QLD Brisbane Area 405 vs 600 vs 810sqm

Hi all,

I have been looking to buy an investment property in Brisbane. I have been monitoring some suburbs and have sourced my finances. The question I have is would you rather invest in a poorer build quality 405sqm within 8kms of CBD vs a medium quality 600sqm 8-12kms of CBD or 800sqm 15kms + from CBD? The price ranges for these types of properties are broad but do overlap.

I guess the question boils down to do you think its better to purchase smaller blocks closer to the city or larger blocks further away that could be subdivided?

 

Depends on your goals/strategy/risk profile .

For me, Brisbane is all about largest block of land with an average house, closest to the CBD in a good OO area and must be able to add value too.

What might be best for you may differ.

 

For a land of more than 800m2, you can split the site and subdivide to build 2 houses, within 8 km from CBD, have a look at the following IP:

52 Stanley Road, Camp Hill, Qld 4152

 

It really depends on your goals. There is probably a balance between having too much land in suburbia if you're never planning to do anything with it as it will essentially cost you more in purchase price but have less yield (more land does not equal higher rent) and you will possibly exceed the land tax threshold depending on your total holdings in that state.

If you're planning to subdivide and build another dwelling at a later date then take into account the positioning of the original dwelling on the lot if you're planning to keep and reno that unless a full demo is in order.

There are plenty of variables but as always, your goals, risk profile and strategy should be thought about from the outset.

- Andrew

 

Inner city overall will always do better than outer areas.

 

In Brisbane instead of buying a 800sqm block and subdividing, you would be better off buying a cheaper 600sqm block and build a 100k granny flat out the back. I think Brisbane councils are easy to do this with in terms of permits.

Buy house for 400k
Granny flat 120k
Nice yield there.

 

Except you can't have dual occupancy in Brisbane City Council - so you'd have to either rent it out all together or use it for your family as an OO.

 

I’d argue that you would still get good capital growth too. If you buy in a suburb that goes up 15%, I still think your house would get that too regardless of the granny flat. With a granny flat you are also looking at an 8% yield on a total expense of about 520k

 

Or you could buy a house (in Brisbane) with up to 8% yield without having the expense of building a GF...

 

Most of the suburbs with 8% yields would be places that might struggle for capital growth. I’m sure you could get close to 8% in Ipswich, Logan etc but I really only like Brisbane north suburbs.

Who knows? It’s not like I’m holding my breath for Brisbane to boom