380k budget Brisbane or Perth

Hi guys,

Would love to seek your opinion about where to purchase my first IP. I am base in Melbourne. After my initial research and talked to a few BA in Brisbane, I have narrowed it down to the two locations:
- Brisbane, with this budget, it looks like I can get a house in logan/Moreton bay area which I think is around 30 km from CBD
- Perth, I only just started my research but it seems like which this budget, I can get something much closer to the CBD, like 10-12km. I just had a quick look at suburbs price such as lockridge, nollamara, without knowing the demographic of these suburbs, the house price is all within my budget.

I was just wondering why there is not much talk about these perth suburbs, giving the price range and close distance to perth CBD. It seems to me better than buying somewhere in Brissy that is 30km from the city. Would love to hear from anyone that are familiar with Perth and surrounding areas. Thank you!

 

Of course much had been talked about these Perth suburbs. Just search in PC. Brissy is better if more instant gratification is needed. But do it quick as 30km from CBD is far even from Sydney and Melbourne's perspective.

 

Worth asking in the Perth thread. There are issues with both Lockridge and Nollamara, which is why they are much cheaper. You may still find something in that price range, but careful with those 2 suburbs as examples. and be careful extrapolating distance to CBD from those 2 suburbs.
Also as a general rule for Perth, the more directly east to south-east you go, the cheaper and lower demand the location, so 10km east or south east is going to be priced more like something 20km or more up north-north-west or down south/south-west closer to the coast. I think it is more extreme of a difference between 10km east vs west than that of Sydney.
Anyway, definitely worth reading and asking in the Perth thread for recommendations of your price range. The people on this forum from Perth have an exceptional amount of knowledge.

 

I would pass on Lockridge.
Nollamara South west corner near Morley Drive and Wanneroo Road or even near/along Morley drive into Dianella . North East corner is Mirrabooka not the best of areas.
All of Nollamara is R40 so still a large number of blocks available to be developed.
Another option might be across Wanneroo road just into Balcatta. Some nice stand alone units below $400k come up.

 

Thank you @Anthony Brew for the insightful information!

 

Thank you @Shogun I will look into that!

 

Thank you @spoon, I will check out the Perth thread as well!

 

Although I'm monitoring Perth as well, at this stage my pick would still be Brisbane as it hasn't had a significant boom yet. In particular Logan/Moreton Bay still has good room to grow.

The concern about Perth is when it will hit the bottom and start to recover. Some say 6 months, some say 2 years so who knows. Maybe worthwhile keeping close tab on the Perth thread as well and if good deals come up, then do your DD and jump in

Cheers,
David

 

No idea if its a good buy.
Land in Nollamara sells from $600 per meter (undeveloped 750m2 block) to $1000 m2 small strata blocks Land For Sale in Nollamara, WA 6061 (Page 1) - realestate.com.au

This corner of Nollamara is a 800m walk to zone 1 bus stops to CBD. Short walk to other zone 2 buses to train station and city. Lots of shopping centers and places to work (light industry) near by <5km. as I said above lots of blocks still available to be developed in Nollamara.

Don't think seller is making much on this 3/35 Milford Way Nollamara WA 6061 - Villa for Sale #125616278 - realestate.com.au

 

Thanks @David Shih totally agree with your view!

 

You are right looks like quite a lot of lands for sale, @Shogun , I will pass on lands though, quite inexperience and certainly don't want the hassles associating with building.

 

No comment on Brisbane but the good thing with Perth at the moment is you can really take your time to pick, put in a offer for less than market value and see if the vendor will bite and you can do this in pretty much any suburb including premium blue chip suburbs.

I only like competition when I am selling not when I am buying.

 

@David Shih

Same could be said about Brisbane or other cities?
It would be nice to know your opinion on why Brisbane will have a boom.
You might be interested to have a look at this research paper.
http://www.econ.mq.edu.au/Econ_docs/research_papers2/2004_research_papers/Abelson_9_04.pdf
Although people talk of boom and bust in WA, I am of the opinion that what Perth saw was once in a lifetime boom.
I believe in fundamental analysis.

 

Thanks for sharing the research paper. It is interesting read

There's been multiple discussions on why Brisbane will boom on this forum already and I'm not an Economist so I won't be going into the exact stat details, but in my simple world:
- Disparity of median prices in East coast capital cities is just too big i.e. Sydney/Melbourne median vs Brisbane median. In the past the trend has always been Sydney, Melbourne will do the run first then Brisbane will catch up
- Brisbane cities still present an attractive yield at this point for investors to build a portfolio that can stand the test of interest rates, so investors will continue to invest there as numbers make sense
- What Brisbane lacks right now is employment and population growth, once these improve then we'll start seeing more evident movement in price
- Brisbane will be a quiet achiever. It will be a slow and steady "boom" as prices have been increasing quietly for the in the inner cities already, not like 20% - 30% over a year type of growth so you won't see headlines in media about it. But over time it will just do it's bit in the background and continue to grow until one day people realize the price gap has closed up.

My 2 cents.

Cheers,
David

 

Brisbane is slowly moving, Adelaide is slowly moving, Perth is slowwwly moving, Sydney and Melbourne slowly moving down.

Still waiting for that Boom in Brisbane, maybe it already slowly happened and this could be it for a while or maybe the best is yet to come. I for one am betting on Perth simply because of value-for-money, good yields, good prices for inner city blue chip suburbs and market has been a full-on buyer's market. Good thing about hitting bottom is there is only one way to go - up.

 

If I was you I'd be buying in Brisbane. Probably north side based on recent developments but if your looking 5+ years Logan/Redlands is also a good choice. You wont find much for $380k in Brisbane City Council.

 

On the surface Brisbane and seq appear to be a sensible option. It had good local migration for 2015, 2016, and part of 2017, for the run up to the games. Yeilds have been great for a couple of years. No big capital gains so in theory it looks attractive as an alternative to melbney.

Things that I'm observing through 2018, via open homes etc. are that the vendors who are moving away from the area, they are moving south interstate. I don't believe the recent stats for seq population growth are accurate, or at least not up to date.

It appears GC is on the cusp of discounting in the northern end. A couple of difficult sales which were discounted, one quite substantially, has caused some similar properties to be removed from the market and instead try to find a tennant, and taking a while to fill, some still havent. Yields are still okay there, but I believe it's starting to drop. I've found a few previously 500pw down to 450 before getting a tennant. Its a fair drop in short time. The number of properties for sale is at an all time high, and the amount selling is very low, 2010 low which is scary. I don't believe it could keep going like this without some more discounting.

Though others would argue otherwise, Brisbane and gold coast aren't radically different, and if one is starting to suffer, the other will be too.

Remember the old chestnut, Gold Coast is 6 months behind Sydney.