Investment Suggestions in Brisbane

[ledd]

Hello all,

I'm an avid reader of this forum and enjoy reading the comments and questions. I now have a question myself and thought I could put it out to the forum (don't know why I didn't think of it earlier!).

I'm a first-time investor. I live in WA so I'm thinking there's better opportunities elsewhere, particularly Brisbane. However, I'm not at all sure of the best suburbs or what exactly to buy (although I do have some ideas).

Here's my investment strategy:

To invest in a high-demand rental area in in the Brisbane metropolitan area (within 10 of the city) that has a reasonable yield and a very good history of capital growth (>10%).

I'm thinking of buying a 2 bedroom (hopefullly 2 bathroom) unit for around the $250-300K mark. Are units OK?

I'm incredibly unfamiliar with Brisbane. I've been considering using a buyer's agent but I believe I can do just as good a job if pointed in the right direction (and save myself around $8000).

If anyone has any thoughts on my strategy and, more importantly, suggestions on particular suburbs in the Brisbane metro area that would be fantastic!

Thank you in advance.

Mark

 

[wylie]

Hi Mark.

I have not bought a unit for over 20 years so cannot help you with prices but I live in Coorparoo which is 5km from the city and a good area. There are plenty of streets where lovely old houses have been taken away and six packs put up. I would avoid those areas, but there are plenty of newer, well designed units in better areas (by better - I mean a street where it is not chock full of six pack after six pack - which I would not want to buy).

So Coorparoo, Greenslopes, Holland Park, Camp Hill, Norman Park are all suburbs you will find units. If you do a realestate.com search of these suburbs you will find plenty, I would think.

I don't know about other areas of Brisbane because I tend to stick close to home.

Wylie

 

[urban cowboy]

Hi Mark,

I'll back Wylie on Coorparoo - its in a great spot and some of the other areas she mentioned are ok as well. It largely depends on what you are looking for as an investment as to what areas are worth looking at.

If you do a search on Brisbane, there have been several threads of late discussing this very topic. You can also PM a few of the folks here direct and ask...I hope they don't mind me dobbing them in...I know Kevin Hockey has his finger on the pulse for the Redcliffe areas and North East down to Inner North, I operate inner north to north west, Letiha is pretty switched on to the Warner area, Winston Wolfe is a demi-god on local property issues as well. There are several others like Wylie that operate southside too...there are a lot of names i have missed, but have a look at some of the links and you'll find more folks happy to help.

any dramas give me a yell - be happy to help with any info i can get you.

good luck
UC

 

[slingshot]

Hi Ledd,

You might also want to check out this months (june) Austalian Property investor magazine. There's an interesting article titled "Affordable suburbs under 20k's of capital cities"

Good luck
Slingshot

 

[BenG]

Hi Urban,

In terms of North West would your knowledge stretch as far as Indooroopilly? I'm from Sydney but like many are very impressed with what the market is doing up there right now. I would love to buy in Indooroopilly but it is out of my budget (i'm looking for a house with good land; ideally a corner block for between 400 to 500k) so I'm looking at fringe suburbs.

Can you recommend and suburbs around there which are nice but not quite as expensive as Indo?

Thanks

 

[urban cowboy]

Hey BenG,

Short answer is no... I do know Indro reasonably well, but not in terms of sales etc. Indro is regarded as more inner west than anything. for my area of knowledge look at a map of Brisvegas and draw a line from the City along Waterworks Rd to Ashgrove then up to Enoggera and through to Samford...then do the same from the city out sandgate rd to virginia...draw a line across the top from warner to north lakes and that'll do me. I've sold in most of those areas at some point so i have a fair handle on them and can give you some good indications...IMHO of course!!

In terms of an area recommendations, tell me what you are looking for and i'll try and give you some feedback on places to look. The price bracket you mentioned covers a lot of stock from lower quality 1930's qld'ers and postwars in areas like wilston/windsor/lutwyche/Grange/Gordon park right to brand new house and land packages in Carseldine/Warner/Eatons Hill etc. and a whole raft of established housing in between.

 

[alexlee]

Ledd, may I suggest just getting a copy of Australian Property Investor, looking up Brisbane suburbs with unit prices around what you're looking for, and then going to Brisbane and taking a drive? It'll give you a much better idea.

