QLD High Rental Areas for first PPOR

[Bangers]

Currently looking for my first home (PPOR) which I will be, at a later date converting into my first IP. I'm just having trouble deciding areas worth buying into.

The area's I really like are sunnybank, Toowong/Taringa/Auchenflower or Annerly. All of which I think should be okay for continual rental throughout the year, plus I wouldn't mind living in them either for the initial 6-8 months before I convert them into an IP.

I'm not really sure what my question is, but can you go wrong with an apartment/unit/maybe townhouse (I'm not a fan of townhouses) in the above areas?
Are these areas in the middle of a boom? Or currently recovering from a boom?

I personally REALLY like Taringa area, slightly cheaper than Toowong, but very close to Indro shops/public transport, and close to alot of things I need (sport fields etc)

Thanks,
Matt

 

[alexlee]

Hi, Matt,
One thing I haven't heard you mention is the numbers. What do the numbers look like? Purchase price, expected rents, demographics, average incomes, historical growth rates, etc? Whether an IP is 'good' depends on what the numbers look like.

Do you know what the median prices for a unit in those areas are? If you plan to convert it into an IP soon, does it matter whether you 'like' townhouses or not? After you move out, it'll all be about whether your tenants like it. Your own views no longer matter, and buying properties in areas that only you like, buying property types that only you like may lead you to miss out on a lot of good deals.

I have no desire to live in any of my IPs, but that doesn't stop me from making money from them.
Alex

 

[chadsimons]

Bangers,

I also like the Sunnybank area, but you really do need to look at the numbers, especially if your long term strategy is to have it as an I/P. Get comparisons for the last 6 months on the area, get rental comps as well. Even speak with town planning/or the council and find out what the long term plan is for these areas.

Good luck.

 

[sue78]

The returns in sunnybank are ok but it's good for CG.

Checkout www.villaworld.com.au at Knightsbridge, Parkinson. Brand new house & land from $300k. My PM rented a new house cost $315k at $380p.w Which is pretty good considering loganlea is $300k rented at $270 p.w for a brand new house.

That's a great deal considering the houses are really nice and completely finished and being new you can claim maximum depreciation.

We are building an IP in Kuraby $300k and epected rental of $380p.w but a lot of effort.

Parkinson is a nice suburb and command hgh rental demand from famillies, it's also sought after from renters with demand exceeding supply. Parkinson has also been through tremendous growth in the past 2 years.

Taringa will always be a good area as it's close to UQ. Maybe check out older style units there.

 

[willair]

The area's I really like are sunnybank, Toowong/Taringa/Auchenflower or Annerly. All of which I think should be okay for continual rental throughout the year, plus I wouldn't mind living in them either for the initial 6-8 months before I convert them into an IP.

Bangers,
imho.
Maybe have look at Annerley,a lot of development is still happening
i,m told that you can still buy 3 bed/old style on small blocks,
good transport,shops,private and public school,yeronga tafe.
Only my personal opinion but Annerley is in some places still at
the same entry price as it was in late 2004 still under the 310k
mark, you will have no problems with rental part the bottom line
for a three bedroom at annerley starts at $280.00 and once the
Green bridge links up Dutton Park to the QLD uni/early next year/
then you may even see some very fast c/g..
do your own homework ..............
good luck willair.......

 

[mja]

Hi there,

See if you can get a house in Taringa. It's a suburb that's within 5 minutes walking distance to Taringa train station, and a quick 15 minute train ride into Brisbane.

There's a few units in Taringa - see if you can get a house that could have some development potential for at least a townhouse or duplex.

-- MJ.