.

oh, and another thing...jobs=money=power and influence = (arguably) happiness=ego trip. I have heard that being in the city makes people feel alive. Thats where it all happens, being in the mix of things. A lot want to be where the important stuff happens ( stuff that can change markets for instance).  

评论
And the jobs are coming from many different industries with supporting infrastructure on a much grander scale.

There is a higher probability of ongoing capital growth (long term) because of these factors.

However I have no doubt that a well chosen regional, or just a smaller city could not also perform in the long term.

There is a lot of ground between Sydney and a small single industry mining town.  

评论
The prob with a city property is the entry level is usually high, and the yields are historically [email protected]

Fine of you are an investor of several years' time in the game. Not much good for Mr.Penguin who is after his first IP and is earning $65k per year.

The pundits all spruik that the cap growth is "blue ribbon" and so on with inner-city.

This maybe so. But what if it isn't, right when you buy. This happens regularly.

In my case; this meant no inner-city purchases ever, due to the need for cashflow to hold them.

I can tell you all that we have seen some of our own properties and my SIL's - all regional - double (and more) in value since we have owned them (2001 onwards), and the yields have been not less than 6% at purchase.

I wonder if that can be/could have been done with a 2 bed apartment in Docklands or St.Kilda over the same timeframe.

We also bought a PPoR in Red HIll in 1998 for $480k that sold for $750k in 2000. Hardly inner-city; more like rural.  

评论
eeew said: ↑
oh, and another thing...jobs=money=power and influence = (arguably) happiness=ego trip. I have heard that being in the city makes people feel alive. Thats where it all happens, being in the mix of things. A lot want to be where the important stuff happens ( stuff that can change markets for instance).Click to expand...
Uh huh....

[​IMG]


[​IMG]

[​IMG]


[​IMG]  

评论
ahah Meandering - i love your post....
A picture tells a thousands words!

nat7878 if this is your 1st property and your eligible for the FHOG..then buy in the city and live in there for the 6 month requirement.

Region properties will ALWAYS be around and the rental yield will always be there, the price would most likly be the same - increase by inflation only....it's one of the negative of regional purchase as well...

You only have one shot at buying a place with no stamp duty ( $10-14k savings) + $7k bonus!! what more can you ask for....your already 20k ahead by buying a city place compared to regional...


Unless you live in the regional property :)

Regards
Michael;  

评论
eeew said: ↑
oh, and another thing...jobs=money=power and influence = (arguably) happiness=ego trip. I have heard that being in the city makes people feel alive. Thats where it all happens, being in the mix of things. A lot want to be where the important stuff happens ( stuff that can change markets for instance).Click to expand...
Depends on where you are in life I suppose.

An 18 year old nightclubbing fashion victim who never does any outside activities would find Dromana very boring.

Someone middle aged, who hates shopping, traffic, crowds, who loves outdoors activities, beaches and sports, and their idea of a big night out is a barbie with friends in the back yard or dinner at a local restaurant thinks it's heaven. ;)  

评论
eeew said: ↑
why city? for a lot of people, the answer is simple: jobs, jobs, jobs.Click to expand...
Yes, there must be twenty thousand times the jobs in the city than a small rural town. But if there is twenty thousand times the people then there is still the same amount of jobs per person.

There is no shortage of work anywhere for people who want to work.

eeew said: ↑
More convenient to get to work ( less transport time as well), ).Click to expand...
That comment is crazy. It is the one big reason that people leave the city and move rural. 5 minutes can get you anywhere in town. Even people on small farms and hobby farms and acreage out of town can be where they want to be in 10 minutes.


See ya's.  

评论
Starting on a limited budget we could not afford to buy in inner Sydney so purchased in Tassie and Campbelltown. We have continued to purchase country and Sydney West/South West, mix of positive and slightly negative CF properties.

Downsides; Generally less capital growth than city. More properties mean more maintenance costs. Quality of tenants may be poor. More properties = more tenants = more hassles (especially if poor quality tenants).

