QLD Brisbane - Investment medium term for capital gain

Discussion in 'Where to Buy' started by Terracehouse, 3rd Dec, 2021.

Join Australia's most dynamic and respected property investment community
  1. Terracehouse

    Terracehouse Member

    Joined:
    27th Sep, 2020
    Posts:
    16
    Location:
    Sydney
    Hi All. We were priced out of Sydney market for our range and are looking to buy interstate to park some capital for a few years. Hoping the two speed markets will get us back in the game in Sydney in the medium term.

    Budget - 1-2 mil, ideally 1.2-1.7
    Objective - Capital growth primarily (even at the cost of yield).
    Time Horizon - 2-10 years, happy to re-sell quickly if gains are good enough.
    Features - Low maintenance. Lowest risk of flooding.

    Thoughts and Questions

    1. On another forum we were told to look for a bigger block in the middle ring. Our time horizon might not be permissive to this. So really we are just looking for robust capital growth.

    2. We are willing to forgo yield from a less renovated / smaller property for capital growth. Not sure what people think about buying an older house on a smaller block in the inner ring.

    3. We are aware that there is a lot of infrastructure going in for the 2032 Olympics. Not sure if this should factor in which suburbs to pick. If so, what suburbs might benefit most from this.

    4. Initially our thoughts were buying into the inner ring (Hamilton, Ascot, New Farm) but realised quickly that this would push our budget to the higher end and still not neccesarily get a great IP. We are now thinking slightly further out like Paddington, Auchenflower, Clayfield/Hendra. We've been given advice on another forum about a whole list of suburbs which seem quite far out. Also been told that living within the inner ring in Brisbane isn't as hot when compared to Sydney/Melbourne. Can someone confirm this?

    5. Overall top 5 state schools in Brisbane?

    6. How important is train line in Brisbane vs good road connectivity?

    7. Any thoughts on areas that may have underperformed in the inner/middle ring?

    8. Can anyone advise on general fees for buyer's agents - 1-2.5%?

    9. Any other advice/DD for an interstate buyer?

    Many thanks for any help
     
  2. Headlong

    Headlong Well-Known Member

    Joined:
    21st Sep, 2021
    Posts:
    389
    Location:
    Brisbane
    If capital gains is the most important, choose a suburb that hasn't risen lately by crazy demand
    You could even get picky and make sure there was a park nearby, or the house had FTTP/FTTC, or a frequent bus/train service walking distance
     
  3. Gen-Y

    Gen-Y Well-Known Member

    Joined:
    8th Nov, 2015
    Posts:
    3,770
    Location:
    Brisbane - Sydney
    I am living in Clayfield - North side of the CBD.
    It is one of those suburbs that people buy when they are priced out of Ascot.
    It has train line to the city or airport - 20 mins tops you are in and out if this is important to you.
    Price are well into the $1.5m which is towards your upper limit for a nice house.

    You can't go wrong with Paddington. That was my second choice for PPOR especially if you can get a city view property.

    You won't get much on your budget if you go Hamilton, Ascot, New Farm. Either you are new money or old money coming in - IMO it is too dear.

    Kalinga QLD 4030 a very small pocket of nice queenslander houses. I wish I knew about that suburb before I made my decision. Add more complexity to my choices. LOL

    PM if you want to chat. I don't want to clog up your thread.
     
  4. Headlong

    Headlong Well-Known Member

    Joined:
    21st Sep, 2021
    Posts:
    389
    Location:
    Brisbane
    Hamish84 likes this.
  5. Terracehouse

    Terracehouse Member

    Joined:
    27th Sep, 2020
    Posts:
    16
    Location:
    Sydney
    Thanks for the advice we are narrowing it down more to clayfield and Paddington now. Any thoughts on Windsor? Looks right next to great suburbs but doesn't seem to rate a mention normally. Any reasons?
     
  6. boganfromlogan

    boganfromlogan Well-Known Member

    Joined:
    10th Jan, 2017
    Posts:
    3,332
    Location:
    Brisbane
    I am worried about this overall. U want to buy at potentially top end of the market in the area that was early in terms of price gain. U accept small and and old house.

    None of this makes any sense to me.

    Why not buy the largest land parcel, in 10 years subdivide.

    Be less worried about 'rings' and schools. Marsden high was school of year, but don't spend millions there.

    I think you should go back to square 1.

    Large land / 10 year time horizon go well together. Transport infrastructure important too.

    And good luck!!
     
    TheRons and Never giveup like this.
  7. Terracehouse

    Terracehouse Member

    Joined:
    27th Sep, 2020
    Posts:
    16
    Location:
    Sydney
    Thanks for you reply. I will probably get a bit more insight when I link up with a buyers agent.

    If Sydney/Melbourne are anything to go buy, the top suburbs continue to perform well and at times can even outperform outer growth areas. Our time horizon to realize growth may not be that long (possibility of flipping in 2-5 years) and therefore we have to bank a bit more on stability than volatility.

