QLD Brisbane on the ground

As someone also pointed out, apparently inner ring is where the demand is. I will be looking a bit closer as a future strategy as my Sydney dollar is stretching a lot further in Brisbane than I had expected.

 

That's probably the difference. Yields suffer though

 

imho..
Moorooka - Dampening demand and some seller desperation. Agents were happy to take lowball offers to the vendor. Again very few buyers during the inspections. Many places listed as auctions but next to empty open houses. Nonetheless very nice area and I think Moorooka has very good long term potential. There are oversupply fears though and apparently small townhouse developer type buyer is no longer driving up the prices.

Next time go a few klm's from Moorooka central into Tarragindi 4121 very small area by the number of house titles toohey rd cuts it in half..One half runs into the MI ,the other side the high hill blocks most face the city and some you will see the bay islands from several of those blocks and still several old weather-board war service solid homes double title block already split on the title..

Then if you follow the bike lanes in through Annerley then DuttonPark Yeronga Highgate Hill and then West End within those area's un-rezoned just normal titles zones that's where i would invest in right now ,and anything within those area's that are starting to sell prior auction very quickly the ones that only come on the market every 30 years..imho..
Real Estate Agent: Annerley - Moorooka - Salisbury | Matthews - Real Estate
Leo Tsimpikas Real Estate

 

Not after yields. I went after higher yields early on and now have lots of cashflow but not as much equity as I would have gained by investing in low yielding properties.

Looking for a blue chip property or two with a view to 30%+ equity gain in next 4-5 years plus possible value add potential.

 

Chuck a dart

 

But... But.. Most Brisbane suburbs had this growth if not more in the last 4-5 years ago, no?

Me thinks "market within market" is a bit overrated. Today the demand may be in inner city, tomorrow it could be outer, the day after could be middle ring... Eventually they settle their place..

Your search criteria is a bit broad in price bracket ranging 300k-700k...you may need narrow your search a bit.

 

@standtall - how many of the places you looked at were recently renovated and/or professionally styled?

 

this is an interesting point. Yield tends to be a more immediate measure...like i know what i am getting now. whereas isnt capital growth a bit more of a gamble. Based on what you are saying, we shouldnt be investing in Brisbane? BTW, my 2 cents is that the SEQ market has pockets of which Brisbane (and indeed its many rings are just one).

 

Not many.

But that's expected as most sellers haven't built enough equity in last few years to spend on renovations.

 

Not a gamble if you plan well.

Consider two scenarios:

1) Buy in low yielding but high capital gain suburb and hold it for 5 years if you can afford to. Reinvest the equity gain in renovating/subdividing/rebuilding and you now have excellent yield, lots of equity and excellent future prospects.
2) Buy in high yield outer suburb and five years later you are behind scenario 1 on both yields and capital gains.

Yields can be later fixed but there are suburb limits to what people will be willing to pay no matter how much value addition you do later when your property is located in a fringe suburb.

 

760ish m2 in Highgate Hill is $1.275M. Not already split. Slope but no views. Ordinary house on the front. Very basic and bare. Just nice side access and the option to 'battleaxe' with a small land freehold house on the back (New Farm is full of those arrangements). Went to that auction a few weekends ago to accompany a friend. Neighbours left cursing at how badly the auction was run. I have to admit it was pretty bumbling to say the least. But people know the value of land in that pocket.

 

You hit the nail on the head and described this very well.
My consistent advice in the Brisbane threads has been to stay as close to the CBD as you possibly can afford (ceteris parabus). I have seen Brisbane cycles and what happens (or doesn't happen) to properties far out. Infrastructure changes are important but they don't change the location of the CBD.
Noting though that some investors are looking at what they can afford to buy (and feasibly hold considering cashflow) and that chosen well, houses in far out suburbs are still a worthwhile investment unless they are OTP.
30km out on a Brisbane map looks close but its actually Penrith distance when considering relative population.

 

I would say anyone in those small inner pockets would know the ucv land value every time they pay the BCC rates notices,and from what i have seen from walking this morning that only over the past 3-6 weeks that most that were for auction --sale are sold..

 

Brisbane market is being driven by investor speculation and heard mentality. Queensland economy performing poorly.

 

I am interested to know where are you properties in outer Sydney and what year you purchased if you care to share..
I was under the impression this Sydney boom and the last one, the % increase was difficult to differentiate between the inner and outer suburbs....

I hate to end up yet another discussion on yield versus capital growth, but clearly people's perception indicate you can't have both...

 

But Brisbane is not Sydney. Sydney has major land constraints. Brisbane doesn't. Western Sydney is not stupidly expensive for the everyday homebuyer unlike the East. Therefore it performed as well or better than the East. Sure, many Western Sydneysiders would like to live closer in but affordability is the killer.
Brisbane? Not so much of a problem.

 

In previous cycles, the outer regions of Brisbane performed just as well relatively as Brisbane LGA suburbs. It doesn't look as "much" due to the absolute dollar value. Increasing from $200K to $400K in Strathpine is the same growth as going from $400K to $800K or from $600k to $1.2m in Bran Land. For those affected by APRA, Strathpine and Bracken Ridge might just be all us little guys can access.

 

Rents and Sales prices seem so out of whack in the mid ring that a correction has to be on the way. The apartment supply may well be the trigger.

 

This is one great myth. Corelogic has a very handy tool which projects $100 invested in different suburbs to current value of that $100 and Sydney growth ranges from 40% to 80% which is very easy to differentiate.

Going by Corelogic median prices, Strathpine's growth is almost half of suburbs in inner circle.

Even looking at Sydney, newer states like Hills district have not grown in line with lower North shore or even Lakemba/Auburn type suburbs in the outer middle ring. The different is 30% points over 5 years which is very significant.

 

Very interesting.. was this similar for other outer areas? i.e. Ipswich, Logan, Caboolture? What was the period? 2, 5, 10 years?