QLD Brisbane <350k

Hey guys,

Here's the criteria:

Brisbane townhouse
3 bed 2 bath
1 car
Still has some depreciation left in it
5% yield min
Good vacancy rate
Close to a train station to get to the CBD
Under 15km to the city

Can't be in an area that floods e.g Rocklea

I've been looking in areas like Mt Gravatt, Moorooka etc. think I might be stretching to get something 350k or under in these areas?

I was tempted to consider Manly/Wynnum but they seem too far away. I realize they're on the water..
Or even possibly Cleveland with their development @ Toondah Harbor?
These places don't qualify for the <15km to the cbd.

What's the deal with Calamvale and Sunnybank? Seem to be able to pickup a townhouse here but they also seem to be everywhere.
Just a touch out @ 15km.

Also looked on the north side at Chermside or Zillmere? I find the north side has worse roads in & out of the city, and can get quite congested.

Where am I missing? Where should I be looking for short term CG to keep the portfolio alive and why?

Thanks,
Aaron

 

You might just get what you want in the Mount Gravette area for that price (minus one bedroom though!), but even at 350k it would be a stretch. Still, that area is largely owner occupied houses, a great asset for rental seekers, that'd be one of my picks for the areas you mentioned considering all of your requirements.

 

What about the areas like Camp Hill and Carina? With the possible future busway extension those two look promising. Not sure if those two will fit in your price range though.

 

Aaron, do you consider townhouses only or units as well?

I'm also interested in the mentioned areas with pretty much same conditions that you have. However, I'm still not sure whether to aim for unit or townhouse.

 

I'd prefer a townhouse. Ideally a house, but with a budget of 350k that's unrealistic. I feel the better CG happens closer to the CBD. A townhouse as opposed to units is better because you can't easily build more townhouses. Sure, some more will pop up but it isn't like a unit where a developer could come and build 50 and your hard pressed finding a tenant. I also think there is better demand for a 3bed over a 2.

 

Moorooka or Salisbury? Pretty tough ask with that criteria.

 

There's a huge townhouse complex near Moorooka, but I wouldn't buy there personally.

 

What's the obsession with 15kms?

Yeah if your picking a run of the mill suburb then proximity will win

Wynnum , Manly are realistically pretty close to Brisbane
I think a bayside suburb 20kms out will always have the wood over a run of the mill suburb 15kms out

Especially at the point Brisbane is at now population wise
When the population is double what it is now it might be a different story (due to congestion / travel times)

 

How's Frankston going?

 

??

It's going alright, had some good growth the last 12 months

Frankston is 44kms from Melbourne

 

In relation to their populations, would you say that's a comparable distance as Brisbane bayside?

 

I see what your saying but I don't think it's that simple. Brisbane's spread is still as big as Melbourne's. Just wait 15 or 20 years and people will laugh when old timers say how far away Manly is!

In Brisbane there arnt any bayside suburbs close to the city
Shornecliffe and Manly have median house prices of approximately 700k

So they already have it over the vast majority of suburbs in the 10 -15km ring

Not sure why people from Brisbane think they're city will be any different from what's occurred in Sydney and Melbourne bay/ harbour/ ocean side
Ok it's not as nice in Brisbane but there is also less supply

 

Hope you don't think I'm saying that.
I'm just trying to clarify your Brisbane/Melbourne comparisons.
And I think Brisbane is a lot nicer than Melbourne.

 

Bayside could be worth a look for you, Aaron. Bit further than 15km but decent fundamentals.

 

Hi Aaron,

Whose your target market? I reckon you should be looking at the area first and determine the demographics first and find out what people want in the area, rather than choosing a townhouse.

I'm seeing that some areas have a higher demand for houses than townhouses. So best to check that out first...

 

I spoke to my RE agent this afternoon and he said my townhouse at Scarborough 180 metres from the beach is about $340k to $360K (3/1/1) No houses under $500K

 

I'm only going a townhouse because I can't afford a house. If people don't want a townhouse in the areas i'm looking then I'll look for another area. The way I see it is people would look for a house, then if they can't afford that a townhouse. Whats peoples thoughts on Robertson and Tingalpa? I realise some parts of Tingalpa flood.

 

Obsession with 15 kms is in 20-30 years these places will be worth more than somewhere further away. Like what you said, when the population is double how are people going to get in & out of Wynnum/Manly? by boat? If somewhere goes up an extra few percent early on it can compound massively over 30 years. I take a page out of a fellow investor who invested in 3 places at a similar prices 30 years ago. Rockhampton, Ryde, and Keperra. Ryde would be worth 1 mil +, Keperra is around 420K and Rocky in the late 2, early 300s. They were all bought for 50-60k. Shame they sold the Ryde place 10 years ago....

 

Wynnum has a train line.
I don't think those 3 had comparable prices 30 years ago if ever. I understand what you are saying but even if a similar amount was spent in each location they wouldn't be comparable if you look at historical medians.

 

what about the pocket
Rocklea, Archerfield, Acacia. 350k ish medians
I am not familiar with the areas but they are surrounded to the north/east by suburbs with much larger medians. I am familiar with Inala nearby, drove around for work a few years ago