QLD Brisbane

My place 9km north had 8 groups and 3 applications day 1, got an extra $20 a week.

 

5 ‘safe bets’ in Brisbane

“Inner-Brisbane is seeing some of the highest views per listing for rental properties in Australia. This is now starting to flow through to rental growth.

 

Think you shortchanged yourself the way things are going.

 

Now 2!

 

This is how much Brisbane home values will rise by 2021

 

It may vary in different areas. Which suburb is your property located? Is it a house or a unit?

 

A friend just had his unit rented within 1 day, $490 a week on a $460k purchase. Also just had my 2 bed unit appraised at $500wk, paid $412k 3 months ago. Inner city ground floor, 6.3% yield in inner city Bris.

 

@Codie ... Any views on the supply side issues for Brisbane units drying up? Any views on units around Coorparoo/Greenslopes?

 

i think you have to be very careful with Units in Brisbane, 99% of them from an investment point of view aren’t worth touching or is just too much of a speculative risk. Supply drying up is one thing, people will soak them up by renting, but for prices to move you really need strong owner occupier appeal, in strong locations with walkability. For me it’s about being in ground floor or 1 story walk up, high land component, ability to add value, walkability to transport & cafes/shops, potentially river/water access, and it has to be accepted in the suburb. IE, I personally wouldn’t buy a unit in Ascot for example, GREAT suburb, but is dominated by houses.

in terms of Coorparoo/greenslopes, I haven’t done enough DD to comment strongly, however all of the above would need to apply. I really like Coorparoo for houses, I’m not sure how much walkability there is? With the redevelopment of woolangabba, that whole area will change in the coming 5yrs so it’s worth looking into.

 

Thanks for your detailed opinion, much appreciated ...

 

Could you explain your point on Ascot a bit more? I wouldnt have thought an apartment in an area dominated by houses wouldnt be a terrible thing? if the suburb is attractive then its attractive. If one really wanted to live in Ascot but couldnt afford a house then a unit would be a consideration potentially I would have thought? I might be wrong, new to this, but trying to understand. Cheers, Tip

 

Strategies differ when buying to live in as PPOR, as opposed to buying for investment. One is an emotional decision the other is an investment decision.
So for living there would imply your PPOR then by all means buy there. I have friends who live in Hamilton, yet have investments in units elsewhere, in SYD, as they perceive the investments in SYD as better. So it really depends what you wish to achieve from your investments into property.
All my IPs are just that I never plan to live in them.
I suppose we should buy what the demographic for that suburb wants and is, if say 80% are predominantly house I would buy just that as I would like to satisfy and cater to majority numbers not the minority, if that makes sense? Ascot is about 52% separate house, 39% units, 4% Semi/terrace, so then you need to do further research. Will you buy new in large complexes the loaction, etc... 42% are rented so for my investment strategy quite high, so need to compete with more renters, etc...
Also my strategy is to buy only house for land content value in QLD so it just differs. If you are clear of your strategy and it works for you then great otherwise figure that out first, IMHO.

 

As @MWI explains it’s more about the demographics and catering to the majority of a suburb, where the demand lies. There certainly is some logic in what your saying around not affording the house but wanting to be in the suburb, and this rings very true for a suburb like new farm in my opinion, as it’s one of the most expensive, people Accept townhouses/units here and it has walkability and a few other factors. Some amazing suburbs that are more dominated by family’s & houses, tend to attract more family’s chasing houses imo. This is different in other states I’m sure, I don’t have other examples of Sydney or Melbourne but I’m sure there is many.

 

Thanks @Codie and @MWI, appreciate your responses and agree with you both. PPOR vs IP is key. % renters also a great point. thanks!

 

When I was in accumulation phase, one of my criteria when buying an IP was “Would I be happy for my family and I to live in this property?”.

If the answer was No, then there was no way we would buy it.

For many years, this meant that we live in the worse house in our portfolio. Our kids used to question why. We gave them the obvious answer.

Now that we are in retirement, that above is no longer true. We now live in a property that is 5 x the average value of our IPs. This will continue until we fall off our perch.

The value of delayed gratification and the power of compounding.

There are so many ways to “skin the wealth creation cat”.

 

Just had my tenants break lease in Ferny Hills typical 3x1 house with 2 rumpus rooms and WC underneath. Agent has suggested advertising at current rate $450PW.

Not sure if this due to the break lease and we must be seen to finding a new tenant ASAP or just the current market.

 

Seems like our story too, weird?
Our kids would ask why don't we buy better/larger/estate house, when younger and being influenced by their friends and their places they lived in.
I remember my 8 year old then asking that. When I questioned what would you rather have 20 houses or more (1 to live in 19 to receive income from) or 1 Grand mansion with the pool table, etc......? Guess what the answer was (the lesson was too early in life) 1 Grand mansion! Now, they too understand and comprehend.
Many, many, many underestimate the concept of 'Delayed Gratification', this now applies not just to where we choose to live but also to many other aspects of our life.
The challenge now is how to instill similar concept to our grown up kids (next generations), when they have been used to and living a more privileged life?
You know there was a study performed where they provided young kids I think with a marshmallow, and left them waiting in a room for 15 minutes or so with a reward to receive another, or just eat one without waiting. They found those children that delayed and hence practiced delayed gratification were more successful in their adult lives, not just financially but in other areas too (health, etc...).
Found the link below:
The Marshmallow Experiment and the Power of Delayed Gratification
Hence our new/younger generations are living in times of instant gratification, so no wonder many just whine and complain, don't realize anything is possible but it takes time!

 

If it is a break lease, you must advertise at the same rate until the end of the broken lease. Your PM should know this.

 

My understanding with a break lease is that one must offer the property at the same rent.

 

I've noticed a lot of areas in the outer Brisbane suburbs have the new housing estate look to them, ie usually brick homes constructed in a similar time period, narrow streets with no on-street parking which are frequently interrupted roundabouts and winding entrances into other interlocking streets.

Here's one quick example- Firbank Place in Boondall
Google Maps

Are these areas generally good to avoid in favor of more conventional looking streets? I'm reasoning that there's less diversity between the properties in these areas (harder to stand out), the streets all look very similar and the lack of street parking is a negative. I could be wrong and thinking too much like a Sydneysider though?