New Member - Intro and Brisbane Market

Good morning and happy day after Christmas to you all.

I've been reading the forum for some time and decided to introduce myself and get some thoughts on the Brisbane market.

PPOR - 2 bed house Tarragindi, Brisbane
IP1 - 3 bed house Mount Gravatt, Brisbane (settled 12/12/14)

We are about to start organising our finances for our second IP purchase and will stick to Brisbane given the forecasts for the next 24 months. I believe we will have around 550k to play with but we're undecided about our next step.

Our strategy is buy and hold for CG and prefer properties where we can add value with minor renovations but that the rentable straight off the bat as reno's will be done down the track.

So, what would you do with 550k in the Brisbane market? I appreciate your thoughts!
 
Hi

Hi,

With that amount of cash to invest and with the right planning you might have a big and successful 2015.

Before buying another property or two, have you looked at your current investments and see how they are tracking?

Also ensure your broker sets up your loans for the long haul since you are looking at expanding your property portfolio :)
 
Hi,

With that amount of cash to invest and with the right planning you might have a big and successful 2015.

Before buying another property or two, have you looked at your current investments and see how they are tracking?

Also ensure your broker sets up your loans for the long haul since you are looking at expanding your property portfolio :)

is that an automated message for new SomerSofters?
 
We have a fantastic broker who is on this forum so our loan structures are all good.

We settled on our first IP this month and feel that we have bought well under market value. Fingers crossed Mount Gravatt does well over the coming years.

Being fairly new to property investing I'm still fairly nervous about Logan. Lower socio economic area and I thought growth there was still relatively slow. We are hoping to be fairly aggressive over the next couple of years with our purchases and slow growth could halt the equity train needed for future deposits. Just my thoughts.

Thanks for the responses :)
 
Hi

Hi Brisinvest,

What growth rate do you think is needed to continue growing?

Reason why I am asking this question, is because there are three ways to build growth.

1) Buy a property at the median price in a growing area
2) Buying a property under market value in a neutrally area in terms of growth.

3) My favourite!! Buy a property under market value in a good growing area.
 
Being fairly new to property investing I'm still fairly nervous about Logan. Lower socio economic area and I thought growth there was still relatively slow. We are hoping to be fairly aggressive over the next couple of years with our purchases and slow growth could halt the equity train needed for future deposits. Just my thoughts.

Early in the game growth is good, if you haven't hit your serviceability limits.

For that budget $550k you could get a decent growth property in Manly or Wynnum area not far from the water.

You can still get at least 5% yield if you buy well, with the taxman paying for the rest.

Much nicer tenants in manly than Logan, although if cashflow is an issue Logan 7% yield properties could be considered later.
 
Good morning and happy day after Christmas to you all.

I've been reading the forum for some time and decided to introduce myself and get some thoughts on the Brisbane market.

PPOR - 2 bed house Tarragindi, Brisbane
IP1 - 3 bed house Mount Gravatt, Brisbane (settled 12/12/14)

We are about to start organising our finances for our second IP purchase and will stick to Brisbane given the forecasts for the next 24 months. I believe we will have around 550k to play with but we're undecided about our next step.

Our strategy is buy and hold for CG and prefer properties where we can add value with minor renovations but that the rentable straight off the bat as reno's will be done down the track.

So, what would you do with 550k in the Brisbane market? I appreciate your thoughts!

Assuming its in line with your goals, Personally I would be buying another deal in Brissy, also a house and if you can add value then even better. If you can get something with good subdivision potential then 5 stars in my book. Also stay within 10km of the CBD.

leo
 
Whatever you buy, be aware of the land tax threshold. Maybe buy the next one in a trust? It will have a lower threshold, but we have learned the hard way how badly the land tax hurts when you hold too much in one name.
 
Good point re. land tax. I'm still quite new to the game and this will definately be something we will be discussing with our broker as I'm a bit naive about this. Any wisdom to share about this would be great.

Our comfort zone is definately within 10km of Bris CBD so this is where we will focus. Although the north side is being hyped at the moment we know the southside and I feel like we would be able to spot a better deal here as we know the area.

A property with future subdivision potential is at the top of our list, but my question is - if subdivision may be a couple of years down the track how do you spot a property that isn't going to drain the hip pocket today? We've been looking at areas like Moorooka/Salisbury (but very pricey now compared to even 12 months ago), Coopers Plains, Mount Gravatt and Carina.

Once again, would love to hear your thoughts :)
 
I personally am a great lover of the inner west (maybe because over 70% of my portfolio is in these suburbs) and really like Auchenflower, Taringa etc.

Cheers
 
Thanks Richard,

Do you think there are good deals to be had in these areas in our price range? The median house price in Auchenflower is 806k and Taringa is 608k. would you look at units or older style houses? I've just had a look at real estate and in Taringa there are 3 houses listed in Taringa for under 600k and these are all mid to high 500's. It might be getting a bit out of our price range.
 
Good point re. land tax. I'm still quite new to the game and this will definately be something we will be discussing with our broker as I'm a bit naive about this. Any wisdom to share about this would be great.

Once again, would love to hear your thoughts :)

Sorry to be pedantic but I wouldn't go to your broker to discuss land tax. You should go to your accountant or to the OSR website which gives you info you need. I've been caught out on land tax so don't want you to do the same.
 
Our comfort zone is definately within 10km of Bris CBD so this is where we will focus. Although the north side is being hyped at the moment we know the southside and I feel like we would be able to spot a better deal here as we know the area.

Once again, would love to hear your thoughts :)

I think that you limiting yourself if you are concentrate your efforts to the southside. There may be some great opportunities that you may be missing out on if you neglect the northside. It's not far to travel so why not make contact with a reputable agent and have a look around?
 
I agree Nth Brisbanite - it's so easy to stick to your comfort zone so I'm widening the search. What are your thoughts on North Brisbane. I would probably look at areas like Kedron, Aspley, potentially Northgate. Thoughts?
 
I agree Nth Brisbanite - it's so easy to stick to your comfort zone so I'm widening the search. What are your thoughts on North Brisbane. I would probably look at areas like Kedron, Aspley, potentially Northgate. Thoughts?
Kedron is starting to take off but you can't buy houses for much under 550K. I like Northgate as well but again it's getting expensive. Aspley, Zillmere and Taigum (about 12 km from CBD) have plenty of housing under 550K and are all great prospects as they are all close to all facilities ie transport, schools, shopping.
 
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Anna

There are many parts of Auchenflower with the right zoning which can be picked up for less than the median price. Would be looking at older style property.

I like Taringa although you would be looking at units / townhouses.

At a lower price might want to look at suburbs like Stafford / Mt Gravatt.

Cheers
 
Consider some diversification

Brisvest,

Have you had a look at your overall portfolio and thought about trying to increase its yield?

Also I see you putting a lot of eggs in one basket and fairly quickly. You could diversify to other areas that are getting ready to take off with infrastructure growth. For example if the floods happen again your whole portfolio could suffer (go underwater? sorry...bad pun)
 
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