Another Brisbane question

[my03]

Hey guys,

After reading and following this forum for the last few months I have come to the conclusion that it is probably much easier to find good deals with good chance of CG and CF+ properties in Brisbane.

My situation is I'm 29yo, I have low capital (About $60-70k) and I'm on about $95k salary.

I want to get my first investment property and I'm currently living in my parent's IP which I am paying off their mortgage for. So currently I do not have any debt under my own name.

My goal is to accumulate at least 1 property per year that has strong prospects for CG and is not going to cost me much to keep, so CF neutral or positive would be desirable.

My budget would be in the 4-500k mark. I would like to be as close to the CBD as possible, train station proximity is desirable and obviously I would like a good probability of some solid capital growth.

I was just wondering which suburbs you guys could recommend that would provide properties that meet my criteria?

I note many on here saying buy a decent size block, well what is a decent size block in these areas? 600m2? 700?

Also because I'm in Sydney I do not have local knowledge, I'm planning on engaging a buyers agent. I know there is another thread about BA in Brisbane, but can you guys tell me how their fees are charged? And will they be able to negotiated good deals (below market value etc) and will they be able to provide me advice on whether properties are a good investment or not?

Cheers guys any help would be greatly appreciated.

 

[Propertunity]

I was just wondering which suburbs you guys could recommend that would provide properties that meet my criteria?

It does not work that way here on the forum. If you want free advice, then you at least need to do some homework of your own, and then come back and say "I've shortlisted xxxxx suburb, which looks good for yyyyy reasons, what do you guys think?"

If you engage a BA, then that is the info they will be able to share with you.

....BA in Brisbane, but can you guys tell me how their fees are charged?

Some are 2.2% some are flat fees of $10-15K. You can see more here: http://rebaa.com.au/buyers-agent-fees/

And will they be able to negotiated good deals (below market value etc)

That's their job.

and will they be able to provide me advice on whether properties are a good investment or not?

That's their job.

 

[my03]

Thanks propertunity.

In the last few weeks I have been looking at Coorporoo, Norman park, and Camp Hill. Even from my limited research it appears the yields are already much better than Sydney (i.e - 5%+). Those suburbs are close the the CBD, many have train stations. And the available stock and general streetscape appears to be consistent with what I would consider as a "good" area of higher income earners etc.

Am I on the right track to concentrate in these areas? It seems like everyone on this form talks about Logan. Obviously the entry price is much lower compared to those suburbs I listed above. Is this the greater western Sydney equivalent of Brisbane?

Thanks

 

[Propertunity]

Thanks propertunity.

In the last few weeks I have been looking at Coorporoo, Norman park, and Camp Hill. Even from my limited research it appears the yields are already much better than Sydney (i.e - 5%+). Those suburbs are close the the CBD, many have train stations. And the available stock and general streetscape appears to be consistent with what I would consider as a "good" area of higher income earners etc.

Am I on the right track to concentrate in these areas?

Yes, and even Carindale if the mood takes you. Also closer-in suburbs - but they start to get more expensive (obviously).

It seems like everyone on this form talks about Logan. Obviously the entry price is much lower compared to those suburbs I listed above. Is this the greater western Sydney equivalent of Brisbane?

Yes, in a nut-shell......or the lower socio-economic parts of W Sydney to be more precise.

 

[zimby]

Curious as to why you would want to buy around the 500k level.
I'd rather 2 properties at 300, or 1 at 350/80 and save a bit more for another
Finding a cashflow positive property with good CG advertised is going to be tough.
Most of the CF positive properties come from adding value or price increases over time.
Not saying they aren't out there, but in a hot market they are rare to find.
Failed auctions,failed contracts these are your friends and will assist in the negotiation process.

 

[Jaguar Driver]

...
In the last few weeks I have been looking at Coorporoo, Norman park, and Camp Hill. Even from my limited research it appears the yields are already much better than Sydney (i.e - 5%+). Those suburbs are close the the CBD, many have train stations. And the available stock and general streetscape appears to be consistent with what I would consider as a "good" area of higher income earners etc.

Am I on the right track to concentrate in these areas?

Absolutely. I like those areas you mentioned. They should be ready for good growth ahead. They have all the basics of what one would look for in property investment or PPOR - Location, convenience, distance, facilities, schools etc.

It seems like everyone on this form talks about Logan. Obviously the entry price is much lower compared to those suburbs I listed above. Is this the greater western Sydney equivalent of Brisbane?

Thanks

Cant compare logan to the suburbs you listed above, very different suburbs and demographics.- all resulting in a substantial difference in price.

Probably logan will eventually be similar to greater western Sydney, but it obviously isn't there yet. The entire Brisbane population will need to increase significantly before that happens. It might take another 20 or more years for that to happen. Mind you, in 20 years, other areas like the ones you mentioned above will also do very very well.

 

[strongy1986]

Absolutely. I like those areas you mentioned. They should be ready for good growth ahead. They have all the basics of what one would look for in property investment or PPOR - Location, convenience, distance, facilities, schools etc.



Cant compare logan to the suburbs you listed above, very different suburbs and demographics.- all resulting in a substantial difference in price.

Probably logan will eventually be similar to greater western Sydney, but it obviously isn't there yet. The entire Brisbane population will need to increase significantly before that happens. It might take another 20 or more years for that to happen. Mind you, in 20 years, other areas like the ones you mentioned above will also do very very well.

