QLD Invest Brisbane or caboolture or sunshine coast

Discussion in 'Where to Buy' started by M & C, 28th Jun, 2020.

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  1. M & C

    M & C Active Member

    Joined:
    28th Jun, 2020
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    Location:
    Caboolture
    Hi community,

    We are starting our IP journey

    We Would like some advice on a good place to invest. For a buy and hold Mid-long term. Budget is around 600k-650k.

    My main problem is my missus wants to invest closer to home as it has better cf. We could get 2 properties paying themselves Until our retirement.

    I want to buy closer to Brisbane for a better chance of cg or even around the sunshine coast Area like Caloundra.

    this may sound not a great investment decision as we are looking for a place that has already undergone renovations. So we could put tenants straight on after purchasing.

    What do you think about Keperra?

    thanks in advance
    M & C
     
    Last edited by a moderator: 28th Jun, 2020
  2. wylie

    wylie Moderator Staff Member

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    I don't know much about Keperra, but that house looks nice. I have no idea if it is good value or not.

    My suggestion is that you might be better off not putting it here for all to see, because someone could buy it from under you (assuming you are interested in buying it).
     
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  3. M & C

    M & C Active Member

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    Location:
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    Thanks for the advice. Unfortunately I can’t edit and remove it.
     
  4. ndpjai

    ndpjai Well-Known Member

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    IMO keperra/Mitchelton/ferny grove (walking distance to station) great place to invest for sure. That house looks great, feel like a sydney house not a queenslander.

    Good luck.
     
  5. Nate7invest

    Nate7invest Member

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    Location:
    Gold coast
    I've recently purchased a property in keperra and can personally see a lot of value in the area. Only 10-12kms from the cbd (20min drive if no traffic) 100k less median than it's neighbouring suburb (mitchelon) and has access to two train stations and a championship golf course. Great for a fixer-upper as there's a bunnings and the ferny grove dump just down the road. Can still pick up a place under 500k if your quick and have noticed a few around your 650k budget on 800m2 blocks that could have future subdivision potential.
     
  6. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Outer burbs like Caboolture will obviously have a higher rental yield.........

    The usual challenge, cashflow or growth.

    Be mindful that 2 places will attract higher holding costs than one, but allows some location diversification

    ta
    rolf
     
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  7. M & C

    M & C Active Member

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    Location:
    Caboolture
    Thanks for ideas and advice guys. Much appreciate it.
     
  8. Troysonbassaniproperty

    Troysonbassaniproperty Well-Known Member

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    Location:
    Rockhampton
    Hey Mate,

    Anything outside the inner-middle rings of Brisbane unfortunately won’t get you wealth creating returns particularly for capital growth unless it’s close to a good school catchment. There are some small desirable pockets between Brisbane and Sunshine Coast that could provide capital growth. However if your strategy is to build an asset base and leverage from this property into the next I’d certainly be looking for something within the inner-middle rings of Brisbane. Something to even consider is buying a property that has spilter, development or value add potential so later on after your buy and hold strategy you may move into being a more active rather than passive investor.
     
  9. Nathan Prasad

    Nathan Prasad Well-Known Member Business Member

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    Hi, with Keperra, Ferny Grove and Ferny Hills, you could potentially get yields above 4.5% but you need to be on the ball and checking real esate.com every day lol, and that's a 3 bed 1 bath with original bathroom and kitchens. (Purchase price in the $500's)
    They are in a rentable state and you could potentially create another room now or in the future to increase the equity.
    Ferny Grove has alot of infrastructure in the pipeline including cross river rail and upgrade to the station.
    Would rental yield be a key driver?
    You could look at getting a property closer to the CBD and hold for the land component. You could eventually sell for land or you could knock down and build new to increase the profits. (Simple development)
     
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  10. Laund46

    Laund46 Member

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    I would say dont over generalize that regional is for yield and city for CG. If you invest in regional area , and you have DONE your homework , and really know the area, the personal preference of the buyer and tenant, you could still get impressive yield and CG in regional area too. Just my thought.
     
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  11. M & C

    M & C Active Member

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    Location:
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    We ended up purchasing one Caboolture and one in Meridan Plains. Currently waiting for a preapproval for a $900 000 budget and really considering a splitter block closer to Brisbane.

    (I am forbidden to use realestate.com daily by the missus lol)
     
  12. My House QLD

    My House QLD Well-Known Member Business Member

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    Some of my best deals have been the exact opposite of this. I love to buy unrenovated (internally) houses that don't appeal to owner occs. I give them a basic makeover like new flooring, fresh paint, maybe some new blinds and light fittings etc. I find it gives a far better yield and usually a nice equity gain. To give you an example 12 months ago I purchased a house in Brisbane for 270k, spent 10k on the renovation and the house would have rented for $400 a week giving me an approx 7.5% yield if I had of held it. I just sold the house to another Buyers Agent's client for $395k giving me a 100k profit after 12 months. Because the new buyer wanted a house 'ready to rent' their yield will be 5.2%!

    I've done three deals using this strategy this year (albeit with less profit or equity than this deal). Not a bad way to build a portfolio.
     
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  13. Facundo

    Facundo Member

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    Location:
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    May I ask how is the Property in Caboolture performing? a BA is recommending it to me, but I do see too much land available in that area to achieve decent Capital Growth
     
  14. fols

    fols Well-Known Member

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    I’d be sitting down with the partner and fleshing out the pros and cons of different strategies (CG, yield, balanced) and then agreeing what fits best with your personal circumstances and future goals.

    Once you have your strategy, the locations come next.
     
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  15. EK01

    EK01 Well-Known Member

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    Totally Agree with this!

    Both parties to any investment need to be fully aligned or be prepared to hear the phrase "I told you so" a lot in the future.
     
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  16. M & C

    M & C Active Member

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    Location:
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    Hi Facundo,

    Yes, there is lots of available land around the Caboolture area. Lots of new housing estates going around. house and land packages for 3/4 acre blocks are probably inflating median prices in the area. The property we bought in Caboolture last year has grown by approximately 20% standard resi house. Ditto with the Meridan Plains property. Lucky to buy just prior to the boom.

    I would say Logan/Beenleigh Areas probably have better growth prospects then Caboolture at this current point of time.
     
    Last edited: 23rd Jul, 2021
    Facundo likes this.
  17. M & C

    M & C Active Member

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    Location:
    Caboolture
    For those who read this thread and gave advice over the past 12 months. I would like to update we completed the trifecta and recently bought a property inside 5km from Brisbane for under a mil that required a reno.

    Future plans is to try to get another one inside 10km from Brisbane and try to get a few more properties interstate for a yield play to balance the portfolio out.
     
  18. mick0123

    mick0123 Active Member

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    north sydney
    Would you mind saying which BA?
     
  19. Dbuck234

    Dbuck234 Active Member

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    Location:
    Sydney
    Can I please have some inputs on what specifically are the good pockets of Caboolture? Especially keeping the Caboolture West development in mind
     
  20. Lisa.S.Property

    Lisa.S.Property Member

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    Banyo
    What suburb did you buy for under a mil in Bris? And once you reno will you rent it out or sell? ☺️
     

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