Investing in Brisbane

[phm]

Hi there.

I'm considering investing in a house in Brisbane. I don't live anywhere near there but am wondering if you can buy a house that doesn't need renovating, for about $140 000.

I have been researching and looking at buying in another city, so know how much time is involved in "the hunt". Living so far away, I wonder if others who have invested in the city could give me a few pointers on areas that may be suitable for me to start looking.

My eyes start to glaze over when I look at a map of the city and don't even know where to start looking. Any help would be greatly appreciated.

[Donna]

There is absolutey heaps of areas. Try all the outer suburbs on the south side. But then again Price of House is not the only consideration. I take it you don't come from these necks of the woods or else you would know.

Cheers Donna ;)

[Jamie]

Hi Donna, Gunna,

Donna, if you reread the post, Gunna admits that he/she is "living so far away". This explains the lack of local knowledge. When you say "or else you would know", does this mean you have examples of valid I.P.s available for under $140k? Can you please elaborate? Any examples/areas/suburbs...

Back to the question...

Hi Gunna . At 140k, prepare yourself for no opportunities "in the city". Brisbane has undergone some serious movement in the past 12-18 months, and at that price you will have trouble finding anything within 10-15 kms of the "city".

Traditional "sleepers" (pun intended) such as Hamilton, Hendra, even Albion (on the North side) have exploded. Windsor, Wilton and Clayfield have medians (for free standing houses) in the 200s, and these suburbs are 4-6km from the city. Even outlying suburbs such as Gordon Park, Stafford and Chermside are on the move, and each of these is around 7-10 kms from the city. Other factors such as the Urban Renewal Project are also pushing Inner City prices thru the roof.

On the South side Bulimba, Hawthorne, Morningside and Norman Park still outperform the market (quite substantially), but median prices are well outside your parameters. My advice would be to spend COPIOUS amounts of time researching the areas you are interested in, and not limit yourself to a rigid purchase price/yield etc. Remember, last years performer has no guarantee of being this years best performer. Factor in every variable when assessing the suitabiliuty of an investment.

IMHO, if you look at a map of the city and "your eyes start to glaze over" because you dont recognise any suburbs, I believe that you should spend A LOT MORE TIME researching before you invest.

Best wishes,

Jamie.

:p

[see_change]

Hi Gunna

We invested in Brisbane earlier this year after spending several months looking at places on the web and talking to lots of people who knew brisbane ( mainly in the chat room ).

We were interested in higher yields and ended looking at the cheaper end of the market.

The cheaper areas in Brisbane included Logan ( and surrounding areas) , Caboulture and Ipswich. Strathpine to the north is an area also in the lower range, though more expensive than the previous mentioned areas.

Redcliffe is an area that used to be cheap , but because of its proximity to the water has taken off in the last two years. Driving around some of it it reminded me of places like Deewhy and narabeen in sydney twenty years ago.

We went up to brisbane and spent a long weekend looking around before we decided on logan. Logan is an area that has a reputation and was subject to some debate a few months ago on the forum. Prices were around 70 in the middle of the year but for freestanding houses start around 95 now.

If I was looking for somewhere around 140 K I'd start looking in the areas just north of logan , around strathpine and redcliffe. I Havn't been looking in these areas recently , so prices might have already moved out of that range , but that's where I'd start.

see change

[ocean view]

Gunna

Do your own home work it is not that hard!
THE BEST POST CODE IS ANSWERED BELOW But you will need to do some reaserch!!! Like I did

Does your post code rate in the top 10 places to retire to?
Is it less than 60 mins drive from the cbd brisbane.?
Does it have a BEACH! (Not mangrove)?
Does it have a capped population?
Is it forecasted for 20% growth rate for the next 5 yrs?

The above place does exist !!!

It is fun researching. If you still can not find this place after some work!!!! (at least) you are welcome to email me

Good Luck with your investing

cheers Bribi

[brains]

PHM,

Try the Caboolture/Morayfield/Burpengary area, you should still be able to get properties under $140k (bottom of market now)
and maybe 7%-8% gross rental return if you look hard.

Done waste time tho, its really moving along up there.

http://www.realestate.com.au/cgi-bin/rsearch?cu=&a=s&s=qld&ag=&t=res&snf=rbs&pr=&tb=moray&u=MORAYFIELD&cat=House&is=1&p=10&o=p


or www.marsellospike.com.au




**As always, do your own research first (and lots of it)**

Quick question, im relatively new to IPs and i was wondering why the secrecy sorrounding the location of respective forumites IPs?

If people disclose their IP locations on this forum wouldnt it be generating additional demand ( even by a small amount, word of mouth is a wonderful thing) and therefore benefit from it. Im open to correction.

