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Cheapie house in Brisbane or Unit in Melbourne - Which one ?

Discussion in 'Where to Buy' started by See Change, 3rd Nov, 2015.

?

Ignoring holding costs, What would you buy for maximal short term gain ( 2- 5 years ) ?

Poll closed 3rd Dec, 2015.
  1. Cheap house in outskirts of Brisbane

    28 vote(s)
    65.1%
  2. Cheap unit , middle / inner ring of Melbourne

    15 vote(s)
    34.9%
  1. See Change

    See Change Timing Lord Premium Member

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    We are looking at buying 2-3 more properties . We have loans from CBA which we can use to buy them via changing security

    We already have several cheapies in brisbane , we know the market and can source reasonably good deals . Would be starting from scratch in Melbourne in terms of know agents and getting to the head of the queue when deals are available

    IGNORING holding costs

    assume purchase price of between 250 - 300 K

    Which do you think has the greater potential for capital growth in the next 2-5 years ?

    If you have specific reasons why , please post

    cliff
     
    Last edited: 3rd Nov, 2015
  2. D.T.

    D.T. Adelaide Property Manager Business Member

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    - You know the market
    - Not a unit
    - Probably same yield.

    Sounds like 3 votes for Bris out of those 2 options given.
     
    Last edited: 3rd Nov, 2015
  3. Be Developer

    Be Developer Property Developer Business Member

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    @See Change

    If you are looking at buying in outskirts of Brisbane, go for something that you can manufacture growth (also do consider higher holding cost. As rates, insurance,etc are higher in outskirts)

    if unit means villa (with land component) go for inner Melbourne, brand new near CBD, train station, school etc, Target out of ground units with right location (3-4 on one block developments)

    IMHO, both will perform well and give you more or less same outcome.
     
    SOULFLY3 and MTR like this.
  4. citystar

    citystar Well-Known Member

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    I vote for the cheapie house in Brisbane. Buy something that needs a bit of spit and polish that is under market value with potential to increase value and rent with a quick reno. Buy and hold for the long term.
     
  5. See Change

    See Change Timing Lord Premium Member

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    Hi BD

    looking for a lazy option , not something we have to think about, out side the buying and arranging a PM .

    We've been flat out for the last 18 months between selling and buying PPOR , sorting out damage at our weekender ( from NSW storm ) buying in brisbane , and now selling in mosman . Only reason we're looking is that we can use our existing CBA loans from mosman to buy them via securitisation .

    We have accurate figures for Brisbane .

    we have lots of long term holds which we're happy with . Proceeds from this will go to pay down debt or reno on PPOR . ( discussion yet to come ...) . Not looking for another long term hold

    Cliff
     
  6. sash

    sash Well-Known Member

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    Look at houses in outer Melbourne or Inner Geelong.

    I feel units in inner Melbourne have too much supply in the pipeline.
     
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  7. See Change

    See Change Timing Lord Premium Member

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    But what about the middle ring with 2-3 story walk ups ?

    How much development is happening there ?

    Cliff
     
  8. bernardblack

    bernardblack Active Member

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    can't really buy a villa in inner city Melbourne with 250k-300k unless you are talking about 1 bedroom unit like this one http://www.realestate.com.au/property-villa-vic-west+footscray-121127642 And you have to pay at least 350k+ for West footscray 2 bedroom villa.

    @sash is right, i know someone trying to sell a 2 bedroom unit apartment in Richmond and is having problem selling.

    Feel like older style unit have better growth but also depends on the location.
     
  9. sash

    sash Well-Known Member

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    Cliff...still lots being developed...the issue is that Melbourne people are a very picky lot....they love their houses and they prefer new. The quality of life is much better than Sydney and Brisbane in my opinion for Joe Average.

    Even though the new housing estate blocks are smaller now (usually between 250-400 sqm) a queue of people are snapping blocks to build a small 17-20 sqm home on them with all the mod cons.
     
  10. See Change

    See Change Timing Lord Premium Member

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    So is there an actual cooling of the market in Melbourne generally ?

    There are some areas that don't appear to have gone above there previous peak .

    Cliff
     
  11. melbournian

    melbournian Well-Known Member

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    I think there is still growth in Melbourne ESP in upcoming areas. That said there are people selling in desirable areas that don't sell like Doncaster but there are also incidents of ppl selling. Take a guy at work who bought his place landed unit 2 bed in a group of 4 pretty old in camberwell. Purchased for 600k and 4 months now someone wants it for 900k
     
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  12. sash

    sash Well-Known Member

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    Wow finding it hard to sell in Richmond?

    Is is new one? I have also heard a few other stories like this in areas like South Yarra, Phrahan...wow....

    I think this will present some buying opportunities later on....

     
  13. bernardblack

    bernardblack Active Member

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    I think that's a sign for apartments. Not sure about brand new off the plan apartment, but i reckon developer has no problem selling them to oversea buyers from Singapore/China/Malaysia/Hong Kong.

    Stick to villa if you have the money. It will still do well because people want to downsize, delay getting married/having kids and they all want to live around the city and have a bit of space but not too much.
     
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  14. bernardblack

    bernardblack Active Member

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    A few years old apartment, close to Victoria Garden where Ikea is. My friend told me there is another upper level unit in the same apartment trying to sell as well, 10-15k cheaper and no interest.
     
  15. bernardblack

    bernardblack Active Member

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    Is that someone who wants it from oversea?
     
  16. See Change

    See Change Timing Lord Premium Member

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    So at this stage of the poll , the logical choice would be 2 in Brisbane and 1 in Melbourne .

    Cliff
     
  17. bernardblack

    bernardblack Active Member

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    Where are you looking in Brisbane. I went to Toowoomba beginning of this yr and it looks like it has lots of potential with the new airport and its current & future infrastructure.
     
  18. See Change

    See Change Timing Lord Premium Member

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    I haven't specifically checked it out , but I've seen articles over the last 2-3 years indicating Toowoomba has already been moving .

    Cliff
     
  19. melbournian

    melbournian Well-Known Member

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    Nope apparently it is an Australian. Houses in camberwell apparently go for 1.5-2.5 mil so I think it is considered ok for a landed unit
     
  20. melbournian

    melbournian Well-Known Member

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    There're really small those ones although convenient to vic gardens. Sometimes selling involves a bit of luck friend took like nearly 8-10 months to sell his Kew town houses in prime street and location.