$700k-$800K - South Western Sydney or Brisbane

Discussion in 'Where to Buy' started by Mark202, 7th May, 2021.

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Where would you buy for maximum growth over 10+ years:

  1. Brisbane

    15 vote(s)
    57.7%
  2. South Western Sydney

    11 vote(s)
    42.3%
  3. Other

    0 vote(s)
    0.0%
  1. Mark202

    Mark202 Well-Known Member

    Joined:
    30th Dec, 2019
    Posts:
    162
    Location:
    Brisbane
    Hi All

    I currently have an investment property in Brisbane, Melbourne and Adelaide and looking to potentially buy my final residential IP before more towards shares / commercial.

    I have pretty much narrowed it down to 2 options:
    1) Buy another IP in Brisbane at the $600K-$700K level. Yield 3.5-4%
    2) Buy an IP in South Western Sydney at the $700K-$800K mark with hopefully a yield or 3.5%+

    Both options would be an established stand-alone house on 500sqm+ land.

    What would you do based on the current conditions? I know I have already missed out on a lot of growth but I am more interested in solid growth over 10+ years vs short term growth. Sydney has already had a lot of growth over the last 10 years vs Brisbane but Sydney is Sydney.... limited land, high paying jobs, beautiful city attracting skilled migrants etc etc.

    Thanks,
    Mark
     
  2. Mulianto

    Mulianto ~~

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    How about Perth? Economic factors show it can’t go wrong.

    I was looking there last year, but ended up buying in Brisbane again. Brisbane just seems right from all factors... But if you have maxed your free land tax threshold, then...
     
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  3. Mark202

    Mark202 Well-Known Member

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    Location:
    Brisbane
    Thanks Milianto. I guess I haven't written off Perth but I'm just not as familiar with it. There are certainly some BAs that are pretty keen on it so I'll keep it as an option.

    Land tax should not be an issue in Brisbane as the first one is 100% in my name.
     
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  4. Mulianto

    Mulianto ~~

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    600-700k is a good budget for Brisbane too. Decent house in the middle ring like this one I posted on the other thread;

    11 Mullacor Street, Ferny Grove, Qld 4055
    https://www.realestate.com.au/property-house-qld-ferny+grove-136193386

    If it has no structural issues, then below 650 k will be a good buy, some reno less than 30k, rent out 500+
     
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  5. Mark202

    Mark202 Well-Known Member

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    Brisbane
    Yes, that's the benefit of Brisbane. I'd probably be able to get a nicer house in a nicer suburb. Ferny Grove / Ferny Hills definitely interest me.

    With South Western Sydney I am a little worried about the quality of the house at my price point. I also don't want to be dealing with very difficult tenants due to a sub-par property.
     
    Mulianto likes this.
  6. BB5

    BB5 Well-Known Member

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    Location:
    Brisbane
    Be surprised if that went that cheap think need around 675 or more.
     
  7. Mulianto

    Mulianto ~~

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    Won’t be surprised in current market lol... but I always try my luck.
     
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  8. boganfromlogan

    boganfromlogan Well-Known Member

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    Location:
    Brisbane
    Quickly grab one in Carina Heights if you can (adjacent to Camp Hill).

    One word.

    Olympics!!
     
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  9. Mark202

    Mark202 Well-Known Member

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    Location:
    Brisbane
    Thanks mate. Unfortunately it looks like the only houses at my price point are on main roads. I’ll keep an eye on it though. I don’t know too much about the southern suburbs. I do like the rail connectivity of the northern suburbs but I’ll keep an open mind.
     
  10. Whitecat

    Whitecat Well-Known Member

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    Location:
    Sydney
    Where are you thinking in SW Sydney for 700k?
     
  11. Mark202

    Mark202 Well-Known Member

    Joined:
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    Posts:
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    Location:
    Brisbane
    Not sure to be honest. Somewhere around Liverpool maybe. I’m sure it would need to be closer to $800k and I’d use a buyer’s agent to support. I don’t really know Sydney that well.
     
  12. Onyx_OCAU

    Onyx_OCAU Well-Known Member

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    Location:
    NSW/VIC
    If you're prioritising yield as opposed to capital growth, Brisbane or greater SE QLD would be better for yield. I think you'd struggle to find a standalone house in Sydney in the budget with above 3 or 3.5% yield in this current market. I know I did. As of a week ago, I've got QLD added to the portfolio (of previously only NSW and VIC).
     
  13. Mark202

    Mark202 Well-Known Member

    Joined:
    30th Dec, 2019
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    Location:
    Brisbane
    Thanks Onyx, good to know. I am definitely not prioritizing yield but based on my objectives, a very high growth / negatively geared property is probably not required. 3.5% yield is fine. I’d probably want to avoid 3% at this stage. If that’s not really possible with a house in Sydney south west then I will focus on Brisbane and try to get the best asset I can find that has a decent balance of yield and future growth.
     

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