Thanks

disclosore: I own property in the Caboolture/Morayfield/Burpengary area and the capital growth has been nothing short of amazing (combined with 9% rent return)

[Bill.L]

Hi Brains
The secrecy of the forumites IP locations might be due to people wishing to buy more in the area and don't want a whole lot of extra competition in the marketplace.
phm
We also were looking for IP's in Brisbane using the same criteria as you! However after much study and two trips there, we bought for slightly more. Many of the properties advertised on realestate.com.au were already sold, especially the better priced ones. Because this was our first interstate purchase we were after low maintenance and decided on brick and tile in the outer suburbs. We bought in Tanah Merah, but were looking in Loganholme,Crestmead,Marsden and even as far as Beenleigh and surrounds. There are many rental properties in these areas and that may become a concern in the future. At present there is a good yield, but future cap growth is anyones guess.

bye

[brains]

I also looked in the Tanah Merah, Beenleigh area but the real estate sales lady declined my offer of dinner so i looked elsewhere


By the way, coming from a business background, a little competition doesnt worry me and im happy to share my "finds",
even without an ulterior motive....hehe

;)

[XBenX]

some of these posts are quite amusing :D

bribie - would the location your talking about happen to be bribie island ???

you wouldnt have any motives for pushing this area would you ?

[ocean view]

This response is for BEN.

Maybe OR Maybe not regarding property on bribie. if you decided to buy a place at Bribie island I sure won't break up in a song & dance either . I simply gave a response to Gunna relating to her question. I gave a personal opinion to what was asked.

But as per the rule, my opinion is only as good as the next.
But that's life.

As a matter of fact I would prefer people to stay away right now to stop the prices rising so quick as I have not yet finished purchasing.

Gunna ,,,,Hope the above comments have helped'

Cheers Bribi

[Jacque]

Ah sunny old Brissy....... I love it:cool:

If I had a limit of $140K I would be trying to aim for suburbs as close to the city as this will afford, with good infrastructure and consistent past growth. Brisbane growth rates haven't been as high as Sydney, however, so don't even start to compare.

I invested in Balmoral (Bulimba postcode) late last year and haven't regretted it. Already there are few houses in the price range I purchased for ($255K) and I will be looking forward to my revaluation in 2003.

Logan is popular with wrappers and those seeking a higher yield. However, my concerns with this area (I did live in Brisbane and know the area quite well) is it's reputation. It will always put a dampener on growth and the tenants may not be the cream of the crop. Depends on how good a PM you have.......

Parts of Brisbane have suffered from such flat periods of growth that you would have to keep property for well over 10 yrs to realise any type of gain. Just do your homework and make sure you are well researched before you jump right in.
Happy hunting!

[see_change]

JP

You dont consider increases of 20k in three months ( and still moving ) after purchase a reasonable gain ? ( on purchase price around 70 K ).
Multiply that by 7 and I'm happy , along with gross returns of around 11% ?

I call it the logan effect. Mention Logan to anyone who has lived in brisbane and they go EWEEEEKKKKKKKK !!!!

Having worked the last 14 years in Mt Druitt in syd I thought Logan was actually quite nice in comparison.

See change

[Waverlybay]

Hi

Wrappers still in logan? I would say they are fast disappearing.

If the basic freestanding is now commanding min 95k plus (having risen 20-30 k in the last 3-6 months)... then how attractive are "the numbers".... for a wrapper? Wrapping is tough in this market where so called cheapies have gone through the roof.

Gone are the days when you could buy for 50k in logan and onsell for 70k and collect a deposit (and FHBG) and pretty much have no money in the deal with ROIs approaching infinity !

Across australia, wrappers still exist - and that game will continue - but I reckon the ones that will survive AND succeed will be the ones that have first mover advantage, size, network, financial backing and are buying and selling in price ranges where competition is minimal.

Another point - Logan a reputation risk for buy and holders? yep - for the time being. But so was balmain in Syd not too long ago. Dee Why and Redfern and most of the inner west of sydney... have also moved on ..with reputation risk mimimal. I am sure the same trend is happening/happened in other states (look at the inner city suburbs of melb). I agree with SC - you could do far worse than live in a suburb which is 15 mins by drive to brisbane cbd, 40 mins to Gold Coast etc etc

cheers

Waverly

[Jerry Maguire]

Hi phm,

Well Done see change, Jamie & Jacque for all the info you guys & gals provided.

phm sounds like you want a place about 140K in tiptop condition
i've got news for you
LOOK AND YOU SHALL FIND

if you look at it from an investor point of view which a lot of them already given you a lot of tips
why don't you buy something at about 100K and spend 40K to do it up that way you know that your tenant will have all the new bathroom, kitchen etc etc
they will LOVE IT and you get a better rent roll as well

if you just spend 140K with no extras you might need to do a reno in a few mths time...
why don't you do it right the first time so you be trouble free for yrs to come than to worry about it...

do your own due diligence if you say you haven't got the time pay someone like an expert who has got results and references to check with to do it for you.
if not don't get into real estate investing if you haven't got TIME to do due diligence or pay someone to do it
cos the last thing that we want is someone in this forum who says that they got RIP OFF in investing in real estate by not doing their due diligence

quote:
--------------------------------------------------------------------------------
Originally posted by
XBenX
Regular Poster

Registered: Nov 2002
Location: Sydney, NSW
Posts: 48
(post #9)

bribie - would the location your talking about happen to be bribie island ???

you wouldnt have any motives for pushing this area would you ?

