QLD Investment in Brisbane with Budget 450k to 500k

Hi, PC members. This is my first post and hope you guys can share some opinions.

I am looking to buy my first investment property (prefer a detached house) in Brisbane with budget 450k to 500k. I haven't bought an investment property before but would like to take conservative approach for start.
Looking for a suburb with good long term capital gain with ( in 5 to 10 yrs) hopefully neutrally geared property after holding cost (I know it is difficult) or slightly negative geared.

I was looking a house for sale in Redcliffe (4020). The new train line near Kippa-ring (also proposal for a new uni) and also being close to water seems like plus. The average price guide among sales property is close to 450k with 4 to 500sqm land size. Looks like a lots of properties on sales mention about rental appraisal.

Another suburb I am looking is Kiperra and surrounding area (Ferny Hills and Arena Hills) The price guide seems start from 500k ( or offer obove very high 400k) with the average land size 600sqm plus. The capital growth in these areas looks better than Redcliffe (after comparing the sold history) but rarely mention about the rental appraisal. Also they are much closer to CBD.

Seeking to get some second opinions about what people's thoughts are about these suburbs if you have budget of 450k to 500k.
As a first investment property buyer is it important to keep neutral cashflow or would capital growth more important if one keep wants to build a portfolio?

Also I am living in sydney and would like to hear from people who bought properties interstate. Did you find the process hard? (like flying interstate for inspection ect).

Many thanks in advance.

 

Definitely Keperra area. You should be able to get in there with your budget although there is lots of competition for properties now. This area has grown nicely over the past few years but there is a lot more room for growth. Short distance to the city, on the train line and large blocks.

 

Why Brisbane?
Why a detached house?
Are you confident of Brisbane's 5-10yr growth outlook?

 

I would reach out to @Whitecat and have a discussion with him. He knows Brisbane very well and has helped me a lot lately with advice and areas.

 

Inov8ive - Agree with you. I'm looking at properties for sale in Keperra almost everyday and many go under offer or contract in a short period of time. Really appreciate your advice.

Greyghost - due to the rapid median price jump in syd I find it hard to get the decent cashflow and serviceability happening. I guess I can only refer to the data available to see the past performance in Brisbane. Any tip, advice or your toughts on the Qs you've mentioned would be appreciated!

Tranquilo - definitely I'll get in touch. Really appreciated!

 

I keep and eye on Keperra, Ferny Grove/Hills, Grovely and Arana Hills (and The Gap/Mitchelton to a lesser extent). Massive growth in these suburbs over the past 3-4 years.
When I first started looking in and around these areas, you could purchase a good solid little 3br/1b for just over $300k - similar places now sell for close to $500k.
I had a place (4/2/2 - 1960's built) pop up on my hit list this week for offers over $630k - and that's in Keperra!
We purchased a little place in Keperra in 2013 @ $375k - last val @ $535k - maybe spent $35k on renos (it was pretty rough). I think that there's still more growth left in the area - don't think it'll be the 10+% like the last 2-3 years, but scope for say 5%. Lots of new product coming onto the market early 2018 (next to Bunnings development) so will see how that affects the market.

 

@A.M.W still possible to pick up something in Ferny hills/grove and Arana hills for 500. You have to act quickly because anything good sells same day as open. Also check your flood mapping and easements.

 

Agreed seen same numbers in southside under 15km
We only own in birkdale which is a bit further out. Growth hasnt been as good but i think we picked the right property
We got a 1400sqm block for 370k, 3 bedder.
I suspect we would get 550k + for it today as it has a 28 metre frontage

 

Thanks everyone for sharing an insight into those suburbs. Everyone says buying the first investment property is always hard but I think I am getting there.

Icarus - that is massive increase in 4 yrs time. Looking at (Australia Home Sold Price, Property Sales Data, Victoria, New South Wales, Sydney, Canberra, Brisbane, Adelaide and Perth) Keperra has lightly more favorable CG compared to surrounding area but then Ferny Hills has slightly better median rental income. Not sure how it works.

 

Ferny hills is much nicer than arana and keperra. Particularly the bit in the north towards bunya. 500K will get you in the slightly older area but if you can sneak into the Patricks road school catchment could be on to a winner. Seems to be one of the best performing primary schools in Brisbane.

 

@A.M.W. Yes, it took me almost 10 months to purchase my first property - it was $113,500 in Rockhampton QLD about 15 years ago. I was using a combination of Steve McKnight's and Jan Somers' strategies and it was the only place I could find that matched the algebra (weekly rental divided by 2, multiplied by 1000 = purchase price).
It hasn't been a terrible investment, but I use different strategies when looking to purchase these days!!

Have you gotten in touch with all of the agents in the areas you're looking at and given them your prerequisites? I know that you're not local - but you'd be surprised what a letterbox leaflet drop will uncover.

@BB5 is correct, Ferny Hills is definitely the pick of the 3 areas listed.

Good luck with the search!