New to the game, Perth or Brisbane?

[srwx]

Hi all,

I've been snooping around this forum for quite some time now trying to figure out what's best for me in my current situation.

I'm looking to get into real estate for a while. I'm currently in the process of making the decision of Perth or Brisbane. It's been suggested to me that I should do a house/land package in Alkimos, WA but I've got this little inkling inside of me saying that Brisbane is a better option?

I work away and am happy to build or buy an established place.

Alkimos has me questioning things...500k for something wayyyyy out of the CBD is just a bit weird to me. I'm not sure that the growth that has been predicted will actually happen and I'm also struggling to see the place being rented in a year from now.

However I know Brisbane as I lived there for 15 years. It also seems like you get more bang for buck over there.

I spose at the end of the day I'm asking for opinions on laying down 500k to build a 4x2 in Alkimos vs something else, just not quite sure what that is yet.

Thanks for your time and sorry for the questions but this process is a little daunting.

 

[RPI]

I am a fan of going with what you know for your first one.

 

[stumpie]

Hi all,

I've been snooping around this forum for quite some time now trying to figure out what's best for me in my current situation.

I'm looking to get into real estate for a while. I'm currently in the process of making the decision of Perth or Brisbane. It's been suggested to me that I should do a house/land package in Alkimos, WA but I've got this little inkling inside of me saying that Brisbane is a better option?

I work away and am happy to build or buy an established place.

Alkimos has me questioning things...500k for something wayyyyy out of the CBD is just a bit weird to me. I'm not sure that the growth that has been predicted will actually happen and I'm also struggling to see the place being rented in a year from now.

However I know Brisbane as I lived there for 15 years. It also seems like you get more bang for buck over there.

I spose at the end of the day I'm asking for opinions on laying down 500k to build a 4x2 in Alkimos vs something else, just not quite sure what that is yet.

Thanks for your time and sorry for the questions but this process is a little daunting.

Have you worked out a strategy yet? once you have a plan then i think the what and where to buy will come to you logically.

the perth vs brisbane debate is only a small part of the equation of the overall strategy, to me this is mainly a timing the market question. brisbane is starting to come out of a 5 year slump and its playing catch up with syd, melb and perth.

keep asking questions here and there are very experienced investors here on SS that will help and provide guidance.

 

[srwx]

Have you worked out a strategy yet? once you have a plan then i think the what and where to buy will come to you logically.

the perth vs brisbane debate is only a small part of the equation of the overall strategy, to me this is mainly a timing the market question. brisbane is starting to come out of a 5 year slump and its playing catch up with syd, melb and perth.

keep asking questions here and there are very experienced investors here on SS that will help and provide guidance.

No I don't think I've a strategy yet. At this present point in time I am just hoping to get my foot in the door, get some equity up whilst continuing to save in the time it takes to build and from there I plan to buy at least 1 more property. I plan on holding the properties for a good 5-10 years at this present point in time.

For me at the moment, it's just about using the money I've got saved up and putting it to good use, rather than sitting in the bank doing nothing. That and also overcoming the fear of your 1st property I spose.

No quite sure if that's a strategy or not haha.

 

[stumpie]

No I don't think I've a strategy yet. At this present point in time I am just hoping to get my foot in the door, get some equity up whilst continuing to save in the time it takes to build and from there I plan to buy at least 1 more property. I plan on holding the properties for a good 5-10 years at this present point in time.

For me at the moment, it's just about using the money I've got saved up and putting it to good use, rather than sitting in the bank doing nothing. That and also overcoming the fear of your 1st property I spose.

No quite sure if that's a strategy or not haha.

buy and hold is one of many strategies, but you'd want to really determine the end goal. what do you really want to achieve and when so for example; you would like to attain 200k in gross income by the time you turn 40. once you know where you want to be then the next step is figuring how to get there and what you need to do to get there. try reading the book "the property puzzle" it will give you an overall idea of what you really need to think about before you start buying anything.

 

[strongy1986]

Hi all,

I've been snooping around this forum for quite some time now trying to figure out what's best for me in my current situation.

I'm looking to get into real estate for a while. I'm currently in the process of making the decision of Perth or Brisbane. It's been suggested to me that I should do a house/land package in Alkimos, WA but I've got this little inkling inside of me saying that Brisbane is a better option?

I work away and am happy to build or buy an established place.

Alkimos has me questioning things...500k for something wayyyyy out of the CBD is just a bit weird to me. I'm not sure that the growth that has been predicted will actually happen and I'm also struggling to see the place being rented in a year from now.

However I know Brisbane as I lived there for 15 years. It also seems like you get more bang for buck over there.

I spose at the end of the day I'm asking for opinions on laying down 500k to build a 4x2 in Alkimos vs something else, just not quite sure what that is yet.

Thanks for your time and sorry for the questions but this process is a little daunting.

Brisbane is better bang for your buck as you said

Brisbane is a bigger city

Brisbane is cheaper

Perth has experienced a few years of solid gains and now it has flattened - end of the up cycle , beginning of flat period?

Brisbane has experiences 5 years of zero to negative growth and 6 - 12 months of catch up - early stages of up cycle

The same location as alkimos in brusbane would cost 250k - deception bay
So half the price

 

[Michael_X]

Concur on Brisbane too.

