Next IP in Sydney or Brisbane?

[kennyboi]

I am looking for another IP (freestanding) of approx. 600k, but I can't decide where to buy. If it was you, what would you choose and why?

In Sydney, the choices for this price bracket seems to be west of Wentworthville, which is >30km away from CBD, and includes shady suburbs like blacktown, st marys....

In Brisbane, the choices are much closer to CBD @ >5km. However, capital growth seems slower.

 

[RPI]

Capital Growth has been slower in Brisbane. Our cycles tend to lag yours so would expect that we would pick up and you would slow.

 

[Rolf Latham]

In Brisbane, the choices are much closer to CBD @ >5km. However, capital growth seems slower.

slow over what time frame Id question

Someone will have the stats over the last 30 years for comparing Wenty to say Chermside

ta
rolf

 

[see_change]

http://www.propertyobserver.com.au/...not-double-in-value-in-the-past-10-years.html

Brisbane has underperformed in the last ten Years compared with Sydney .

Sydney is 20 % above its previous peak . Brisbane is below its precious peak .

Do you want to buy somewhere that has already has a reasonable percentage of growth in this cycle , or somewhere that hasn't .

Cliff

 

[Tonibell]

Western Sydney should get a lot of benefit from all the infrastructure projects over an extended period of time. It is also good that you can put on a granny flat and rent it separately out there.

The yield from that will be much better than place 5 kms from Brisbane CBD.

There are also can be some benefits in investing closer to home.

Against that you have Brisbane seemingly at a good point on the property cycle compared to Sydney.

Depends on what you want and on your crystal ball.

 

[strongy1986]

Well you can invest in a nice suburb in Brisbane under 10k from the city
Or you can invest in a rough suburb in Sydney , 35 Ks out where the incomes earnt wouldn't even come close to those earnt in the good Brisbane suburbs

All for the same price! No brainer really

If you want to invest in some rough suburbs cheap then look at melbourne , there's heaps of them under 400k, 18 - 25ks from city

 

[dajackal]

Well you can invest in a nice suburb in Brisbane under 10k from the city

With a budget of roughly $400K, would you consider suburbs like Zillmere rough? Based on Census data it does seem a little rough compared to neighboring suburbs like Taigum and Boondall despite similar entry prices.

 

[INVSTOR]

Brisbane is looking really cheap compared to other states. I'm expecting to see some growth as people realise this.

 

[nhg]

Brisbane is looking really cheap compared to other states. I'm expecting to see some growth as people realise this.

Brisbane!

There are always deals in any market, but why look for the needle in a hay stack when there are a pile of needles in Brisbane/Adelaide.

 

[kennyboi]

Western Sydney should get a lot of benefit from all the infrastructure projects over an extended period of time. It is also good that you can put on a granny flat and rent it separately out there.

The yield from that will be much better than place 5 kms from Brisbane CBD.

There are also can be some benefits in investing closer to home.

Against that you have Brisbane seemingly at a good point on the property cycle compared to Sydney.

Depends on what you want and on your crystal ball.

I already had 2 in Sydney, so the pro of buying in Brisbane is land tax and diversifying portfolio.

However, it's difficult to buy one with lack of local knowledge and while in a full time job. How do you guys buy an IP interstate without a buyer agent?

 

[see_change]

I already had 2 in Sydney, so the pro of buying in Brisbane is land tax and diversifying portfolio.

However, it's difficult to buy one with lack of local knowledge and while in a full time job. How do you guys buy an IP interstate without a buyer agent?

Read the forum , look at the listing sites , ask questions of agents and the forum . Start building up rapport with some local agents .

I think most people will go and look , but the more research you've done , the quicker it takes .

Cliff

 

[michellegfranci]

Brisbane IP's

Allo,

I reckon Pimpama is the way to go.

The area is right, smack bang in between Brisbane CBD and the Gold Coast.
Not only that, the Government is dumping $11.8 billion into infrastructure, transport and tourism in the wake of the Commonwealth games to be held in 2018. (Watch the new schools, train stations, shops etc pop up now)

At the moment, the DVR scores and the likes are low, because the area is still 'new' and developers have flooded the market, BUT, IMO this is the place to be in ~10yrs.

All the stats are saying its ****, and you're buying at a price that reflects that, but seriously, development is only going to go one way as our population grows both in Brisbane and Gold coast, and you'll be crying tears of joy in the years to come when the place doubles in value, which is supposed to be the whole point in investment.

You can get a 4 bed 2 bath home on 500sm for low $400,000 with quality inclusions etc. I'd say thats a fair buy.

 

[strongy1986]

Allo,

I reckon Pimpama is the way to go.

The area is right, smack bang in between Brisbane CBD and the Gold Coast.
Not only that, the Government is dumping $11.8 billion into infrastructure, transport and tourism in the wake of the Commonwealth games to be held in 2018. (Watch the new schools, train stations, shops etc pop up now)

At the moment, the DVR scores and the likes are low, because the area is still 'new' and developers have flooded the market, BUT, IMO this is the place to be in ~10yrs.

All the stats are saying its ****, and you're buying at a price that reflects that, but seriously, development is only going to go one way as our population grows both in Brisbane and Gold coast, and you'll be crying tears of joy in the years to come when the place doubles in value, which is supposed to be the whole point in investment.

You can get a 4 bed 2 bath home on 500sm for low $400,000 with quality inclusions etc. I'd say thats a fair buy.

