QLD Brisbane First IP

Hello All,
I have been following threads for couple of months on PP and I highly value advice been shared on the platform. Its genuine and encouraging to people like myself who are new to IP.

I am looking at my first IP and have been going back and forth between areas, new Vs existing etc. On new front, I have shortlisted Pallara as a potential however would like to explore potential areas with existing house as most of experienced investor on forum have consistently recommended larger block, existing, closer to city send teansport/amenity which make sense. I have never been to Brisbane which makes or difficult to find these area within certain budget and being first IP, have to many questions and not enough knowledge. Any help or advice highly appreciated.

1. Budget: around 500k
2. Ideally inner ring, close to train n amenities.
3. If I were to pick my poison, I would prefer to have cash positive IP even if I have to sacrifice little bit of CG ( min 5%, is it reasonable?)
4. Bases in Sydney so opportunity to upgrade property myself would not be possible and in short term would not be able to engage tradies to do so.

Thanks in advance

 

As a starter, you can use the Invest tab in realestate.com.au to check out which suburbs fits your budget criteria, starting from inner ring then keep going out. If you want the property to be close to train & amenities (your point 2), then simply focus on the suburbs that have these criteria.

Once you filtered down to a number of suburbs that fits your budget then cam look at available listings to validate whether the houses that fit your ideal critiera are indeed in your budget range.

The invest tab will also give you an idea on the average rental return of the suburb as an initial indicator before you do more DD on the suburbs. If you want to chase yield, Logan in general may suit you better as they provide better rental returns across the board. I'm still seeing deals with gross rental return of 6% around Logan so at 80% LVR it'll be neutral if not slightly positive from day 1. In my opinion avoid the lower social demographic areas like Logan Central/Woodridge though.

Come up with a shortlist of suburbs then you can use the search function on the forum to see what others are commenting about these suburbs. Last but not least find a time to hit these suburbs yourself - you'll learn a lot more on the ground than just sitting behind the computer screen (and it's more fun to be on the ground!).

Cheers,
David

 

Both South and North are good @Singhalyash tbh ...

Good returns and good CG potential!!.

 

Brisbane is a very different market to sydney. Finding a 5% yield property in Brisbane is a piece of cake and you actually shouldn't go for anything less.

Your strategy of close to city, trains and land size is a good one. I think you will get better value with an exciting property in that criteria.

 

Yes, you should be able to get a good yield and being closer to the cbd will give the cap growth in future.

 

Thanks @David Shih . I have always looked at RE on so and did not realize they had this function. Thanks for that. How are bank valuations coming for new property? At par or below purchase price?

Thanks

 

Thanks @jazzsidana. Any suburbs you can recommend in my budget?

 

Thanks @Tersy. Any suburbs you can recommend?

 

Thanks @JDP1. Any suburbs you recommend?

 

Id probably agree with this. Brisbane is a fragmented market..easy to make mistakes but at the same time plenty of opportunities.
The buyers agent can help you find the opportunity whilst steer clear of the pitfalls..
This forum us useful..sure. But is only one aspect of thorough dur diligence which large purchases like property require.

 

It really depends on the suburb & type of dwelling. The inner city OTP apartments I'm working through right now are unfortunately running below the purchase price buyer has paid back in 2015.

Existing house valuations are stacking up better as long as you're offering reasonable prices. Done a video recently on how I would derive the market value of a property which may help:


Other than that, if you're not overly familiar with Brissie areas I would tend to agree with Rolf to consider using a BA on your first purchase so you're guided for the first time.

Cheers,
David

 

You don’t need to spend $10k on a buyers agent to buy a $500k property. Do some due diligence yourself it becomes pretty obvious which areas are good value. Look around the Ferny grove, keperra, ferny hills areas. Undervalued, gentrifying, close to rail, keperra development coming online with Bunnings etc. can’t go wrong. Especially when you consider keperras median is $130k less than mitchellton and they are neighbouring suburbs! Now spend that $10k on a holiday.

 

Thanks everyone. I have burnt my finger once with BA and it was an expensive lesson learnt. Not doing it again. I have learned fair bit from this forum and continue to do so. Thank you @Thedoc for pointing me in a direction and if anyone has more, would be highly appreciated. Many thanks.

 

If I was in the position you’re in now, on the north side i’d be looking in the areas circled. The NW is good mitchy has gone bonkers no doubt but you cant argue with Chermside/Rail/Airport/ plus close proximity to indistrial precincts at Geebung/Zillmere/Brendale = Jobs Jobs Jobs. The NW has done well I believe because it was undervalued for lifestyle (good parks, schools, hills, big blocks), is fed by defence at enoggera and fairly close to the city but it will always be a pain in the arse compared to the NE because there’s no freeway or tunnel servicing it and doesnt have its own large mall.

 

The prices in these three suburbs have barely moved in 2 years.

 

Every question on this forum can be answered:
Speak to lawyer
Speak to a broker
Speak to a buyer's agent
Speak to an agent
Pay for report

I can use that as answer for every question.

Awesome

 

That's the beauty of it

 

Incorrect. Just under $40k increase in the median from November 16-18. As above that’s the beauty. Keperra is close to $150k cheaper than mitchellton. Join the dots.