QLD Investment Brisbane suburbs

Just curious how much he says it will cost all up?

 

Ripley Valley

It will potentially develop into 50,000 dwellings to house a population of 120,000 people.

For less money and more land you will buy a property far closer to the city with good access to public transport and motorways.

 

My PM suggests North Lakes is a good suburb. Any property that pops up for rent in NL is snapped up immediately.

 

And I want a flood of southern buyers pushing up prices at North Lakes

 

Less than 400K

 

Thanks all for the responses. Let me summarise my strategy:

Similar to Joshua 2019, I am looking at purchasing for 550k, which I could stretch to 600k max this includes 20% (120k cash). I am French and Australian, and I might live in Europe in the next 2 years.
- It is a long-term investment (15+ years)
- Positively geared or neutral from purchase
- Growth prediction more than 5%
- Rental Yield more than 5%
- Minimal maintenance required
- Low vacancy rate
- Targeting suburbs closer to infrastructure (school, jobs, train, shops, etc.)
Suggestions regarding strategy/criteria would be helpful.

Cheers

 

Good advice given in this thread. I'd get rid of your BA and buy something older on a decent block size. Good area. Add value potential.

 

Good to check more than one RE website to be across all listings but my favourite by far is homely.com.au because of their map layout which shows all the listed properties' locations. Very well designed website. Here's a search on Keperra just as a quick example-

Property And Real Estate For Sale in Keperra, QLD 4054 - Homely

 

Great thread! I am looking at the exact same investment at around 500-550k. Is there any benefit to getting on the ground and driving through these suburbs? I'm in Brisbane for work in mid October and wondering how i could get a good overview of the city?

 

There isn't anything wrong with Boondall, Aspley, Carseldine for brick homes @ 600k. You might be lucky enough to grab a older brick home in these suburbs and add value . These areas have access to rail, close to good schools, shopping centres and not so much on investment radar's but more owner occupied.

Boondall is close to Virginia/Northgate which are suburbs worth noting for good capital gain.

Carseldine has high O/O demand with some beautiful old brick homes in the wineries estate. Close to arterials to go north and south.

Aspley has pockets of older brick homes , very close to Chermside Westfield and has a large hypermarket and restaurants.

Something to consider for northern suburbs.

 

Boondall's been off my radar but ticks a lot of boxes. I've just done a quick search and found some decent looking homes on quiet streets for as low as $520k which is close to the median. Surely you don't have to stretch it to $600k for Boondall for something with decent growth? More so Aspley and Carseldine yes.

 

There have been some great value properties in Boondall of recent - in particular there have been some in the College Green estate area. Boondall has good access to rail and the Gateway Motorway that's recently been upgraded and widened.
Banyo is also a good option, it was noted earlier in the thread that it is industrial, but that only impacts some of the suburb (this also applies to Northgate). If you drive out to Banyo and Nudgee, there is a great deal of gentrification happening and if you are after something you can potentially renovate at a later date you'd be set. Also great access to the Gateway Motorway and rail.

Ripley is a substantial distance away from Brisbane CBD and you won't see the same return as other areas closer in plus you are competing against all of the other big estates being built out there including Springfield Central (which has better infrastructure than Ripley but that took years for that to happen).

 

I make liberal use of the RE.com.au's map view with one browser viewing Buy, one browser viewing Rent, and one viewing Sold plus suitable filters to find areas and stand-outs in my target price range. The rent view I narrow down to the exact property type and bedrooms to look at what stock is currently available. Sold helps me gauge how the asking price stacks up to others in the area. I'd say from my own experience, 5 properties out of 6 are junk, either overpriced, have issues, and/or splash & dashes up for sale. That said, my target price range is different. I also use realestateview.com.au to get a picture of the property history. I find it's more thorough than onthehouse which conveniently pulls history and even property reports the moment somewhere goes up for sale.

 

any suggestions on suburbs as after seeking around MEL and SYD, I want to pay extra land tax in BRI for now

 

fingers crossed here also..

 

Have just completed a huge amount of analysis on BNE. Showing huge correlation between suburb H/H income /profession and capital growth. Example when looking at 35 North BCC suburbs I find:

Highest 10 year growth: Hendra with 40.9% growth. In Hendra HH weekly income is $2274 and 42% residents are Managers/ Professionals (One of the highest of the selected suburbs)

Lowest 10 year growth: Zillmere with 11.5% growth. In Zillmere HH weekly income is $1221 and only 26% of residents are Managers/ Professionals (The lowest of selected suburbs)

The read across the 35 suburbs on this measure is fairly congruent.

% of renters, % of public housing, location of train stations appeared to have less impact than you would think.

Company IP so I cant post full data, but shoot me a PM if you have any questions.

 

Don't suppose you wanna share your 35 suburbs analysis ..

 

Were 2010/11 flood effects taken into consideration? Much of hendra is flood prone.

 

I'm not sure why any of this would be surprising? It's not going to be purely linear as certain areas will have permanent or perceived stigmas like proximity to airports etc. but higher incomes will invariably drive price gains closer to the centers, but those gains will ease as the cost to benefit of a bit further out picks up. In the last 10 years it was Hendra, as that gets expensive, the next 10 years could see Nundah or Nortgate seeing better gains than everywhere else. (Why Hendra outperforms Albion or Ascot)

Investment isn't just about capital gain, it's about investing in what you can afford. A 3-4 bed in Hendra? That's pushing $1m for a bargain. Rents are anywhere from $550-800. So you can sustain that I/O for a while without forking out much extra, but an inevitable P&I is going to require some significant capital. Zillmere will cost you $420-480 for similar homes, and rent for $360-470. Renting at higher prices is more vulnerable to disruptions and downturns. There are fewer people that will justify spending $800/wk on rent than there are that would justify $450. So for less than the price of 1 Hendra, you can get 2 Zillmeres and 25-50% more rent to pay it down. Realistically though to be fair I'd be looking at the Nundah/Northgate rather than Hendra for comparison or even a bit further out. My point isn't about yield vs. capital gain, but rather that any capital gain focused play has to include holding costs. If I have $5m it may make more sense to buy a couple Hendra or Nundahs expecting healthier gains along with the rental yield than buying a larger number of of the Zillmeres which may take 20 years to "outperform" saturated inner suburbs for capital growth, if ever at all. But most of us don't have a few spare million lying around.

Ultimately the decision is based on what you can afford, and the holding costs for that investment. The further you stretch to hope to maximize capital gains, the more vulnerable you risk becoming and dependent on your salary. Capital gains and gross yield play a part in investment decisions, but should be considered on a like-for-like basis factoring in similar holding costs.

Personally, my preferred play is yield. Having a property capable of paying for itself with little more than the 20% deposit and regular maintenance/refresh. People will always need somewhere to live, and there will always be people that choose not to, or cannot afford to buy. Capital growth plays rely on sentiment and sentiment has a way of being irrational, both good and bad. To me, it's icing on the cake because I look at minimizing the holding cost so that when that property has paid itself off I can re-allocate that equity/offset buffer to buy more, or sell up for better.

 

Yep, many ways to skin the cat. Comes down to personal circumstances, time, risk profile etc.