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

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

 

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

Sounds like 3 votes for Bris out of those 2 options given.

 

@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.

 

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.

 

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

 

Look at houses in outer Melbourne or Inner Geelong.

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

 

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

How much development is happening there ?

Cliff

 

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.

 

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.

 

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

 

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

 

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....

 

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.

 

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.

 

Is that someone who wants it from oversea?

 

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

Cliff

 

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.

 

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

 

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

 

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.