5 Bedroom 3/2 Duplex in Moreton Bay vs 3 Bedroom Freestanding House In 4114 Logan

Hi all I'm looking at purchasing a property in Brisbane in the near future. My primary focus is cash flow positive but a property that will achieve good capital gains in the future is a huge bonus.


I’m either looking at a modern (3-10 years old) 5 bedroom 3/2 duplex in the Moreton Bay region (Kallangur, Petrie, Griffin, Bray Park etc) or an older 3 or 4 bedroom free standing house in the 4114 Logan area (Kingston, Woodridge, Logan Central) Both need to achieve above 6.5% yield which is possible from places I have seen.


The advantages I see with the modern duplex in Moreton Bay is it has good cash flow, low maintenance and lots of depreciation, but the purchase price ratio to land value price isn’t great. The Moreton Bay area also has a higher socio economic and more owner occupier houses which in the long term could lead to more capital gains.


The advantages with the older house in Logan are good cash flow, high land value to purchase price ratio eg. (land value: 220k purchase price: 275k) plus ability to renovate / add granny flat and add value. The disadvantages are no depreciation left and possibly high maintenance costs. Also being a relatively lower socio economic area there is the possibility for troublesome tenants and maybe less capital gains in the long term.


I’m pretty torn between both and would love to hear some opinions if possible.

 

Moreton Bay all the way.

The only reason people invest in Logan is that it is cheap and one day it will gentrify ... the area doesn't offer anything itself.