QLD IP in Outer Brisbane Suburbs - New house

I live in Victoria and have an IP here. I am lookign to buy my 2nd property outside VIC, may be Brisbane. I am looking to spend ~450K and preferably want a new home / built recently so I could get depreciation and there are minimal maintenance issues. Long term growth is my primary objective and for next 10 years I want to simply put it out on rent.

Please suggest on areas where I should be looking. This is my first post so please redirect me if this has been already answered here in past

 

I live northern Gold Coast, southern Brisbane area.

There is a triangle of lower socio economic areas from Eagleby/Beenleigh to Crestmead/Marsden and north to Logan Central.

It can be argued whether these areas are good for investment - quality of tenants, capital growth prospects - or all areas rise with the rising tide.

I gave some thought to your question and thought about Bayside, from Wynnum down to Redland Bay.

Anything you could find in these areas, newish, may meet long term growth and maintenance criteria, but less depreciation if not new.

 

If long term growth is your primary objective then be wary of locations in Brisbane were there are many new estates as land supply may limit the potential for strong future growth. You can find low maintenance properties that are in established suburbs within your budget. I never recommend buying an investment for the depreciation benefits it brings - this should not be the focus for an investment purchase even though it can be a benefit.
In this budget, for the best capital growth prospects, I still go for specific pockets within the Moreton Bay region over other suburbs in Logan or Ipswich.

 

Which parts of Moreton Bay would you suggest, @MelindaJennison ? I was going to type MB when you beat me to it.

 

Thanks will have a look at these profiles

 

Moreton Bay will be in my radar noe thanks

 

Thanks . Will check them

 

Can't share all our secrets @Angel

 

Rochdale South!!.

Also would Coomera be on the radar given the new freeway development. Or is a freeway from Coomera to Nerang not that useful? (wondering aloud)

 

New house on an empty block in a well established suburb: sure.

New house in a new estate: NO.

There's so much land in Brisbane. If you're building in a new estate, huge blocks of other homes will magically appear around you before too long.

 

Agree with this, buying a 'new' property just for depreciation isn't a great idea and generally means you'll miss out on Capital Growth for some time to come. There are many examples of houses built new in SEQ that have had no or negative growth for 5 years plus...

 

No doubt it will be useful moving some traffic off the M1 onto the Coomera Connector M2 - would I want to live next to it? No

 

Interesting point .. never thought that way. You see i am from Melbourne and even in outer fringe suburbs the land prices keep appreciating so I was thinking the same for Brisbane too

 

I'm thinking Eagleby and Redland Bay could be a good option given the new Coomera Connector road that is proposed is looking more and more likely to go ahead (sooner rather than later given the funding approval released this week).

 

With that sort of budget you can get into a couple of markets providing good yields and newer properties.
If you would like to build new you could consider areas in Logan or purchase property that has been recently been built. (Park Ridge, Slacks Creek)
You could look at properties in the Caboolture area if it's new you are looking for.

 

Deception Bay is a divisive locality, and you could still get something further south at $450ish (ie western edges of Redcliffe and Margate), but the thread is worth a read because some of the PC posts are excellent.

Deception bay [QLD]

Also check out the recent Logan thread.

 

It's a common misconception that new builds are low maintenance, it all depends on the quality of the construction really. You might find initially that a newer build might have less issues than an older style property but years down the track when things start falling to bits it can be a different story.

Personally I prefer older houses with hardwood frames that are truly built to last with solid construction methods.

There are tons of opportunities in places like Logan and Moreton Bay where you can buy an older style property and do a small cosmetic makeover and add value/equity along with increasing the rental yield to help build a bigger portfolio.

Here's a house we picked up on Brisbane's Southside for $270,000 with a rental estimate of $400 a week after a small renovation (repaint, polished the floors, new blinds etc). We spent around 10k on the makeover to bring it up to standard. The owner will have a maintenance free house for years to come with this style of construction method - brick base with concrete pillars and hardwood frame...