I am looking for an apartment in Brisbane preferably inner city, preferably 2 bdrm potentially as investment with possibility of living in later, just wondering what I should be looking for, which suburbs?, close to rail?, age of apartment? size of apartment? Any examples would be appreciated too.
I’d recommend not mixing business with pleasure If you want to invest, don’t buy a unit. Buy a cheapy with land further out. If you decide you want to live in a unit then rent.. even in 10 years time when the current stock gets absorbed there is a massive supply waiting in the pipeline. Developers will have waited and there is no limit on the number of developable blocks in inner bne.
There is a massive amount for sale on the inner southside of Brisbane compared to free standing houses.. Try and target units in blocks of 4--6 ,on blocks on high land value..On the southside the prices start for a one bedroom in blocks of six one bedroom small ,with bus stops and shops within walking distance for less then 200k.. Then you have the 3 bed-3 bathrooms in small pockets in blocks of 6,, 7-9 years old in the 350-400 k range,or youcould be a risk taker and buy a house small land content in a area like Rocklea above the flood levels and bypass the units for less then 400k with rentals returns above $375 per week..imho..
I agree with @vbplease. Rents for units in Brisbane are crazily low, but I believe purchase prices have a while yet to fall. Rents tend to correct more quickly than sale prices, so they're ahead of the curve. If you have money burning a hole in your pocket, look elsewhere for investment. If the idea is to get the first few years of your PPOR paid off, then hold onto your money because unit prices are no where near rock bottom yet.
Don’t ignore units. Some of our best percentage capital gains (almost treble in 10 years) came from units, well placed within a complex in a desirable location. But be choosy. Look for a well kept block close to amenities, then only buy one of the better located units in the block. The one with best views, better layout, bigger garage etc. Never buy the cheap one bedroom box at the back overlooking the carports and bins. marg
And consider getting a good sized one... I think they'll appreciate in value more than a smaller one will.
I'd like to hear from owners of apartments in or near the Brissy CBD. I suppose not much movement in prices in recent years, but how is the Net cash flow? Looks about 4%+ before vacancies? Please not say the word oversupply
In regards to apartments as an investment, comparing the Sydney and Brisbane markets are like comparing apples and 3 week old milk.
There have definitely been some good returns on units in the past. But in my opinion, those days are long gone, never ever to return. The game has changed.. zoning has been relaxed and will continue to relax in time, supply is almost unlimited and there is no shortage of developers ready to jump on countless dev sites as soon as they get a sniff of current stock getting absorbed. The cbd and fringe is full of sites ready to go (in fact the office I work in the Valley is owned by Singaporean developers ready to knock it down). Satellite cbds (Upper Mt Gravatt, Chermside etc) have an endless supply.. Coorparoo, Greenslopes, Annerley, Windsor, Lutwyche, Clayfield.. all lost causes. The only hope may be inner blue chip suburbs which have density restrictions. Some may want a unit to get into a certain catchment.. but if you want to get into Wilston catchment, just get unit in Gordon Park. Want Ascot? get a unit in Clayfield. I'm sure its the same on the southside.
Sure. The price you pay for a 2 bed 1 bath in Toowong is roughly what you would pay 8 years ago. Since then, the amount of apartments has doubled. There are 70 or so 2 bed units for rent in Toowong itself as we speak- not to mention 1 bedders - not to mention the surrounding suburbs. The stock numbers for sale are very similar. Yield is around 4.9 which isnt terrible but with a vacancy rate of 4.7 which is terrible, its only heading one way. My advice is avoid but as always, DYODD
The fact the unit market has slowed is making for some good buying opportunities for anyone with a longer term strategy. I wouldn't be buying with a view to selling in the next few years though.
