QLD 450k Brisbane best options?

Hi all, hoping for some ideas on where to buy with a max spend of 450k in Brisbane.
We are looking for something that will hopefully provide some decent capital growth, with the option of a small development (subdiv) within 10yrs. Cash flow isn't an issue so really want some ideas of where to look and what to look for.
We have 2 in Logan already, so would prefer to find other areas for a bit of diversification.

Have been looking around the Arana Hills, Ferny Hills and Keperra, but are not having much luck finding anything in our price range. Would really appreciate any help/ideas people had.

TIA

 

Having two in Brisbane would you consider another state? Adelaide has some good suburbs inner ring close to CBD with development potential. Blair Athol, Woodville North, Northfield

 

Hi Andrew, thanks so much for the reply.

I would consider other states, and have been looking in Croydon (SA) for a couple of months, but stock is moving very quickly there.

I like Brisbane because i feel its growth prospects over a 10yr time frame are going to be better than Adelaide due to population and jobs growth been limited in SA. I could be wrong of course.

 

I think the problem here is you want a subdivide-able block. And for where you're looking at, standard houses sitting on 600sqm are priced mostly around $500K....

If you still want to get something in Brissie I think your best bet would be Logan - the likes of Loganlea/Marsden for bigger blocks over 1000sqm or corner blocks over 750sqm which you can potentially subdivide down the track. But given you already have 2 in Logan this won't be ideal. The next option is try further out North towards Moreton Bay - perhaps around Zillmere, Bracken Ridge or Strathpine.

The other option for your price point you can explore is Geelong. If you don't care about yield you may be able to get subdivideable blocks around Geelong for $450K as their min LOT requirement is smaller compare to SEQ.

Cheers,
David

 

Thanks David really appreciate the help. I would consider Logan, i just thought that all my eggs i one basket may increase my risk. Can you see Logan moving much over the next 5yrs?

 

I'm hoping so as I have properties there too...but I don't have a crystal ball either.

My guess is it'll be more slow and steady growth instead of booming in next 5 years. The better parts of Logan will go first, and then followed by the lower socio-demographic parts.

Cheers,
David

 

In that price range, with those objectives, Acacia Ridge stands out to me as a good option- have you looked there?

 

Hey Tom, thanks for the reply.

I have not looked there. Any areas in particular i should be focused? Any issues with flooding?

 

Very very very little flooding, little if any freestanding homes are affected at all (different story for Rocklea and Archerfield). You want to be focusing on homes that are LMR (Light-Medium Residential) zoned.

 

Is it worth looking at Murrarie?

Rochedale South is nice, but might stretch the budget.

Something out of left field - Mt Tamborine. Have you noticed how few places there are to rent up there? I think capital growth can be flakey but you get qiute a bit for your money. No water / waste water up there tho

 

Tambo is gorgeous, but has really limited tenant prospects. I do know an excellent agent up there if you want some local help.

Murrarie is an interesting one, I'm a big fan of Portside but people tend to rubbish it. I think that land will eventually be worth a killing.

 

Hey Mate thanks for the reply.

Is Murrarie flood risk, pretty close to the river.

I love Tamborine, would consider buying a house i could retire in one day up there, but for now im not sure it ticks enough boxes for what i need.

I tempted to just go with Logan again!

 

*cough* GO TEAM LOGAN *cough*

Residential Murarrie to the south west isn't so bad for flooding, check it out on Brisbane's interactive flood maps HERE.

 

https://www.realestate.com.au/property/49-nemies-rd-runcorn-qld-4113

Just settled on this property for a client in Runcorn for $388,500. Corner 600sqm block. Probably not subdividable but definitely Granny Flat potential. Plenty of equity available

 

Hi David would you mind giving us your opinion on the better suburbs vs the not so good suburbs In the Logan area ?

 

Hi @Happy 84,

Personally I would tend to avoid the lower socio-economic areas such as Logan Central, Woodridge, Kingston and lower parts of Slacks Creek (which was known as Kingston previously). Most tenant in these areas usually don't have a decent job or are living on Centrelink income, so the chances of them falling into constant arrears is high which can cause cashflow issues for landlords. Plus these suburbs have high percentage of investor so as soon as investors start to pull back it may take a while to see CG as owner occupiers will not be wanting to live in these areas.

The upside however is that due to low entry price, you can still get a relatively decent yield. But just keep in mind that tenant quality is not great and they may fall into constant 7 days arrears and therefore impacting your cashflow. Plus potential damages to the property or drug problems.

In terms of the better suburbs, I feel at this stage the areas around Browns Plains like Hillcrest, Boronia Heights, Regents Park are considered investment-worthy with better demographics overall in comparison with the ones I've listed above. If we keep going down M1, the likes of Marsden/Crestmead/Meadowbrook/Loganlea, or even further towards Loganholme/Tenah Merah are all more OO areas, which also reflects in the suburb entry price.

Logan is a huge council so I'm really just touching a very small percentage of suburbs here, focusing more on what I think are my possible investment suburb options. But bottom line it really comes down to individual's budget, goals and your risk appetite (which will determine how much yield you want out of the deal) and then you can further drill down and review each of the suburbs/dwelling types to see which one will potentially take you closer to what you're trying to achieve.

Cheers,
David

 

If you already got 2 in Logan and want a bit of diversity head north. Suburbs up there are heating up and if you shop around you can still get something on decent land (i.e) around 500sqm. Wont be sub division but look for value add potentials.

In the short/medium term Northside will provide the most CG however lower yields as price point is higher than in Logan. Northside suburbs I would be buying right now if I could get a loan is below. Good value to be had there still and much room for capital growth. Can still get good yields also so your not too late.

* Bald Hills
* Bracken Ridge
* Strathpine
* Petrie

Long term though you are correct in that Brisbane has more potential than Adelaide due to interstate migrations and jobs growth. I read the other day that Brisbane is now number 1 for interstate migrations which is excellent news for Brisbane investors.

You only have 2 there so purchase more in Brisbane as it provides the best in terms of opportunity in my opinion.

 

Bald Hills or Bracken ridge are my best bet. Closest to. bad and close to new university. Smack bang between Brissie and Sunnie.

 

Logan won't do much for a few years the thing is you need a decent across-the-board growth in Brisbane before you start to see anything happening in Logan and we're not even seeing across the board could growth in Brisbane and probably won't for a few years. Need more economic pickup. Mining and the infrastructure construction to increase (which is in the pipeline) Logan's not going to be the first cab off the rank for rises. But you should certainly put it on your radar and have a look. If you find a bargain on a good block the yields are pretty good there

 

How about springwood?
If you can afford a bit more, try inner west of brisbane