Could not agree more

Logan is like the western suburbs in some ways but it won't see rapid price growth for a long time yet. The population just isn't there or the restricted land supply. Your coorparoos, Norman parks of Sydney a house on a 600sqm block would be worth 3 or 4 mill not 500 - 600k

 

[my03]

Thanks guys,

So I assume it's probably less risk if I stick to the more blue chip areas like Coorporoo, Norman park, and Camp Hill?

Zimby - is it still possible to get properties in the 300-350k mark in those suburbs or are you telling me to look elsewhere or buy another type of property in those suburbs? (i.e townhouses, semi's, units etc?)

Do you guys think investing in suburbs like Coorporoo, Norman park, and Camp Hill would be aligned with my goals of accumulating as many properties as possible over the next ten years (at least one a year) by using the equity extracted from the GC of the initial investments?

Seems like now is the time to accumulate in the Brisbane suburbs since most commentators think Sydney has peaked and Brisbane is on the upswing from the bottom. I'm obviously a newcomer but it seems like many boxes are ticked in those abovementioned suburbs - Employment (proximity to CBD), Transport (proximity to trains), and the areas are characterised by better socio economic conditions.

 

[Rolf Latham]

Do you guys think investing in suburbs like Coorporoo, Norman park, and Camp Hill would be aligned with my goals of accumulating as many properties as possible over the next ten years (at least one a year) by using the equity extracted from the GC of the initial investments?

aside from location issues, and the statement that suggests you are equity bound, have you done your goals analysis and structured your finance plan and path around those goals.

Wrong choice of lender or loan product early in the piece can really slow your accumulation phase.

ta
rolf

 

[my03]

Thanks for bringing that up Rolf. I did not think about the finance aspect of this at all.

Would you suggest sitting down with a broker and telling him the strategy/goals to accumulate regularly and use equity etc? Is a mortgage broker the person to speak to for this type of issue?

Maybe I should start a separate post in the finance forum.

Cheers

 

[Rolf Latham]

Would you suggest sitting down with a broker and telling him the strategy/goals to accumulate regularly and use equity etc? Is a mortgage broker the person to speak to for this type of issue?

In my view yes.

A direct lender, bank, online or otherwise, AT BEST can only help you with their view of their product offering, which may or may not work.

It would be fair to say, that over time, finance structure is as important as reasonable asset selection.

Some go so far as to have to have the view that property is merely a vehicle to secure the gearing in a risk tolerant way.

ta
rolf

 

[eeew]

Thanks guys,

So I assume it's probably less risk if I stick to the more blue chip areas like Coorporoo, Norman park, and Camp Hill?

yes.

...

Do you guys think investing in suburbs like Coorporoo, Norman park, and Camp Hill would be aligned with my goals of accumulating as many properties as possible over the next ten years (at least one a year) by using the equity extracted from the GC of the initial investments?

yes because these areas are on a growth path and they have solid tried and tested charactweristics that will lead to strong growth in good markets and minimise losses in down markets as compared with higher risk investments.

Seems like now is the time to accumulate in the Brisbane suburbs since most commentators think Sydney has peaked and Brisbane is on the upswing from the bottom. I'm obviously a newcomer but it seems like many boxes are ticked in those abovementioned suburbs - Employment (proximity to CBD), Transport (proximity to trains), and the areas are characterised by better socio economic conditions.

agreed, nothing wrong with Sydney- its great , but your budget isn't that high and wont let you get much at all in Sydney.

 

[Michael_X]

Thanks for bringing that up Rolf. I did not think about the finance aspect of this at all.

Would you suggest sitting down with a broker and telling him the strategy/goals to accumulate regularly and use equity etc? Is a mortgage broker the person to speak to for this type of issue?

Maybe I should start a separate post in the finance forum.

Cheers

Good finance is definitely important. You will be able to go much further with the right financing strategy.

Reach out to a broker, a good broker will be one of the most important people on your property team.

 

[Logan]

This would have to be the most 'interesting' add I have seen for a house in Camp Hill for a while:

http://www.realestate.com.au/property-house-qld-camp+hill-118825847

 

[Moneyman_85]

Wonder if the dog gets a cut

 

[jward101]

This would have to be the most 'interesting' add I have seen for a house in Camp Hill for a while:

http://www.realestate.com.au/property-house-qld-camp+hill-118825847

Features in all listings for that agent! Quirky.

 

[my03]

lol, that agent is def quirky.

What are your opinions on block sizes? should I stick with 600m2+ in the abovementioned suburbs?

Cheers

 

[Robbo2621]

lol, that agent is def quirky.

What are your opinions on block sizes? should I stick with 600m2+ in the abovementioned suburbs?

Cheers

I don't think your budget of 400-500k will allow for a house on a 600m2 block in coorparoo, camp hill, Norman Park area's.

 

[Jaguar Driver]

I don't think your budget of 400-500k will allow for a house on a 600m2 block in coorparoo, camp hill, Norman Park area's.

then try something smaller in and around thosev areas. doesn't by any means have to be 600m2 for it to show cg.

 

[hugh72]

Why not consider Carina or Mount Gravatt- similar housing styles with good land content, slightly further out but slightly cheaper and in demand as neighboring suburbs become more expensive.