Brisbane Advice for a Low Budget Buyer

Discussion in 'What to buy' started by JezandCrissy, 2nd Jan, 2018.

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  1. JezandCrissy

    JezandCrissy Member

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    Hi Rolf, also for us to live in as well as we are renting. I prefer something needing work to add value than someone else quick flip cover-up.
     
  2. JezandCrissy

    JezandCrissy Member

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    Hi D.T. house is also for us to live in and we both work Bris CBD, no plans on moving anytime quick. As for down the track with IP then will consider other cities etc.
     
  3. JezandCrissy

    JezandCrissy Member

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    Always the case when you are looking they have all just gone :) we only gained pre-approval late last month and of course new listings went quiet and what was left was selling quick.
     
  4. dabbler

    dabbler Well-Known Member

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    I would go to auction.....just to see if you pick it up with no competition.....it happens......

    Re val, yes, you can get carried away in a bid war and lender may not cover, but they can do this even with a normal sale if they like....do not max out is prob best suggestion.

    Also.....dont expect to get anything cheap via say trustee or deceased estate etc.....many people have same thoghts, more likely to get a good buy via luck...lack of competition at the time, good negotiating skills, or an agent that likes you and gets a seller who wants to sell quick and they know you are ready etc
     
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  5. hieund85

    hieund85 Well-Known Member

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    It is not always true I would say. I do not know much about Brissie market so will take Melbourne to demonstrate. A 2bed unit/villa in inner ring (10km) suburb in Mel worthed $500k 3 years ago. Now it is 700k. A house with big land (development potential) in Reservoir (15km) worthed the same amount 3 years ago but now $900k.

    I agree with you that location is the most important thing but a small unit/villa has very limited value add potential. So it may have ok CG and good CF. While a house with big land in an outer suburb with good infrastructure (not crappy crappy location) and development potential will have much better CG but worse CF.
     
    Last edited: 11th Jan, 2018
  6. Journeyman

    Journeyman Well-Known Member

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    I guess it depends what you are after. I like a combination of cashflow and growth property. For my most recent I wanted low vacancy, high return and some capital growth, I was happy with $1k per week return on a ~$670k purchase. 10 acres, two houses, plenty of applicants to rent. It's 58KM from the CBD, but much closer to Ipswich. I am fully aware it won't have the growth of a free standing property < 10km from the CBD.

    I was looking for an average of 4% or 5% capital growth over the next 10 years. Given the property is $10k+ positive per year, it means I can go again sooner. I also have the benefit of only ever being half vacant..... It's unlikely both houses would be empty at the same time. I like traveling allot, so better cashflow means more OS trips.

    By comparison I have a 4br 2 bath house at North Richmond NSW, bank value $700k, returns $450 per week. It's positive because I have held it for long enough.... But something like the BRISBANE property in North Richmond would be $1.2 - $1.5 M or more..... So negative gear, and much more risk.

    Depends what you want.
     
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  7. BarneyRubble

    BarneyRubble Well-Known Member

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    Out of interest, what was the suburb?
     
  8. Angel

    Angel Well-Known Member

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    Everton Park, walking distance to shopping centre.
     
  9. Shawn

    Shawn Well-Known Member

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    What about Slacks Creek?
     
  10. jefn89

    jefn89 Well-Known Member

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    Hey Journeyman,
    Not sure if you're willing to share although love the sounds of your property in Brissie, as you say it may not be a CG star although the cash flow sounds awesome..

    Would you be willing to share at least the suburb and the process involved in searching for a property like this? i.e. did you head to realestate.com, speak to real estate agents, etc
     
  11. Journeyman

    Journeyman Well-Known Member

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    The suburb I ended up in is Ebenezer 4340, part of the Ipswich council area.

    I was looking anywhere a commuting distance to BRISBANE or Gold Coast.

    We have had success renting out acreage properties in central NSW, long term tenants and a better return.

    We went looking for a place with two houses, found a few with a 4 Br and a 3 Br. Then found this one with a 5 Bed 3 bath monster, and a two level home set up for dual living ( 4 bed 2 bath) all applicants for the 5 bed asked to be considered for the 4 bed if unsuccessful.

    I used domain and realestate.com. I spoke to agents. Tried to find motivated vendors or distress sales. I traveled to Brissy several times, went to lots of restaurants, hired fun cars..... It makes it all more enjoyable.
     
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