I have been reading this forum for 2 years now. I have listened to most of Property Couch’s episodes and read various books about property in Australia. I am however a bit stuck. Background: I’m in my mid thirties, professional job, move around a lot for work. Ultimate goal is to get 1200 $/week for my investment properties. Current investment property: A unit in Melbourne’s inner north. Value: 560 k. Just refinanced at 2.19% and LVR: 80%. Deposit for next property: 160 k. Budget: up to 850 k. My borrowing power would be maxed out if I used 850k. What I’m looking for in my next property: an investment grade property in either Melbourne or Brisbane. Shortlisted suburbs in Brisbane: Stafford Heights, Michelton and Keperra. They all have high DSR (68 to 78) and rental yield above 4%. I would use Andrew Allen as BA for Brisbane. Target price: not more than 680k. Shortlisted suburbs in Melbourne: Highett (villa) , Cheltenham (villa), Thornbury , Brunswick, Coburg. Target price: not more than 850k. The problem is that these suburbs have low rental yield but are likely to perform better in the long term. However, I think the Brisbane suburbs mentioned below will outperform them in the short term. I’m using Location Score and DSR but cannot come to a decision. I would appreciate if I could get some advise from you guys. Cheers
No-one has a crystal ball, but it's very likely Brisbane will outperform Melbourne from a growth perspective in the short term- with a higher yield. You already have exposure to the Melbourne market, so Brisbane would provide some diversification. But you're hardly at the point where you are over-exposed in Melbourne. Melbourne over the long term (10 years+) will be hard to beat. The Brisbane suburbs you have listed are all good options- note there are some good and not so good pockets in each of these suburbs. That price point in BNE is pretty hot at the moment (Im currently buying in two of those suburbs) , so some help via a Brisbane BA will certainly be beneficial. I think you're on the right track. Don't overthink it.
Sounds like I’m in a very similar position to you, professional job and quite early in my investing journey. I’ve been weighing up buying inner north of Melb (same suburbs as you’ve listed) or Brissy. I’ve decided to invest in Melb now as a more long term cg play at the expense of better yields in Brisbane with the intention of entering the qld market next. I’m not certain the 1-2% extra yield in brissy would materially assist my serviceability which has contributed to my decision making.
