QLD have 120k to invest? Any recommendations.

Hi All

I nearly have 120k from my current PPOR and want to have my first IP. Need help for a good location with nice growth in future. After reading forums, I feel Brisbane/Gold Coast and surrounding areas will be best to invest.

Any recommendations, please.

thanks
Sunny(or SS)

 

You have a deposit but do you have finance pre-approval on a new IP mortgage? and if so, what is your budget for an IP?

 

I have 120k in my offset account and looking for property around 550k-600k. No, I don't have the finance approval yet. Before I start any of the things, I just want to correct my thinking as it will be my first IP.
Whether its right time to invest in Brisbane or the gold coast. I know Sydney is declining for the next 1-2 yrs and Melbourne is at peak.

So looking for my options here. Thanks in advance for helping.

thanks

 

hi Sachin, I agree that Sydney and Melbourne are declining but that doesn't mean there aren't opportunities there. Personally - but that's just me - I would never invest anywhere outside of these 2 because when I look at the fundamentals (where population growth is going to be in the next 10+ years and where jobs and money are), I feel the safest bet is Sydney and Melbourne. Yes you will not see amazing growth in those just yet, but your property will always be tenanted and eventually the growth will come... To be honest, I doubt you will be able to see any growth in Brisbane either any time soon... why don't you speak to a couple of buyers agents to see what they suggest? then you can decided...

 

It would be best to chat to a mortgage broker first to understand your borrowing capacity and thus what max price you can afford for your investment property. This will automatically rule many areas out and make your decisions more efficient.

 

Wait till the apartment completions happens and FHBs moving out of IPs. The more accurate statement is it'll always be tenanted for the right price - no different to any other city really.

 

Avoid regional towns like Gold Coast as a general rule, sure you can make money but can't afford to get the timing wrong. Hurts that much more.

Brisbane is an option. Perth is another option - full on buyers market over here. Can pick good quality inner ring properties. Many even below replacement cost.

 

Fair statement.

I am simply going with what has worked for me AND having no doubt the next 3-5 years will be very tough, no matter where you are, based on the fact that money is drying up.

 

I was looking at Pimpama and Coomera areas where there was 6-7 % growth in past 2 yrs. But I do think and also I don't know if regional towns are overpriced now. I was mostly inclined toward QLD but thinking of Perth now. Thanks for that.

 

Yes, I have already asked my broker for doing the same and getting the loan approval for IPs.

 

As JacM suggested, once you know your borrowing capacity then that'll guide you in terms of where you can/can't invest.

Apologies if I sounded like a broken record (as I've typed similar statements so many times), but personally I would still look at areas around Petrie with the upcoming USC coming in at 2020. There are quite a number of threads about this so you can do your own DD to determine whether this is the right fit for you. I feel this is a safe, long term investment as you can get close to 5% gross yield so won't be too difficult to hold and with the University being the catalyst to transform the area, it'll drive demand/growth. Price ranges around 350K to 450K - not too big investment, depending on the suburb, land size and condition of the house. I like to start small and work my way up

Perth is definitely another option and I'm following the Perth thread myself, but I do like to see a consistent improvement in employment for a good 3-6 months to be able to have confidence that things are improving in the western capital. I'm sure other Perth investors on the ground can provide their thoughts on this.

My 2 cents.

Cheers,
David

 

Gold Coast isn’t a regional town lol!!! Have u ever been there?

 

You are right. It is a regional city. But, practically speaking, what's the difference?

 

Interesting points, it's been an issue that I've been pondering as well. The question though is should the Central coast and Newcastle as well as blue mountains, Wollongong and Southern Highlands be included as part of Sydney in the future as well as Geelong, Mornngton Peninsula and say Sunbury for argument sake be included as Melbourne. Are these areas better bets then say an inner suburb of Adelaide or Brisbane? Would you invest in Sunbury in preference to Seaton SA?

 

I agree with Chris.
Short term there may be more growth outside the two majors.
It just depends what your strategy is. If you need some CG quickly then look for opportunities outside Syd/Mel, otherwise bide your time, pay down debt and wait for opportunities where the best long term CG is most likely.

 

I don't know a lot about Sunbury so I can't comment about SA but yes, I would consider all the regions you are mentioning in NSW and VIC. Most of them are less than an hour's drive away. In fact I know a lot of people from the blue mountains, Central Coast, Wollongong, Southern Highlands and Geelong that work in inner Sydney and Melbourne, so same principle applies. I also like Newcastle as from what I heard it has done well for itself in the post BHP era. You just need to find the right person with the local knowledge.

 

I love to invest in GC but I think its already appreciated and don't know if there is any further room for any growth. Dont wanna regret on my first IP.

 

Hi @sachin singh, near term CG will be very important for your first investment property. Sydney did go through a prolong period of flat growth between 2003 to 2012 after the peak so I am not sure if you want to hold your breath for that long if that happens again.

As a professional worker with a decent wage, I really don't know many colleagues and friends who can get a $1m+ loans anymore with the recent changes. But most can still get 500k loans for Brisbane, Perth etc... I think affordabilty what it boils down to.