Upside; Lower cost to enter the market. Generally higher yields. Ability to increase portfolio quicker. More properties reduce risk in that if one or two are vacant (or not paying rent) then it is only part of your cashflow gone, whereas if you only have two highly negatively geared properties and one is unavailable to rent then it's gonna hurt.

If you've got the money perhaps it would be worth considering both cashflow and high yield properties.

PS. I don't believe everyone wants to live in the city anymore than I believe everyone loves beer.

Regards

Andrew  

评论
I'd go a house in a good regional over city but some dive area 3 hours drive from the CBD anyday, but as BayView pointed out you'd get different tenants.

A good regional you'll get those retirees, families, core workers etc. A bad regional or city area you'll get unemployed or lower socioeconomic because it is cheap enough to live well on welfare. Good regionals tend to have prices and rents to match though, and you won't get the single mum with 5 kids and a string of live-ins because there'll be no centrelink office and they can't afford the rent anyway. Round where I live the riffraff all accumulates in the same places and the God-fearing oldies in pink Sunday suits all live in another place.

If you can afford inner city though, why not? But we're not all the same and we can't all afford the same things, which is what makes life interesting.

And I'm not kidding about the pink sunday suits. Its sort of cute driving around here sometimes seeing old couples who don't look a day over 80, her in a pastel skirt suit and hat with flowers, he in a nice grey suit and fedora, strolling from the church to the supermarket on a fine sunday afternoon ...  

评论
City attracts me because there are plenty of people and the population is increasing so there will be plenty of future demand from tenants and buyers.

Generally I'm not comfortable with buying in unfamiliar areas or country towns with 1 major employer or in areas I cannot drive to and this is a weakness I found hard to overcome.

Having said that, our -ve gearing & land tax bill are hurting us and we also want a lifestyle change so we've decided to restructure our portfolio and will soon look at all options including regional and interstate properties.  

评论
it really depends on the individual preference for risk, return if he or she were to invest to into inner city.

Inner city has high entry costs and make it quite difficult to access the market. however regional has lower entry costs making it easier for investors. I don't prefer regional as i believe the market is limited as it does not appeal to certain buyers and yields are more or less restricted to the demographics of the area.

But i could be wrong, I actually met someone this week (ex banker who used to work in merill lynch) who had a combination of both inner city and regional. I have been trying to learn from his experiences. In melbourne alone - 1 apartment in freshwater place, 1 apartment in eureka, 300 hectares of farm land in pakenham (in which he has full time manager running the place) and a holiday house in rye with a helipad. He lives in singapore and only comes here 3-4 times a year. i asked him why the house in rye - he said it's just lifestyle and not necessarily to make money. As for pakenham - it is a long term thing. Freshwater and eureka was to give cashflow but said it is easy to sell as he bought it off the plan many many years ago and made his CG.  

评论
topcropper said: ↑
That comment is crazy. It is the one big reason that people leave the city and move rural. 5 minutes can get you anywhere in town. Even people on small farms and hobby farms and acreage out of town can be where they want to be in 10 minutes.


See ya's.Click to expand...
If you're profession is an accountant, IT or some job that requires you to be in the CBD, you going to need to have to commute there from

Unless you're running a business, or like you said hobby farm, reality is people work for someone and most of these people who are in professional jobs are located in the CBD. the ASX is situated there in every major city and no bank is going to move its operations. 2ndly infrastructure for services, IT, financial systems etc are all built into the CBD for operations. all major blue chip companies from BHP, (rio tinto is in thomastown), government are all centralized. The country court, legal pretinct all CBD. I honestly hate jams but unfotunately that is the reality of the world.

If you live in the CDB in melbourne - a tram is going to be 5 minutes away as oppose to communiting 1-2 hours from a far away suburb.

Majority of people are people who work - and buying rural would only be in this instance - people who have jobs there, businesses that don't require working for someone, live there or someone who has family there.  

评论
BayView said: ↑
The prob with a city property is the entry level is usually high, and the yields are historically [email protected]

Fine of you are an investor of several years' time in the game. Not much good for Mr.Penguin who is after his first IP and is earning $65k per year.

