QLD Appartment in inner city or house in the fringe?

Just getting the logic ready for possible bargains should interest rates climb.

Would you go for an appartment in a small block (6-12units) in the city (1-5km) or would you buy a house on 500-600m2 in the fringes (20-30km).

Let’s assume for simplicity it’s either or. Nothing in between.

 

For Brissie - house with add value potential every day of the week, and twice on Fridays . Personally I'd never buy a unit in Brissy if I could afford a house in a good area.

 

Is 20-30km still Brissy?

You're outside of Melbourne and semi-rural when you go that far and Brisbane is much smaller. In Sin City, you've barely passed Parramatta and not a stray cow to be seen.

 

Only cash (well equity) cows here baby.

 

Brisbane definitely extends 20 km. 30 is a bit of a stretch. The problem here is distance versus amenities. Would an appartment in walking distance to CBD provide better growth opportunities than a house 40 minutes drive to the CBD?

 

My wize ( yet very crude) friend had a saying . The crappier the state, the more important the house with land is.


I guess SA is definitely houses.

 

There was an article in the Courier Mail earlier this week about the Brisbane boundaries. Quirk talked about BCC boundary and the data groups like Corelogic (IIRC) include parts of the other local councils. When we bought our first home in 1980, Strathpine/Petrie/Kallangur, Springwood/Rochedale and 8Mile Pls and Redbank/Goodna/Collingwood Park were all on a FHB's radar. I recall Ipswich, Beenleigh and Morayfield were where you bought "just to get a foot on the ladder".

I live just over the Moreton Bay side of the Brisbane boundary, but I class it as Brisbane. It is less than 20kms from cbd. When you drive past that big cow paddock down the road to enter Brendale, it changes to a different universe. Civilisation, as @Leo2413 would call it, returns at North Lakes.

 

Civilisation in Australia starts at Bondi ***** and ends at Point Piper.

#imnotasnobdontjudge

 

I can see that area feeling up quickly. Albany Creek, Eaton’s hills and Petrie will just fill up that space. It’s just like Balld Hills. Used to be the wild north now is pretty much filled in.

 

Hi team,

Land content is a key ingredient to good asset selection, but not all land is created equal.

You have described a small unit block with 6-12 units, 1-5km from the city, vs a block 20-30 square meters.

The unit is a better option because even with the smaller land content, you are getting more land value. An inner ring, small boutique complex is perfect. I know that Brisbane is working off some excess supply at the moment, but presumably you are intending to hold for a few years.

The unit would be a more reliable option, and you can buy the outer-ring land later once you have your core metro portfolio bedded down.

Hope this helps.

 

I would concur with @Leo2413 and for me it comes down to:
1. What type of value adds can be done, and;
2. The deal itself

As we are entering a slower phase of property it is crucial for investors to consider the possibility of manufacturing equity rather than just simple buy & hold. Think about it, wouldn't it be nice if you can add a bedroom or an extra bathroom to improve the value if the house price stays stagnant for a number of years?

Also a lot of time it comes down to the actual deal itself and value for money. If I can find a 2 bed apartment in Ashfield in Sydney today for $400K and in reasonable condition, then yes I would jump in

Cheers,
David

 

+1

 

Do you mean apartments in buildings with lifts and all the bells and whistles, or a walk-up townhouse complex with reasonable Body Corp and strata fees?

Did you mean Ashgrove?

 

No I think he is talking Sydney. Ashfield is in Sydney. But logic is similar.

 

The unit if you mean a non high rise in the inner ring not the cbd.

 

Ooops yes I meant Ashfield in Sydney. Updated my prior post to mention Sydney. Probably not a great example given this is a QLD thread...but I'm glad you got my point

Cheers,
David

 

What is a comparable suburb in Brisbane, to Ashfield?

 

Well Ashfield is 9 km west from CBD. It’s probably closer to Oxley or Corinda from view of socio composition.