QLD 2020 is the year for Brisbane!

I really wouldn't classify Moorooka as inner Brisbane tbh.

 

100% agree...that is EXACTLY my line of thought.

I find the holding cost of my Annerley/Morooka units very low compared to some of my houses.

 

Yes and no i guess,the other daughter bought one in a block of 4 on good land area about 3 years ago for 312k same unit in that block sold six months ago for 425k and 7 klms from the cbd on the southside facing the city ..

As you would well know mate,some small pockets out-pace the others in Brisbane and it never will stop maybe a few bumps in the road every now and again but it never stops..

 

I have to pump Brisbane up some way with all the doom and gloom around and as long as we just had the valuations come in everything is looking good in land values only.. .

 

That's the bad side of growth.. getting land valuations from Council.. they say land rose 15% in 12 months in Grange.. no doubt we'll get another hike in rates soon.

 

$425k is a good result! It must be 3 bed, 2 bath, 2 car with 200m2 of exclusive use courtyard? Otherwise they paid $100k+ too much imo..

 

Sigh... I think I've mentioned this many times but here goes again.

02-08 Brisbane went absolutely ballistic, median growth was around 160%. The place basically tripled so to compare growth of this last decade to others that didn't move much between this period is just nonsense.

If even minimal growth was to occur in Brisbane over the last 10yrs we would be more expensive than Melbourne, puts it into context that the last Brisbane boom well and truly overshot and has spent the last 10yrs rebalancing. 10yrs is not every states property cycle, realistically from my analysis its actually closer to 16yrs

We are now at the period where Brisbane shows value to x incomes and yield, interstate migration massively ticking up, many selling out of the other 2 majors to upgrade here (Happened every last Brisbane growth cycle) - all though there has been some do well and get growth the last 5yrs I don't believe there's been any real reason for meaningful growth, and to be honest the kettle is still warming but hasn't boiled yet, hopefully this virus doesn't stunt it just as it starts to pick up momentum as we all know human sentiment is a huge part of our market.

 

Most locals wouldn't class anything further than 18-20km north or south Brisbane. MCC or LCC are another state haha

 

Everton Park just sneaks in.. poor old Everton Hills is in MCC, which may as well be Caboolture

 

Lol

 

Yes the daughter is happy with that one..Just a second level walk--up 2 bedrooms --2 bath --only one remote car space and the only one in the block of 4 that has a private courtyard but that's the bottom level and another unit -- but you can see the city from this one as it's on the side of a hill in Tarragindi 4121 ..IMHO..

Very small amounts of units within that small area and i hope it stays that way..imho..

 

If I vaguely recall, your daughter has bought a few investments now. Good on her tbh.

 

Yes this will be the second one and it does not matter the price it's just the locations ,the next one will be a house within a year ..Something some one like your family will enjoy when your own family grows as the apple never falls far from the tree..

 

Absolutely. My Brisbane mates reckon Mitchelton is a long way out of town! Why would you want to buy there they say.

 

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Id say Everton/Mitchelton is about as far out as I would go, its still a very family friendly suburb that's affordable so that draws people in, along with the new lane ways and roof top bars. Chermside seems quite far north but people venture there for the Westfield.

to the south most don't talk much further than Mt G, Holland park, even Sunnybank would be the absolute furthest.

MCC and LCC seems to be pushed more towards investors or with the narrative of fringe/ripple effect which obviously will still see growth, not doubting that at all. Its just OO that drive prices IMO and I haven't met one OO looking to get in the market that has said, " Might start looking for somewhere to live 20km- 25km away"

Whilst things are affordable everyone wants to live sub >10km

 

That's been my assessment of Brisbane ever since I started investing there.

 

Cannot compare units to houses in Moorooka in same category as similar growth investments.
Have family living there so I know the area very well. Different times in different cycles dictate different % growths but over longer term or if one has a different strategy each deal should be measured on its own merits.
Next door to family subdivided the land into two, very old house on 703sqm and land of 545sqm and did very well (around $950K total). Land component growth is the biggest gain in time, hard to quantify this with units land content.
So all I am trying to communicate every deal and property and suburb is different, looking at median prices is fine if passive investor otherwise there are deals and money to be made by others who can modify and redevelop or add value (basically think outside the box and cater to the right demographic).
Personally, I still prefer houses with large land component in inner or middle rings suburbs as a long term investment there. The only units we hold there are for long term, total block, for future redevelopment say when zoning and population grows (similar concept like in say St Leonards where 100 unit developments can occur now).

 

Absolutely, but I can’t be bothered cross posting it. I’m sure the folk in Syd Melb will hang in there, At least fuel will be cheap, they can just forgoe all discretionary spending , it’s not like it will matter , we’re in a retail recession anyway.

 

My sentiments echoed about the Brisbane market exactly. Shows a broad understanding of the North, South and broader BCC dynamics. Many investors get tunnel vision, attempting to justify or find reasons to back their past decisions.
I've also noticed lots of BAs pumping markets where the cash flow is neutral or slightly positive as they can sell it to investors seeking a "low risk" investment. Nothing wrong with the approach and it may work out, however I cant help but feel you're better off taking a bigger focus on either pure cash flow or growth via inner/middle ring OO stock. Those outer ring, middle ground investors may be waiting a very long time, achieving measly CF for many years to come.

 

The land valuation for my house in Manly West came in the mail last week, didn't move up a cent. Same story last year too. Lots of land value increase from when I bought in 2014 to 2017 (385k up from 250k) but done nothing since.