Inner City Brisbane IP worth the extra $ for Carspace?

D

davu

Hi SSer's

Been reading this forum for a while but only very recently joined and my first post!

I live in Sydney and I had a look at the Sydney market, theres a lot of rental yield growth but apartments/houses here a bit pricey for the rental yield that I can get and I think investing in another state could return better for same amount of money invested.

I'm thinking of buying my first investment property in Brisbane as I see a lot capital growth potential esp in Inner City in the next 5-10 years. I know for the inner city area apparently 2 bedroom apartments was the way to go there but there has been a sharp increase in demand for 1 bedroom.

I guess that's a question on my own budget and how much I can afford.
So I'm stuck where should I go for an apartment with a carspace (For extra $56k) or should I get one without as I plan on holding on this property and using it to generate cash flow.

Any advice?

Thanks
 
My personnel exp in Brisbane CBD is
Apartment without car space is still easy to rent but do not have much capital growth. Brisbane CBD parking can be expensive therefore it might be a good investment to pay the extra bucks.
 
davu said:
Hi SSer's

Been reading this forum for a while but only very recently joined and my first post!

I live in Sydney and I had a look at the Sydney market, theres a lot of rental yield growth but apartments/houses here a bit pricey for the rental yield that I can get and I think investing in another state could return better for same amount of money invested.

I'm thinking of buying my first investment property in Brisbane as I see a lot capital growth potential esp in Inner City in the next 5-10 years. I know for the inner city area apparently 2 bedroom apartments was the way to go there but there has been a sharp increase in demand for 1 bedroom.

I guess that's a question on my own budget and how much I can afford.
So I'm stuck where should I go for an apartment with a carspace (For extra $56k) or should I get one without as I plan on holding on this property and using it to generate cash flow.

Any advice?

Thanks
Click to expand...
56K for a few sqms of car space is a bit on the high levels,and when you look at the BCC parking costs inner city the meal may cost 30 bucks and the parking is over 50 bucks ,,or you could just sublet the carspace out,,
from what i'm told there is an oversupply of H-R units in inner Brisbane and there is more demand for 2 bedders then one..imho..
 
willair said:
56K for a few sqms of car space is a bit on the high levels,and when you look at the BCC parking costs inner city the meal may cost 30 bucks and the parking is over 50 bucks ,,or you could just sublet the carspace out,,
from what i'm told there is an oversupply of H-R units in inner Brisbane and there is more demand for 2 bedders then one..imho..
Click to expand...

Thanks for the insight from someone local :) I was looking at getting a boutique apartment in Bowen Hills 36 units it has. But considering budget and costs I think I'm more inclined for a 1 bedroom no car space price range 339-355k.

Even in Sydney the car space goes for up to 70k in the CBD it's outrageous
 
davu said:
But considering budget and costs I think I'm more inclined for a 1 bedroom no car space price range 339-355k.

Even in Sydney the car space goes for up to 70k in the CBD it's outrageous
Click to expand...
Look at it from the other side,and see what is selling and the price,,imho a one bedder will be a mistake and for 350 k you would target a house within 12 klm of the cbd on 800 sqms look aroun Moorooka.imho..
 
Depends what you want really.
Capital Growth vs Cash Positive
Is the Cash Positive really that great for 1 bed with no car in Brisbane CBD? from my personal experiences, company like 2 bed with at least 1 car for their expat.
did you check rent in Bowen hill 1 bed no car? most new apartment in Bowen hill 1 bed no car will receive rental income between 300 and 360 per week. The question is - Is this a good investment?


Recent Apartment Sales in Downtown Brisbane
Evolution
Apt 171, 1 bed, 1 bath, no car - $310,000
Grosvenor
Apt 107 - $1.3M
Skyline
Apt 61, 3 bed, 2 bath, 1 car - $715,000
Apt 94, 3 bed, 2 bath, 1 car - $810,000
Apt 363, 2 bed, 2 bath, 1 car - $587,500
Charlotte Towers
Apt 3206, 1 bed, 1 bath, no car - $335,000
Apt 3508, 1 bed, 1 bath, no car - $317,000
Apt 4009, 1, bed, 1 bath, no car - $347,000
Metro 21
Apt 3001, 2 bed, 2 bath - $553,500
Quay West
Apt 129, 3 bed, 3 car - $1M
Riverplace
Apt 304, 3 bed, 2 bath, 1 car - $1M
Apt 272, 2 bed, 2 bath, 1 car - $675,000
2 bed, 2 bath - $527,000
Festival Towers
2 bed, 2 bath, 1 car - $457,500
Apt 1906, 1 bed, 1 bath, 1 car - $309,000
Admiralty Quays
Apt 78, 3 bed, 2 bath, 2 car - $920,000
Apt 76, 1 bed, 1 bath, 1 car - $550,000
Apt 46, 2 bed, 2 bath, 1 car - $780,000

Will Brisbane Apartment prices go up or down?

Brisbane apartment prices did worse that Brisbane house prices over the past financial year. There was a fall of 1.8% in Brisbane apartment prices in 2012/13. The number of apartment sales are 13% low than 12 months ago. This does not sound like a booming or healthy real estate market. Some predict that apartment prices will slowly deflate, year on year, for a number of years to come. Others predict that with low interest rates and good population growth, then prices will start to increase. RP Data says that Brisbane will be flat for the next year. If that is the case, no rush to buy or to sell. Not good news for real estate agents, who rely on sales volumes to make a living.
http://www.brisbane-apartment.com/
 
nfortunately, most developers are selling apartments off-the-plan at prices that are higher than you could buy an existing similar apartment -- the only difference being age.

An agent I spoke to recently who was selling off-the-plan informed me that his competition was not other new developments, but resale apartments in recently finished buildings by the same developer. He said the price of the resale apartments was about 15% less than his almost identical new, under construction apartments. And buying an existing apartment is way less risky than purchasing off-the-plan.
http://www.brisbane-apartment.com/
 
Parking in Bris CBD can be up to $100 a day eg in Eagle Street. Much of the inner city and surrounds is metered. I personally rent a car space in a near city building for $2600 a year which is below market price. Most people own a car. Where are your tenants going to park? What percentage of the population will want to buy your unit in a few years time with no parking? I wouldn't buy OTP near the CBD at present but if I did I would get a carpark, even if you do not rent with your unit you should get $50 week rent minimum.
 
Heinz57 said:
Parking in Bris CBD can be up to $100 a day eg in Eagle Street. Much of the inner city and surrounds is metered. I personally rent a car space in a near city building for $2600 a year which is below market price. Most people own a car. Where are your tenants going to park? What percentage of the population will want to buy your unit in a few years time with no parking? I wouldn't buy OTP near the CBD at present but if I did I would get a carpark, even if you do not rent with your unit you should get $50 week rent minimum.
Click to expand...

Wow thanks for the parking insights, that's more expensive than Sydney CBD to park...I'm just doing all my research before I set anything down.
 
I rent my car space in the CBD from a unit owner, 8am-6pm Monday to Friday and pay $210 a month.

$400 a month is common in my area and I have seen $600.

D
 
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