Where to buy 2nd Investment Property?

Hi All,

I purchased my first investment property in Brisbane before 5 months. I am now ready for my second property. I had paid 20% deposit for this property, prices haven't moved much since I bought so don't plan on using the equity. I have deposit of 100k so looking to use that, Hence looking for property around 500k,

First property is nearly neutral CF, I am looking for second property with more CG potential hence can accept some negative CF on this. I am still at broad level of comparing locations. At this stage my thinking is leaning towards Gold coast\Melbourne\Adelaide. Gold coast and Adelaide is on list considering the position on property cycle with both having potential to rise but timing not sure. Melbourne is a rising market and not as ridiculous as Sydney yet hence thinking of this as well. Ruled out Perth has have got some time with Perth hence will target this for 3rd property. From what I have heard so far, people are not prioritising Adelaide so much as it moves at slower pace compared to others.

I am still open to any other location. Can you all please help me with the process of narrowing this down and share your thoughts on this. Thanks for your help.

Cheers
AVS
 
Gold Coast and Adelaide are both viable options.

Gold Coast is currently in recovery mode and vacancy rates are approx 1% at the moment. Look for existing houses in land locked areas from Burleigh to Broadbeach.

Also, consider a 90% lend and 'keep some powder dry' as a buffer or next purchase.

Cheers

Cash Flows
 
Gold Coast and Adelaide are both viable options.

Gold Coast is currently in recovery mode and vacancy rates are approx 1% at the moment. Look for existing houses in land locked areas from Burleigh to Broadbeach.

Also, consider a 90% lend and 'keep some powder dry' as a buffer or next purchase.

Cheers

Cash Flows

Hi Cash Flows,

Apart from Burleigh and Broadbeach, what are some suburbs around the Gold Coast area that I should start investigating in?
I'm also looking around this region for IP number 2 in 3 months time.

Cheers,

Taku
 
I dont know what your Investment Big Picture is but if its to build a substantial size portfolio to exit the rat race, have you thought about diversifying somewhere else but still within the Brisbane market. Thereby maximising their market correction to your full advantage?
 
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Gold Coast and Adelaide are both viable options.

Gold Coast is currently in recovery mode and vacancy rates are approx 1% at the moment. Look for existing houses in land locked areas from Burleigh to Broadbeach.

Also, consider a 90% lend and 'keep some powder dry' as a buffer or next purchase.

Cheers

Cash Flows

Thanks Cash Flows. I will look in to the suburbs suggested by you. Will it be better to pay LMI and keep some money in offset compared to making a safe 20% deposit payment?
 
I dont know what your Investment Big Picture is but if its to build a substantial size portfolio to exit the rat race, have you thought about diversifying somewhere else but still within the Brisbane market. Thereby maximising their correct to your full advantage?

I started with that thinking Rixter but concluded that it would be better to diversify in some other city at present rather than purchasing second property in same city at same stage of property cycle. It will help me reduce the risk.
 
I started with that thinking Rixter but concluded that it would be better to diversify in some other city at present rather than purchasing second property in same city at same stage of property cycle. It will help me reduce the risk.

I would of thought purchasing at the current stage of Brisbane market would be the lowest risk over another market with a longer CG wait potential?
 
Look at Reedy Creek and Mudgeeraba, really good deals in these suburbs and close to everything...M1, beach, Robina Town Centre and Varsity Lakes which are quickly becoming fast growing business/commercial areas, which in turn create jobs. Also excellent schools in the area, how do I know??, because I live here!
 
Look at Reedy Creek and Mudgeeraba, really good deals in these suburbs and close to everything...M1, beach, Robina Town Centre and Varsity Lakes which are quickly becoming fast growing business/commercial areas, which in turn create jobs. Also excellent schools in the area, how do I know??, because I live here!

Will do.
Do you own any investments there also?

Also, what do you think of townhouses/villas in and around the area?
Do you think potential for CG is just as promising as houses?

Thanks for the advice!


Cheers,

Taku
 
You wont find much for $500,000 from burleigh to broadbeach. You may find an old 3 bedroom house in Miami or Palm Beach both areas I would recommend. Very popular at moment. Southport as well you might find house Chirn Park area is popular and light rail extension has just been confirmed out to Helensvale so maybe try and find the route for some quick CG. We just found 4 bed place in mermaid waters for $550,000 but its our PPOR and will require reno.
Im not overly convinced the GC is a great invesment spot ( we made much more money out of Sydney)
 
If you have one in qld i would go for SA. If you buy $250 - $375k you can get around the 5-6% yields but if you start looking at properties around $500k you will prob get around the 4% range.
 
