tictac

An ex-colleague of mine from the UK contacted me yesterday to let me know that he'd had a windfall of around ₤150k (GB pounds!) and was probably going to invest in property in the UK seeing as house prices are rock-bottom.

Jokingly, I suggested he'd be better off investing in somewhere like Brisbane due to the likely future demand for housing etc etc

After thinking about it for a moment, I began to wonder whether Brisbane is now actually in decline due to interest rates, slowing economy etc

No so long ago it seemed like a good place to invest in, but now I'm not sure.

Would somebody in the UK with cash to splash get a greater return by investing in Brisbane property or UK property?

According to domain.com.au, long-term growth for my area is 11.3%. Surely this is better than what could be achieved in the UK?

I'd imagine rental income from this sort of investment in the UK would be around the ₤700 (GBP) per month mark, similar to Brisbane I expect.

Where would you invest your money if you had the choice?

steve`o

tugen near coolangatta
now the motorways finished i expect property prices to rise quicker than any other local area and a damn site better than any area of manchester that i can think of ??


mmm now where did i leave that large bundle of used notes

tictac

This guy's as tight as a duck's arse. I'm sure he squeaks when he walks

I suppose what I'm asking is whether it'd be better to invest in the UK or Brisbane and whether there's anything to stop him doing this?

NKSK version 2

Somebody posted something interesting on this site a few weeks ago.

You rarely, if ever ,hear anything negative about future property prices from people who own property in any area that you're talking about.

JR230898

Darwin, Townsville, and any other place in Australia where there are looming resource prospects.

Offshore, Beira, in Mozambique. Riversdale Mining Limited (ASX listed) and CVRD (Brazilian) are moving toward the third largest known reserve of coking coal. All of it will be exported out to Brazil and India (Tata Steel have partnered with Riversdale) via the port at Beira. In excess of 25 yrs worth of exporting.

asprilla

shares ! property is a very average investment in comparison. Shares are much better.

asprilla

seriously though, I'd opt for the UK if I was living there (and intended to remain there). Otherwise he would incur costs exchanging his money to AUD, then he would be exposed to the currency risk, then he'd have more costs changing back to GBP when he's all done with the investment.

Amazulu

I think most of Australia is experiencing a property slowdown. How severe/long this will be is yet to be seen. There are plenty of 'experts' - both in the media and on here - who will tell you otherwise, but we really do not know yet.

Property, like most other investments, should be seen as a long term proposition.

calNgary

This is what a friend told me hes in the property game, but dose some time tell stories. Logan & other shires in the south east growth corridor are fast tracking large amounts of land for development, he was saying there are acerage properties that will be sub dividable when fast tracked then you would expect to double your money, if i hade $$ i would look into it GARY

E3only

Careful around property....brisbane may be ok...but lots predicting stagnant to declining prices ?

Beppe

If you accept that there is a bubble, then it is too late to invest.

Look for the emergence of the next bubble in a different asset class or where a bubble has just popped and undershot the long term trend.

Centurion

Spot on. Over a 7 year cycle the relevance of most of the pro's and con's in this thread for choosing one or the other would have been lost imo.

louie

Surely he can't buy property over here (other than new build) if he's not got PR anyway? (FIRB rules)

Rents are much lower per dollar/pound invested in Oz as the ability to offset losses against earned income (which you cannot do in the UK) skews the market.

And I would say the dollar is too strong for Oz property to be cheap for an investor with sterling at the moment, regardless of whether Oz property is going up or down in the short term.

I'd only do it (as we have) if you are buying your future home and have strong reasons for buying a particular property.