Whether to invest in Springwood QLD??

Hi I am a first time investor and still looking to buy my 1st investment property.

I have done some research in Melbourne in the new estates far from the city which fits my budget $330 - $350K

I just looked into Springwood QLD and found townhouses worth around $300K

And rent at and around $330-$340 Per Week mark


So it seems that its a good buy in terms of yield and only 20Kms from city.

Am I on the right track here?

if anyone has invested in the area can share their view around capital growth and future development of the area.

My budget is $350 Max

I don't know Springwood well, but I know it's one of those suburbs that is quite well regarded even though it's close to crappy suburbs. I'd definitely consider buying there because of the busway. If you're not aware, Brisbane's south is all about the bus ways. The train down south is useless and when people buy near a train station it's like "oh that's nice, I might use it one day...". Almost all major bus routes will take you to the CBD faster than a train. This advice doesn't apply to the northern suburbs btw.

If you can buy near the Springwood terminal then yes I think it's worth a look. As the population grows I predict living near those bus ways / major terminals is going to be a huge draw card. Springwood is one of the half dozen or so suburbs in the south lucky enough to get one:


At one point in time I was considering making a big bet on the bus ways and buying all my properties near them. But I've since changed my strategy but you can tell just how much I love them:)
I have a townhouse in Underwood worth around $350k (it is about 6 years old) and rents for $410/week. It has had practically 0 vacancy in that time but it has also had 0 capital growth.

Underwood is the other side of the freeway to Springwood and has a mixture of older homes and newer estates.

Underwood houses have risen 10%+ in the past year but still almost no growth (yet) for townhouses.

I think houses in springwood will get you capital growth in the near term, but you may have to wait longer for townhouses since they will be more in demand by investors (and I think the investor wave has really yet to hit Brisbane/Logan).

If you need capital growth in short term, I would buy a house but you'll need to go up to around the $400k mark and your yield will be less.

If you need more cashflow now and can wait around for capital growth, then a well-located townhouse should be fine.

I think springwood has great potential, the new Logan town plan has recently rezoned some residential areas as "high rise" meaning that springwood is earmarked to become even more of a central business and jobs location. The south east freeway was recently widened in this area as well as a small extension of the dedicated busway from Eight Mile Plains to Rochedale South.