Buying a Property In Brisbane

Discussion in 'The Buying & Selling Process' started by MelbInvester, 3rd Aug, 2015.

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  1. KDP

    KDP Well-Known Member

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    Probably meant stars.
     
  2. MelbInvester

    MelbInvester Well-Known Member

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    Hi All,

    Now i need to find the suburb to visit and take the decision. Looking for below

    - Free standing house with a comfortable plot size
    - Excellent GC potential
    - Rental yield over 4.5% (is that achievable?)
    - Under 15 km from the CBD
    - Low vacancy rate area (<2%)
    - Good condition, low maintenance

    So got few list but want to know which one will that cover above?

    1. Upper Mt Gravatt/ Calamvale/ bayside Cleveland
    2. Sunnybank / Mt Gravatt /Carindale/ Greenslopes

    MI
     
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  3. wylie

    wylie Moderator Staff Member

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    Of course. DOH! :)
     
  4. MelbInvester

    MelbInvester Well-Known Member

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    How bad ? or give some hints... Lol
     
  5. wylie

    wylie Moderator Staff Member

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    I'm lost here :(. How bad for what? Hints for what?

    There are streets in Coorparoo with celestial names but I didn't twig that "starts" was a typo and should have been stars (hence my DOH!).

    I think it is funny too that people use the wrong pronunciation for some of them, e.g., Spica Street, or Procyon Street. Even Wylma Street (like Fred's wife) is pronounced by someone who actually lives in the street as Wiiiilma. I only know the correct pronunciation because my mother used to sell houses around here so I heard them many times.

    It is also funny when trying to help people find a good street. For many years I wouldn't have touched the "Jewelbox" streets in Holland Park. They were downmarket, housing commission and not somewhere I'd have bought. But as time passes, there is money being spent, and it is becoming quite a desirable area. I find it hard to lose the inbuilt bias against certain areas.

    The areas and streets all three sons have purchased in are areas that ten or 20 years ago I wouldn't have touched. But things change, I I have to remind myself that I shouldn't get stuck in the past.
     
  6. Azazel

    Azazel Well-Known Member

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    Ah, I get it now too.
    There's an Egyptian-type street district in Mitchelton as well.
     
  7. MelbInvester

    MelbInvester Well-Known Member

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    Which Suburb i should select to go around?
     
  8. Azazel

    Azazel Well-Known Member

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    Don't get me started on Rode Road.
    Or the way people pronounce Yatala. Especially with the full on Aussie accent (hint: rhymes with Aussie Battler).
    And what's the deal with Hervey Bay being pronounced HARvey Bay. Same with Jervis Bay.
    I'll move on before I get started on Arkansas and Kansas.
     
  9. wylie

    wylie Moderator Staff Member

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    Now I'm feeling less superior :p

    I'm guilty of getting most of these wrong I think. Here is the phonetic version of how I would say these -

    Roadie Road
    Yatala - always thought it rhymed with Battler
    HARvey Bay
    JARvis Bay
    Arkansaw
    Kansas

    Have I got them all wrong (except maybe Arkansas)?

    I blame the ABC :p.

    Another one I hear often on ABC Radio is Dollies Rocks Road for Dohles Rocks Road. Shouldn't it be pronounced Doles?

    I can always tell I've got someone not from Brisbane when they try to pronounce Coorparoo. I'm sure it probably should be pronounced exactly as spelt, but most people, including locals, leave out the first "r".

    Sort of like most people are lazy with "Wednesday" and "February"? (Though, pronouncing these correctly does make you sound a little pretentious, mwah?) We really are lazy when it comes to this stuff :).
     
  10. Steven Ryan

    Steven Ryan Well-Known Member

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    Yep. My bad. :)
     
  11. HUGH72

    HUGH72 Well-Known Member

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    I remember when much of Holland park and Mt Gravatt was considered down market. First year at uni I remember some of the inner city/ inner west types thought that was roughing it living all the way out there in a weatherboard highset.
     
