re: property to rise
both grant and forrest are spot on. grant likes a return that is line with values, so he wants $250 wk rent for a $250,000 house. I posted some time ago that I like to see rents at the cost of money, so I like a 6.5% annual return, when loans are 6.5% - almost the same thing. This is a very sound thoery, and paying off the mortgage is another way to wealth besides capital gain.
forrest metions demand is high in ipswich, in fact it is still strong all over se qld, including bris and gold coast. Jan figures released last week, show a suprising growth in new homes for qld, as southern states go down. Recent news articles hilite strong commercial investment in manufacturing, public infrastructure and job growth. Qld population is back on the rise as southerners move up here again.
You cant just say property will fall X% or rise Y%. Each region is a market unto itself, and you have to know whats going on in the area. Things like $ spent on job creation and population growth have a lasting effect. Im not saying its gonna boom, in fact I agree 94-97 was the best time to buy, but there are still good opportunities for long term views with steady returns.