Ben
--------------------------------------------------------------------------------


Ben if my name happens to be Hamilton Island would you start to say to me that i'm pushing Hamilton Island
i'm not trying to have a go at you Ben
just that don't have a go at other people when they have different names than others

i just came back from Fiji and i was thinking of changing my name to Bula so in that case Ben you would say that i'm trying to sell or push Fiji Island as investment!!!

i'm not trying to be rude here or anything the reason why this forum is setup is for everyone to exchange information and learn a thing or two about investing in property

i'm sure everyone just like myself have got opinion
and i remember a seminar presenter once say
" Opinion is just like an ******** everyone got one "
and i totally agree and it is human nature

Take Care Everyone

Regards
Jerry

[Sunstone]

Dear guys,

I agree areas can have bad reputations. The fact is to have a look at who is affected by the bad reputations.

Practical Example.

Brisbane has a rapidly growing population. It increases by 60,000/year with 60% of this increase coming from migration.

These "migrants" are looking for accommodation looking at basic things such as cost, proximity to employment, transportation and other basic services (schools, shopping centres etc).

They are not necessarily aware of reputations and so can be instrumental in changing the flavour and making a "bad reputation" area popular.

Funny thing is perceptions. I had a fellow property investor try and tell me that "Mt Gravatt" is in the sticks. Time for him to catchup on how cities change. Things do change and if the basic fundamentals makes sense (that fit your individual strategy) then I believe that bad reputations can be less important.

By the way logan does have respectable yields. I spent some time driving through Woodridge. Incredible the amount of unit and townhouse blocks that have been built there for a "basic" suburb.

A worthwhile (although now 12 months old) is the free Matusik snapshot.

http://www.matusik.com.au/internal/snap01_large.jpg
http://www.matusik.com.au/internal/snap02_large.jpg

Cheers,

Sunstone.

[XBenX]

Off topic but still relevant ?

I usually use ABS for IP data (mainly because Uni's have access for free) what sources do you get your migration data from Sunstone ?

[Jacque]

SC,
I admit that your gains have been terrific recently but that has not always been so. :) I was merely pointing out that there are areas within Brissy that will always be seen as less desirable by both owners and renters. Brisbane has been experiencing solid growth in the last two years in most suburbs, Logan area included. This is not to say it won't continue, but history tells us that most of Brissy is prone to very flat periods. Indeed, some areas decrease in value. It is those areas that I wish to avoid in the first place. Whilst my yields may not be as high initially I can see that my cg will be better and that the land value being closer to the city will assist this.
I guess it also depends on your strategy- for positive cashflow Logan sounds ideal. If it's costing you nothing to have these houses (or actually putting money in your pocket!) then is capital growth as important?
Each of us like to invest for differing reasons. For the Brisbane houses I'm interested in I will continue to buy in blue chip suburbs, ones that have shown consistent substantial growth. Though my portfolio may not be as large, I would rather have one house within 5km of the CBD than two or three more than 20km away. Each to their own I suppose :)...........................

WB,
When was the last time you drove from Logan Central to CBD? Let me tell you it takes far more than 15 mins! I lived in Rochedale Sth, which is 5 suburbs above and it took me at least 20mins (and that was with no traffic). Still, I see your point about being halfway between the coast and Brisbane as relevant. I know that we used to enjoy making the trip to Surfers, as it wasn't strenuous at all. Just watch the Sunday arvo traffic coming home:)

[Sunstone]

Dear XBenX,

For immigration data all data originates from ABS. In the post I used the data that was in the December 2001 Matusik report to illustrate the point.

Free information that you can pass on to other forum members can always be good.

Jacque,

Yes 15 minutes from Logan to the city might be a bit ambitious. I have noticed however that the Gateway Arterial road has certainly made a difference in travel time from Brisbane airport to Springwood (Bypassing the city).

The capital growth versus yield debate will continue to go on. Finding exceptional yield in an area of good capital growth. A challenge, but nonetheless possible.

Cheers,

Sunstone.

