QLD Brisbane - Woolloongabba VS Lutwyche for Appartments

Yep, me too.

My purchase 10 years ago still isn't worth what I paid. The actual costs, let alone opportunity costs, are around 100k.

 

It's true a lot of people are buying PPOR in CBD and fringe. A friend has just returned from living in Asia and bought in Queen St. He was amazed at how far his money went. Another has bought off the plan in Coorparoo. I've lived in a high rise in Kangaroo Point since 2002. It's great living close to the action, restaurants, theatre, work etc. so don't be put off from buying. I think what everyone is saying is that if you wait 12 months you could get a bargain.

What we did was picked where we wanted to live and rented for 6 months first. You soon work out what you like - which direction to face, noise proofing, how high etc. for example courtyard living - do you get the rubbish and cigarette butts from higher apartments? Is it too hot to sit out in the afternoons? Some buildings have rubbish phone reception. Try before you buy and be ready to pounce on a bargain would be my advice.

 

I do appreciate the advice, if somewhat disappointed in the answers, I'll concede that. The idea of owning AND living in our own home is exciting. We're not necessarily looking to buy as an investment for rental purposes and I'm not sure I'm keen on having to deal with tenants. I'm not convinced the rent would cover our costs either.

RE renovation. I get that you can pay others etc. but it's still expensive. Pay more for new and we don't have to spend that money?

I'm from the UK, whilst my wife is Australian - we moved to Brisbane just over 2 1/2 years ago. I recall being told not to buy then as well saying "you'll get a bargain in 12 months. A crash is coming". Seems it still is. We've rented in West End and are currently in Coorparoo and know Brisbane well, or at least the areas we'd like to live. Mortgage repayments wouldn't be much more if we bought one of these places compared to the rent. Not being allowed to put up frames, paint walls etc is frustrating at our age. Plus, yes, retirement is a thought - if we don't start paying back a mortgage soon we'll never get near paying one off.

 

In regards to your last point, id say gabba will perform a bit better. Ex flood affected. Still a bit too much of a light industrial feel with lutchywite for my liking.- could have changed a bit over the last yr since i last went there.
If you dont want to give up the lifestyle benefits of city life, i would look at perbaps townhouses (which have some land) within 10km for that money. Stock is not severely restricted unlike sydney.

 

If you are determined to buy then start with really really lowball offers. Maybe -20%. If buying new you may get someone who can't settle off the plan. If you are persistent you may get that bargain now. I think a PPOR is much less of a financial decision more of an emotional one. And since we've established you guys are the only people on the forum buying inner city units, you can be comfortable sharing some addresses with us and get some honest feedback!

 

There's the conflict. If your looking from a ppor perspective then the better one is whatever YOU like.

If your asking which is the 'better one' investment wise then i think you've got your answer - neither.

You can't have a PPOR hat on and want the purchase outcome to be optimal for both personal living and investment. You especially can't expect both when the area and stock in question have quite negative supply/demand fundamentals.

 

Just a thought and perhaps depending on your circumstances, but buying your own place to live in (which costs you more than your rent) will set you further back in retirement compared to an investment. So, not really a valid argument. Property is fun, right?

 

I would buy in an older small block of 6. I would look close to Albion, Wooloowin or Eagle Junction station areas. Trains run ever 3-4 minutes at peak time, you can get a decent 2/2 unit in the low 400's.

Albion strip of restaurants is buzzing. Been to two this weekend and they were packed. Noticeable different in the last year.

The advice you are getting is speculating on land values going up in less desirable areas. I actually think these areas will be worse hit by oversupply of units than units in an area people want to live.

 

I would say that one is likely to perform just as mediocre as the other.
Especially as all of the other newer apartments are finished.

 

Which are these less desirable areas? Greenslopes or Coorparoo (the only alternatives I can see in the thread)?

 

People suggesting a house. AT their budget it would be way further out.

Personally I would prefer the area I suggested to your's because of way better train service and Quicker to the Valley/City, with every line going through except Ferny Grove.

 

Different strokes I guess. I know nothing about trains, I didn't know we had them in Brisbane.

 

Looking at the train timetable even now on sunday evening there are 3 seperate trains going to the city in the next 15 minutes from Wooloowin. That's why I think there will always be demand in this area. If the Lutwyche unit is in between the train line and the bus line I think it could be a decent buy.

 

I raise you 5 (Edit - oops, some are going the wrong way, I've never read a bus timetable before - you win this round )

 

Also yours is the bus. Yuck

 

This situation won't last once the Moreton Bay line opens - Albion and Wooloowin are amongst the losers from the opening of the new line. Caboolture and Nambour trains won't stop at those stations any more once the new line opens nor will the Moreton Bay trains, so peak hour frequency will be more like every 5-6 minutes (which is still reasonable).

Also, while I agree that there are some 2/2 units with potential around these areas, I don't think the rents will be going anywhere quickly as these will be soon competing in the rental market with the new apartment stock in nearby Lutwyche and the new developments next to Albion Station on the old mill site.

 

Plenty of train stations nearby at Buranda, Dutton Park, Fairfield, Morningside and Park road etc etc

@Bran just enjoys driving his quality automobile around.

 

My understanding is there will be more trains running from Northgate to Roma Street to make up for the loss of stops after the MBRL opens. If this is correct then even better because that means no sharing with the Caboolture feral's.

I agree on the no movement on rents in the short time, but my understanding was this is for a PPOR first.

 

PoshVilla...I am also in my 30's and am moving from Sydney to Brisbane next year and am with you when you say owing your own place is exciting. I also agree with BB5, I bought a 2/1 to live in in Northgate, an older block of 6 with very low body corp fees. I figure the new inner-city apartments are going to be old too in a few years and when the over supply in some areas works its way out they will push up the price of mine (a rising tide lifts all boats). My advice….go with the larger unit in a smaller block - your first home will never be perfect so make some compromises and just get into the market. Yes certain areas in Brisbane are over supplied, but we are at record low interest rates and I believe its a great time to buy. Take a long-term view not a short-term view.

 

This is my thoughts too.Look in 10 years time, the new stock will have aged and are smaller with more packed onto a block. What will buyers be looking for? My money will be on the slightly older, much larger unit with less units in total on the block.

I would be worrying if all these units were being built the same size or bigger with the lock up garage and courtyard, but they aren't and they will be seen as inferior units down the line. However helping move up the prices in the suburb in the mean time. These new units are currently selling for a lot more than the older stock.