Analysis paralysis - which investment strategy, structuring and where in Bris?

HI @Yellowfin1

Re 300sqm have a read of the article below. It may not be up-to-date but @RPI can comment.

Category: | The Courier Mail

Also before you even think of buying a potential development site, make sure it matches your risk profile and experience/skill level somewhat. If it takes you this long for DD on a straight forward IP, then personally I don't think a development site is the right option for you atm. Not a harsh criticism, just my honesty.

With regards to Carina being close enough or not, there is no real 'close enough' magic border. Everyone has a different strategy/risk profile/skill level etc etc. For me with regards to BCC. I like to stay within the 10k mark from the CBD ,or as close to your budget will get you a free standing house with add value potential in a good OO area. No guarantees of course but that's where i'd be parking my money, as opposed to a unit or TH in a farther out area.

I hesitate to say.... dyor as you've been researching for a long time! jokes. I will say this. If you look at too much quantitative data, you will likely go in circles and second guess yourself many times. I have never found the majority (maybe 80%) of data out there to be of much use. More so the market sentiment, feedback from people on the ground and supply/demand of an area. Really, if you can gauge S/D somewhat accurately, then it pretty much takes into account 90% of all DD already. Maybe consider a BA as a possibility. I believe they have a place in this game for some people. Just an option.

Re numbers, this is pretty much the only metrics I look at. Looks like a lot but with some practise can be done within 1 hour for an area. Specifically these:

• Days on market (DOM)
  
• Vendor discount
  
• Auction Clearance Rate (ACR)
  
• Proportion of renters to owner occupiers
  
• Vacancy rate
  
• Yield
  
• Stock on market percentage (SOM%)
  
• Online search interest (OSI)

DSR data - scoring supply and demand

 

LR land within 200m of 2000m2 of commercially zoned land has min 7.5m frontage and 300m2

 

Fantastic stuff - much appreciated! Re development site - we just like the idea of buying something with that potential. Could be years before we decided to pull the trigger and develop.

 

I like that strategy however the holding costs for an 800sqm older house site long term will be significant. I have a few and they cost like 15k a year holding, but it matches my risk profile and they will be developed soon and bought at significantly lower prices compared to todays market.

Perhaps buy something with reno potential in a ripple suburb where you see value. The Neg CF will be less and more manageable plus you have the add value ability.

 

Thanks Terryw. How do I contact you to get a rough guide for advice/work? Not knowledgeable about messaging on this site.

 

CONTACT
Email: Terry @ Terryw.com.au

Office: (+61) 02 800 456 94

 

Best to email as I don't answer the phone - too many time wasting calls.

FYI i charge $660 for a consult up to 2 hrs.

 

@Yellowfin1 Have you been on the ground with your Brisbane search ? We have purchased a few there from Sydney - but still schedule trips to do on the ground work - our kids eventually said "no more Gold Coast / Brisbane holidays."

It is hard to make a decision just on numbers and recommendations - even though some do manage it.

We have purchased in the price range you are looking at in Enogerra and Wynnum - we largely narrowed in on those areas by doing Somersoft / Propertychat research. Looking at the posts on Brisbane to get a feel for what people are thinking and then largely (in our case) following the directions of some posters that we thought was worth listening to.

Once you have a suburb it becomes a lot easier to use your analytical and deal making skills.
In our case we only buy "problems"that we believe we can fix - but that is a bit harder if you are not prepared to travel there regularly.

 

Hi @Tonibell

Yes have been to Bris to have a good look late last year. Have relatives in Camp Hill and Norman Park and have been down a few times also over last few years to see them also and incidently get a feel for areas. Not been to the Wynnum area but did go through The Gap, Ashgrove, Enogerra - all nice areas. My grandparents grew up in Ashgrove - boy it has changed - especially the commerical area on the way from the CBD.

Like you, also like the idea of using this forum and then also data sites to hone in on areas. Am now interested in DSR to get a bit more of a feel and also this Microburbs site is amazing.

I know others balk at my 2 year search, but broken down we have not been searching in Bris all that long. Previous to that we did desktop (and in some cases on the ground) analysis locally, SA, Hobart, before deciding about Bris later last year. We are committed to that for various reasons but recently the data analysis and loan stuff (and not being able to be on the ground each day/weekend) got on top of me.