QLD First IP in South Brisbane?

I would argue there’s a lot more to it than that. Getting a “good deal” is really subjective in the short term, i would say the proof is in the pudding long term - some people may purchase in the right suburb yet with being interstate may pick the wrong street which could be $200k apart, give 10yrs of growth on top you could have 2 assets that are miles apart yet only a street away. This is definitely where on the ground knowledge is worth $10k.

I haven’t used a BA for a few personally, but the knowledge received from speaking to 2 buyers agents that do it Day in day out, has saved me from making a huge mistake, and also made me $50k+ in the last 12months. And I’m someone who spends 2hrs a day every day researching.

 

Yea, If you don't have time to research and do active negotiation, then you must be a very busy investor who feed BA. I see where you are at. I am sure most ordinary investors are far below to your level and they may be able to perform these duties until they reach your level... What car do you drive? I expect at least Rolls Royce.

 

Your points noted. If you dont mind can you please give one example in Brisbane where 200k difference in the price yet in streets apart? Do you mean Sydney? I generally check on google map, however make a visit during cooling off period to ensure things in right order...

Again BA is subjective matter, but I have seen in the past it is over exaggerated in the forum. No doubt there must be good BAs in the mkt. But finding them is tougher than finding good deal anyway...

 

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I am not against BAs, but I think the risk is very real. I have a few examples of my own,that I haven't used a BA one under contract at the moment- under land value with an upside and I very much doubt a BA could have done any better with the negotiation. True, most people wouldn't know if they have left money on the table, and when I started 30 plus years ago I probably left a few K (less than 5K) here and there, but I learnt from that. If you are going to be investing for the very long term, a few K doesn't matter. There were a few BAs 10 years ago who were advising units, for example, East Brisbane- one I know used a BA and is trying to sell $60K under what they purchased for in 2009 (they have done a small reno on it), and they are desperate to sell. When they paid $345K (and the cost of a new kitchen, carpets and painting) for it, that has got to hurt for a young family person. What is the recourse if the BA gets it wrong? Buyer beware.

 

Sure actually my own from 2 days ago, i have been looking in clayfield recently, arguably one of Brisbane’s top premium suburbs, I done a ton of research online, got excited about a property on Bonney Avenue given Comparables in the adjoining streets were so much higher, maps show it to be a basic street not a busy main road. Drove there and counted 40-50 cars up and done in the space of 5mins. Would’ve been a terrible mistake for an interstate investor,

Now tell what your google maps + RP data tells you?

 

Anyway, we have hiJacked your thread @Skidder

My thoughts is your budget is perfect for Brisbane, if it was myself and had that $$ to spend.. I’d be going north brisbane, Everton park/hills (I own here) Mitchelton, Stafford heights.

Stafford Heights would be my 1st pick and has been on a few BA’s radar for great value and potential. Sits around 8km to CBD. In the city in 15m by tunnel or straight into Southbank. Mostly postwar homes by there has been recent 3 beds at mid 5 on 600sqm blocks. Very popular with first home buyers and renovations taking place everywhere.

Everton park where I own has seen me $70k growth in 12 months with a small Reno. It’s a little further out at around 10km to CBD but a great family suburb with high owner occ %

You’ll see a lot of gentrification this way over the next decade given the proximity to CBD, and affordability allowing family’s in, and owner occupiers renovating to lift values all around you.

 

Mate, I am really sorry. I think you are in very early stage of your investment. I never bought a single property sitting on a busy road. Can't you identify Bonney avenue is a busy road from google map?? How could someone cannot identify such busy road with bus stops? It is very clear. I thought you refer the quality of the nearby residents in your previous comments for which BA is useful.

 

Was you Everton Park property is lowset 3 bedder sitting on the land? If 70k achieved with minor cosmetic reno in 12 months, that looks pretty good deal I guess. Mine did something similar but after 2.5 years anyway.

 

I’ll be honest, looking at just a map. No I couldn’t identify it to the degree of actually going and visiting it and seeing the level of traffic & how busy it is to distinguish a LARGE gap in value, if you can do that from another state consistently and put your full trust in google maps. I think your missing the point and arguing based on your experience level, not the OP’s or the million or so property investors that see value in a BA.