[natmarie73]

Nothing wrong with Logan if you chose the right area - Springwood, Daisy Hill, Rochedale are good areas - won't find a decent house there for $140000 though, even some houses in Slacks Creek are listed at $130000 to $140000. Woodridge, Marsden etc you can find something decent for that price but be quick once the busway is open in May 2003 prices are expected to jump quite quickly.

Also, goodna, and redbank plains still have good cheap properties but of course it is a risky area in regards to tenants - take out good insurance. Ipswich is starting to move but there are a lot of older QLDer style houses which may need renovating for the price you are after.

I have gone for the SE corridor from Logan to Beenleigh as the rent returns are better than elsewhere I looked at and the cap growth has so far been satisfying. It's the fastest growing area in QLD and Logan council have really made an attempt to clean up the bad rep they have through beautification etc.

[phm]

Hi there.

I would sincerely like to thank all of the great people who have offered me advice. It is truly appreciated.

Like most people, I certainly do alot of research or due diligence when searching. I have just spent three months, many, many hours, plenty of money, looked at over 50 houses, spoken to numerous agents, council people, 'locals' and anyone else that I needed to, to find out about an area, so, yes, I am happy to do my due diligence.

I have just purchased the Money Magazine, Best of the best 2003 and it has a section on the best growth suburbs (10yrs) for each state. Great reading!!

Thank you all, for keeping me on the right track. And don't ever underestimate 'local knowledge.'

[Jas]

Originally posted by phm
I have just purchased the Money Magazine, Best of the best 2003 and it has a section on the best growth suburbs (10yrs) for each state. Great reading!!

Residex has this information as well.

Jas

[Kevin Hockey]

Just thought I would throw in another couple of suburbs for you. I am a northside agent, however it is nigh impossible to buy in our area now unless you are after a unit.

I would suggest considering Deagon, Brighton, Bracken Ridge, Bald Hills and as others have suggested Strathpine area. These suburbs are closer in to the city, have good facilities and could provide an excellent opportunity, if you can find one.

Good Luck

www.nundahrealestate.com.au (http://nundahrealestate.com.au)

[AndrewG]

[QUOTE]Originally posted by phm
[B]Hi there.

I have just purchased the Money Magazine, Best of the best 2003 and it has a section on the best growth suburbs (10yrs) for each state. Great reading!!

As an Adelaideian what did they say for Adelaide ?????????

Ta,
Andrew.

[Fester]

What does anyone from Brissy (or anywhere for that matter) think of Mt Gravatt East?? Is it a suburb worth putting a few idle thousands into!!

The Fester

[XBenX]

Fester, check a search on Logan

Mt Gravatt iis within the Logan shire and these posts could be applied to Mt Gravatt.

I dont know the Brissy market at all (from an investing POV) but I do know there has been a $hitload of new development in Mt Gravatt (manily dense areas of new project homes)

The motorway into the city also provides convient axs to the city

[natmarie73]

Actually, I'm pretty sure Mt Gravatt is in Brisbane. Logan City starts at Rochedale / Rochedale Sth. Eight Mile Plains and north is Brisbane.

[XBenX]

Isnt Mt Gravatt just north of woodridge/slacks crk and logan ?

/me goes to check

Edit : no scale on the map I looked at but it seems Mt Gravatt is in the southern edge of Brissy and not part of Logan as I first thought - see told you I was no expert :)

Brissy ppl - what area does Mt Gravatt get catagorised into ?

[natmarie73]

No, that is Underwood/Rochedale/Eight Mile Plains etc. Mt Gravatt is pretty much half way between Brisbane City and Logan.:)

[XBenX]

Thx nat :)

[natmarie73]

No Worries. Maps are pretty misleading I find (being a female and all). To put it in perspective - Mt Gravatt is classed as Brisbane South and is about 15 mins drive from Brisbane City on the freeway (peak hour). Springwood (Logan) is about 30 mins peak hour.

I don't know much about Mt Gravatt East from an investing POV though as I am only new and concentrating on Logan which is all I can afford at the moment :(

[XBenX]

Cool - I bothered to check out a map after all that (as above) and it put things in perspective :)

[phm]

Hi Andrew G

Regarding your question about Adelaide. I'll try to scan the page from the Money Magazine for you.

Thanks everyone else for your help.

[bbruham]

G'day all,

Ask Asy, after all Asy is in the real estate game.South of Brisbane
location as well.
Her website is there at the end of her postings.
I looked at her listings myself the other day to see what's going.

Bruce G.

[craigc]

just spend ages typing a reply and lost it due to connection timeout.... been away for a couple of days and won't be back for a couple more.
Suffice to say I wish I had been around since the thread inception to question all the recent Brissy misinformation.
If I get time I will revisit and recomment, but its late and i'm not doing it now.
..... sigh....... it was an involved post...... :-(
craig

[Lily House]

Please do Craig - I am interested to hear what you have to say.
Thanks
Lily