QLD Algester vs Acacia Ridge 2018

Looking to buy my first investment property in Brisbane with intention to diversify to different states ( living in Melbourne ), newbie to Brisbane market.

I know there was thread about Algester back in 2016, but in 2018 what’s everyone view about this suburb vs Acacia Ridge?

Acacia Ridge- certain pocket in LMR zone provides greater capital growth due to development potential.Quite a bit of developments around Elizabeth st, new McDonald Guzman Gomez.
Decent rental yield above 4%
49 Elizabeth Street Acacia Ridge Qld 4110 - House for Sale #128240506 - realestate.com.au

Algester - family suburb, nicer neighbourhood layout which to me might be more appealing to Chinese investors/ owner occupier seeking for next Sunnybank, Calamvale, Runcorn.

Rental yield for this property similar above 4%. Close to school and park. But required some comestic works.
9 Corkwood St Algester Qld 4115 - House for Sale #127796862 - realestate.com.au

 

Very different suburbs. Acacia Ridge is seeing a lot of development, very old homes on 600+ blocks, lots of LMR zoning and a great location only 15km from the city. Algester is typical family suburbs, much newer standard of housing and next to no redevelopment.

I don't think either are a bad pick and I think you've nailed the motivations already. Acacia Ridge is a good choice banking on capital growth based on the development and proximity to the city, whereas Algester is a quality family area that should see spillover from expensive Sunnybank and Calamvale. We're already seeing prices in Runcorn go crazy (admittedly, closer to the pacific motorway).

I really like that little Acacia Ridge property. It's obviously had plenty of work done and presents well, so outgoings should be minimal to hold- many people buy future development sites with poor homes on them and are forced to sell sooner than idea because the house is falling apart.

The Algester home seems a little expensive, and it's quite unattractive (dated without being charming). It is a very sought after layout though, you wont have any problems renting it.

 

Agree with @Tom Rivera. Don't think you will lose either way, depends on your end goal.

 

Thanks guys for sharing valuable thoughts, I think both have its own appeals. End goal is for long term growth 5-6% over next 5-10 years with close to positive cash flow. Will continue keep an eye and monitor for pricing for these two suburbs for next few weeks. Credit is getting a bit tight now, so would like to see how it has flow on impact to the property market in this price range.

 

I agree too both locations are good. The Algester one looks overpriced though.

 

How did you go with these areas? I have been keeping an eye on them and prices are dropping.

 

My brother has an IP in Algester and was telling me over the weekend he received an letter from Allianz advising they've 're-rated' the flood risk for his place, it's doubled the premium.