    A the end of the day we cannot bank on a subdivision as our horizon may not be suitable for that view. There are also other considerations like low maintenance costs from a smaller block.

    If our time horizon was 10-20 years I would completely agree with you.
     
    boganfromlogan likes this.
  8. standtall

    standtall Well-Known Member

    Joined:
    19th Oct, 2015
    Posts:
    2,701
    Location:
    Sydney, NSW
    I would buy in Carindale .. learning from Sydney, larger houses in prestige suburbs appreciate way more than any other residential property type.

    Get a 5 bedroom McMansion on 650+ sqm block and you should be okay as upper end of the market will continue to perform due to interstate migration.
     
    boganfromlogan likes this.
  9. Gen-Y

    Gen-Y Well-Known Member

    Joined:
    8th Nov, 2015
    Posts:
    3,770
    Location:
    Brisbane - Sydney
    There’s nothing wrong with Windsor.
    It just doesn’t come with the prestige as the other mentioned.
    I am here to make capital growth on measurable metric.
    If you are looking at south side - Balmoral, Bulimba and Hawthorne are the prestige suburbs.
    Consistency outperform on capital growth because it has all the right ingredients.
    Sure you can go buy acreage for potential subdivision in 10 years if it was a sure thing???


     
  10. Brissy1

    Brissy1 Well-Known Member

    Joined:
    25th Jul, 2018
    Posts:
    268
    Location:
    Brisbane
    I'd just keep an eye out for the flooding in Windsor, but other than that fantastically close to the CBD. I'd also have a look at Grange and Wilston, two great areas.
     
  11. boganfromlogan

    boganfromlogan Well-Known Member

    Joined:
    10th Jan, 2017
    Posts:
    3,332
    Location:
    Brisbane
    Can't argue with that
     
  12. boganfromlogan

    boganfromlogan Well-Known Member

    Joined:
    10th Jan, 2017
    Posts:
    3,332
    Location:
    Brisbane
    Can't argue with this either!.

    Smaller properties in Carina also possible. Fewr mcmansions, more fixers.
     
    standtall likes this.
  13. Patrick Bateman

    Patrick Bateman Well-Known Member

    Joined:
    12th Nov, 2017
    Posts:
    2,567
    Location:
    Brisbane
    I personally like the inner west . Have a look at Toowong , taringa and Indooroopilly . Green and leafy suburbs with excellent public and private schools
     
    Gen-Y likes this.
  14. DoingOK

    DoingOK Well-Known Member

    Joined:
    3rd Jul, 2018
    Posts:
    136
    Location:
    queensland
    Other option is to head west to Ipswich. They are rezoning land to allow for much more medium density housing. Decent blocks are.becoming attractive to developers. I know of several post 1m sales in bellbird Park. Lots of money to be made in next 5 to 10 years and council is happy to have developments.
     
  15. MelindaJennison

    MelindaJennison Brisbane Buyer's Agent & QPIA Business Member

    Joined:
    16th Mar, 2020
    Posts:
    252
    Location:
    Brisbane QLD, 4000
    @Terracehouse your primary priority appears to be capital growth so you must understand growth drivers to determine the best location to buy. Growth does not come from the house itself - this is the depreciating part of the asset.
    Growth comes from the land - BUT not all land has the same value. The scarcity of the land and the location drives the value.
    For capital growth the priority should be maximising the land:asset ratio. Buy in an area where supply is limited and demand drivers are high. Supply comes from new land subdivisions or higher density zoning. Demand comes from so many things including macro drivers (low interest rates, economic activity etc) and well as micro drivers (demographics, desirability, accessibility etc)
    In the same suburb in Brisbane you can have VERY desirable streets and VERY UNDESIRABLE streets. Remember, Brisbane is different to other cities and the impact of flood (for example) must be taken into consideration.
    I hope this helps and good luck with your investment search!
     
    TheRons, DoingOK and Nate7gc like this.
  16. willair

    willair Well-Known Member Premium Member

    Joined:
    19th Jun, 2015
    Posts:
    6,776
    Location:
    ....UKI nth nsw ....
    Have a look at 80 pring st tarragindi 4121 ..
    A lot of work been done on that property ..
    That might been in your top price line ,maybe not good as renter but ppor with the location..
     
  17. wylie

    wylie Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    13,932
    Location:
    Brisbane
    I cannot imagine that is going to sell in that price range on the listing. That's going to go much higher, surely?
     
  18. willair

    willair Well-Known Member Premium Member

    Joined:
    19th Jun, 2015
    Posts:
    6,776
    Location:
    ....UKI nth nsw ....
    Wylie I'm not sure as one sold several houses down for 800k on the weekend ,another one just behind 80 pring sold for 1_7 plus a few months back so maybe this one will end above 2 mill but I still think 1_7 as that's a busy street ..
    I would say something like this will sell before the auction.
     
    TheRons and wylie like this.

We provide our clients with the opportunity to select their own investments from a wide range of ASX listed securities. We provide the research to ensure your selections will achieve the goals. This is the value of advice.