QLD Brisbane - House Strathpine or Unit New Farm

Hi All,
After some Brisbane info for my Sydney brain. I've been trying to retrain my thinking but it is difficult. Please bear with me. Late Sunday night brain.

Investing and looking for 2nd property. I'm an ozzy citizen but live overseas and will for maybe 5+ more years. Goal is to have a retirement nest egg and small PPOR in 15ish years. Started with zero this year so probably won't get all the way but want to get as far as I can.

First place, bought in July is a small flat in Nundah getting 7.5% yield. Very happy with that. Small 1br in single story 4 pack, tenant in place for 5 years and happy to stay 5 more.

Now I have 400k-440max to spend in January (Cannot squeeze any more out due to overseas income exchange restrictions etc etc).

Looking at options in Brisbane. I have read the forum a lot and advice seems to end up with a house at somewhere like Strathpine, Bald Hills for 400ish. Land value on 600sqm etc. Must be near a train station (Sydney Brain).

But being from North Sydney I have a blockage about buying something so far out as it doesn't seem like a desirable location. I have seen friends paying megabucks to rent tiny flats in affluent areas of Sydney and fighting over them and think that, for eg. a unit, say a 2 bed, old style small block in New Farm for 400k will always be rented and will get CG as fast as a house a long way out (am I wrong?). I know that a house has extension or renovation prospects but not in a position to do that. Both a flat and house would be able to get new kitchens or bathrooms etc when I return. Cannot do fixer-upper or quick reno before renting.

Another option is to spend less for a smaller loan, say 315k on a 2 bed small block in Clayfield/Nundah. Similar to what I have so not diversified but easy to rent out while away. They are at 2008 prices so cheap I think.

Everyone seems to say land land land and location location location. But to me the land has no location and the location has no land. I am comfortable with the unit plan as similar to what is working for me. But I will kick myself if the unit is worth the same in 5 years and the house is up 20+%.

PS Grew up in South Brisbane and never want to go back so no Logan sidetrack suggestions please.

Thoughts?

 

Are you looking at the flood maps? Anything in the flood areas will get harder and harder to insure as time goes on.

Can't help.much with the specific locations but the flood thing is definitely one to consider and cuts out a huge portion of the city.

 

All over the flood maps. Yep. Flood free where I am looking. Not far away but far enough cheers...Good suggestion though

 

.I personally would be very cautious of buying a unit for the purpose of growth.

look to the historical data as a guide. It is only one factor though.

 

Thanks for the info .
2014 what a year in New Farm.
Oh for a time machine.

I'm wondering though that as units have gone nowhere for 10 years and Strathpine has run up due to Petrie Uni whether things will be different going forwards. I think the oversupply is reducing and the uni speculation has run out so new markets for both areas perhaps. Again my kingdom for a time machine.

 

If only one has access to the property version of the sport’s almanac.

Good luck with what ever you choose, might even be worth chatting to a Buyers Agent or selling agents in both areas to get a better understanding of what is happening in the area

 

Yep Back to the future alright

Buyers agents are really out of my price range.

It's difficult to talk to selling agents by email as they seem to like face to face or on the phone. I'm there in December so will be picking brains on the ground then if still undecided.

 

I don’t think you will be able to find a house in Bald hills for $400K anymore. I’ve been looking myself and unless it’s on the main road it doesn’t seem there is anything in that price range.

Apartments don’t necessarily rent in New Farm like hot cakes. I’ve been watching two apartments and they have been advertised and vacant for a month now.

However, I do agree that New Farm is more desirable. If the apartment has something special about it like river views.

 

Yes Bald Hills is hard to find a place that is good for that price. New Farm with water views won't be at that price point either probably. But I'm hoping something comes along closer to Xmas time. Anyone got a 2 bed unit in a block of 4 with water views in New Farm for 390k to sell - hit me up lol.