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  12. Azazel

    Azazel Well-Known Member

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    Hehe, so far out. I lived in Paddington for a short while (back in the day of the sub $10 taxi from the City), remember driving to the GC and seeing the signs for Holland Park/Tarragindi thinking it would be a pretty good spot to buy a house, not far out at all.
     
  13. Azazel

    Azazel Well-Known Member

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    Nah, I think you've got them all right. I thought Rode Rd was like "I rode my bike on Rode (rode) Road" when I 1st moved up ;)
    And it is HARvey and JARvis, not sure why though.
    It sounds delightful if you pronounce Ya-ta-la like that, someone might think it's a fancy suburb. But I have only heard Yat-la, so I think you're right.
     
  14. Heinz57

    Heinz57 Well-Known Member

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    As is Creek Road
     
  15. Heinz57

    Heinz57 Well-Known Member

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    Carindale has a lot of brick and tile houses which southern investors seem to prefer, could be pricy tho'
     
  16. Bryan Loughnan

    Bryan Loughnan Well-Known Member

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    Hi MelbInvester - why Brisbane? Before you get specific with should it be North or South of the river... should it be Coorparoo or Suburb B.... should it be Street X or Street Y... should it be a house or an apartment..... Why Brisbane in the first place? Like most capital cities around the country, vacancy rates are on the increase and rental yields are on the way down in Brisbane. Just food for thought.

    Notwithstanding, rental returns shouldn't be your primary concern. Ultimately, the transaction you are looking to enter into is to purchase an asset... you are not purchasing a tenant... you are not purchasing a rent-roll... yes, your asset will be income producing when you have a tenant - but ultimately you are purchasing an asset. So firstly, before anything else, you should want to see your asset grow in value over the period of time that you are looking to hold it.

    Regarding your 'rent to cover' comment - just remember, that every single one of the 9.6 million properties in Australia can be cash flow positive, cash flow negative or cash flow neutral. It comes down to how much you borrow (pay 100% cash and the rent will cover I guarantee it), and what is the 'best use' of the capital and cash flow that you have to invest.

    Good luck.
     
    Last edited: 14th Aug, 2015
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  17. jaybean

    jaybean Well-Known Member

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    Calamvale is ages away from the city, about 20km's. But you don't buy in Calamvale because of proximity to the city. You buy there because Asians want to buy there.
     
  18. Chris White

    Chris White Well-Known Member

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    It is more important to some than others. A higher yield is certainty a good hedge against tightening lending criteria,increasing interest rates, any potential change in ones circumstances, like unemployment, going down to one income etc............

    Rental yields are higher before a suburb has a growth phase, then they contract...So why not look for properties that more or less pay for themselves now and also have good prospects for CG over the short to medium term.

    Why risk it?

    Unless you are earning a very good income with no fear of it changing?
     
  19. Bryan Loughnan

    Bryan Loughnan Well-Known Member

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    A 'higher yield' may be a good hedge against tightening lending criteria, increasing interest rates or any potential change in ones circumstances.......... until developers (who don't even know themselves what they will be doing in 18-24 months) come in and flood the area with brand new properties (because there is such 'great' demand based on rental returns), which increases supply.... OR the Sydney/Melbourne media say 'quick everyone buy in Brisbane' and there is a big increase in 'investment purchase transactions' ultimately increasing the overall investment pool for tenants to select from which again... in turn reduces the rental returns.... and after all that - you are then then stuck with a property which you have purchased in a location which possibly doesn't have good underlying fundamentals for capital growth just because you were chasing rental returns..... ouch.

    Don't get me wrong - rental returns should certainly be a consideration, one of MANY considerations when purchasing an investment property - but it just needs to be remembered what you are doing.... buying an asset - so firstly let's see that asset grow in value.
     
  20. Chris White

    Chris White Well-Known Member

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    Agreed re supply and CG, the former usually impact on the latter.

     
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