Honestly, for the long term it almost doesn't matter what you buy. Buy a unit first and learn how managing a property investment (I don't mean manage it yourself: hire an agent for that) works. Then buy a house, and decide what you like. Some investors focus only on houses and do well (higher land content, more redevelopment potential) while some focus on townhouses and units (usually in higher growth areas, etc).

You don't have to decide on your whole plan now. Buy a unit first if that's what you want. Then read, learn from other people, and research more. You may find you want something else for your 2nd, 3rd and so on.
Alex
Alex

 

[ledd]

Wow! Thank you for those informative replies!

I'll look into those suggested areas. I have all the API magazines (and also the new Your Investment Property magazine that has great tables in the back) so I'll look over those suggested suburbs and the surrounding areas.

Seems the more research I do the more my head spins so I'm going to drastically refine my search!

Thanks again!

Mark

 

[suzieq]

Don't worry Ledd, I've been there....head spinning....as I'm sure many have on this forum.

Just make sure you feel comfortable with what YOUR doing, learn from everyone you meet and take on what sits well with you (after doing your research). Everyone makes mistakes and often we learn from those mistakes...I know I have!

Good Luck.

cheers

sq

 

[urban cowboy]

Seems the more research I do the more my head spins so I'm going to drastically refine my search!

Mark, it sounds to me as though you have a rough idea of what you are chasing, you are just looking at how to get there. Suzieq is right in saying do your research and take what advice sits best with you. For your research, have a look at sites like www.ourbrisbane.com.au that provide information on local areas and services, pay attention to bus and train routes as that is becoming a big issue now for commuters, look for the good schools and large shopping complexes and things like that.

API are awesome with a lot of the stuff they tell you, but re pricing - i can tell you now that it won't help much. 250-300k will buy a good 2bedder in just about any suburb in town...not a brand new one, but a good, clean well positioned 20year old jobbie that will fetch around 5% or more in raw terms. The other point is try not to pay too much attention to median unit prices for suburbs - they're all out of whack lately because of a construction boom over the last 12 months...most suburbs will have 400k (or more) 2 bed units right beside the ones you are looking at so the figures aren't entirely accurate.

Your money is about right for the product you 've indicated you're interested in, just have a good look at the suburbs where you want to be. And most importantly, when you find one that suits, act. Good units are going same day at the moment and many never even hit the net!!! My only other bit of goss for you is that the 2nd bathroom may be a problem in your range - older units don't have them and newer ones are going for a hell of a lot more than 300k (area dependent).

hope all this helps you some

cheers
UC

 

[alexlee]

I'll look into those suggested areas. I have all the API magazines (and also the new Your Investment Property magazine that has great tables in the back) so I'll look over those suggested suburbs and the surrounding areas.

Seems the more research I do the more my head spins so I'm going to drastically refine my search!

Research is good. So much research that you don't actually buy is not good. In fact, I'd suggest don't be too stressed out about buying a property below market value or whatever. Just buy around market value. In the long run, the person who buys more properties at or even above the market price will do better than the person who buys below market value but don't buy as many.
Alex

 

[redwing]

Hello all,

I'm an avid reader of this forum and enjoy reading the comments and questions. I now have a question myself and thought I could put it out to the forum (don't know why I didn't think of it earlier!).

I'm a first-time investor. I live in WA so I'm thinking there's better opportunities elsewhere, particularly Brisbane. However, I'm not at all sure of the best suburbs or what exactly to buy (although I do have some ideas).

Here's my investment strategy:

To invest in a high-demand rental area in in the Brisbane metropolitan area (within 10 of the city) that has a reasonable yield and a very good history of capital growth (>10%).

I'm thinking of buying a 2 bedroom (hopefullly 2 bathroom) unit for around the $250-300K mark. Are units OK?

I'm incredibly unfamiliar with Brisbane. I've been considering using a buyer's agent but I believe I can do just as good a job if pointed in the right direction (and save myself around $8000).

If anyone has any thoughts on my strategy and, more importantly, suggestions on particular suburbs in the Brisbane metro area that would be fantastic!

Thank you in advance.

Mark

Hi Mark,

We recently purchased in Brisbane (being from WA), but after narrowing down various areas of interest decided to visit them to get a "feel" for those areas

We thought about a BA but decided to DIY

After deciding on two main areas of interest we picked up an IP in 8 Mile Plains, nice and close to the freeways and city as well as Mt Gravatt.

