Brisbane Suburbs

Hi I am very new to PI. I live Brisbane western suburb. I need some advise on which is the best Brisbane suburb to invest in. I am looking at something in the range of 400-425k. Any advise would be much appreciated

 

You might benefit from looking at the median values in suburbs you're familiar with. This will give you an indication of what areas you can afford.

 

Depends on your aims. Buy+hold, renovate, subdivide etc? That will affect house vs unit etc. And it's possible to buy a dud in a 'good' suburb as much as one that works out OK in a less regarded suburb. Market is potentially good atm with agents being very good at getting back to would be buyers.

 

Thanks , I am thinking of either doing and H&L package in any of the below
South Ripley
Green bank - Everleigh by Mirvac
Springfield rise (budget may not be enough)

Or buy an old house in
Springfield or Springfield Lakes

But not sure what would be best option, any guidance would be much appreciated.

 

Spring Mountain area is great, nice and close to the Springfield Orion Shopping Centre and train station. Other new build areas would be Logan Reserve, Greenbank, Flagstone, Yarrabilba, Crestmead and Marsden also have some new pockets. If you would like to chat to someone about investing in new H & L let me know i do know someone who specializes in ensuring your numbers stack up.

 

Make sure you do your research and don’t end up overpaying for a new build on a tiny land component. You can get lured in with the promise of a high rental yield and sit on years of low or no capital growth due to paying a premium for the new build.

An easy check is to see what you are being quoted for a H&L package and then compare this to recent sale prices of established properties in the area.

On the plus side you can claim full depreciation on a new build, but I’m sure as many people will say, depreciation isn’t a good enough reason alone to invest in property.

 

If you're thinking about something with current holding income but renovation potential, something like this looks to be pretty good value: 228 Toombul Road Northgate Qld 4013 - House for Sale #128007002 - realestate.com.au

If you're looking for something that is less of a renovator with a good land component, consider outer north such as Strathpine/Bray Park/Lawnton/Joyner. Lot's of demand in these areas from what we've been seeing.

 

hi @Dangal, welcome to PC.

re the "best" suburb to invest, what do you consider as "best" suburb? good capital growth potential, positive cashflow, or long term buy-hold, or small scale development?

different criteria could lead to a different area.

 

Don't do house and land package.

 

Well do it if you want a high chance of a **** investment in Brisbane.

 

Welcome! That price range gives you a HUGE variety of choice. What else are you looking for?- Investment strategy?

 

I would say **** in most places

 

Personally I'd never buy a HnL package. I know some have made money but I think there are better ways in RE to make money with less risk.

 

Thanks everyone for your valuable suggestions. I have dropped the plan of buying H&L package.

 

People can often make money off h and l in a rising market. But I wonder if they might have made more from existing stock in many cases. Incl cosmetic Reno

 

I know for me I can make better money in add value stock that's why I'd never go for HnL.

 

I’m also new to the PI game. So riddle me this: property investor magazine just awarded A certain property investment advisory group the best PAG of the year....their strategy is to purchase early in a new estate and rely on the equity as a result of the subsequent land releases, they also say that they select areas that will offer maximum CG. The magazine basically described them as demigods.

What are your thoughts on property advisory groups? I did a few calcs and I think this property group hide about $40k in the H&L packages they offer their clients. Oh and a $2000 for the professional advice.....

So what does a value ad stock look like in brissy. Let’s say you had a pre approval for $600k. Where and what would you buy.

Appreciate the help guys

 

I’m sick of spending money on property advisory groups. I’d shout a bloke a few cartons of **** and lunch to get some good advice. Any takers?

 

Re my thoughts on advisory groups I have no idea as I've never considered to engage one. I would be highly sceptical of most though.

Re HnL
I'm not into HnL packages or new stock in general as I feel most of the value is already sucked out by the developer. Otp also has risks I'm not willing to take and both those kinds of purchases are not inline with my own strategies/goals.

To answer your question if I had 600k to spend in Brissy I'd be going for older houses stock on above average land size in good OO areas. Something you can add value to in the future. Middle ring Brisbane. Next to a ripple suburb if the price difference is big enough. But definitely something you can add value to. When I buy I always want to look at these 3 factors and be able to tick all 3 before I consider the property.

1. Can I buy it at a good price, or what I consider to be BMV
2. Can I add value at some point to manufacture some equity so I'm not totally reliant on organic growth.
3. Am I buying in a high demand or potentially high demand area with good growth drivers.

Being able to satisfy all three criteria further reduces the possiblity/risks of poor growth/returns.