The pundits all spruik that the cap growth is "blue ribbon" and so on with inner-city.

This maybe so. But what if it isn't, right when you buy. This happens regularly.

In my case; this meant no inner-city purchases ever, due to the need for cashflow to hold them.

I can tell you all that we have seen some of our own properties and my SIL's - all regional - double (and more) in value since we have owned them (2001 onwards), and the yields have been not less than 6% at purchase.

I wonder if that can be/could have been done with a 2 bed apartment in Docklands or St.Kilda over the same timeframe.

We also bought a PPoR in Red HIll in 1998 for $480k that sold for $750k in 2000. Hardly inner-city; more like rural.Click to expand...
i think you run a business which is why you can afford to buy rural or you work whereby initially you did not require any business with the CBD. unfortunately, i would love to live in a secluded area like yourself but bankers, lawyers, accountants, it professionals and other professionals do not have the luxury to do that as our professions majorty of the time require us to be in the CBD or somewhere around there.

Majority of people who bought in 2001 anywhere in victoria would have made a gain irrespective of the location. that includes both inner city and rural.

Inner city unit 300K in 2001 now sold 800K.

You're right docklands is crap - mark my word never buy there!  

评论
Melbournian said: ↑
If you're profession is an accountant, IT or some job that requires you to be in the CBD, you going to need to have to commute there from

.Click to expand...

What? So you don't think there are accountants, IT dudes, financial planners/bankers etc in rural towns? Some of these would be the wealthier types, so they are probably on acreage just out of town. Rural towns are usually the opposite of the city, the poor areas are usually close to the centre, and the wealthier on the outskirts, but what does it matter if it's so easy to get anywhere?

It's funny some of the big city views I read on here. Someone says just a while back about the risks of investing in a town where the only employer went bust. So everyone in a small rural town works for the one company? What about the teachers, policemen, bankers, nurses, retail workers, restaurant workers etc, etc. It's exactly the same as a city, Just a thousanth of the size, and then there are all the jobs related to servicing mining and agriculture.


See ya's.  

评论
topcropper said: ↑
What? So you don't think there are accountants, IT dudes, financial planners/bankers etc in rural towns? Some of these would be the wealthier types, so they are probably on acreage just out of town. Rural towns are usually the opposite of the city, the poor areas are usually close to the centre, and the wealthier on the outskirts, but what does it matter if it's so easy to get anywhere?

It's funny some of the big city views I read on here. Someone says just a while back about the risks of investing in a town where the only employer went bust. So everyone in a small rural town works for the one company? What about the teachers, policemen, bankers, nurses, retail workers, restaurant workers etc, etc. It's exactly the same as a city, Just a thousanth of the size, and then there are all the jobs related to servicing mining and agriculture.


See ya's.Click to expand...
why the animosity? - i said "majority" - of the jobs. So if i want to work for Price Waterhouse Coopers to have corporate and worldwide exposure - i should move to rye? or some rural town.... As i mentioned before - the person i met has a holiday house in rye and uses his helicopter to transit to the city. But in reality how many people are there like that? there are also better jobs in the CBD that would see much more progression in terms of salary and career growth. Can't think of investment bank centraly located rurally... we're not talking the local loan bank manager for bendigo bank. i'm talking goldman sachs etc.

Mining would be more applicable for WA - not victoria. And yes - that would be more applicable for one employer in mining town situation.

You are right in saying jobs exists but not at the magnitute of the city and you took my posts out of context. The fact remains that the better paying jobs are still in the CBD and why should i like 2 hours away as opposed to 15 min away. again this would be the perception of many others who work in the city and need accommodation and need a life rather than communting. rural is not bad - just it's not everyone's cup of tea.  

评论
Melbournian said: ↑
why the animosity? - .Click to expand...
No animosity. Where do you get that from? It's how I always post here. I'm just having a conversation, and it's exactly what I would say if we were chatting at a table having a beer.