Purchase price was around $235K, rented for $260 and looking to increase to $285-290 to meet current market rates

Taking Action was the required step

The East Coast is definetly experiencing a pick up in Growth...who knows whether we should've bought in another Suburb, State, City etc etc (we thought about it) BUT If you get caught up in that you'll get analysis paralysis for sure

 

[ledd]

Hello again,

I feel quite overwhelmed by people's generosity with their knowledge, their experiences and simply taking the time to reply!

I feel more confident about where I'm going - ie. the price range and property - so I'll keep at it. I think I have to get over getting the BEST unit in the BEST suburb and be happy with a good one!

Cheers,

Mark

 

[alexlee]

I feel more confident about where I'm going - ie. the price range and property - so I'll keep at it. I think I have to get over getting the BEST unit in the BEST suburb and be happy with a good one!

As an example, say you have a unit now that has a value of $250k. In 20 years, it should be worth around $1m. Are you really too concerned if you'd paid, say, $280k for it? Of course, try not to pay so much that you lose so much CF that you can't hold onto the property. But +/- 10%, even, isn't a big deal in the long run.
Alex

 

[Kevin Hockey]

Hi Ledd, and thanks for the reference Urban.

The new Nundah Woolworths opened 2 weeks ago and WOW, Nundah has just come alive. It has included Coffee Club, Subway and Brumbies plus a very needed Newsagency. I'm sure there's more to open yet. All of a sudden the place is vibrant, people, cars and action all happening. I would highly recommend buying in Nundah as I believe it still has significant growth. If you want more info on Nundah call Lorraine Bailey on 3266 3555.

Chermside has been rezoned for 10 storey to allow it to become the mini city for Brisbane. Many of the offices from the city will be relocating to Chermside in the future. Westfield Chermside is huge now and a major northside attraction. I highly recommend Chermside, and Kedron for that matter. If you want to move out further for better return and lower purchase price Redcliffe is your next best option in my opinion. Surrounded by water it is like an island. A new bridge is being built in the next 2 years to replace the 3km long Hornibrook Bridge alongside the Houghton Highway. You can buy an apartment in the 200-250k range on the Peninsula at the moment but thats changing fast.

Hope this helps.

Kev
www.gogecko.com.au

 

[suzieq]

Hi Ledd,

Just got back from Brisbane last night and have a signed contract in my hot little hands......just waiting on finance approval, then I will spill the beans!!

I would definately recommend getting over there yourself and getting a feel for the place. I met some great people and exchanged investment strategies etc and I'm feeling pretty fired up to go again in the not too distant future.

There are some very helpful people on this forum who are willing to share information. Big thanks to URBAN and RIXTER for your assistance . It was great to actually meet up with you URBAN, any time your in sunny Perth feel free to look me up.

I would recommend getting your hands on a Brisbane street directory and also ringing up a few R/E agents prior to going, to check out their rental yields and vacancy rates.

sq

 

[ledd]

Thanks for the information, Kevin! Very helpful. I'll chase up those leads. It's great to feel like I'm narrowing it all down a little instead of feeling like I'm chasing my tail.

Congratulations, suzieq! I look forward to hearing more when the deal is sewn-up.

I'll check out e-bay and see if they have any street directories . I'll definitely get over there to buy.

Did you have a particular place in mind when you went or did you go over and look and take it from there? I was also wondering what kind of time frame would be reasonable to go over and find a place (assuming you have a good idea of what you are looking for). A few days, a week, a few weeks? Thanks for the advice!

Cheers,

Mark

 

[suzieq]

Hi Mark,

I had it narrowed down to the type of property I wanted to get before I went........then a few days before I flew out I came across a deal which matched my criteria. The opportunity was too good to pass up, so I put an offer in sight unseen which was verbally accepted.

Still flew over and viewed the property, met with the agent and on-site manager, organized bldg/pest, solicitor etc, got the signed contract.......had a GOOD look around Brisbane for future purchases.

I think you just need to know in your own mind what you want from the property. Everyone has different circumstances. I believe you can't go wrong if you stay within your budget. There is still a lot of legs in the QLD property market IMO.

Good Luck and happy to be of any assistance.

sq

 

[suzieq]

Mark,

sorry forgot to answer your "how many days" question!

I gave myself 4 days, probably could have done with more if I needed to go and inspect properties....Brisbane is pretty spread out.

Hope this helps

sq

 

[ledd]

Wow, that's faster than I expected!