The real estate markets in Melbourne and Sydney have seen a great difference and growth during the past 18 months, as 2015 may be the year to shine.
So as 2014 comes to an end it is a good time to ask the question “Which Capital City you should invest in 2015″
Ben Kingley’s CEO of Empower Wealth suggests, “I suspect we are going to see Queensland having a fairly good time of it in 2015 and I think Melbourne and Sydney starting to cool off a bit from the heights they were at” and “So in the 2001-2003 years, we saw some excellent growth in Melbourne and Sydney and then Brisbane sort of followed in 2003-2004. I suspect we will see a bit of that happening as well.”
Kingsley said that if he is a buyer of properties in Melbourne and Sydney areas, he would be very careful with what he’s looking for and probably wouldn’t be purchasing properties higher that the top 25% median home value.
“If you are buying from an investment point of view and let’s say the median value of an area is $500,000 and you have gone and bought a $750,000 investment property, you might see some correction or softening of value and certainly some lower returns over a period of time, before the next uplift comes through,” said Kingsley
“My advice for anyone who is looking to invest in property is to try and keep around that median price range rather than expose themselves to a bit of a correction once the market softens and interest rates go higher.”
At Success In Property we agree, we see the SE Queensland market (and Brisbane Property Investment) as primed for growth in 2015. With the differential between the southern capitals opening a wide gap in median prices, the opportunity is there to pick up some solid gains in the next few years.
Do you agree? Let us know.