Hi,

This i my first thread so please let me know if i do not supply all info needed for my questions.
i currently reside in Sydney and have 5 IP's in NSW some in regional areas and others in Sydney. My strategy has always been buy and hold and i prefer properties with a yield of over 4.5%. I am currently considering buying my next IP in Brisbane as i have heard alot of talk about the Brisbane market being on the upswing of the property cycle and good CG to be made in certain areas.
Therefore my questions are what are the better suburbs to buy in for CG? Do you suspect most of the growth in the brisbane market being due to investor activity? What are the key factors to drive growth in the Brisbane market?

Yes i have done alot of research into Brisbane i am just fishing for more information on the area, other Property Investors opinions and the better suburbs to potentially purchase in(ofcourse after my own due dilegence is done). Any info will be helpful.

Budget is around the $500k Mark

Please Note i am also considering sticking to the Sydney market(western Sydney), just need to work out what will achieve better results for my portfolio.

Thanks ;)
 
Heya,

Brissy is definitely the hot area and there's growing investor activity there. You can search through the forums and you'll find a goldmine of information on different suburbs.

General summary is: stay away from high density units (there may be an oversupply), houses in a 10km ring to the CBD are likely to do well.

In terms of where to put your money between Sydneys west and Brissy, i think general consensus on SS is that Sydney may have run its race already and Brissy is just getting started.

Consider potential land tax issues that may arise if you continue to put all your eggs in NSW.

Happy hunting! :)
 
H
Please Note i am also considering sticking to the Sydney market(western Sydney), just need to work out what will achieve better results for my portfolio.

Thanks ;)

Hiya Mitch

I'm not an expert on the area but it looks like it's had it's time. I've got clients who are $100k+ in front (in equity terms) on purchases that they made only a couple of years prior.

Cheers

Jamie
 
$500k buy a house at Birkdale, 4 bedroom single story brick on 550-600 sq meters should tick all your boxes and come in right on your budget!
 
Hi

Hi,

The Brisbane market is going to be a popular one next year and you are right.
A mix of investors trying to get into the market and also its a nice place to live.

I have family in Gold Coast and they know allot of people who are moving into Brisbane for reasons such as work since the Gold Coast employment market is soft.

Western Sydney market as been hot for quiet some time so there may be other areas that may suit what you are looking for :)
 
G'day MitchNik,

This may be a starting point for you and others, it is a quick summary of our Brisbane teams assessment of the price points in the market. What you might buy in a particular budget and place to consider.

Unit in small complex/ Original condition 5-8kms from CBD - $340,000 + (very rare, but possible)

Unit in small complex/ Semi renovated condition 3-6kms from CBD - $420,000

Standalone house ,small block, to Add value too (10-16kms from CBD) $560,000 +

Standalone house, small block, to Add value too (4-10kms from CBD) $620,000 +

New Townhouse in emerging area (10-16kms from CBD) $520,000 +

New Townhouse in Growth area (4-10kms from CBD) $650,000 +

New 2 bedroom Unit in emerging area (10-16kms from CBD) $460,000 +

New 2 bedroom Unit in Growth area (4-10kms from CBD) $520,000 +

LMR site in Emerging area (12-16kms from CBD) $550,000 + (very rare, but possible)

LMR site in med growth area (10-12kms from CBD) $630,000 +

Residential Subdivision Block in Emerging Area (10-16kms from CBD) $640,000 +

Residential Subdivision Block in Med Growth Area $750,000+

Residential Subdivision Block in high Growth Area $950,000+

Unit Blocks $1.2+m (4 - 6 pack)

Areas to watch:

South: Cannon hill, Wynnum West-Wynnum, Mt Gravatt, Mt Gravatt East/Annerley, Moorooka

North: Nundah, Redcliffe, Clontarff, Deagon, Virginia, Kedron

Good luck
 
Hi NPB:

Thx for that post! Really helpful for someone who's interstate to have a better idea and some starting suburbs to do more DD on.

In your opinion, it is more the 'closer to train stations' or 'closer to schools' or ... that attracts people to buy in BNE?

Cheers!
 
Hi NPB:

Thx for that post! Really helpful for someone who's interstate to have a better idea and some starting suburbs to do more DD on.

In your opinion, it is more the 'closer to train stations' or 'closer to schools' or ... that attracts people to buy in BNE?

Cheers!

It's not being close to any of those things but about being furthest from the dole bludging Jerry Springer looking types that inhabit large parts of Brisbane!
 
You cant get away from us Ric, we're everywhere now. We're getting richer and we soon could be your neighbour. Nothing will stop us aaargghh! :D
 
Yes must admit the enquiry level on the BA side of our business is at record levels and very encouraging for the new year.

Many of our past clients have done very nicely with some of their equity growth.

Personally i think you need to target your Brisbane acquisition around a combination of growth / rental yield.

Certainly don't expect the same sort of rental returns that other properties in your portfolio may generate but well chosen stock in the right suburb and close to city access will certainly perform in the coming years.

Cheers
 
Brisbane and SEQ

Mitch,

As a buyers agent based on the Gold Coast and involved in property acquisition, here is some perspective I can give you.

