Hi all, I am looking to purchase my second investment property for around $400k-$450k. The goal is to hold long term with a balance of decent capital growth and rental yield. Hoping to get as close to Brisbane CBD as possible with what my budget allows. My questions is, due to my limited budget, would you purchase a property in the closer suburbs of CBD but with 450m2 e.g (everton park, Keperra, arana hills etc) or something further out with 600m2+ blocks e.g(strathpine, bray park etc) I understand generally speaking, the bigger the block the better - generally 600m2+ but say if it's in a higher demand area, is it worth slightly sacrificing going the smaller blocks to still target more capital growth? I have been looking at the following suburbs: Keperra Chermside West Everton Park Strathpine Bray Park Rochedale South Underwood Would love for you guys to shed some light on this, any help would be much appreciated!
Land size is important, but don't focus too heavily on a set figure. Depending on layout of the block, its location and what they've done with it (landscaping or lack of, position of dwelling, whether it's a batteaxe, etc), often a smaller block can have more useful land so to speak. You are better off getting say a 500sqm block in a better location with a nice back yard and the dwelling towards the front of the land, than a 650sqm block on a busier street and the dwelling smack bang in the middle of it. Focus on how Joe Buyer or Joe Renter can use the land as well or what you can do to make it more useable, as this will determine future desirability for it on the resale market. To this day I'll never understand why back in the day they built relatively small 3 bedroom brick houses right in the middle of giant blocks effectively rendering nearly half of the block useless for your average family. I know set back constraints were a big issue, but I guess no town planner was good at entertaining or had a family back then? No one wants to let young children roam free or build a pool/entertaining deck in the front yard! - Andrew
For that price you will be limited to bray park and strathpine but both are great up and coming areas with high oo demand. Make sure you drive around these suburbs and watch out for the public housing pockets using microburbs or similar.
@MyPropertyPro @Closet Thank you for your input. Couldn't agree more as but in saying so I guess a normal household owners needs would have changed over the last 30+yrs, back then most wouldn't need space for 75" tv or seperate living areas etc. I know my budget is limited but just entertaining the idea had an opportunity came up which I may have. Would I still go to Strathpine area with bigger blocks or say Everton Park but on a smaller block? (both on normal land and standard house) I guess I'm just concerned whether these smaller blocks would suffer a bit from the growth.
If you can get into everton park for that money that would be a great option but with the market so hot in that area will be tough. Have a look at demand between bray park and strathpine too, bray park appears to be more in demand from what I've heard and can see on rea stats. I wouldn't be too concerned about block size if it gets you into the area and is well situated on the block.
Thank you! I'll definitely look into Bray Park. Would there be other areas to look at for that kind of price? Preferable a higher OO area as I notice that tends to be a good drive for capital growth.
I like clontarf for that money close to the water and becoming increasingly popular with oo who are now priced out of Brighton. Less renters and bigger blocks than margate. For $400k deception bay is a good option and be coming popular with fhb.
