Any Brisbane success stories?

Discussion in 'Investor Stories & Showcase' started by David_SYD, 11th Apr, 2020.

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  1. David_SYD

    David_SYD Well-Known Member

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    Really interested to hear if anybody here can share any investment property success stories coming out of the Brisbane market.

    More specifically:

    Within 20km of Brisbane CBD
    Property purchase of <$500k
    Renovation <10% of the purchase value
    Stats provided to include;
    Purchase Price
    Weekly rent
    Vacancy rate
    Capital Gain

    Brisbane is always mentioned as a place to look at after Sydney and Melbourne (mostly due to its relative affordability and potential), however, I really struggle to find anybody sharing any real success stories.
     
  2. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    typically but not always BA sourced stock revalues at 15 % 12 to 18 mths after purchase

    Middle ring, not outer stuff

    ta

    rolf
     
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  3. Hetty

    Hetty Well-Known Member

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    My grandfather bought his house in Indooroopilly for 500 pounds. It sold for $2.3million. Sorry don’t have dates on that :D

    There are plenty of success stories, maybe look at properties on realestate.com.au and see what they sold for in the past and what they sold for recently. They have growth charts on there too.
     
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  4. markgordon

    markgordon Member

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    Yes, I have one success story in Bray Park, 4 x 2 700sq bought 5 years ago for $380k no improvements, bank valued now at $480 k rents for $440p/w no vacancy. But I also had a place in Redbank Plains that we sold 5 years after purchase for virtually the same price. I would never buy in Brisbane again though, I also have a house in Durack which I wish I didnt, Ill only buy in Melb now, been there, done that. Brisbane doesnt have the jobs to support huge growth. Im going to sell Durack and buy in Melb
     
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  5. David_SYD

    David_SYD Well-Known Member

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    Thanks Mark.

    Just don’t know whether I can get it to add up for me.

    I’d be disappointed with $100k CG over 5 years for any property investment but I suppose you bought at a bit of a peak?

    The no vacancy and weekly rent kind of soften the lack of CG though.

    I don’t want another IP in Sydney yet. Sydney is still overvalued in my opinion and buying costs (stamp duty etc.) averaging $50k means you’re behind before you start. Everything seems to point me to another IP in the UK.
     
  6. HUGH72

    HUGH72 Well-Known Member

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    Good luck getting $100k CG on s $500k property anywhere in the country over the next few years.
     
  7. David_SYD

    David_SYD Well-Known Member

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    Yes, a lot of factors pushing me back to looking at buying in the UK.
     
  8. HUGH72

    HUGH72 Well-Known Member

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    What makes you think the UK is in a stronger position? Their economy is in serious trouble, if you are purchasing for yield then I would understand.
     
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  9. David_SYD

    David_SYD Well-Known Member

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    Like most things, can only go on historic data and my own experiences.

    I’m negotiating on (exchanged from GBP to AUD for example purposes) a $400k 3 Bed property that will rent for minimum $500 a week. I’m speaking to the letting agent on a daily basis and there’s ongoing rental demand for this property.

    Historic UK data will estimate that this property will double within 10 years.
     
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  10. Property Twins

    Property Twins Mortgage Brokers & Buyers Agents Business Member

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    There are certain growth areas within 15-20km
    Sub 500k purchase at 4.5% rental yield
    Won't have a lot of land component.. However you're buying more so for the capital growth than development
    Might be able to acquire something with potential to add value to the property itself

    Look at the fundamentals (including below but not limited to)
    > Population growth / pressure on the area
    > Projects happening in the area,
    > Current vacancy
    > How many new dwellings in comparison with existing dwellings
    > Household income on average
    > Rent on average in the area
    > Infrastructure investment in the area

    Look at if you can capture deals before the masses do. Usually it's too late when it's in the media.
     
  11. kierank

    kierank Well-Known Member

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    @sash and @Sackie are two property tycoons who reportedly have done very well in Brisbane :p.
     
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  12. Angel

    Angel Well-Known Member

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    Why the rush to buy just now? How about you wait six months and then reconsider. Stick to the eastern parts of Brisbane rather than Durack and Redbank Plains which are inland LSE suburbs. Bray Park had good growth drivers five years ago, but may remain stagnant now that those drivers have been built. Pre-Covid I would always consider Bray Park and adjoining suburbs. Just now - wait.
     
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  13. David_SYD

    David_SYD Well-Known Member

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    I’m not great with patience. The sensible half of me tells me to wait and see, particularly given economic/ employment uncertainty.

    I’m just intrigued as to why, other than affordability, investors from Sydney and Melbourne target Brisbane, as the Capital Gains just don’t seem to be there, nor am I finding spectacular rental yields.
     
  14. # 1

    # 1 Well-Known Member

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    Better off buying on the Gold Coast if you want a property in SE Qld
     
  15. TMNT

    TMNT Well-Known Member

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    depends on whats your definition of successful?
     
  16. David_SYD

    David_SYD Well-Known Member

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    Depends if the individual who wants to share the story considers it as a success I suppose
     
  17. wylie

    wylie Moderator Staff Member

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    I reckon it is the fact that Brisbane has been lagging behind for so long (some pockets have grown of course), that it seems logical to think that, like previous booms, it will be somewhat behind Sydney and Melbourne.

    So, get in before prices rise... but we just haven't had that general boom that was expected.
     
  18. David_SYD

    David_SYD Well-Known Member

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    Do we have much (unbiased) data to suggest that Brisbane will ever experience a boom or ever become comparable to MEL and SYD?
     
  19. wylie

    wylie Moderator Staff Member

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    In my property lifetime, Sydney prices rise, and Brisbane follows. I've watched it several times. I don't follow data.

    Brisbane has never in my property lifetime compared price wise to Sydney or Melbourne. I doubt it ever will either. Chalk and cheese really.
     
  20. David_SYD

    David_SYD Well-Known Member

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    For those not living in QLD/ Brissy, do you think it’s fair to say that affordability is the biggest attraction? It seems this way to me.
     
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