Also Not sure what that has to do with my investing journey or timeline, but you have shown a little of your character in these posts.

 

Datsun 120Y for the interstate stuff, don't want to run the km's up on the Rolls.

Willy

 

There always will be passive or active investors, so what suits one person doesn't necessary mean it will suit another.
All I mean to say is that there is a need for both to exist.
Personally I followed someone else strategy to invest into property, now I am active but I am still grateful that someone like that existed as it was a stepping stone to enter property for me.

 

Understand. However, my point is that there is a very real risk when using a BA. Hence my other comment. .
I am not against BAs, but I think the risk is very real. I have a few examples of my own,that I haven't used a BA one under contract at the moment- under land value with an upside and I very much doubt a BA could have done any better with the negotiation. True, most people wouldn't know if they have left money on the table, and when I started 30 plus years ago I probably left a few K (less than 5K) here and there, but I learnt from that. If you are going to be investing for the very long term, a few K doesn't matter. There were a few BAs 10 years ago who were advising units, for example, East Brisbane- one I know used a BA and is trying to sell $60K under what they purchased for in 2009 (they have done a small reno on it), and they are desperate to sell. When they paid $345K (and the cost of a new kitchen, carpets and painting) for it, that has got to hurt for a young family person. What is the recourse if the BA gets it wrong? Buyer beware.

 

Exactly, and just because someone uses a BA it doesn't mean that they don't know what they are doing. For the last 10 years I've been doing development / subdivisions which involve a lot more research and due diligence than a simple buy and hold strategy.I wouldn't trust a BA to find them or do the feasibility on them.
Now that I've built up some equity I'm converting to buy and hold . Compared to the subdivision strategy it certainly isn't rocket science which is why I am happy to use a BA for interstate purchases.

Willy

 

They are not BAs, they are sales agents working on behalf of developers flogging stock off the plan and calling themselves advisors and hoping people think of them as BAs. This is a common misconception but there is a huge difference between an independent fee-for-service BA and a someone who is spruiking stock off the plan being paid a commission by the developer. People should avoid these sorts of individuals and companies like the plague.

Property investment isn’t regulated as a financial instrument under the corporations act so there is no requirement for these people to detail who they are working for I.e. the developer in this case, how they are paid or for them to have any qualifications to promote their stock as advisors.

- Andrew

 

The biggest investor in town has probably done 20-30 deals in his life. Successful people in realestate industry may do 100 a year.

 

It's surprising the number of people who have contacted me and have used a 'free' BA to buy an off the plan property or a recently constructed unit or townhouse. They can't understand they have probably paid a high price for this free service!

 

No, this was a BA, paid for by the purchaser. Not a developer. A unit that was approx. 5 years old at purchase. There are plenty of BA giving poor advice in Brisbane to southern based investors.

 

The example I gave was a 5 year old unit, not bought from a developer. Paid advice from a BA.

 

Well, that’s just terrible. As with any service provider in any industry there are good, bad and very bad!

- Andrew

 

While I appreciate a good thread derailment, the original question was asking for pointers as I look up in Brisbane, not the value of a BA.
Considering what I'm looking for and my rather tight budget, a BA hands down isn't suitable for my needs. I'm not time poor and I'm willing to learn beyond a computer screen,so if we could focus on those points, that would be very helpful!

Having been through the process of buying a property, I have a fair idea of what to look out for, and am starting to get a feel for the areas. For those of you that have asked, a few friends who live/have lived up in Brisbane pointed me originally north but mentioned I would get better value from south, which is why I'm looking in those areas.

I do plan on looking at a few places around and slightly beyond my budget in the areas I've mentioned, as a few changes at work could see me increased the budget ever so slightly, and I'm aware a house on a ~600sqm land is ideal. Or the market continues going down would also help.
I'll also be looking one day south and one day north to get a feel for both north and south, and have earmarked Everton Hills, Stafford Heights and surrounding areas, but for this trip won't have time to look north for actual houses.

Appreciate all the replies thus far, keep them coming!