The next steps

[sandyfeet]

Hi all, I am heading upto to SE QLD for a week in July to have a look around at some areas of interest. I am hoping to get some feedback on a few things:

We are planning to make these purchases this year with the aim of achieving some consistent growth into the future and these will be long term holds. We will be taking 90% loans and are happy to spend upto $600k depending on the type of property.

The 2 options we are considering are:

a) 2 x townhouses/villas at a combined value of $600k (To expose ourselves to 2 markets and maximise the borrowing capacity we are comfortable with atm) The areas we are considering are a combination of Redcliffe Peninsular/Boondall and Beenleigh/Eagleby/Mt Warren Park/Toowoomba.

b) 1 house at a max value of 450k (A max amount that we are comfortable spending on one property) Redcliffe Peninsular, Boondall.

Im happy to provide more specific info Re: the options above if needed.

How do people think these options would perform over the long term?
Any suggestions of good/bad areas in the above suburbs and things of particular interest (to an investor ) I should check out whilst visiting?

Also, if anyone is free and wants to catch up when i'm visiting to offer any specific advice to an area they are familiar with, I'll shout lunch

Thanks in advance,

 

[superAndrew]

Hi

How did you come up with those areas?

Andrew

 

[sandyfeet]

Hi

How did you come up with those areas?

Andrew

For option a) I think the peninsular will be a good growth performer over the longer term as I believe it will be an area that will see a lot of older homes spruced up/knocked down over time and it is pretty much landlocked until you get to North Lakes. The Rail Link will help in years to come also. A townhouse/villa in that area will also be appealling to retirees downsizing in the area over the years to come. I mentioned the other areas in Logan as an area that will see some growth (perhaps not massive) years to come due to its proximity to Bris and GC, and the yields are also attractive, especially if we purchase upto a total of $600k and lose part of my wifes income for a period due to starting a family.

For option b) Same as above for Redcliffe Peninsular.

The price point and locality of Boondall is what has interested me so far. It also has a very high rate of owner occupiers, train line to CBD. Compared with areas like Taigum/Zillmere I like the fact that it has a high oo rate and larger numbers of established houses vs townhouses.

Thanks,

 

[superAndrew]

Personally for growth I would stick closer to Brisbane City and would stay away from Toowoomba.

Andrew

 

[sandyfeet]

Thanks Andrew,

We are personally leaning towards the idea of a $350-$450k purchase in Brisbane. On the southern side what do people think of Annerley/Moorooka/Holland Park/Mount Gravatt? Is there much value there still for townhouses? Or should we look to move further out for a house in this price range?

Thanks

 

[Cash Flows]

Personally for growth I would stick closer to Brisbane City and would stay away from Toowoomba.

Andrew

Andrew, why would you stay clear of Toowoomba if you are looking for growth?

It has a history of long and stable growth with great infrastructure coming into the area.

Cheers

Cash Flows

 

[superAndrew]

There has been some high growth during the last 2 years in Toowoomba but before that it was quite flat.

Personally I don't think that it will continue for too long and prices will correct themselves.

 

[Cash Flows]

There has been some high growth during the last 2 years in Toowoomba but before that it was quite flat.

Personally I don't think that it will continue for too long and prices will correct themselves.

Fair call Andrew.

Toowoomba will soon have one of the lowest unemployment rates in the country and the median house price is below that of AUS/QLD median house price.

IMO this diverse regional economy has a lot more upside albeit not the high growth rate we have seen in the past 18 months.

Cheers

Cash Flows

 

[Cash Flows]

Hi all, I am heading upto to SE QLD for a week in July to have a look around at some areas of interest. I am hoping to get some feedback on a few things:

We are planning to make these purchases this year with the aim of achieving some consistent growth into the future and these will be long term holds. We will be taking 90% loans and are happy to spend upto $600k depending on the type of property.

The 2 options we are considering are:

a) 2 x townhouses/villas at a combined value of $600k (To expose ourselves to 2 markets and maximise the borrowing capacity we are comfortable with atm) The areas we are considering are a combination of Redcliffe Peninsular/Boondall and Beenleigh/Eagleby/Mt Warren Park/Toowoomba.

b) 1 house at a max value of 450k (A max amount that we are comfortable spending on one property) Redcliffe Peninsular, Boondall.

Im happy to provide more specific info Re: the options above if needed.

How do people think these options would perform over the long term?
Any suggestions of good/bad areas in the above suburbs and things of particular interest (to an investor ) I should check out whilst visiting?

Also, if anyone is free and wants to catch up when i'm visiting to offer any specific advice to an area they are familiar with, I'll shout lunch

Thanks in advance,

Sandyfeet, sorry to hijack your thread!

In answer to your question, I would most definitely take option 1 and go for x2 townhouses.

Advantaged include; Most likely have better cash flow, Can diversify your portfolio geographically and Less risk with vacancies

Cheers

Cash Flows

 

[sandyfeet]

Thanks for the comments guys,

Cash Flows, I agree with your comments and we are trying to identify areas that would best suit our strategy of townhouse/villa, land component (courtyard etc), <10 yr old for depreciation, $300-450K and in an area without too much supply of this type, any suggestions anyone? We are focussing on Bris and surrounds but are open to other suggestions,

Cheers, Sandyfeet

 

[Cash Flows]

How is the search going sandy feet???

 

[sandyfeet]

Hey Cashflows,

Had a good week up there looking around. I know some buy site unseen (whether they have been to the suburb - who knows?), but I wouldn't be confident with this approach. The trip certainly confirmed some areas for me and I was happy to give up on others. Just waiting on titles and finance to be settled on some villas and I'll be visiting again in the next month.

I like East/Mount Gravatt, Coorparoo, Zillmere, Redcliffe Peninsular,

 

[Cash Flows]

Great news sandy feet.

I also like mt gravatt.

please keep us posted with what you end up doing