NorthWest Sydney or Brisbane - First time property investor need opinion

[LukeDing86]

Hi,

Me and my wife are both a first time property investor looking forward to buy our first investment property for budget around 450k-500k recently. However we want some opinions on whether we should buy in NorthWest suburb of Sydney or in Brisbane at the moment.

Both me and my wife are currently living in Sydney. The options we have for our budget is either to buy a property either 50km from city center in Sydney(eg. Mount Druitt) or 10km from city center in Brisbane(eg. Upper Mount Gravatt).

The reason we consider Brisbane is before i moved to Sydney i have spend two years working there and know the area a bit. And we will likely to move to their again if there it has a better job opportunity.

We are planning to use buyer agent to help us find a good deal once we made the decision.

Any opinion will be appreciated. Thanks.

 

[qonyx_sydney]

Hi,

Welcome to the the group.

My opinion is that you if you can do enough due diligence remotely that you would be better in Brisbane.

My rationale as follows;

(a) Sydney is currently at the peak of the property cycle and you will likely see subdued Capital Gains over the short to medium term
(b) Observation is that Brisbane is currently in the rising stage of the property cycle
(c) Rental returns in Brisbane will generally be better (however this may be on parr with Mt Druitt)
(d) For the same money in Brisbane you would likely be able to purchase in a more desirable area and therefore have the upside of Capital Gain

Property Cycle report listed below

No such thing as Good Luck.... but Due Diligence!!

Herron Todd White publish this data http://www.htw.com.au/
Go to their month in review link on their website.
It is usually the last few pages of a 70+ page report.

BUT it is not always accurate to work out where in the cycle each place is at by "logically work through by assessing all the data available to establish this". And if you are a long time observer, you will see some inaccuracies and wrong conclusions from any number of the data analysis outfits, from time to time.

 

[JDP111]

Hi,

Me and my wife are both a first time property investor looking forward to buy our first investment property for budget around 450k-500k recently. However we want some opinions on whether we should buy in NorthWest suburb of Sydney or in Brisbane at the moment.

Both me and my wife are currently living in Sydney. The options we have for our budget is either to buy a property either 50km from city center in Sydney(eg. Mount Druitt) or 10km from city center in Brisbane(eg. Upper Mount Gravatt).

The reason we consider Brisbane is before i moved to Sydney i have spend two years working there and know the area a bit. And we will likely to move to their again if there it has a better job opportunity.

We are planning to use buyer agent to help us find a good deal once we made the decision.

Any opinion will be appreciated. Thanks.

I don't think you need a BA as you are already familiar with Brisbane.
From a capital growth perspective, id pick 10km from Brisbane CBD over 50km Sydney cbd anyday.

 

[LeoT]

Brisbane. House. Forget unit, that's for sure IMO.

Skip BA if you can.

 

[LukeDing86]

Thanks guys. Your feedback are really appreciated.

I have heard a lots of people from this forum said that the Brisbane is going to boom in the coming years. However one thing which drag us away from Brisbane is that me and my wife do not have our own property yet. So we might need a property can be served as an investment as the start, but will be able to become home for us as well in the future if we decide to stay in Sydney for longer.

As for the question of the buyer agent. It is our first time doing a property investment, and it is going to be the biggest money we are going to spent in our life so far. So both my wife and I would rather get someone has been in the industry for a while to help us at the stage.

Again, thanks you guys for the suggestion

 

[Tyla]

Brisbane and I think you might need BA, but all good ones might be too busy now.

 

[qonyx_sydney]

Brisbane and I think you might need BA, but all good ones might be too busy now.

What is a reasonable price for a buyers agent.

I called one in Brizzy the other week and she told me the price was $10k....is this a normal price?

 

[ZOMG]

What is a reasonable price for a buyers agent.

I called one in Brizzy the other week and she told me the price was $10k....is this a normal price?

Yep $10k seems standard in Sydney and Bris, usually it's retainer fee of ~$2000 for them to start looking and pay the rest when property is settled.

 

[Tyla]

Sounds normal. But I do urge you do your thorough DD to make sure the BA is worth the money and can deliver what you want. Be careful with their recommendations (not just from BA, from anyone including myself if $ is involved). Ask them to validate their appraisals and valuation with comparable figures. it is your money and you are the one with a lot to lose if it doesn't go well.

 

[baby blue eyes]

I know someone who used metropole prop for a unit in maroubra this winter and they charged $17,500 BA fee percentage based on purchase price.

In addition they used offset money $120k not equity for a deposit, and now are looking for a new home for their expanding family., no offset money left for this purchase. Pretty poor structuring advice for newbie investors.

 

[LeoT]

From some people I have spoke to, I am very, very unimpressed with Metropole.

I actually spoke to Michael Yardney a few years ago and I found him to be rude, arrogant and unimpressive.

Personally I wouldn't use this company for anything.

 

[eggnog]

Rent returns may be higher here in Brizzy but make sure you look at overall yield. I dont know what its like in Sydney but i do hear stories from southerners that we pay way too much on things like council rates, management fees, we even pay for water unless you pay for a plumber to make your property water wise.

 

[DaveM]

North west syd has had a mini boom then a major boom over the past 24 months. Prices are up 150-200k over start of the year for many family suburbs. Rental yields are poor.

Combination of low yields and buying into a hot market thats already had a big price jump... not an investment I would make.

 

[RetireRich101]

North West is the Hills district, such as Castle Hills, Baulkham Hills, Rouse Hill etc.
Mount Druitt is Western Sydney. There is a considerable price difference.

 

[Rolf Latham]

Combination of low yields and buying into a hot market thats already had a big price jump... not an investment I would make.

valuers have been expressing this for the last 12 mths.

they have been wrong b4, but I do get concerned for folks looking at the 80 % growth and expecting same b4 next cycle............

ta
rolf