Investment property location - please help

Hi All,

I have been reading a lot of great material on this forum (thank you). As a result though, I think I am really confused . I have around $800k to invest and I cannot decide on whether to buy something in Brisbane or Melbourne. Capital Growth is the focus and I am looking to hold on to the property for another 15-20 years. I know Melbourne is a lot of more expensive so willing to stretch the budget to $900k to buy something there. Looking to buy a house or a townhouse (not fond of units). Any guidance would be greatly appreciated. It would greatly help if I could just focus on one city instead of oscillating between the two (which I have been doing recently). Thanks a lot in advance.

 

$800k will get you into a premium suburb with a 607 sqm block or a splitter in Brissy. The house might be average but you can always reno it. Personally I prefer quality over qty ie I like owning props in good areas.

Which city will do better....who knows?

 

Thanks Sam,

On what basis did you decide on Melbourne and Brisbane, particularly as you live in Sydney? They are good choices, but I am just curious.

Thanks,
John

 

Many possible replies to such ambiguous questions? No one can really advise....
Obviously you lack answers to two questions: 1. What do you wish to achieve from property? Define this in $ terms. 2. What is your investment property strategy?
Will you add possible renovation in the future or start? Will you buy within how many kms, lifestyle or city proximity, houses or units, etc....
Analyse from top down approach, where is MEL as comparison to BRI, then buy using the property clock in the cycle to take advantage of the cycle? Then will you buy within certain Kms from CBD?
Personally I would not buy units in QLD, prefer land component for long term growth in BRI, but MEL can afford better quality unit or further away house and land...
So you see you need to be clear on those two questions then you can analyse and take that first step. You need to read up a bit more or follow a mentor that was successful that resonated with your investment strategy and achived what you wish to achieve. Sorry simple steps but not easy, it takes time!

 

Based on material I have read, Melbourne is forecasted to do better in the long term based on population, jobs and capital growth. Have also considered Brisbane due to growth prospects but I don't see a lot of projects that create high paying jobs - hence the doubt about whether to invest in Brisbane for the long term - agreed that I can get a better quality property there. Wanted to avoid paying more land tax in Sydney and hence looking at other cities. All of these 3 cities are shown at the bottom of the market based on the Sep 2019 property clock (but I know there is a lot more to it than just being at the bottom of the market).

 

How come you are looking at a 3 month old property clock?

 

I reckon most investors with properties in multiple states will suggest you to buy in Brisbane. I think it has more capital growth potential than Mel in the next 5 years. It also offers much better yields. Melbourne market has gone up dramatically and affordability will put a ceiling on property price. It is my personal opinion, I suggest you talk to a couple more people who have invested in multiple states for decades.

 

I would buy in Melbourne if your goal is long term capital growth. Increase your budget to 900k+ and look for a house in Brunswick, Coburg, Pascoe Vale.