Brisbane (Again)... x2 in Logan/Ipswich or 1 within 7kms of CBD...?

Hi All

So I have been searching for another property since mine fell through due to B&P in Jan, the market has certainly been hotter since the start of the year and it's becoming increasingly harder to secure the right property within 7km's of the CBD with the price range I had in mind 450k.

I have been following others posts on Brisbane and am now toying with the idea of purchasing two IP's in either Logan or Ipswich. They would be CF+ and hopefully still have good prospects for CG in the short & long term.

What are peoples views...

Option 1: buy 1 in North or south Brisbane using all my budget which will be CF-

OR

Option 2 buy 2 which will be CF+ from the outset and hope for the CG to follow AND if I did go with option 2, would you go logan or ipswich?

I plan to continue purchasing 1/2 properties per year going forward, hence I presume the CF+ will also be viewed as more attractive by lenders and I don't need immediate equity for deposits as I should be able to save that on my own.

Help greatly appreciated :p
 
Thanks Jenko, I had checked out that thread but didn't think it directly answered the question re Logan/Ipswich vs the CBD - although it was full of useful information!

Budget wise I am limited to 500k in total, although I don't see why I couldn't get two comfortably around the 230 - 250k figure, another option is not spending all my available funds however I'd like to have as much foothold as possible in Brisbane before the growth really kicks off over the next 12-24 months...

Congrats on Redcliffe by the way, your property sounds like a winner. :)
 
Hi All

So I have been searching for another property since mine fell through due to B&P in Jan, the market has certainly been hotter since the start of the year and it's becoming increasingly harder to secure the right property within 7km's of the CBD with the price range I had in mind 450k.

I have been following others posts on Brisbane and am now toying with the idea of purchasing two IP's in either Logan or Ipswich. They would be CF+ and hopefully still have good prospects for CG in the short & long term.

What are peoples views...

Option 1: buy 1 in North or south Brisbane using all my budget which will be CF-

OR

Option 2 buy 2 which will be CF+ from the outset and hope for the CG to follow AND if I did go with option 2, would you go logan or ipswich?

I plan to continue purchasing 1/2 properties per year going forward, hence I presume the CF+ will also be viewed as more attractive by lenders and I don't need immediate equity for deposits as I should be able to save that on my own.

Help greatly appreciated :p
Tazy400,
I reckon you can answer the questions your self, if you want CF+ then why go option 1?

Then what you need to do is compare logan vs ipswich :D

Unless you want to seek posibility buy under 7km to CBD and do reno, jack up rent so can be CF neutral or even CF +
 
Thanks Jenko, I had checked out that thread but didn't think it directly answered the question re Logan/Ipswich vs the CBD - although it was full of useful information!

Budget wise I am limited to 500k in total, although I don't see why I couldn't get two comfortably around the 230 - 250k figure, another option is not spending all my available funds however I'd like to have as much foothold as possible in Brisbane before the growth really kicks off over the next 12-24 months...

Congrats on Redcliffe by the way, your property sounds like a winner. :)
Hi Tazy, give Cherry Pro a pm, she owns properties in both Logan (2 house + 2 units) and Ipswich (2). I think she settled on a 2nd IP in Ipswich recently. So she's done good research on both LGAs and should be able to help you compare the two in terms of investment yields, dual occupancy (dual key) and potential CG.:)
 
My latest purchase:

House in Beenleigh - 3 bedroom, 1 bath, 1 car
Rent $330 pw
only thing wrong with it is a loose cupboard hinge :D
Purchase Price $228,000
Rental Yield - 7.5%
Last owner paid $290,000 in 2011
Value - didn't bother doing pre-val...conservative guess based on comparables $270-$280K?

Not a super duper deal by any means but definitely a good buy for the area particularly in the better part of Beenleigh and excellent prospect to reuse capital for next purchase.
 
Hi Saiman

Your purchase in Beenleigh (Logan Council) is a good one, with that yield and upside for capital growth, don't see how you can go wrong.

Hi Tazy

Give me 2 houses in Logan / Ipswich which give me some money in my pocket week after week with the upside of capital growth as opposed to 1 in the city which costs me to hold, any day of the week. Show me the cashflow and I beleive the growth will come.

