Brisbane vs Logan vs GC vs Newcastle - 900-950k

Being well priced out of Sydney's coastal suburbs (we would like a garden and don't like strata), I turned to 'rentvesting'.

Goal: solid CG potential, but still at least 3.5-4% yield. House, with at least 400-500m2 block depending on the suburb.
Time horizon: 7-10 years

I initially looked at nicer OO suburbs with good schools like Kedron, Wavell Heights, Virginia as well as a little further out like Aspley or Stafford Heights.
Visited the areas - nice streets, great homes.

Then I am reading all the blurbs about Logan (even mentioning some parts gentrifying) and of course yields are better there, with CG apparently also in the picture.

Would it be better to get 2 properties in Logan (its better parts) or 1 in those suburbs above?

Now reading this forum more, makes me wonder about Gold Coast and Newcastle NSW as well. The latter appealing because of the ease of getting there from Sydney, to attend to any tenant issue. But management will be done remotely.. hoping to use these guys at the company called 'Different'.

Too many choices here - please help. Many thanks!

PS also feel free to criticise rentvesting - I am not 100% convinced. But the alternative is basically a townhouse (3 bed if we're lucky, ok we can push budget to a touch over 1m for PPOR) in Sydney's Miranda/Caringbah with $3k pa strata, and I doubt much GC vs those options above?

 

Also consider Western Sydney / the St Mary post. Some good potential there and with your budget you can probably get a 5 bedder premium house.

South West of Sydney is good too if you can find a smaller house. Avoid brand new, expensive townhouses.

 

Very similar situation to me. I have just bought my first IP in Arana Hills (786 m2, 4/2/2 brick lowset, upper mid 7s) after looking in the areas you mentioned, also Ferny Hills/Ferny Grove, Keperra and Chermside West, with help of a buyers agent. I will hope for 4% gross yield as the rental market is strong around there (.5% vacancy and very low stock).

i live (rent) in Sydney and after looking at the prices skyrocket here in Feb/March, I thought rentvesting was the way to go, and Brisbane the best value. I used these forums for a BA recommendation (thanks PC) although be careful about very loud members spruiking the suburbs they have multiple properties in already. Also beware cheaper BAs who want to sell you new house and land packages. For my first IP I wanted it in a capital city, so did not consider GC or Newcastle.

FYI, pricing has gone a little crazy in the last couple of months across Brisbane. I was offering sometimes $100k higher than comparable properties sold in November/December and was missing out. Even $50k higher than comparables sold in March was not enough. So for me it was annoying to have missed out on >10% capital growth by being a few months late to the party, but hopefully the growth cycle is still in the early stages.

So I don’t have an opinion on 2 properties in Logan vs 1 the areas you mentioned, but I took the latter approach. Rentvesting makes sense to me because I live on the North Shore in Sydney and buying here is ridiculously expensive, but renting is affordable.

Cheers

 

Don't let this drive your decision making. A good property manager will look after any tenant issues for you. There really is no need for you to attend the property. In terms of a PM I would stay away from a generic low cost provider, in favour of an experienced local expert.

In terms of your listed areas, I like the BNE North Suburbs you've listed, as well Newcastle.

Do your own research, back yourself, and pull the trigger.

 

Out of the list, I’d go Newcastle IF you can get in (based on your criteria) at that price point

 

Thanks everyone for your replies!
Yes will have a look at St Mary. So far Brisbane seems to be the leader but Newcastle a tempting proposition, too.
Like Grugmeister, I am leaning towards a capital city - feels somewhat safer to find tenants in a 2m+ city vs 300k+.. And the idea of an overdue boom, although I can't quite rationalise it

 

You're talking about Brisbane?

 

yes sorry was just comparing Newcastle and Brisbane. One idea out there is that Brisbane could play catch up with Mel and Syd because it hasn't been enjoying the gains of these two cities in the last decade or so. This kinda assumes the same laws of physics apply to all 3 but they don't e.g. immigrant inflows.

 

You have a few options. If u are chasing rental income and yield logan makes sense. Logan is very large. If u want capital gain Brisbane and Gold Coast. If u are looking for both some of the logan suburbs that border Brisbane might suit. Rochedale South as an example. Springwood another one.

There are big price rises being seen currently in many Logan Area suburbs.

Spruiking is something solely in the domain of agents (sellers and buyers agents) who have money to be made of your indecision or uncertainty.

Ppl on this forum may be effusive about suburbs they know, but let's be real
The spruikers u have to watch for are tye parasites that live off ur transaction.

You should filter effusive posts of course. But let's keep the 'Spruiking' description for those who get paid a percentage of ur transaction. They live off u, and are motivated to spruik. The rest of us just chat

 

At the end of the day it's hard to argue that 300k for a HOUSE in parts of Logan isn't incredibly cheap for a capital city. Playing catch up or not will these houses still be 300k in another 5-10 years? Going by the rate of increase in the last six months it's hard to imagine. Just look back from 2003 to 2008 what growth Brisbane experienced - it was huge!