I reckon Tarcutta is the way to go. Smack bang between Sydney and Melbourne

Give it a spell mate

 

[mikezen]

Allo,

I reckon Pimpama is the way to go.

The area is right, smack bang in between Brisbane CBD and the Gold Coast.
Not only that, the Government is dumping $11.8 billion into infrastructure, transport and tourism in the wake of the Commonwealth games to be held in 2018. (Watch the new schools, train stations, shops etc pop up now)

At the moment, the DVR scores and the likes are low, because the area is still 'new' and developers have flooded the market, BUT, IMO this is the place to be in ~10yrs.

All the stats are saying its ****, and you're buying at a price that reflects that, but seriously, development is only going to go one way as our population grows both in Brisbane and Gold coast, and you'll be crying tears of joy in the years to come when the place doubles in value, which is supposed to be the whole point in investment.

You can get a 4 bed 2 bath home on 500sm for low $400,000 with quality inclusions etc. I'd say thats a fair buy.

Not sure if ur being serious or not, but I live near there and there isn't really much going for Pimpama...house and land packages with an abundance of farm land surrounding it..can't really see houses there worth 800+ in 10 years IMHO

 

[Beanie Girl]

Allo,

I reckon Pimpama is the way to go.

Are you pimp-ing Pimpama?

 

[RPI]

Pimpama = middle of nowhere with huge amounts of supply coming in the future. Very hard to see CG there.

 

[PHunt]

Hi RPI, all

I have seen on this thread that you mentioned about blue chip suburbs like Cooparoo, Camp Hill, Norman Park. These suburbs are quite expensive now and the rental yield might be a bit low. What's your view for CG over few years to come?

Much appreciated your feedbacks since I found these suburbs all have great school. In NSW, this has great impact on where people want their children to go, but I am not sure about Brisbane

 

[Freddie Mac]

Hi RPI, all

I have seen on this thread that you mentioned about blue chip suburbs like Cooparoo, Camp Hill, Norman Park. These suburbs are quite expensive now and the rental yield might be a bit low. What's your view for CG over few years to come?

Much appreciated your feedbacks since I found these suburbs all have great school. In NSW, this has great impact on where people want their children to go, but I am not sure about Brisbane

Some great value to be had in Brisbane

I bought 6kms west of the CBD in Indooroopilly. Massive infrastructure spend in the area - shopping mall upgrade, Legacy tunnel. It's also viewed as blue chip and the schools in that area are more highly rated than the suburbs that you mentioned. A lot of wealthy Chinese buyers - although I can't figure out if it is local money.

Spacious 15 yr old 3 bed, 2.5 bath townhouse - $430k.

Rent - Similar renting for $500-$520 pw
Strata fees = $36pw.
Rates = $35pw.
IO loan @4.86% based on 106% of purchase price = $428pw
Management Fees @8% of $520= $42 pw
Insurance = $10 pw
Water = $12pw

Total Income = $520 pw
Total Expense = $563 pw

Cash flow negative but CF+ with the great depreciation benefits. Great prospects for strong capital growth for the suburb. I view this area as lagging the inner east in growth. So basically great value suburb in a great value city. We shall see.

 

[rabidz]

I am looking for another IP (freestanding) of approx. 600k, but I can't decide where to buy. If it was you, what would you choose and why?

In Sydney, the choices for this price bracket seems to be west of Wentworthville, which is >30km away from CBD, and includes shady suburbs like blacktown, st marys....

In Brisbane, the choices are much closer to CBD @ >5km. However, capital growth seems slower.

I'm going for Brisbane. Because I think they are catching up with Sydney.

Some great value to be had in Brisbane

I bought 6kms west of the CBD in Indooroopilly. Massive infrastructure spend in the area - shopping mall upgrade, Legacy tunnel. It's also viewed as blue chip and the schools in that area are more highly rated than the suburbs that you mentioned. A lot of wealthy Chinese buyers - although I can't figure out if it is local money.

Spacious 15 yr old 3 bed, 2.5 bath townhouse - $430k.

Rent - Similar renting for $500-$520 pw
Strata fees = $36pw.
Rates = $35pw.
IO loan @4.86% based on 106% of purchase price = $428pw
Management Fees @8% of $520= $42 pw
Insurance = $10 pw
Water = $12pw

Total Income = $520 pw
Total Expense = $563 pw

Cash flow negative but CF+ with the great depreciation benefits. Great prospects for strong capital growth for the suburb. I view this area as lagging the inner east in growth. So basically great value suburb in a great value city. We shall see.

Wow.. Looks like a good one..
How many townhouse in the complex? High body corporate?

--

 

[eeew]

Hi RPI, all

I have seen on this thread that you mentioned about blue chip suburbs like Cooparoo, Camp Hill, Norman Park. These suburbs are quite expensive now and the rental yield might be a bit low. What's your view for CG over few years to come?

Much appreciated your feedbacks since I found these suburbs all have great school. In NSW, this has great impact on where people want their children to go, but I am not sure about Brisbane

these are great areas and although a bit pricey compared to others further out, they are often easy to rent, attract good quality tenants who can afford, and are willing, to pay good $ to live there.
Being quality suburbs and close to the CBD, this will ensure strong cap gains in the future.
If you cant afford these areas, look for neighbouring suburbs.
Regarding schools, good schools are always important for sustained growth. Being close to good schools make it attractive to a wider demographic, both for rent and sale.