In saying that, as it's your first IP could be better to purchase closer to home - know the market better.

 

[thatbum]

I am a fan of going with what you know for your first one.

+1 for this. Wherever you know the market well.

 

[Rixter]

If its short to mid term CG you're looking for as part of your overall investment strategy, then I would put the capital somewhere into the Brisbane marketplace.

In particularly within or adjacent to one of the satellite cbd's around the metropolitan area.

As previously mentioned Brisbane in general is over due for market correction heading upwards.

I hope this helps.

 

[dajackal]

In particularly within or adjacent to one of the satellite cbd's around the metropolitan area.

Would this be the likes of Chermside? Which satellite CBD has the best prospects?

 

[RetireRich101]

Brisbane has experiences 5 years of zero to negative growth and 6 - 12 months of catch up - early stages of up cycle

That is so true.
If you look for a property in Brisbane that was sold in 2009, and is again selling today, you find there is a very small difference with +/- of less than 5%.

Surely a 20-30% recovery in the next 3 years regardless of economic condition, isn't a much ask?

 

[MTR]

Unless you can identify the areas in Perth that are rising and there are not too many at the moment.... my money would be on Brisbane at the moment,.

Cheers
MTR

 

[westminster]

If I had to choose between Alkimos and Brisbane then I'd pick Brisbane.

The 2 markets are sooo different. Alkimos is not likely to see the growth that a good purchase closer to CBD in either Perth or Brisbane would see.

If you know Brisbane then I would go Brisbane

 

[Rixter]

Would this be the likes of Chermside? Which satellite CBD has the best prospects?

All the major high employment hubs with good road infrastructure, good public transport, major shopping precincts, educational facilities, medical facilities and recreational facilities .

You tell me which ones they are - it's how we learn to fish.

 

[srwx]

You guys sure have made my decision a lot easier. Thanks so much for the honest feedback. I bought "The Property Puzzle" a suggested and have started reading it.

I'm planning on buying and holding, this is to be the 1st of many I hope. Long term I'm hoping for a passive income so I can do what I love doing, playing in the snow.

I've got another question?Buyers Agents - are they worth the investment? I don't want to mess this up!

Thanks again guys.

 

[JDP111]

All the major high employment hubs with good road infrastructure, good public transport, major shopping precincts, educational facilities, medical facilities and recreational facilities .

You tell me which ones they are - it's how we learn to fish.

Indooroopilly, Chermside, mt Gravatt, Carindale are the mini cbds. They are all about equidistant from Brisbane cdb [ in different directions- west,north,south, and east respectively].

there ya go- I caught the fish for you. Personally I would prefer Carindale because I think its got that mini hub positioning [ between Brisbane and the bay side suburbs] as well as I think itll soon [ next 3-5 yrs] get eastern busway servicing it directly.

 

[JDP111]

You guys sure have made my decision a lot easier. Thanks so much for the honest feedback. I bought "The Property Puzzle" a suggested and have started reading it.

I'm planning on buying and holding, this is to be the 1st of many I hope. Long term I'm hoping for a passive income so I can do what I love doing, playing in the snow.

I've got another question?Buyers Agents - are they worth the investment? I don't want to mess this up!

Thanks again guys.

and what are you trying to do exactly with a BA? i.e What is your motivation to utilise a BA?

 

[srwx]

Oh lordy, I don't know. Maybe what I need is a mentor!? I guess just looking for guidance and what not. I'm in the top tax bracket so I don't know if building in Bracken Ridge/Carseldine area or hell, even Towoomba. Orrrr if buying established is the way to go. 500k is around my limit. Someone to ask these silly questions and help guide me.

 

[dajackal]

You tell me which ones they are - it's how we learn to fish.

this map is quite useful but i'm still curious which centres will develop more than others....
http://www.brisbane.qld.gov.au/site..._and_growth_nodes_strategic_framework_map.pdf

couldnt find anything on jobs growth forecasts

edit: googlefoo found me this link:
http://www.brisbane.qld.gov.au/sites/default/files/Brisbane_Long_Term_Infrastructure_Plan-full.pdf

seems like of the 4 mini CBDs Mt Gravatt will have the most jobs growth, followed by Chermside. however, both will be overshadowed by jobs growth in Brisbane CBD...so commute to CBD is probably more important!

 

[stumpie]

Oh lordy, I don't know. Maybe what I need is a mentor!? I guess just looking for guidance and what not. Someone to ask these silly questions and help guide me.

That's what SS and this forum will provide you. i'm not saying a BA doesn't represent value but the only way you're going to get more knowledge and educated is to start researching the micro economics of the target market which you have now more or less decided i.e. brisbane so for example if someone recommends mt gravatt then use reindex or yourinvestmentproperty.com to get some data about these suburbs. the info you'll want is last year's growth, last 3 year's growth, average 10 year growth, median income, median price, % rental vs owned etc etc learn which streets in the suburb are good but more which ones to avoid. the more time you spend on your target suburb the more intimate you'll know it in terms of pricing, street, rental income, potential renovation to manufacture equity, anything that comes onto the market you will know instantly if it represents good value.