400k IP in regional areas or QLD for capital growth?

Hi everyone!

With all the rate cuts, I'm starting to look at purchasing an IP for capital growth to start my investment portfolio.

My budget is 400k and I'm debating between regional areas in NSW/Victoria or Brisbane/SE Queensland for my first property - ideally with strong capital growth to allow me to move onto my second property later down the line. If I were to go for regional centres, I'd be looking to spend 250-350k and if I were to go for SEQ, I'd be willing to spend up to 400k.

What do you think about regional Australia versus SE Qld for capital growth? Is there one you would lean more towards?

Alternatively, is there somewhere else you'd recommend me looking for CG with a budget of 400k?

Cheers all!

 

Bumping this up for you.
I would be keen to hear as well.

 

It depends on your risk profile, one view is that capital cities are a lower risk proposition as there are more diversified labour markets etc. For $400k you can still just buy in good oo areas in Brisbane but tthe window is closing. You can choose from neighbouring councils Moreton bay and Logan. Look for the areas with 70% oo as those suburbs are and will be in demand from fhb.

 

Wouldn’t touch a regional with that money. $250k maybe. Borrow an extra $100k off someone and buy into Brisbane.

 

Correct me if I'm wrong, but I think you have to be really careful and lucky to get strong capital growth in a regional.

Most properties at that price point are also going to tend towards a strong yield and average capital gains prospects- for example, anything in Logan.

You could consider Brisbane outskirts or developing suburbs- Acacia Ridge, Forest Lake, Algester, Ellen Grove, etc.

 

Yes very good points ...NSW regional might be better option like central coast I feel but again the good suburbs are not in the OPs budget. It will be minimum 550K upwards these days in Central coast areas.

 

Hey mate,

SE Queensland is looking great at the moment. I would put my recommendation in for Hervey Bay. I work at a Real Estate agency and have seen first hand prices for 400,000 dollar homes go straight to 450,000 as Covid-19 in Australia dwindles. My Team and I are 99.99% certain this trend will not slow down, only exponentially accelerate as more people/countries are released from restraints.

After a stagnant 15 years respective to property prices, we are starting to see an exciting explosion. Service stations have been popping up everywhere, along side more coffee shops and cafe's then you could poke a stick at. More and more people, like yourself, are getting interested in regional Queensland as an investment opportunity.

Whilst typing I received a call from an out of town buyer. Hervey Bay's market is speaking for itself.

A lot of people will say Hervey Bay has a retired demographic leading to motionless prices; however, that has been changing steadily. A few short years ago the average age in Hervey Bay was 53. I believe now it's somewhere in the mid 40's.

As far as my knowledge goes, the sooner the better in Hervey Bay. It would be my pleasure to get in touch if you would like to know any more.

Callan