Another Brissie thread - but a bit different

The diversification argument would work better if you purchased 2-3 properties in say different capital/regional cities.

I'm actually looking for a property in a similar price range. Feeling a bit exhausted actually. Not sure if others are experiencing the same but I found location due diligence relatively easy but its been a waiting game for the right property in the location. It's time consuming to fly up to see just 1 or 2 properties so I've had to expand my search to more suburbs.
 
Hi Mancha

I too am relatively new to property investing and it seems I have a different strategy to you. So just wondering your reasoning.

Why are you looking to spend $650k on one property rather than say 2 - 3 properties a bit further out but still close to the CBD?

I imagine there will be arguments from both sides and Im not saying one strategy is wrong but one will obviously do better than the other.

We too are ready to purchase more properties which were going to be atleast our 3rd and 4th but I have often wondered if im better purchasing one that is closer to the CBD.

I dont like:
Having $650k in one suburb (one market) I would rather spread investments over different markets to capture growth in different cycles.
I dont want negatively geared properties. But I know that alot of these newer properties will have fantastic depreciation benefits that could potentially bring the property CF+.

I also think the vacancy rates will be better in the lower end of the market.

Any other pros and cons people????

Nath

Hi Nathan, that's a great question.
I guess it's down to your investment approach in general, not necessarily property.
I'm always in the mind that as long as you minimise the risk you will reap the rewards. That goes both for property and shares.
That means that instead of maximising the number of properties, I'm maximising the quality of the properties and for me that will be close to a major city centre and price a bit higher then the median. I believe that this approach will minimise the risk and even if a major downturn happens, these areas will recuperate the quickest.
Brisbane at this stage is a land play, i.e. freestanding house, <7km from the cbd and around the 650k mark (however I might tone it down a bit to <10km 580k).
However saying that, there is a place for speculative investing. Once you establish a foundation of quality assets you can start taking a bit more risk.
For me, that will probably be IP #4, after IP 1 in Sydney (done), IP 2 in Brisbane (now looking) and IP 3 location unknown (will be in 12 months, Perth? Adelaide? who knows....).

Oh, and a very important fact is that my investments are all for CG. I wouldn't want to go under 4.2% yield, but what I'm looking for is capital gains.

If you are looking for CF+ then agree you might be better off in the lower end of the market. However I would always recommend the share market for cash flow and property market for capital growth.
 
Very similar IMO, Upper Mt Gravatt is good as its close to Garden city and public transport/buses. Griffith uni is close by and huge numbers of students rent nearby, the area is a employment node. Downside may be the multi story unit blocks which have appeared along Logan rd.
Mt Gravatt central is slightly closer to the city and is undergoing some regeneration, some of it is elevated with city views.
Mt Gravatt East is in the Mansfield SHS catchment which is a drawcard and its close to Westfield Carindale, I could be wrong but its public transport links to the city are not quite as good.
Not much between them IMO, generally older post war houses many renovated, some on large blocks. All these suburbs have pockets of HC houses with many east of Logan rd behind McDonald's, well that used to be the case anyway.
Thanks Hugh, that's helpful if not more confusing ;). It's frustrating not knowing the suburbs. Maybe a Brissie weekend is in the cards for me...

Can you elaborate about the "Mansfield SHS catchment which is a drawcard"?
 
It seems you do not have a strategy. Both areas are ok, IMHO, but why are you investing? Are you in the accumulation part of the wealth journey, do you wish for a block of land that will have redevelopment or subdivision potential or are you less for land, say townhouses, and you are after the long term CG, or how many IPs are you accumulating in what timeframe to build your $ asset base?

It is very hard to advise not knowing what your end result to be?

If you are accumulating, say growing your asset base, than in general, it is better to accumulate more IPs with lower $ (not the cheapest though???), but if you are after only very strong CG and you wish to have a lower asset base (be more negative geared) but more of premium IPs well then it depends, right?
The better question would be whether you can get a good deal at each of those suburbs, so set a strategy first, then do your due diligence, check out whether you are buying at or below median for the suburb, then you will know if you have the right deal, right?
I read a report recently on Brisbane naming the 10 top blue chips suburbs. I hope that helps:
1. Ascot
2. Fortitude Valley
3. Newstead
4. New Farm
5. Bowen Hills
6. Hamilton
7. Kangaroo Point
8. Bulimba
9. South Brisbane
10. West End
It doesn't really mean anything, if it doesn't match your strategy, right?
Other areas you mentioned are good for other reasons, or like Kelvin Grove for HIPSTER demographic, etc....
SO you see you need to realise why are you investing and how big asset base you wish to grow, and then stick to a strategy how you will get there, so what is yours????

Several of those are likely to experience higher vacancy rates especially for units due oversupply but op was interested in houses so it probably would be okay IMO
 
It seems you do not have a strategy. Both areas are ok, IMHO, but why are you investing? Are you in the accumulation part of the wealth journey, do you wish for a block of land that will have redevelopment or subdivision potential or are you less for land, say townhouses, and you are after the long term CG, or how many IPs are you accumulating in what timeframe to build your $ asset base?

It is very hard to advise not knowing what your end result to be?

