Brisbane Suburbs - Please Help me decide!

[tazy400]

Hi Guys

I am a newbie investor (so please take it easy on me), just purchased my first IP in Mt Druitt, 2 bed unit CF+, and am looking to add another 1 or 2 over the next few months, preferably houses. Sydney is too hot at the moment so like many others I am changing my focus to brisbane. I have done alot of research on areas on the north and south side, including further out such as Logan, Beenleigh, however my research has led me to believe that the quick capital growth is probably to be had closer to the city - and cash flow isn't an issue just yet.

I narrowed down my list to the following and could really use some guidance, I have spreadsheets with matrix's comparing suburbs but the more I research the more confusing it becomes and I don't know the area...

List so far is...
North: Stafford, Everton Park, Stafford Heights, Keperra, Zillmere

South: Murarrie, Archerfield, Salisbury, Coopers Plains, Acacia Ridge, Wynnum, Lota & Manly.

Budget is flexible, 300 - 500k, ideally somewhere in between so I can get my 3rd IP relativley quickly. 3+ bedroom house on 600SQM

I have learnt so much from this forum and hope that you guys can provide some guidance, so one day I may just be in your league.

 

[charlieandkath]

Hi tazy400, welcome.

We too are looking at Brisbane. One of the best ways to do a bit of research on those suburbs is go to the search function and type in Brisbane and the suburb and then all the recent threads will come up.
All the best, Charlie

 

[tazy400]

Thanks CharlieandKath, yes I have been following your journey too! I spent the weekend doing the forum searches actually, but not all suburbs have recent feedback and some advice contradicts others.

I am going up this weekend and want to make the best use of my time by getting to know the areas but also do some inspections and I won't have time to cover so many different areas hence trying to narrow it down if possible.

I have been comparing median prices, yields, DSR scores, vacancy rates, growth, calculating trends and demand but it can be quite overwhelming, especially when there's not a clear winner. ha ha Hopefully seeing the different areas will put my research into context and all will become clear - one hopes!

 

[outoftown]

Everton Park, Stafford Heights and kedron are much more desirable places to live than Keperra for only slightly more money. Zillmere is on a par with keperra but cheaper. If your upper limit is 500 than Newmarket, Gaythorne and Mitchelton are worth a look. I can't comment on the southside because I haven't studied those areas. Good look.

 

[tazy400]

Thanks outoftown, that's great feedback, shall be sure to check out those areas. Can I ask if there is any reason in particular you chose to study the north side, do you live around that area? Zillmere is an interesting one, there seems to be alot of interest in the area, however from my research it's double the distance from the CBD as say stafford for less than 100k difference.

 

[see_change]

We bought in Manly , Wynnum recently . From a Sydney perspective it's really close to the City , though brisbanites don't think so .

It is the closest place on the bay to the city and has a fast train . When we bought it wasn't as hot as closer areas .

Not sure what's happening now .

Got three very nicely positioned properties , not cash flow neutral , but we weren't looking for that .

We also bought an OTP unit in teneriffe. Settles in 15 .

For better cash flow look as Wynnum West.

Cliff

 

[Roachy]

All your Northside locations are fantastic. I would be looking for value and with those suburbs you will achieve this.

Your research is well on the way. I think you have a good list in which you will be able to make a smart decision.

Things to think about on the Northern Suburbs are:


Positive.

New tunnel linking CBD to Nth West Suburbs exits around Stafford.
Chermside still moving toward being a satellite CBD.
Train line has been upgraded.
New Bunnings at Keperra (will influence the Gap, Ferny Hills/Grove, Keperra, Arana Hills, somewhat Samford)

Negative

Older houses.
Most people travel for work.

I'm sure there are more, but cant think at the moment.

Roachy

 

[Heinz57]

Like Murarrie. Like Acacia Ridge. Ugly Duckling Suburbs. But near where people work.

In Brisbane people don't commute unless they have to.

