Adelaide or Brisbane with my budget

Hi All,

I am new to this forum. So looking for some advice. I am able to afford upto 400k (including stamp duty and other relevant fees) for my first IP. But should I be looking in Adelaide first or Brisbane ?

 

Depends what you are going to do with it.

 

If you are following cycles...both would be good...just Adelaide you need to be with 16-18 klms of the city to have maximum gain.

What is your price range?

 

Not really familiar with Brisbane, but either are decent bets I'd say.

With your stipulated price range of $400k you can get in majority of suburbs here - try to squeeze into about the 7km radius range with houses, avoid units.

 

Sounds so damn affordable.

 

Yep..you can get within 7-8 klms in Adelaide.

But bear in mind stamp duty and registration in SA is atrocious....Brisbane is cheaper but you will struggle to get within 7-8 klms on 400k....

 

I am basically after a neutrally geared if not a positively geared property, buy and hold for CG. Budget is at max 400k but ideally would want to spend not more than 350k. Thats only ideally

Thanks D.T. Looks like your the Adelaide expert in here, sorry for my bluntness Which areas should I be looking for the following
1. Below market value
2. Involve some cosmetic renovation
3. Ideal if we can put a granny flat for dual income

I am just devising a plan as which criterias should I be following. So I am raw as you might have noticed. But I will give it a go and be better on this.

 

I you want neutral.....you will need to get into something for 280-350k.....that means it is something 9-12 klms out

Why because the rents drop as you go higher in price...look at prices for $400k and see if you can get 400-420pw in rent....

 

As much as id like to hype Brisbane.. I'd have to agree with some of the posters above. 350k (don't max it out at 400k) go for a small house or Townhouse in Adelaide inner-mid burbs.
Too late to get that in inner and mid Brisbane.

 

Can't have it both ways - stamp duty might be a lot more in SA, but council rates and insurance in QLD are more than in SA, sometimes significantly. Try 15-20km from Brisbane CBD for under $400k or the western/northern suburbs of Adelaide.

 

Thanks JDP1.

 

Hi norwoodman,

I was just looking at few suburbs in Brisbane but not sure I will be able to go for 15-20km ring. I am after a detached house, not a townhouse. So suburbs far out like- Kippa Ring, Redcliffe etc fits my budget bill. This is just my impression so far. What do you think ?

For Adelaide, I will have to read more as I am not sure which areas are better/fit the bill for me.

Cheers,
Rog

 

In terms of where each market is within the cycle, Brisbane has certainly already had a significant progression through the growth cycle, whilst Adelaide is only just coming off from it's recovery cycle. Most commentators are positive on both markets, so I think it's more of a case of where you feel you'll gain the most value and what the risk is with timing.

In terms of location/quality you're going to be able to buy into a more 'blue chip' quality property in Adelaide than Brisbane for the money. Thankfully there's a number of Adelaide and Brisbane threads in the forum which are very active, so you'll be able to glean a lot of on the ground information from active investors.

 

Are you serious?! Maybe I should plan now.....

 

Maybe @D.T. can confirm this but you cannot have a dual income of house and granny flat in Adelaide

 

Which suburbs in particular? I start eyeing on Adelaide but probably next year after pulling equity out from Brisbane

 

I'm interested in this also as I'm thinking of going down the same path in Adelaide

 

Noice one...I await with baited breath....

 

Granny flats are known as dependant dwellings and are not legal to rent out to seperate parties. You can do a head lease and allow subletting but this has impact on insurance.

What DT mentions is a secondary dwelling which has council approval. This can be half houses or approved standalone dwellings.

 

You probably want to review the forum's official suburb reviews first, to get you up to speed so you can ask some more specific questions adelaide suburb review | PropertyChat

Correct, not legal here.

Perhaps have a look at the above links first, then can discuss further after that ok?

Do you mean bated?