QLD Investment Brisbane suburbs

Considering buying an IP in Brisbane, budget is 550k could stretch to 600k this includes 20% (120 k cash) with >600sqm land. Considering buying brick houses as close as I can get to CBD within my budget. Long term hold for capital growth, targeting suburbs closer to infrastructure ( school, jobs, train, shops etc.) and near to public housing. Was advised by BA Durack, Doolandella ( prices od these suburbs haven't gone up compared to Oxyley) , Mitchelton ( don't think I can find a brick house within my budget), Keperra ( can find brick houses in the kings park estate) , Arana,Ferny hill, Ferny grove ( can get brick houses within my budget, house prices got increased due to media hype and haven't moved since then) . Then there are other suburbs- Geebung, Chermside west. I am in a dilemma as to target which suburbs growth wise, I am not from Qld. Suggestions regarding which suburbs to target with my prototype ( budget, close to transport, good school, high rental demand, low vacancy rate) would be helpful, I do have a BA but want to make sure I am well informed.

 

Why do you want to be near public housing?

 

Sorry, meant not close to public housing

 

Buy as close as you can to the CBD in a good OO area. 600+sqm lot with add value potential. And buy as low priced as possible. If it were me I'd me alot more interested in the location of the land, it's size and any good aspects, then the house it's self.

What you want is... older blocks in the area... once renovated sold over the mil mark.

 

Thanks Sackie that's what my aim is to get as close to CBD, no idea which suburbs am I meant to target?

 

As much bang for buck as your budget allows mate. Do your thorough DD . Location is key imho. Look for Under valued suburbs, ripple suburbs and high demand suburbs.

 

I would start by searching realestate.com.au and seeing what suburbs come up within your price range & other requirements, then research those suburbs individually. Maybe ask if your BA can generate suburb reports for you? There's usually a lot of helpful information in them

 

@Joshua2019 I posted this and cut and pasted a few times now to save time retyping. It's my broad framework for suburb due diligence.

This might help you .





Suburb Due Diligence
1. Determine how far I want to draw a radius around my map from the CBD. Is it 5,10,15, 20km etc. Usually what will determine how far I go from the CBD is the particular state i'm looking at, the strategy i'm employing and any specific opportunities in areas that may be worthwhile exploring.

2. Choose a few suburbs that meet my buying criteria. I look for value suburbs, eg suburbs that are cheaper than their neighbours but share most of the same fundamentals to make them grow which is only a matter of time, the 'ripple effect'. Use websites like REA, Domain and even property magazines might alert you to a suburb in your chosen rough area that you can look at and do further DD comparing prices of dwellings to try and find that 'value surbur' or two. Of course make sure the suburbs have the usual good growth drivers like transport, infrastructure, amenities, cafes, hospitals, trendy hubs etc. Once I've narrowed it down to say 2 suburbs I then look at historical CG, SOM, Discounting Rate, Vacancy Rates, Supply/Demand etc. Property magazines and on line sites have all this. I make sure I use at least 2-3 sources to corroborate the data for further reliability.

Demographic Due Diligence:

1.Research what the demographic is, and what they want, in your chosen area. Is it detached housing that is most prevalent? Villas? How many bedrooms is most common? Most wanted or common size of dwelling and land (so you don't buy a 400sqm home in an area that really values 500+sqm for example), How close to transport? Families or singles? Students? etc Any specific nationality in the area that may influence your purchase?

Dwelling Due Diligence
1. When I know exactly what I am looking for after I have my list, I troll all real estate websites and look for stock that fits my description. I also call probably 10 or more REAs in the area to tell them what i'm looking for, i'm preapproved and ready to buy right now and ask that they alert me to anything that they think i might be interested in. Having 15 ppl looking for me is better than just 1 person. I also first make sure any dwelling I look at is not next to any major power poles, cemeteries, very busy main streets, noisy kindergartens, not in flood areas, bush fire areas, high crime rate areas etc.

2. When I have 'acceptable stock' in my sight, I will then use RP Data to do what I call 'Vendor Due Diligence'. See when it was bought, who bought it, for how much, etc etc. I want to know as much of the story as i can to try and put a picture together very fast to basically try and determine just how motivated the vendor might be. Really this only should take 20 mins. I then call the agent and discuss with him the property I am interested in to try and learn from him as much as I can. (i'll leave it at that for the agent because this is getting too long already).

. Basically from there its a negotiation process. I try to find many properties that meet my criteria and put offers on all of them trying has hard as possible to buy BMV and create equity on the way in and also try to buy on favourable terms eg delayed settlement, building and pest clause (a negotiation tool in its self), Subject to finance, etc. Having said that it depends on the deal. If its in my interest to go 66w then I will

 

Durack v keperra/Arana/Ferny hills = no comparison.

- for that budget keperra is a winner. Unless you can get Ferny grove for that price but maybe a little short with your budget.

 

Sunshine state a land of opportunity for first-home buyers - realestate.com.au

Attractive investment suburbs thats within your budget namely banyo, jamboree heights, keperra

 

Banyo is still very industrial so personally wouldn’t be my pick. Some good suburbs suggested in Keperra, Arana, Ferny etc.

Keperra has been picked to out perform others at that 10km mark due to coming off a low base, and the train line, have to be careful with pockets as there’s nice Keperra and run down renter Keperra.

I like the hills area’s for a few reasons, being good value/big block/big homes, price point, but mostly what attracted me was the % of owner occupiers, 70-90%. There’s a reason why owners want to live there, they are more likely to look after the homes, stay longer, raise family’s. Renovate etc, and are emotional upgraders. All this points to less stock on market, demand to live there, nicer homes so prices rise naturally.

 

I grew up very near Doolandella and Durack and would strongly advise against investing there! Over the past 10 years developers have carved up the big acreage homes and built cookie cutter townhouses and along with some nicer big houses but all have zero backyard. I do not see any growth potential in these suburbs for the next few years at least.

In Doolandella you can buy a brand new metricon home for 500-600K but next door 2min drive Inala has countless houses in the 300K range (some even sell under 300k). Inala also has a bad reputation for Brisbane folk, low socioeconomic population and has been exactly the same for past 15yrs that I've lived in Brisbane.

Can I ask who your BA was so I can avoid them? Maybe PM me their name if you don't want to publicly share it.

For 600K you can buy a beautiful QLDer under 10K from city. I would give up on the bricks and go for timber character with large land. Good luck

 

I agree, sometimes the obsession for a brick house comes at the expense of capital growth!

I like brick but if the deal is right and I'm getting more land in a better location closer to the city I'll take that any day over brick.

 

Sent PM

 

I am looking for a similar property, similar price point as Joshua2019.
My BA is advising to buy land and build a 4bed house in Ripley Valley; arguing that it is a Priority Development Area with large infrastructure projects which will drive jobs creation and growth.

What do you think on Ripley Valley? Keen to get second opinions.
Thanks!

 

Ditch that BA too. He is trying to sell you a new home on the outskirts of nowhere.

 

Absolutely!!! Vested interest.

 

Wow. And they charge you for this BS. Get rid of him, pay no money, read these forums and you’ll be a lot better off. Horrific advice.

 

Ditch him NOW!. Buy an older house as close to the CBD as you can get. Good options at that price in morningside, carina, etc

 

Have you got a free 'BA' ...... ? Lots of those around selling new units and houses!