QLD Brisbane Investment - 430K to 450K budget for investment

How about high schools in Arana hills? Also what are your thoughts on Ferny Hills ? I am speaking to Melinda soon on this too but just want a high level opinion about the schools there

 

Ferny Hills has excellent schools but you need $540ish+ to get something investment grade unless you find something in need of serious renovation.

 

That’s very helpful.

 

Sorry cant comment on schools in the area, if its any help take a look at the below link.

One thing I like about Arana hills is the high % of owner occupiers, typically is OO that drive house prices upwards, OO often look after their properties making them more appealing from a street level, it also shows that people really want to live and grow in the area given its primarily couples with children

If you look at the income levels its also very strong and often double income households, this is important.

Looking at the Data only, Arana hills stacks up strongly from an investment point of view, that's also confirmed by buyers agents also strongly buying on this side of Brisbane in the hills.

Arana Hills, QLD 4054
Part of: Moreton Bay Regional - Pine Rivers Council
The size of Arana Hills is approximately 3.7 square kilometres. It has 27 parks covering nearly 10.3% of total area. The population of Arana Hills in 2011 was 6,311 people. By 2016 the population was 6,804 showing a population growth of 7.8% in the area during that time. The predominant age group in Arana Hills is 40-49 years. Households in Arana Hills are primarily couples with children and are likely to be repaying $1800 - $2399 per month on mortgage repayments. In general, people in Arana Hills work in a professional occupation. 78.9% of the homes in Arana Hills were owner-occupied in 2016. (source: Australian Bureau of Statistics)

Arana Hills House Prices & Property Trends

 

I am more inclined to buy a property which has a balance of capital growth and rental return. Good rental yield allows me to build a large portfolio. Properties closer to the CBD do not necessarily deliver higher capital growth if you look at the data in the last 20-30 years. I prefer to buy two $300k properties with 6% yield than a $600k property with 4% yield unless the expensive property has development potential.

 

that is a good suggestion. However for 300K purchase i would need to wait for atleast 25 years to see any decent capital growth whereas a 600K property might deliver results faster...this is just my opinion based on my research so far..but happy to hear which suburbs you are pointing to which has a mix of both yield and capital growth potential.

 

I think Mark’s point would be to buy 2x at $300k instead of 1x $600k

Yield would likely be higher on the $300k properties ie you may make 350pw ($700pw) each where as your $600k property may only get $550pw - However they may experience similar growth.

I think this strategy that allowed you to build a large portfolio pre APRA was a viable one and something many people did, now days it’s very difficult to accumulate large portfolio’s even if you are getting higher yield.

I’m the opposite I prefer to hold more properties around that $600k where average double income families can afford early in the career. Less headaches for me, higher quality locations, and growth starts to compound at a higher $ value the further down the track you get. I may only be able to hold 3-4 instead of 7-8 $300k

There’s many ways to skin the property investment cat.

edit. Many argue inferior locations receive the same growth due to the ripple effect. I beg to differ. We often see A grade investment grade suburbs far out perform lower socioeconomic area’s.

 

Ferny Hills has much better school catchments in general than Arana Hills (some bits may sneak into better schools).

Patricks road / ferny Grove high v Grovely and Mitchy high.

Both suburbs also have a very different feel at the north end towards Bunyaville where the houses are more modern than the older parts of the suburbs to the south.

 

Hi, unfortunately you will only be able to purchase a property in Strathpine. SOLD

 

A 2 bed unit in Bris is the go, right in the alley would be best, years ago no one wanted such things in Syd, and a decade later, viola !

 

shockingly bad idea. Have you seen all the towers in postcode 4006? You are paying a developer for a unit in a trendy area, paying a premium. No one is buying them for a reason.

 

100% agree. This strategy has allowed me to build a double digit portfolio that is very easy to hold in ups and downs, in addition to supporting lending along the way. I believe there is also a strong argument for the fact that you are better off growth wise anyway as you will be able to hold a higher absolute value portfolio - the caveat being that you need to have the lending support and personal risk profile to take on more property and debt than the average investor. It is mathematically better to hold higher absolute value growing by a lower percentage amount, than struggling with cashflow on a lower absolute value with a smaller number of more expensive properties growing at a higher annual percentage.

The name of the game, whichever way you go, is net worth for your exit strategy. Too many people exit their property investment(s) because they're failing to manage cash flow on their debt, leading to stress and personal financial trouble. No one ever went broke from having too much debt - they went broke from failing to manage cash flow on that debt.

I have generally bought property in the $400-500K range, a couple in the $300k, a couple in $500k and one just over $700k. Portfolio has only ever been slighly negatively geared (still positive cash flow) when rates were double what they are now and obviously positively geared in current interest rate environment. It's safe place and comfortable place to be.

- Andrew

 

I would prefer Keperra over Chermside.

 

What’s your reasoning other than the distance from CBD?

 

The train line I imagine.

It also has an off main road high street that if the place ever did gentrify could give it a Blackwood st in Mitchelton kind of vibe.

I doubt it ever gentrifies though. BCC has to have housing commission somewhere

 

Keperra seems to be too much towards west to my liking and again there is not much anticipated in terms of upcoming infrastructure etc.

 

It's a strange one as the suburbs further along (ferny grove/ferny Hills etc) are nicer. So it's not a case of gentrification reaching Keperra. It's kind of skipped the place.

There's a big development coming at Ferny Grove station but yeah in Keperra itself not much can think of. Is walking distance to Bunnings a desirable attribute?

Edit: just checked median house prices and Keperra is only just a little cheaper than the Fernys. If anything it might be overvalued, or the aforementioned are undervalued.

 

There is going to be a lot of units coming to market in Chermside which will effect the vacancy rates.

 

Agree...Ferny grove/hills seems much nicer than Keperra

 

I've been actively looking and putting in offers for Keperra, Ferny Hills and Ferny grove for the past few months. Most properties are selling fast and at decent prices.

In relation to the Ferny Grove development at the station, I spoke with the selling agent today after he called me when I registered for project updates. The project is scheduled to commence construction in March 2021 with completion July 2023. Approx $100M project.

Full size supermarket, gym, childcare, retail, cafe and apartments. Designed as an "open air" development with high ceiling and permeability through the site.

Interested if people think this development will materially impact the Ferny Grove/Ferny Hills market positively or negatively long term?

Having visited the car park and retail amenities it certainly could do with some more options.