The big employers in Murarrie (or just over the Gateway Bridge) like Smiths, Swires, Lago, Bidvest, Pfd,Brisbane Airport, QANTAS, DHL, Inghams, Port of Brisbane, need you to work night shift. Maybe you don't have a reliable car (or a license). The train is there too.

 

[tazy400]

Thanks for all the guidance everyone - knew you'd help put me on the right path!

Wynnum and Lota are slowly moving up my list, as is murarrie and everton park and stafford... 5 to choose from will certainly be easier to manage than the list of 50 I originally started with.

On another note how do you buy interstate (appreciate there is a sticky covering this topic), it seems difficult to do without understanding the area well and having the deep local knowledge, not just the figures...

How long do you typically spend doing due diligence and getting to really know an area? The way I look at it I could easily spend another 6 months researching an area and save 5/10k or buy now pay market price but take advantage of the CG I would have otherwise lost out on - not sure if that's a risky outlook.

 

[outoftown]

Thanks outoftown, that's great feedback, shall be sure to check out those areas. Can I ask if there is any reason in particular you chose to study the north side, do you live around that area? Zillmere is an interesting one, there seems to be alot of interest in the area, however from my research it's double the distance from the CBD as say stafford for less than 100k difference.

I keep an eye on both sides of the river but i've owned and lived in keperra briefly. We had some difficult housing commission neighbours which made it an unpleasant place to live. I'm sure the great majority of housing comm tenants are fine but why take the added risk with an IP. Stafford has it's housing comm areas too but theres heaps of renovation activity in the good bits. In the suburbs I mentioned I have lived or have freinds and family who have\are.
Zillmere is on a major transport route and nearby chermside has received greatly improved infrastructure. Zillmere is a sort of poor cousin suburb to it's surround as Keperra was to Mitchelton before it boomed in 2007.
As for buying interstate, Verstandig Zaini real estate agents were a great help to me in the past as a selling agency but I know they help buyers in the suburbs I've listed too.

 

[vbplease]

I'd favour Ferny Grove over Keperra. Its one station further out but doesn't have the housing commission feel, is more leafy and has less road noise. Keperra is sandwiched between the train line and Samford Rd.. in my opinion not much room to get away from either.

I had my eye on this one, but went under contract pretty quick. You won't find a house of this calibre in Keperra.

http://www.realestate.com.au/property-house-qld-ferny grove-114967815

Ferny Grove also has the upgraded train station with the Tavern attached which is nicely done.

 

[see_change]

There are parts of Lota that blend in with the end on Manly . Lota has a longer bad rep , but that seems to have changed ( so I understand )

If you're looking at that area I wouldn't leave manly out .

The decision for me is , do I go on the bay side of the railway or not . Bay side much smaller number of properties to look at . Quite managable to look at all three suburbs on bay side .

Other side has greater range of choices from older style on larger blocks, town houses, new and old and quite nice neat new houses in Wynnum west.


If we'd bought more it probably would have been the later.

Cliff

 

[Holmes2012]

Southsider

As a southside fan, I will say Upper Mount Gravatt, Salisbury, Rochedale South, Sunnybank Hills, Eight Mile Plains, Runcorn.

 

[strongy1986]

There are parts of Lota that blend in with the end on Manly . Lota has a longer bad rep , but that seems to have changed ( so I understand )

If you're looking at that area I wouldn't leave manly out .

The decision for me is , do I go on the bay side of the railway or not . Bay side much smaller number of properties to look at . Quite managable to look at all three suburbs on bay side .

Other side has greater range of choices from older style on larger blocks, town houses, new and old and quite nice neat new houses in Wynnum west.


If we'd bought more it probably would have been the later.