Im not overly convinced the GC is a great invesment spot ( we made much more money out of Sydney)

I agree on Sydney but at this stage it is not a feasible option since it is at top of market on other hand GC is still coming out of recovery stage hence thinking of it.
 
Look at Reedy Creek and Mudgeeraba, really good deals in these suburbs and close to everything...M1, beach, Robina Town Centre and Varsity Lakes which are quickly becoming fast growing business/commercial areas, which in turn create jobs. Also excellent schools in the area, how do I know??, because I live here!

I will look in to this Jude. Thanks for your suggestion.
 
If you have one in qld i would go for SA. If you buy $250 - $375k you can get around the 5-6% yields but if you start looking at properties around $500k you will prob get around the 4% range.

You suggesting buying a unit compared to house for 250-375k or buying further out in suburbs like Elizabeth\Norlunga etc?

I am tempted for Adl, the only thing I am worried about is that I may not get much CG in next 1-2 years to give me leverage.
 
Will do.
Do you own any investments there also?

Also, what do you think of townhouses/villas in and around the area?
Do you think potential for CG is just as promising as houses?

Thanks for the advice!


Cheers,

Taku

Yes we have 3 investment properties in Reedy Creek in the same street as my kids school....purchased 3/2/2, 18 months ago for $227,500, $235,000 and $260,000...All renting for around $380 week, and still have the same tenants...vacancy rate in Reedy Creek is 1% at the moment....Also have a PPOR in Mudgeeraba near Somerset School, the best school on GC....hope this helps.
 
You suggesting buying a unit compared to house for 250-375k or buying further out in suburbs like Elizabeth\Norlunga etc?

I am tempted for Adl, the only thing I am worried about is that I may not get much CG in next 1-2 years to give me leverage.

I would buy south along the coast. From osullivan beach through to Moana. o sullivan beach just got 13% growth last year...
 
You suggesting buying a unit compared to house for 250-375k or buying further out in suburbs like Elizabeth\Norlunga etc?

I am tempted for Adl, the only thing I am worried about is that I may not get much CG in next 1-2 years to give me leverage.

Hi AVS

Please keep in mind that there is no single Adelaide property market, market is fragmented and different areas perform differently, even within the same suburb.... It can be quite misleading to look at the overall stats for the whole city.

For example the demand for quality real estate in the eastern suburbs is strong and is growing steadily while the supply, particularly at the more affordable end, is getting tighter (e.g. units). Consequently, prices have gone up in some of these suburbs and some types of property 5-10% in less than a year....

Some other properties that seem to be achieving good prices and selling well are the quality newer properties, fully renovated family homes as well as subdivision sites in the middle-ring suburbs. My experience is that prices for quality comparable properties have gone up 8-10% in the past two years.
 
Yes we have 3 investment properties in Reedy Creek in the same street as my kids school....purchased 3/2/2, 18 months ago for $227,500, $235,000 and $260,000...All renting for around $380 week, and still have the same tenants...vacancy rate in Reedy Creek is 1% at the moment....Also have a PPOR in Mudgeeraba near Somerset School, the best school on GC....hope this helps.

Thats great Jude. How are those property tracking for CG?
 
All,

After my few days of research, I am now leaning more towards QLD. At this stage I am thinking of keeping Gold Coast and Brisbane as priority.

I am ruling out Adelaide considering it is still in recovery stage, I feel will get higher returns in QLD market in current condition.

What do you guys think of this? Thanks for your help so far to get me one step closer :)
 
All,

After my few days of research, I am now leaning more towards QLD. At this stage I am thinking of keeping Gold Coast and Brisbane as priority.

I am ruling out Adelaide considering it is still in recovery stage, I feel will get higher returns in QLD market in current condition.

What do you guys think of this? Thanks for your help so far to get me one step closer :)

I Would agree. Of brisbane vs gc, I would prefer brisbane somewhere close to the CBD as I believe the gdp/jobs growth of the CBD will drive cg. Need to watch out for supply of apartments. Try to get something with location and some land as those two things will ensure cg.
 
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