Entry level invest property in Adelaide or Brisbane?

Hi guys looking for people's personal opinions on wether they would purchase an entry level investment property (270k-300k) in ether Adelaide or Brisbane. I'm based in Melbourne and don't believe there to be any investment worthy stock at this price point hence why looking interstate. A free standing house within 30kms of cbd that is cash flow positive/neutral would be my main focus as I'm still studying and although would have a cash buffer in place, would prefer somthing that didn't cost money to hold. I have done alot of research of my own, just curious on other people's options! Cheers Chris .

 

Since you are starting out I'd look for something that you can add value or split at some point. Brisbane around Ipswich or Moreton Bay would be my pick. Adelaide is more of a cashflow play in my opinion. Cashflow doesn't help in the early days but equity certainly does.

 

I bought in Paralowie which is North part of Adelaide a couple of years ago for the price you are looking at paying. It's neutral/positive with some growth and no problem finding good tenants. It's a steady play, not fantastic but slowly appreciating in price

 

Hi thanks for your input! Was also thinking that those areas in qld would most likely be growing at a faster rate then Adelaide which would be a slow and steady sort of play. IV been looking around the Goodna area which looks like an affordable and nice growth area my old concern would be to buy in a flood prone area.

 

That's good to hear thanks for sharing that! I have also been looking around the northern Adelaide area in places like Para Hills. Are you from Adelaide or live interstate?

 

Country Victoria

 

Hi Chris,

Your thoughts are pretty good.
Wjy not look in Ballarat or Bendigo markets with comparatively higher entry point at say 365k to 400k but brand new house, decent land, 5% yields and equity as well.

Easily tenanted, low vacancy rates, budding areas and way better prospects than SA or QLD.

Regards

 

Clients have IPs in Parafield Gardens. Good cash flow and steady CG. Cost nothing to hold there. So it’ll be worth it to look at that suburb and the surrounding areas.

+1 to @ashish1137 , Ballarat or Bendigo would be another option. A little harder to find in Ballarat, compared to Bendigo for better cash flow though.

 

Brisbane hands down. Anywhere around the Moreton bay area is absolute gold ATM and you will win big in the next few years.

 

Arrrh the Holy Grail. Under $300k cash flow positive or neutral. Really you still need a couple of percent capital growth per year to make investment worthwhile imho. Good luck finding that.

 

Christies Beach in S.A.,great entry point,go for the MP40 zone, its going to spike at some point.

 

Are you saying that there is no where in these capital city's you can buy a neutral/positive cash flow property for around 300k that would not be able to achieve a very small % capital growth over 10-15yrs?

 

Thanks alot mate I'll look into it!

 

Hi Jim, I have heard good things about Christies beach just not to sure if I'll be able to source anything around 300k as it looks like all the older stylefstyle standing houses go for around 320k-380k. Really think it's an under valued beach side suburb though and seems to be alot of subdivision/townhouses going up!

 

No. Do the math.

Using Perth numbers
300k property maybe $300 a week rent so about $15500 year
Loan $250k interest $7k to $9 a year
Pm fees $1500 to $2000
Rates $1800
Water rates $1200
Insurance $400
ECM insurance $300
Loan fees $300. Allows offset account
Maintance repairs $1000 to $2000 a year
Smoke detector checks $125
No depreciation old property

Growth needs to cover buying and selling cost
Deposit would be getting earning 5% plus as dividends as shares

Current very low interest rates blur the equation.

Make rent $270 a week and empty 2 weeks a year.

High rent is often in areas with low capital gains expected.

 

@Chris93

Hey mate, Brisbane is by far best place to buy ATM however your price range is under what I'd spend there. If I was you on what you're after I'd go either Mildura Victoria if you really care about the cash flow or probably the Maddington / Cannington area of Perth if you can handle a lower yield.

I own 2 properties in Mildura so know the city quite well if you have questions about there.

 

There are certain suburbs of Hobart that are still undervalued and are currently still spiking in value. Very high yields as well with people paying 400wk for houses worth 250k

 

That’s probably one market best to leave alone for the time being and it see where the dust settles.

 

My mum lives in Christies Beach & her car has been broken into twice this year.. hoons doing burnouts and racing up & down the street at all hours. She looked out her bedroom window one night last year after hearing noises outside to see cops with guns drawn & torches pointed at her, turns out there was a man hiding in the bush under her window.. they were looking for him after loud disturbances down the road were reported. She has security cameras & it doesn't deter. Thats just a few issues in the past 6 months, stuff like this has been going on for years & its not getting better

 

Townsville is another option that hasn't been mentioned. Not for the uneducated. Consider higher insurances etc. But not uncommon to see $250k houses rent for mid $3s.