Logan vs Ipswich - imho, Logan will move faster than Ipswich but in saying that, there are bargains to be had in Ipswich.

You must feel comfortable with your purchases.

Good luck !
 
My latest purchase:

House in Beenleigh - 3 bedroom, 1 bath, 1 car
Rent $330 pw
only thing wrong with it is a loose cupboard hinge :D
Purchase Price $228,000
Rental Yield - 7.5%
Last owner paid $290,000 in 2011
Value - didn't bother doing pre-val...conservative guess based on comparables $270-$280K?

Not a super duper deal by any means but definitely a good buy for the area particularly in the better part of Beenleigh and excellent prospect to reuse capital for next purchase.
Sounds like a bargain. How long ago did you make offer?
 
No, just used my researching skills to look it up as I'm watching the market! Neat house!! Nice views around that area.
Thanks. I wasn't expecting it to go at that price to be honest....

I missed out on 56 Tweedvale St 12 months ago....offered $215k and ignored it for a bit...found out it went for $230k a week later! Been regretful ever since lol

a bit of redemption now perhaps? :)
 
Thanks everyone - that is really helpful! Great to know you have been there done that too Cherry Pro. :)

I am new to this investing lark and probably just needed to sanity check that what I had in mind was sound. This may be 3 in 3 months so moving very fast!

The SANF having 2 paying for themselves and gaining some nice CG along the way is alot better than a 500k asset making a loss.

So far i have narrowed it down to Kingston and Slacks creek, ideally want to avoid woodridge unless there is a real bargain, as I hear the name still carries stigma. Logan central appears to be a bit more down market, tenant issues etc and Spring wood looks good but exy $$$.

Saiman - I hadn't considered going as far out as Beenleigh as i was hoping on the ripple effect a bit closer to the city as people get priced out - what made you purchase there?

Anywhere else you guys might add to that list?
 
Thanks everyone - that is really helpful! Great to know you have been there done that too Cherry Pro. :)

I am new to this investing lark and probably just needed to sanity check that what I had in mind was sound. This may be 3 in 3 months so moving very fast!

The SANF having 2 paying for themselves and gaining some nice CG along the way is alot better than a 500k asset making a loss.

So far i have narrowed it down to Kingston and Slacks creek, ideally want to avoid woodridge unless there is a real bargain, as I hear the name still carries stigma. Logan central appears to be a bit more down market, tenant issues etc and Spring wood looks good but exy $$$.

Saiman - I hadn't considered going as far out as Beenleigh as i was hoping on the ripple effect a bit closer to the city as people get priced out - what made you purchase there?

Anywhere else you guys might add to that list?
Hi Tazy400,

Like me, I see you are from Sydney.

Distance to Brisbane CBD is not really a factor in determining the quality of certain suburbs particularly when looking at places as far out as Logan

Although I do have 1 townhouse in Woodridge, I consider Logan Central, Woodridge and Kingston to be the worst suburbs in the Logan LGA

I would suggest you fly/drive up and spend a few days driving around the area - you'll see what I mean.
 
Distance to Brisbane CBD is not really a factor in determining the quality of certain suburbs particularly when looking at places as far out as Logan
It's because there's no allure to being in the CBD other than for work. Sydney has a certain majesty to it. Melbourne CBD is fun to be in. Brisbane CBD people go there for work then get the hell out. The problem with people not familiar with Brisbane is they're going to buy trendy CBD apartments but the reality is the dynamics are different. The CBD is not a draw card.
 
That makes sense... I did go up back in Dec but my plan back then was close to CBD and 500k, hence the closest I got to Logan was Sunnybank. :rolleyes:

Just don't have time for another trip up at the moment. Luckily I have a PM on the ground who is happy to go view properties on my behalf as long as he can split the commission with the RE, which works.

I am seeing quite a few advertised as dual occupancy, although I know it's not technically legal to let to two different parties... is it still all above board to rent to one group (say large family or friends) who use the space separately and does it increase the rental return to the $400+ mark as RE make it out to? The prospect of 8% yields is pretty attractive :p
 
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