I happen to agree with everything else you said. There is no doubt money and opportunities increase in the big smoke. It just baffles me when people say there is no jobs, and stuns me when someone suggests transport is better in a city than a rural town where everything is so close and easy to get to.


See ya's.  

评论
Melbournian said: ↑
The fact remains that the better paying jobs are still in the CBD and why should i like 2 hours away as opposed to 15 min away. again this would be the perception of many others who work in the city and need accommodation and need a life rather than communting. rural is not bad - just it's not everyone's cup of tea.Click to expand...
Wasn't this thread about investing in city vs rural, not living there?

Sure YOU don't want to live rural, but lots of people do, they work, they need somewhere to live. Their wage may not be high and their rent may not be high and neither is the price of the house they are renting, but the numbers might still add up for a good investment. In the early years you'd earn more off a $100k house in the country vs a $600k house in the city, just because one is positively geared and one is negatively geared, and some of us actually like to earn money from investments ...

That said, I haven't seen a $100k house anywhere near me for years now (town pop < 2000) and there's quite a few at that range where my parents live (pop 20,000) and I don't think you could convince me to move to the same town my parents live in, even if it is 100 times bigger and has more shops and stuff. The unemployment rate is way higher and it doesn't rain there :rolleyes:  

评论
RumpledElf said: ↑
Wasn't this thread about investing in city vs rural, not living there?

Sure YOU don't want to live rural, but lots of people do, they work, they need somewhere to live. Their wage may not be high and their rent may not be high and neither is the price of the house they are renting, but the numbers might still add up for a good investment. In the early years you'd earn more off a $100k house in the country vs a $600k house in the city, just because one is positively geared and one is negatively geared, and some of us actually like to earn money from investments ...

That said, I haven't seen a $100k house anywhere near me for years now (town pop < 2000) and there's quite a few at that range where my parents live (pop 20,000) and I don't think you could convince me to move to the same town my parents live in, even if it is 100 times bigger and has more shops and stuff. The unemployment rate is way higher and it doesn't rain there :rolleyes:Click to expand...
Yes - let the people who want to live rural do so. I am not advocating city is the best - but the advantages of having a city property is that you have a
larger target market in terms of rental and in terms of resale. As to negatively geared in the city - that is subjective - and would be dependant on how good the investor is. As to unemployment rates - what kind of jobs are there in your town of 2000? If it is mining that's a different story but if it is just any rural town - you tell me - if anyone is willing to shove salaries of 6 figures?  

评论
Melbournian said: ↑
. As to unemployment rates - what kind of jobs are there in your town of 2000? If it is mining that's a different story but if it is just any rural town - you tell me - if anyone is willing to shove salaries of 6 figures?Click to expand...

Unemployment rates are meaningless. Small rural towns are full of people who wont or can't work, who have moved there for the low rent and low house prices.

Jobs in a rural town would be similar to the city I'd think. Teachers, nurses, bank workers, tradies, builders, contractors, accountants, small business owners, retail workers, food handlers, etc, etc.

I suppose then the differences start. There aren't the massive ASX listed companies and their offices. There aren't the 200 k salaries.

Then there are all the extra jobs that are not in the city. Jobs serving rural industries. Then all the jobs serving mining industries.

Some people would be on 100k or more. The miners. Plenty of self employed tradies would be getting that. The 2 doctors must be on 500k or more I'd think and they deserve all they get and more. Plenty of farmers are very wealthy in my area, especially the last few years. But obviously the average wage is way lower than in the city.


See ya's.  

Property Investment

Australia property Selling Hints | Sydney

澳大利亚Hi folks I recall ready somewhere about what are some simple tricks for making your place more attractive during a home open. Im seriously thinking of selling my little pad and want to maximise my efforts. Any hints greatly appreciated. 评论 ...

Property Investment

Australia property Re-zoning | Sydney

澳大利亚What would the chances of a NSW Local Council allowing a community titled development (homes, community buildings, etc) on an area zoned Protected Agricultural land? Does anyone have experience in this area? Looking at the local council LEP, ...