Brisbane - northern suburbs under $400K

[pipsal]

I want to purchase somehing in Brisbane north - suburbs I've been looking closely at are Taigum, Zillmere, Boondall, Bracken Ridge, Bald Hills. These suburbs are between 12-19km from the city and in 'Brisbane City Council' area.

I was seriously considering a couple of older 2/3 bed townhouses with gross yield about 6%. I notice that there is the odd house in that price range too, but the yield can be more like 4% and some of them need a fair bit of work/ongoing maintenance. Then there are areas like Strathpine or somewhere on Redcliffe Peninsula (Moreton Bay City Council though), where a house can be similar money to the townhouses. 10 years ago I thought Redcliffe would be a good place to invest long term, but it hasn't seemed to have had much growth - not any more so than the Brisbane suburbs, and I'm not sure the rail line will make much difference to Redcliffe if it is going to take so long to get to the city. The yield in the outer areas is still not as good as the units in the closer suburbs though from what I've seen...but then the unit vs house/land component is also a consideration.

My strategy will be buy and hold, but I am hoping for capital growth to use as equity for deposit, etc on future purchase - hopefully #3 within a few years at most. CF neutral would be good, but it is not as crucial as CG potential. If there are any Brisbane investors that have their own experiences or any ideas about which of these areas/types of properties they would be considering I'd love to hear them.

 

[Nth Brisbanite]

I want to purchase somehing in Brisbane north - suburbs I've been looking closely at are Taigum, Zillmere, Boondall, Bracken Ridge, Bald Hills. These suburbs are between 12-19km from the city and in 'Brisbane City Council' area.

I was seriously considering a couple of older 2/3 bed townhouses with gross yield about 6%. I notice that there is the odd house in that price range too, but the yield can be more like 4% and some of them need a fair bit of work/ongoing maintenance. Then there are areas like Strathpine or somewhere on Redcliffe Peninsula (Moreton Bay City Council though), where a house can be similar money to the townhouses. 10 years ago I thought Redcliffe would be a good place to invest long term, but it hasn't seemed to have had much growth - not any more so than the Brisbane suburbs, and I'm not sure the rail line will make much difference to Redcliffe if it is going to take so long to get to the city. The yield in the outer areas is still not as good as the units in the closer suburbs though from what I've seen...but then the unit vs house/land component is also a consideration.

My strategy will be buy and hold, but I am hoping for capital growth to use as equity for deposit, etc on future purchase - hopefully #3 within a few years at most. CF neutral would be good, but it is not as crucial as CG potential. If there are any Brisbane investors that have their own experiences or any ideas about which of these areas/types of properties they would be considering I'd love to hear them.

I like Zillmere where I've had property for about 10 years. You should be able to get a house under 400K in reasonable condition. Taigum and Boondall are ok as well. Bracken Ridge and Bald Hills are a bit further out but still ok. Inner suburbs (under 10 kms from CBD) are booming at the moment and it's a matter of time before above suburbs take off. Prices are just starting to take off in suburbs such as Aspley so advise you to get in soon.

Don't know much about Redcliffe and agree that rail won't make much difference until it is built.

 

[eeew]

... Inner suburbs (under 10 kms from CBD) are booming at the moment and it's a matter of time before above suburbs take off. Prices are just starting to take off in suburbs such as Aspley so advise you to get in soon.

...

Its pretty much the same story for most suburbs within 10km no matter which direction of the CBD.

 

[Nth Brisbanite]

Its pretty much the same story for most suburbs within 10km no matter which direction of the CBD.

Read in the local paper that the market is moving so quickly in inner suburb Norman Park (not on northside) that an agent had a house listed a house at $795K but after one open house increased it to 800K because of the interest generated. After a few more days, the price was increased again - can't remember new amount. Examples like this show that the market is moving very rapidly in come areas.

In the middle rung areas such as Zillmere, Taigum and Boondall, I think that the rapid movement will take place later on in the year once the inner areas get too expensive.

 

[mitchitygrub]

Read in the local paper that the market is moving so quickly in inner suburb Norman Park (not on northside) that an agent had a house listed a house at $795K but after one open house increased it to 800K because of the interest generated. After a few more days, the price was increased again - can't remember new amount. Examples like this show that the market is moving very rapidly in come areas.

In the middle rung areas such as Zillmere, Taigum and Boondall, I think that the rapid movement will take place later on in the year once the inner areas get too expensive.

I went to see the Norman Park property over the weekend. There was only one other couple at the open home on the day. Seems as though the vendor may have raised their expectations a bit too much and scared off some of the buyers. A quick look on the 2011 flood maps also revealed the house was flood affected.

 

[BrisbaneBA]

From the suburbs you have identified, I would suggest that you focus your search on the Redcliffe/Clontarf area.

The jury is still out on how much, if any, the new rail line will improve growth prospects for the Redcliffe area, but in my opinion (and given recent market activity in this area), it would be my pick of the outer northern suburbs.

With all the new infrastructure planned and already happening in the peninsular, it is a safe bet for capital growth. I would suggest that you buy in the Clontarf/Margate areas and try to get within walking distance to the waterfront as much as your price point allows.

Whilst the rental yield may not be terrific at the moment, I believe that capital growth to be gained will outweigh the lower rental factor at least until momentum really picks up there.

However, you may also consider getting closer into Brisbane CBD in a unit.

I note your indecision in regards to unit vs house. But really if you keep to small complexes, and off main roads, your Body Corporate fees are very low and your value is protected.

I know that in recent years, in some areas units have acquired greater overall yields than houses in same source points.

Just do your research and numbers well before you buy in either area, but I would suggest leaving your options open to both.

Cheers
Stephen