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QLD Brisbane - $400k

Discussion in 'Where to Buy' started by Greyghost, 27th Jul, 2015.

  1. Greyghost

    Greyghost Well-Known Member

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    Hi all,
    We have our own strategy, however the in laws are looking to buy something low maintenance for $410k max in suburbs of brisbane
    They obviously need cap growth as they will retire in 10 years.
    So what are people suggestions based on their price budget.

    They live in bris.
    Cheers
     
  2. wylie

    wylie Moderator Staff Member

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    Are they looking for house, unit or townhouse?

    I've been searching for a while for a couple of friends, and more recently for our son. I look locally because that is my preference (Coorparoo, Camp Hill, Holland Park, Greenslopes, Mt Gravatt). There are plenty of units for low to mid $300K, some townhouses for $400K to $500K but when it seemed the better townhouses that gave off good rent were getting up towards the price we could get a cheapie house, I started to look at houses.

    Our son ended up buying a house for under $500K in Mt Gravatt. Rent return isn't as good as some of the cheaper places, but it is in a street with money being spent already, the ability to make an extra bedroom if required, ready to rent immediately. I'm sure there were plenty more under $500K but this just had a few things that made it easy to choose.
     
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  3. Redwood

    Redwood Well-Known Member

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    Hi there,

    Certain areas of Brissy have a risk of oversupply and the lenders are telling us this. Stay away from FV and West End.

    Be careful with Chermside and Mount Gravatt due to oversupply. I do like Sherwood and also Mitchelton due to the army barracks providing demand for one bed apartments. Should still be able to achieve a return of 5.5% for the investor however do your due diligence up front.

    Cheers Ivan
     
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  4. C-mac

    C-mac Well-Known Member

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    Hi @Redwood,

    Thanks for the insight! Other than Mt Gravatt, Fortitude Valley, West End, and Chermside (and obviously, let's bucket-in inner cbd aparyments too), where else in Brisbane have lenders warned of oversupply?
     
  5. M-THIS

    M-THIS Active Member

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    Is oversupply in these areas limited to apartments and not houses?
     
  6. Leo2413

    Leo2413 Well-Known Member Premium Member

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    @wylie I think that's pretty good actually. It sounds like he's set up for decent CG and I really like how he has the ability there to manufacture some growth and increase yield through an extra bedroom. Nice one! what's the size of the land?
     
  7. Redwood

    Redwood Well-Known Member

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    Hi there, I should clarify this is generally for the developer - I was in Chermside yesterday, absolutely nuts the amount of development going on, still cheaper than Mt Gravatt in ppsm.

    Brisvegas is going nuts ...

    Cheers Ivan
     
  8. C-mac

    C-mac Well-Known Member

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    Ah cool, thanks Ivan.
     
  9. Lacrim

    Lacrim Well-Known Member

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    Has anyone recently bought anything within 10kms of Brisbane (house), and managed to get 6%yield (or more) legally??
     
  10. jaybean

    jaybean Well-Known Member

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    There's an oversupply in Mt Gravatt, really? What type of stock? I was always under the impression it needed more of everything.
     
  11. HUGH72

    HUGH72 Well-Known Member

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    Thats what I thought but with a lot of high rise units there and some rezoning maybe there is more to come.
    It would most likely push the value of land up and free standing houses. Upper Mt Gravatt especially is a large hub of activity.
     
  12. jaybean

    jaybean Well-Known Member

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    Apartments I can see. But I can only imagine demand for houses and townhouses increasing. It's a very desirable area. The areas surrounding Garden City are close to the top of my pick list for future growth.
     
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  13. Rixter

    Rixter Well-Known Member

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    Portfolio Perth Brisbane Sydney Melbourne
    Yes, its a major satellite cbd on Brisbane's southside and ticks one my macro DD boxes for attaining good CG.

    Greyghost, look for satellite cbd's and purchase in or a suburb adjacent to these hubs.

    I have had excellent CG over the past 13 years I have been purchasing in those type areas.

    As a starting point for areas worthy of further DD check out where the major Westfield Shopping Centre precincts are located and pan out to adjacent suburbs to those also.

    I hope this helps.
     
    Last edited: 30th Jul, 2015
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  14. HUGH72

    HUGH72 Well-Known Member

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    Yes I agree.
     
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