QLD Brisbane investment suburbs

Hi Guys

Can anyone recommend if these suburbs are good for investment in a 3br house? Priority is to get a positive cashflow followed by capital gain (5-8% per annum)

Richlands
Inala
Rocklea (alot has been said about flood area)

Looking for suburbs within 15kms of CBD.


Any other suburbs?

 

Inala would be the best of those.

 

Maybe quote a price range,because there is difference between those 3-and where they are in the property cycle -2 of those area's are on the slide with high rentals lists..

 

I am looking 3 br under 340k.

 

I would go with Inala too. It's Vietnamese. I always like to target demographics that are hardworking and have a cultural inclination to invest.

 

That was my logic too. Plus Redlands is getting a bit further and seems to have more land around it (but I could be wrong). I think buying close to the Inala plaza is a pretty good bet. But prices do reflect that.

 

Hi,
There are many good suburbs to invest in around Brisbane with positive gearing.
I would recommend to focus on gentrifying suburbs with heavy private and government investments.
Follow the money. Large scale investment = Infrastructure = Jobs = Demand = Increased Value.
Ipswich is one of these suburbs where you can still get positively geared properties with no holding costs. As long as your prepare a proper cash flow forecast report as to not encounter unnecessary risks.
Another things is that if you engage a good Buyer's agent, you would be also able to attain an additional Cash Back from the developer of around 20k- 25k. Just be aware that some companies double dip into the commissions so hire an exclusive buyer's agent.
Logan is also a good place to research.
Just remember that there are no guarantees in property. It's about minimizing risks.
Cheers,
Joseph.

 

You may want to explain further not everyone is in finance and understands the implications of cash back on bank vals

 

What about Pallara? I hear they are developing heavily there too and have heard positive buzz.

 

Yes. You're right.
Incentives offered by various developers have an adverse effect on the bank val of the property.
The banks are aware of these incentives such as cash backs, new cars, stamp duty paid etc.
The banks will generally calculate the property value after reducing the incentive value. As a result, you as the buyer end up forking out more funds from your own pocket.
There are ways to capitalise on various incentives but that's an issue that you as an investor should discuss with a licensed professional. A good accountant, mortgage broker etc.
Cheers.

 

[QUOTE="JosephR, post: 610728, member: 16493"if you engage a good Buyer's agent, you would be also able to attain an additional Cash Back from the developer of around 20k- 25k.
Joseph.[/QUOTE]

A “good” buyers agent wouldn’t buy developer stock- IMO.

 

Developer stock =s all the value sucked out of it and then offloaded to the next buyer/sucker for a handsome premium.

For ppor? maybe . For investment ? Only if you're clueless .

 

Hi @fols and @Leo2413 ,
I understand where you're coming from as there are many pitfalls and disadvantages by buying Developer's stock. But like anything in business, it's important not to generalize. It's all relative.
Negotiation Power, Buying Power, Tax benefits and much more determine if a specific property is "good" or "bad".
Some off market properties are terrible and some are great. Some Developer's stock is terrible and some present great value.
It's all about how the transaction is conducted and due diligence. If the Buyer's Agent has the required skill set, then their client will benefit. A good Buyer's agent looks in detail at the deal itself and makes a decision based on their client's criteria and best interest. Where the deal is coming from is secondary, the way you scrutinize it is primary in my opinion.

 

Show me some developers stock which offers great value for an investor. The fact that they are the developers means they have sucked all the (monetary) value out and now provide a product for a premium, or at best, equal value market comparables. But not better value imo. And quite often, at a huge premium.

Now for a PPOR it may be fine. If someone likes the development then sure, buy it. But for general investment purposes I believe the vast majority of development stock is not investor grade.

 

From sales data, looks like Inala already had a 5.9%/year growth (for 3 bedroom houses) over the last 5 years and started moving sideways this year. Do you expect it to continue growing at 5% to 8% for the next 5 years?

 

This simple fact is not understood by so many. Same with fhbs who plan to upgrade later or buy an IP later but who just bought a brand new shiny house on the far fringes. They not going to see cgs for a decade. They paid too much for the improvements (often cheaply built) relative to the value of the land Out where there is plenty of land.

 

A “good” buyers agent wouldn’t buy developer stock- IMO.[/QUOTE]
I've seen a few buy stuff that is only a few years old. Some Sydney investors feel reassured by brick and that it looks tidy and apply Sydney distance to bne Idk??. Not much help imo.

 

I agree with you mostly as I mentioned before. you're raising an excellent point.
However, people profit in different stages and different ways. Yes, developers are doing what they can to maximize their profits. We as investors, are also attempt to profit on the expense of a future buyer.
That's the business. In my case, I am not too bothered if someone else profited on the property before me. As long as I attain a good ROI based on my needs.
I'm not the "DEFENDER OF DEVELOPER'S STOCK", I simply believe that any deal should be looked at properly and be accepted or declined.
I'm not in favor of disregarding a whole segment of the building industry.
A couple of months ago I was able to negotiate an excellent deal for some of my clients by leveraging their buying power.
It was developer's stock but by literally buying half the stock in bulk. We manufactured an immediate and high equity.
All I'm saying is that we should explore all options. Dev' stock, existing, Off the Plan etc. present their own advantages and disadvantages.

 

Have to agree to disagree mate. Some things I can be open minded about. And other things I know just aint so.