QLD Brisbane for investment property

Discussion in 'Where to Buy' started by newinvestorsyd, 15th May, 2022.

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  1. newinvestorsyd

    newinvestorsyd Member

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    Hi Everyone,

    We are looking to buy a first investment property.We got above $150k available to invest from our first home PPOR. Budget is around $700k

    • We are from Sydney.Considering Brisbane for investment property to take advantage of future Olympic and growth. we are not sure about location or suburb so need your guidance. Reading a few blogs and exploring the Moreton Bay, Ipswich and Logan areas.Mainly trying to avoid areas which are flood prone.Also looking for recommendations for a local Buyers Agent which you have used.

    • If you have any location or area to consider.Looking for investment for capital growth and also help us to pay the loan.Considering getting a house with a large plot so it can be used in future to sub divide or make any changes.

    Please suggest.
    Thank you.
     
  2. Trainee

    Trainee Well-Known Member

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    Do you actually have 150k you can access and borrow, or just 150k equity?
     
  3. newinvestorsyd

    newinvestorsyd Member

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    Thanks for your reply and support. 150k is available
     
  4. Headlong

    Headlong Well-Known Member

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  5. newinvestorsyd

    newinvestorsyd Member

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  6. MelindaJennison

    MelindaJennison Brisbane Buyer's Agent & QPIA Business Member

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    @newinvestorsyd you must always start with strategy - not location selection. This is a mistake I see so many first time investors make.
    When you build an investment portfolio you must consider what you are trying to achieve, your personal financial situation (everyone earns different incomes for example), what timeframes you have and exit strategies. Once you have this clarity, you will understand the importance of growth and/or yield as part of your strategy.
    THEN, you can start to consider locations that will deliver the results you are looking for.
    Brisbane is a very diverse city with so many different micro property markets. We are seeing different areas shift in different ways already since the floods at the end of February.
    In a rising interest rate environment, location selection becomes even more critical for risk management in a portfolio - but you must get the fundamentals right first. Understand the investment strategy that is right for you, and ensure it aligns with your tax strategy and finance strategy and you will thank yourself 10 years from now.
     
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  7. See Change

    See Change Well-Known Member

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    Following on from Melinda’s comment about strategy first , what is your aim / time frame?

    Cliff
     
  8. See Change

    See Change Well-Known Member

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  9. newinvestorsyd

    newinvestorsyd Member

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    As a new investor still learning, To be honest looking for long term investment with capital growth and also looking for property which can cover loan repayment/expense and get tax benefits.
     
  10. newinvestorsyd

    newinvestorsyd Member

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    As a new investor still learning, To be honest looking for long term investment with capital growth and also looking for property which can cover loan repayment/expense and get tax benefits.
     
  11. See Change

    See Change Well-Known Member

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    While cash flow is important ,until your looking at your “ exit “ strategy “ , IMHO , it only important as the better your cash flow , the more properties you can hold .

    You make your money with capital gain .

    the changes in serviceability have restricted how much people can borrow . We’d never maxed out until they changed the serviceability rules .

    until then , if we felt that a certain market was going to move , it was much easier to borrow more to buy there and still hold properties that were still going up .

    Now , as there are more restrictions on how much you can borrow , it’s even more important , IMHO , to time you buys so they are in places that are going to achieve maximal growth in the short and medium term .

    if you’ve bought a good property eventually it will go up , but if you don’t get your timing right that could be in ten years time , and it those ten years time , there may be places that have doubled , but because you bought else where and we’re maxed out you couldn’t take advantage of those opportunities …

    So , it wouldn’t make sense to buy in Sydney or Melbourne at the moment .

    Does it make sense to buy in brisbane when it’s already gone up over 50 % ( or more ) ? Buying cost , selling costs and for me it doesn’t make sense .

    yes you might make money in the next year or two , but we don’t know how much it will make . It might be ok , but some areas might be closer to the top .

    The place where most long term forum members I know and respect are buying or have bought is in perth .

    Brisbane might out perform it in the next year or two and some place in perth have started moving in the last year but others less so .

    it hasn’t gone up much in the last ten years and along with Darwin is the underperforming capital city . Darwin … mmm To much boom and bust in the past and much smaller and also tropical so more potential for storms and maintenance .

    think about what you want . Buyers agents make it much easier to buy interstate which is a good option if your just starting .

    Is perth a 100 % cert ?