If you are accumulating, say growing your asset base, than in general, it is better to accumulate more IPs with lower $ (not the cheapest though???), but if you are after only very strong CG and you wish to have a lower asset base (be more negative geared) but more of premium IPs well then it depends, right?
The better question would be whether you can get a good deal at each of those suburbs, so set a strategy first, then do your due diligence, check out whether you are buying at or below median for the suburb, then you will know if you have the right deal, right?
I read a report recently on Brisbane naming the 10 top blue chips suburbs. I hope that helps:
1. Ascot
2. Fortitude Valley
3. Newstead
4. New Farm
5. Bowen Hills
6. Hamilton
7. Kangaroo Point
8. Bulimba
9. South Brisbane
10. West End
It doesn't really mean anything, if it doesn't match your strategy, right?
Other areas you mentioned are good for other reasons, or like Kelvin Grove for HIPSTER demographic, etc....
SO you see you need to realise why are you investing and how big asset base you wish to grow, and then stick to a strategy how you will get there, so what is yours????

Mate, thanks for taking the time and responding, but please don't assume that I don't have a strategy. I do have one that encompasses more then property investment and is based on a 15 years timeframe.
At this stage, I'm in the property accumulation stage looking to acquire high growth potential properties, as close as makes sense to major capitals and marginally higher then the median. Not looking for subdividing or redevelopment (that will come later in the plan), but it is a land play and looking for a freestanding house.

Holland Park and Greenslopes are what I set my eyes on currently, but was wondering the value of going a bit further out to Mt. Gravatt.
Appreciate to hear your view on the potential of the Mt. Gravatt suburbs.
 
The diversification argument would work better if you purchased 2-3 properties in say different capital/regional cities.

I'm actually looking for a property in a similar price range. Feeling a bit exhausted actually. Not sure if others are experiencing the same but I found location due diligence relatively easy but its been a waiting game for the right property in the location. It's time consuming to fly up to see just 1 or 2 properties so I've had to expand my search to more suburbs.

What suburbs are you looking at if I may ask?
I assume it's exhausting but I just don't have the time to do the search myself. For me it make more financial sense to work and use a BA, although it's frustrating not being on the ground to "feel" the suburbs.
 
Brisbane suburb stats.

Can be filtered by median price, rent, vacancy rate, etc.

The one I use for research has a lot more information, infrastructure and flood maps and looks at proximity to schools, shops and other transport.

Might want to be something you start for yourself when researching an area. Is really helpful.
 

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I'm looking more north Brisbane - Kedron/Wavell Heights/Stafford/Chermside area.

nhg - this info is handy. Are you able to disclose what subscriber provides this information?
 
I'm looking more north Brisbane - Kedron/Wavell Heights/Stafford/Chermside area.

nhg - this info is handy. Are you able to disclose what subscriber provides this information?

It's online. Not that accurate. http://suburbprice.com/

How I do my research is more as per the spreadsheet linked, compiled using various sources including magazines, websites, time on the ground etc. This is just a quick cut and paste with serverly reduced images. The original file is a 20MB+ file, with 20 tabs and that is only partially started.
 

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Thanks Hugh, that's helpful if not more confusing ;). It's frustrating not knowing the suburbs. Maybe a Brissie weekend is in the cards for me...

Can you elaborate about the "Mansfield SHS catchment which is a drawcard"?
Preferred and best performing state school in the area.
I don't know the boundaries for this but I'm sure it could be determined fairly easily, used to include much of Mt Gravatt but may have changed
 
Several of those are likely to experience higher vacancy rates especially for units due oversupply but op was interested in houses so it probably would be okay IMO

Agree with your comments, as I pointed out it is so vital to know what the strategy is before one can advise anyone, agree?
Some can invest into house with land component in blue chip areas, firstly negatively geared, eventually can become positive.
Others can invest only into units, obviously only in strong demand suburbs...
Others can buy fairly new, others fairly old with renovation potential... others newer townhouse, or new developments...
So as I pointed out, I just mentioned the suburbs, however the strategy should dictate where and what we buy, what do we wish to achieve, what asset base, thus time and circumstances then can dictate when we purchase next IP, and so on....
 
Agree with your comments, as I pointed out it is so vital to know what the strategy is before one can advise anyone, agree?
Some can invest into house with land component in blue chip areas, firstly negatively geared, eventually can become positive.
Others can invest only into units, obviously only in strong demand suburbs...
Others can buy fairly new, others fairly old with renovation potential... others newer townhouse, or new developments...
So as I pointed out, I just mentioned the suburbs, however the strategy should dictate where and what we buy, what do we wish to achieve, what asset base, thus time and circumstances then can dictate when we purchase next IP, and so on....

Exactly correct.

Ask yourself where are you going? By this I mean, what is it exactly you are ultimately wanting to achieve from property investment.

Ask yourself what monetary value per annum do I need to achieve it? You have to be specific and commit it to paper. You can not just be approximate. Your subconscious mind will simply reject it as airy fairy otherwise and you be behind the eight ball before you start without even knowing it.

Ask yourself what date you need to attain it by? Again you have to be specific. The date is your call to action.

Your strategy is your road map to where you are going and property is the vehicle you are driving to get you there.

If you dont have specific answers for the above and know where you are going then ALL Property & ALL locations will appear the same. Thus the frustration & confusion.

Success is 80% Mindset x 20% Strategy. In other words how you think is four times more important than how you do it.

It is your mindset that keeps you persistently moving along on your road map to your ultimate destination .

I hope this helps.
 
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Upper Mt Gravatt is good CG hub. A well positioned Satellite cbd, with all the amenities people want be located close by to and/or within easy commute of. We have a few property spread across the southside & bayside including UMG.

Agree with Rix that UMG has some great opportunities. I think the best time to buy was probably 2 years ago but there are still good opportunities for medium term CG.

Leo
 
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