Cliff

Definitely no bad rep to be seen in Lota. The hill is full of new houses
Only problem for investment is that the area probably won't be very popular with renters as there's no facilities. If you buy there stay close to manly


Wynnum west is ok but I would stick to the east side of wynnum rd

 

[DCI]

I photograph real estate all over Brisbane and Gold Coast and was just talking to a number of agents today about how strong the lead into Christmas has been so far.
All you good southerners have finally seen the light
Anyway lots of refreshed listings filtering through that didn't sell last year and are moving now. Starting to see new stuff coming through across board with a slightly higher list price based on current movement.
A lot of sellers still holding waiting to see which way and how fast the market heads. Plenty locked in with a fixed rate so hands tied creating some upward pressure for choice in the new cycle?
I think people are trying to seal a deal prior to Christmas thinking 2014 may pull from the gates quickly?
Still some great buys out there I see every day though...

 

[ricflair]

There are parts of Lota that blend in with the end on Manly . Lota has a longer bad rep , but that seems to have changed ( so I understand )

If you're looking at that area I wouldn't leave manly out .

The decision for me is , do I go on the bay side of the railway or not . Bay side much smaller number of properties to look at . Quite managable to look at all three suburbs on bay side .

Other side has greater range of choices from older style on larger blocks, town houses, new and old and quite nice neat new houses in Wynnum west.


If we'd bought more it probably would have been the later.

Cliff

East of railway in Lota has already moved a fair bit IMO, I would be looking east of whites road west of train line. Manly west for value but only in manly primary school catchment(that little part is starting to really move up)
Surely Hemmant is where best capital gains will happen, might take 10 plus years though bug it is dirt cheap, don't know how you would go getting tenants though.
Wynnum west has negative stigma and a lot of land being released in the Fetteni developments.

 

[ricflair]

On another note how do you buy interstate (appreciate there is a sticky covering this topic), it seems difficult to do without understanding the area well and having the deep local knowledge, not just the figures...

How long do you typically spend doing due diligence and getting to really know an area? The way I look at it I could easily spend another 6 months researching an area and save 5/10k or buy now pay market price but take advantage of the CG I would have otherwise lost out on - not sure if that's a risky outlook. [/QUOTE]

I moved to Brissy last October and had been researching for 4 months before flying up, I was shocked at how far behind Sydney it was. It took me 7 months of being up here before making a purchase, DD is hard to do interstate as each purchase really is a street to street proposition up here. In Sydney you could drive from Cronulla to Holsworthy before you notice a real difference in the calibre of resident up here it can 4 street in Wynnum for the same drop in socio economic comparison.

 

[natedog]

Thanks for all the guidance everyone - knew you'd help put me on the right path!

Wynnum and Lota are slowly moving up my list, as is murarrie and everton park and stafford... 5 to choose from will certainly be easier to manage than the list of 50 I originally started with.

On another note how do you buy interstate (appreciate there is a sticky covering this topic), it seems difficult to do without understanding the area well and having the deep local knowledge, not just the figures...

How long do you typically spend doing due diligence and getting to really know an area? The way I look at it I could easily spend another 6 months researching an area and save 5/10k or buy now pay market price but take advantage of the CG I would have otherwise lost out on - not sure if that's a risky outlook.

If lota/manly are gettin up the list, maybe also consider thorneside/birkdale.

further from CBD but yields are good and can still buy a 3 bed 1 bath house in land for under $400k walking distance to bay/schools/shops and train.

 

[ricflair]

If lota/manly are gettin up the list, maybe also consider thorneside/birkdale.

further from CBD but yields are good and can still buy a 3 bed 1 bath house in land for under $400k walking distance to bay/schools/shops and train.

That waterfront dOwn that way is very tired, I can't see the CG but better buying for that budget, bay breezes still there too.

 

[natedog]

I agree the waterfront is much less developed and pretty than wynnum/manly....but it's also much less crowded and calm.

Can't see the future capital growth??

I cant see why there "wont" be CG!

When you can still buy a 3 bed house on a 600sqm block 400m from the waters edge, 10 minute walk to shops, primary and secondary schools and shops for under $400k which would easily rent for $450 per week?

Give me a melbourne/Sydney suburb like that and id be buying every single one in the street.....if I could