    Nothing is ,

    Cliff
     
  12. Nathan Prasad

    Nathan Prasad Well-Known Member Business Member

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    South East Qld is one of the top cities to provide capital growth over the next 10 years. With
    - 15 billion on infrastructure spending.
    - rapid population growth
    - affordable living

    With South East QLD the councils make it great for investing you have a number of strategies at your disposal with a budget of $700k
    - Buy and Hold.
    - Buy and add granny flat
    - Buy and knock down and rebuild
    - Buy and sub divide

    I recommend learning the different councils and getting super creative with manufacturing growth. You can buy something in a good suburb with a value add potential to 10 x your capital growth.

    So long story short suburb is 20% of the equation, the other 80% depends on the purchase price and strategy. Learn the market so you know when to pull the trigger on a deal, so have to buy in prices for suburbs. E.G Wynnum West's buy-in price is $700k - Keperaa Buy-In is $800k. I have done this for so many investors and it is the lowest risk way with the best returns in the long run.
     
  13. BradM

    BradM Well-Known Member Premium Member

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    Your best bet would be to talk to a buyer's agent that can find exactly what you're looking for. You can tell them your budget and what you're wanting to achieve then let them off the leash to go hunt that property or property for you! I've sent many clients to Luke Moroney from Search party property and he's found them cracking deals. 0400 332 377 or [email protected]
     
  14. MelindaJennison

    MelindaJennison Brisbane Buyer's Agent & QPIA Business Member

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    I think it is also important to "research" the buyers agent who can add the most value as well. Some buyers agents focus on a particular strategy or only buy in a specific location based on their ideal target market.

    I always advise people speak to at least 3 - that will give a broad understanding of how they may be able to help based on an individual's unique circumstances.
     
  15. John Palmer

    John Palmer Member

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    I read all the other posts and agree with a few of them. Certainly strategy is important but typically most property investors only ever buy one investment property so that is the beginning and end of the strategy. Over 90% never buy more than two.

    Contrary to some of the suggestions the market for $700K investment properties is rapidly shrinking.

    Some considerations: Brisbane was built on the premise that it would never roads bigger than to allow two horses to pass each other, it is constricted arterially. Good state schools are zoned, there are significant flood plains, many subdivisions have massive white ant problems because developers didn't remove logs and stumps and just dug them in, there are rail transport corridors almost no-one knows about and lost easement issues, character listing issues and inadequate drainage. Add to that insurance premium issues with older style homes and crime issues in the south and west.

    However, it is a city that will boom...don't worry about those that say it may suffer a price correction...what's happened is the price correction that should have happened ten years ago. Sure the Olympics will keep it relevant but not all of Greater Brisbane will benefit.

    Look to the Gold Coast, Redland Bay or Sunshine Coast. Bribie Island is undervalued.

    A Buyers Agent is a great suggestion but in the 23 years I have been developing and assisting investors in this city I would respectfully suggest that a great knowledge of property analytics and a proven algorithm are more important together with actually visiting the place.
     
  16. MelindaJennison

    MelindaJennison Brisbane Buyer's Agent & QPIA Business Member

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    @John Palmer I agree that a great knowledge of property analytics together with visiting Brisbane is the best approach. I guess the issue for so many people is that they lack the time to become an expert. This is where partnering with professionals can fast track an individual's understanding of a market and help others get a result sooner.
    I still agree that strategy is so important regardless of whether property investors only ever buy one investment property ... or if they buy a few. If an investor only ever buys one investment property, then making sure it is the type of property and the location that will deliver on an individual's desired long term outcomes becomes even more critical.
     
  17. BradM

    BradM Well-Known Member Premium Member

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    I'm no buyer's agent but I know they do a hell of a lot more than "visiting the place." The ones I have worked with have loads of knowledge on property analytics and they have a proven track record from the many purchases they've made on behalf of their clients. I think it's a little dismissive to say they merely inspect a place. (Forgive me if I've misread your intention/writing here.)

    Also, Hey @MelindaJennison Was nice to meet you at the BOQ Economic breakfast! Small city :D
     
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  18. MelindaJennison

    MelindaJennison Brisbane Buyer's Agent & QPIA Business Member

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    Ahh ... Brisbane really is such a small place @BradM ;) It was great to meet you too! That certainly was an informative Economic Update. It is always good to keep up-to-date with current conditions.
     
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  19. John Palmer

    John Palmer Member

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    No problems, what was intended was the importance of visitation in addition to consulting professionals.
     
    BradM likes this.

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