QLD Brisbane, smaller lot closer to cbd or more land further out?

Hi, was wondering what the general consensus is with buying a property on a 405m2 lot closer to cbd vs buying further out on a 600m2 lot? Got a 500k budget and tossing up between trying to jag a run down place around 10kms (everton park, chermside) on a 405m2 lot or further out on a 600m2+ say in Zillmere, arana hills/ferny hills. In theory I'd like to buy as close to the cbd on the biggest land component as my budget allows with a long term hold strategy for maximum capital growth but my budget is quite restrictive for any investment grade properties in the 10km ring. Any advice regarding my situation would be greatly appreciated.

Cheers

 

How many properties do you plan to buy in QLD? What about land tax?

 

Some good questions, I should've mentioned in the original post that I'm a first home buyer and plan on rentvesting (live on the gold coast) so land tax at this stage isn't an issue but I'm planning on buying more properties in Qld in the future after hopefully building up equity through adding value/renos

 

What about a 600sqm block in Keperra? Same distance as chermside from the CBD. Bigger land.

 

Have been looking at houses in Keperra but a lot of the places in my price range are close to the train tracks/ on a main road. Definitely keeping my eye on the area though in case something comes up

 

Cape Cod have recently put out an explanation on this, but is more pointed around a newer home on 405sqm vs an older one on 600sqm. Often the 405sqm achieves a better price and is more sought after closer in, providing the product/house you get is nicer. Often a 405 block is utilised better and more usable, if the 600 is not utilised properly to its potential I don’t believe you will do better with it just providing it is bigger.

Of course this is based on current planning rules, if in future it changes and you can split 600s into 300s everywhere then that’s a different story and not something easily factored in right now.

 

Small lots 300 sqm is everywhere in my area - especially on my street.
I think it will extend out in the next 10 years to infrastructure in vicinity of 600m radius.
Planning have to change to allow denser living as there are already 8 storeys units only 1 to 2 streets away from where I am.
Factor in the current asking price of $800k - $1m for these newly built properties.
You can see why it will explode in the next 10 years.
Note - I am talking about the 5km radius from the CBD.

 

You mentioned your strategy us long term hold. Over the long term, location should have a greater influence on prices as brisbane grows. This is more true given that brisbane has it's jobs concentrated in the CBD and will be the case going forward.
Having said that, even the other options you mentioned are not that bad...if you had said way out in whoop whoop for option 2, the decision would be clear and obvious.
Whatever option you choose, it important to remember that brisbane is strictly a long term play- that's where most struggle, cannot buy Reno flip for the kind if gains you would expect in Sydney and Mel in brisbane.
Brisbane has more supply and lower demand for that than Sydney and Mel.
If you have the patience, either option should do well; I would probably prefer option 1.

 

And unless you can pick up a bargain unit in New Farm, I'd stick to houses with min. 405 sqm.

Units are fine in Syd and Mel but in places like Brisbane, Perth and Adelaide, it's houses all the way.

 

You need to be clear on your investment property strategy. What do you wish to achieve and define this in $ terms?
If you plan to redevelop or renovations than I doubt many 405sqm blocks are available with older properties? I would assume larger blocks with older houses than further out. Basically see what the demographic for the area dictates, not what you want what the people in that area want.
No clear answer only you can answer once you define what you wish to achieve and what strategy you will adopt.
I find most who start struggle with this issue.
If you are starting out try just to learn the process, buy something in better location, see how you learn the property investing process, perhaps start with minor cosmetic renovation only for shorter time frame, so you manage holding cost, learn about the tax implications and so on.
Start small and progress from there!

 

Interesting question. I have the same dilemma. Get 405m2 in Norman Park, Greenslopes etc or pick up 600m2 gem in Calamvale.
We just want:
Decent parks to walk the dog/jog
Peaceful and more owner occupiers
Calamvale seems to tick a lot of the boxes, HOWEVER the catch;
We both work in the CBD so closer will also be better and less driving and public transport.
Any thoughts would be appreciated.

 

Norman Park to CBD is a beaut commute

 

Two very different options. You'd think that properties close to the CBD will outperform Calamvale in the long run, and they're also lovely areas. It'll really come down to whether you appreciate the extra yard and value for money in an area like Calamvale compared to the convenience of a closer-to-CBD address.

 

Thank you Tom. It's something we'd like to stay in for at least 5yrs and eventually find THAT dream home. We have commitment issues with homes and don't get attached so probably a great life asset with house purchases.

 

I would think buying closer to the city would be likely to perform better in the next five years, and if it's not a dream home you wont be so fussy about compromising on that home (compared to what the same money would get you further out).