Brisbane will grow this year, no doubt. New properties can still yield over 5%. However there are areas that will become overbuilt with the pipeline of new construction. In 2 years rents will soften for inner city units stock hit the market. However current investors will have marked some capital gain by then as prices in Bris are still catching up.

People are starting to look at the 2nd and 3rd outer ring suburbs as they are cheaper and yields match better to interest rates to deliver cash flow positive or neutral.

Inner-city Brisbane is becoming more conservative, lower yield investment as prices move up and supply increases. Established house in good areas and commanding higher prices and lower yields.

Early capital found in early off the plan when you choose the best location inside new development in great locations. These are also easy to sell or rent when the time comes.

Excellent capital growth and yields are in Toowoomba, and Sunshine coast with major business and infrastructure building develops in those areas. New dual key products and house and land are yielding 5.5% plus and priced $400-$550k

Gold Coast is very cheap. Great 1-2 bedroom new waterfront units below $400k & $500k. Completion of major New infrastructure (light rail) and major developments funded by overseas developers and impacting the business of the Gold Coast. As the A$ drops tourism will rebound and so will property. Great time to buy there now to get an upswing over the next 5 years.

Hope that helps a little

Cheers
 
It's not being close to any of those things but about being furthest from the dole bludging Jerry Springer looking types that inhabit large parts of Brisbane!

Ric

I saw your post about jerry springer contestants in wynnum about a year back and I pissed myself. I now use the line a bit myself , always gets a laugh
 
Jerryparker,

You mentioned 2nd and 3rd outer ring suburbs in Brisbane in your post above which I assume is in the 10-20k range,is it in particular suburbs?
 
Heya,

Brissy is definitely the hot area and there's growing investor activity there. You can search through the forums and you'll find a goldmine of information on different suburbs.

General summary is: stay away from high density units (there may be an oversupply), houses in a 10km ring to the CBD are likely to do well.

In terms of where to put your money between Sydneys west and Brissy, i think general consensus on SS is that Sydney may have run its race already and Brissy is just getting started.

Consider potential land tax issues that may arise if you continue to put all your eggs in NSW.

Happy hunting! :)

Yes, although it depends on what you are after. Some might just want to rent it out immediately and forget about it till the cows come home, in which case units close to the CDB may not a bad idea.
houses are most likely candidate for highest cg , then followed by townhouses/villas if houses are too expensive or in need of significant work.
I personally like townhouses/villas because well located ones are attractive to a wide audience and generally wont have issues renting out - and that too for a decent amount. The tenant quality is also quite good, and there is good CG potential also.
I also stick to within 10km as above- someone else mentioned jerry springer type tenants; and this is why- those type of tenants are generally few and far between within 10km of the city. Good neighbours and neighbourhoods will cost money, but you will find that its usually worth it in the long run. A lot of buying decisions are based on ' I like the people in this neighbourhood...' type comments. Just ask some RE agents of buyers why they chose what they chose.

Is Sydney still a go? No doubt that Sydney is further up the property clock than Brisbane for this cycle.
The tough question is how much more can Sydney do in this cycle , and how much longer. Opportunity cost wise, it looks like Brisbane will give better % gains [ for both rent and CG] than Sydney, but this is a generalisation and it comes down to supply-demand for micro-markets in respective cities, thus doing homework is really important.

finally, I am a big believer in diversification and not putting all eggs in one basket. The real estate market of Sydney is different than others. There are different supply-demand drivers. You should have a rough understanding of these drivers before committing large amounts of capital in real estate.
 
Hi NPB:

Thx for that post! Really helpful for someone who's interstate to have a better idea and some starting suburbs to do more DD on.

In your opinion, it is more the 'closer to train stations' or 'closer to schools' or ... that attracts people to buy in BNE?

Cheers!

So many others related factors come into the buying equation as well that need to be considered, however if everything else was equal I would go walking distance to train over walking distance to schools, regards NPB
 
It comes down to your budget and strategy. Sticking within the 10km radius of the Brisbane CBD I believe will always be an important factor has its surrounded by transports, schools, hospital and other infrastructure. There will be always demand for well located properties.

Do your research and when you find value jump on it. The Brisbane market has been busy since November 2014, and you will find most properties will have multiple offers. Try and understand the market and do not overpay for a property as there will always be another buyer who will drive up the price.
 
Jerryparker,

You mentioned 2nd and 3rd outer ring suburbs in Brisbane in your post above which I assume is in the 10-20k range,is it in particular suburbs?

2nd and outer rings are about 8-10 k then 15k.

The best suburbs and Fortitude Valley, New Farm, Newstead, Tenneriffe. South Bank is about to get a huge casino, and West End is becoming trendy and is well located. They are safe and will have the most capital growth. There will probably be a rental glut in a couple years as a lot of the projects finish, but I don't think it will be a major long term problem. There will be capital growth

There is a lot happening as far as construction in concerned. It is important to pick a good location inside a development as well.
 
Thank you all for your info it is much appreciated.

i have been reading alot that in the Brisbane market it is best stay with in 12km radius of the CBD. Also that some of the not so desirable areas may well see good gains in the near future(due to the ripple effect), just like Mount Druitt in Sydney. Nobody thought it would ever see any kind of reasonable growth, but the numbers tell another story.

Back to the research board it is...
 
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