QLD Looking for first IP

Discussion in 'Where to Buy' started by Branden, 13th Aug, 2018.

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  1. Branden

    Branden Well-Known Member Business Member

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    Hello all,

    I am currently on the search for my first IP with my partner. We have been scoping out the Brisbane area for some time now. We have a budget of 400k which could be pushed to 430k if needed. We are looking for a 4 bed established home on a solid 5-600 block, however, we are willing to look into anything that fits within the constraints of our budget. I have been researching into south Brisbane (around Logan) and North Brisbane (Petrie) which currently have my interest.

    Goals: -Get into the market, Neutral/Positive cashflow, progressive capital growth.


    Any thoughts, opinions or help would be greatly appreciated.

    Thanks,
    Branden
     
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  2. Noobieboy

    Noobieboy Well-Known Member

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    I would probably head north myself. There is a new university in the pipeline. The vacancies are lower than Logan. The demographics are better than Logan.

    Would probably stay away from Kallangur as it seems to be mostly investors. Vacancies there were a bit high last time I checked.

    Petrie is a great area. Smack bang between Sunny and Brissie.
     
  3. boganfromlogan

    boganfromlogan Well-Known Member

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    Meadowbrook is a great option. Have a look at the infrastructure. Loganlea is also OK if you are looking for zoning.

    Springwood, Rochedale South all good (maybe a bit higher than 430K). Beenleigh is further out but OK.

    Logan is a varied city council area, and the demographics are variable so generalizations are probably not based on fact. 'north is better than south' is not something based on fact either. Last time i visited north the school i was visiting was in shut down while the police were called. Apparently happens quite often. Not terribly keen to visit again :-(

    With your budget you might consider Gold Coast also? Or hinterland of Gold Coast.

    Lots and lots to choose from. North South East, even west!
     
  4. Branden

    Branden Well-Known Member Business Member

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    Thank you for your response, i have noticed their seems to be some new infrastructure around this area. What are your thoughts on Strathpine? As i have been sifting through Petrie to see that most properties are closer to mid 400's.
     
  5. Branden

    Branden Well-Known Member Business Member

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    Thanks for your reply, yes i really like the look of Meadowbrook as it appears to have key infrastructure. Would you consider any neighboring suburbs from this area? (slacks creek, loganlea, marsden). The Main worry i have about these suburbs is that the demographic appears to be low ses. (Although, the calculations are great in terms of value for money).
     
  6. boganfromlogan

    boganfromlogan Well-Known Member

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    Well, i would be a bit cautious Branden. Yes I would look at Loganlea. Marsden if you get a big block (subdivide corner etc) and there are places in slacks creek where i would say
    'yes' and some 'no. North of Park Road 'Yes', near old tannery 'no' also floodable areas in slacks creek would be no for me.

    There are differing views on transport and proximity to stations, my view is get close (but not on top of) because i think train stations and walking distance is a huge asset. But others cite the negatives of being near trains. So in Loganlea i would suggest walking distance from train, perhaps towards coral St and perhaps away from Station Road.

    plenty of other opinions around too, nearly all valid (except Logan haters .... which i am not :))
     
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  7. boganfromlogan

    boganfromlogan Well-Known Member

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    Branden, there is mention of lower socio economic status being a problem, does that hold true for investment? My observations are that the grubby shopping centre and the colourful mixed race areas are full of really fantastic human beings. They may simply not have as much as others. Most a*^$3h07es i meet are rich. Do we sometimes fear something that we don't have to? Plenty of people rent who can't afford to buy - isn't that what we need for an IP?
     
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  8. Noobieboy

    Noobieboy Well-Known Member

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    I like Strathpine. Large shopping centre nearby and closer to CBD. Not that far from the new university either. Can’t believe Petrie is in mid 400. That area grew so much so quickly.

    There is an area near Strathpine called Lawson. Apparently not that great.
     
  9. Rich2011

    Rich2011 Well-Known Member

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    Properties in Petrie and Strathpine are selling quickly for premium prices, buyers agents snapping them up before they hit realestate.com.au the difference in Logan is that you can still find under market value if you know where to look. My client found in Petrie unless you gave a strong offer over market price it was hard to buy a property. We secured a property in Logan under market value and have equity built in from day one with a far better yield.
     
  10. Branden

    Branden Well-Known Member Business Member

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    That is an excellent point you make about a low ses suburb which i did not consider. I suppose the only down side would be having tenants who could cause a headache, however, that could occur within any suburb i guess. Thank you for your insight though, i always find it extremely helpful when locals are able to give their opinion on a particular area. So your best bet would be Meadowbrook and loganlea? is there any other suburbs which may fall into a similar category around this area?
    Thanks,
    Branden
     
  11. Branden

    Branden Well-Known Member Business Member

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    What are your thoughts on warner and bray park?
     
  12. Branden

    Branden Well-Known Member Business Member

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    This is quite interesting to hear because when i was searching using realestate.com i did find it hard to find any 4 beds at all within my budget (400's). So either the properties have significantly appreciated or as you said theyre being snapped up swiftly.

    How have you found renting out your property within Logan in terms of vacancy rates, rental rates and the tenants themselves?
     
  13. Noobieboy

    Noobieboy Well-Known Member

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    There is a reason why Logan has "undervalued" properties. It is the same reason why, I believe Logan will continue under-performing when compared to North Brissie. It is the same reason why I believe that North, in long term is a better bet.

    Never researched Warner, sorry I am not much of help here. Bray Park is great as far as I am concerned. The only point that I think is in favor of Petrie, Bald Hills, Strathpine etc, is that they are close to train station...

    ==Edit: Confused Bray Park with Bracken Ridge... go figure
     
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  14. Rich2011

    Rich2011 Well-Known Member

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    Properties still renting well, depending on the property type you might have to drop the rent a small amount to find a tenant quickly. None of my clients have had any issues unless the property was overpriced to begin with, this usually only happens when they have bought a unique property and are testing the market.

    Haven't had any serious tenant issues however you need to ensure you have a good property manager. Worst I have seen is rent arrears even the best tenants can go bad occasionally.
     
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  15. Rich2011

    Rich2011 Well-Known Member

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    Petrie growth over the last 5 years 22.2%
    Kingston 36.1% ......
    Logan is not doing too badly :)
    (Source RP Data)
     
  16. Noobieboy

    Noobieboy Well-Known Member

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    04BB4526-99D9-4555-90B9-9EB065BD8C18.jpeg 19DF52CE-66FE-4FFC-8872-426D3349D670.jpeg
     
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  17. Noobieboy

    Noobieboy Well-Known Member

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    I think I rest now :D
     
  18. Angel

    Angel Well-Known Member

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    Lawnton.
     
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  19. Angel

    Angel Well-Known Member

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    Warner and Bray Park are fine for demographics but they are a bit further away from the train stations than Strathpine and Lawnton. In my experience, the property prices are relative to walking distance to the stations. There are buses from Warner and the back of Bray Park down to the big Shopping Centre and the stations, but they take a ridiculously long time.

    Although their prices have increased in the last few years, they (Warner, BP and Stpine) are a bit easier to buy into than Petrie is.

    Benefits other than a new University:

    Easy access to Airport and Sunshine Coast, 30 minutes by train to CBD, business park and industrial estates at Brendale, lower buy in price than Bald Hills and Bracken Ridge in BCC, close to Chermside Hospitals and free parking at Redcliffe Hospital.
     
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  20. Angel

    Angel Well-Known Member

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    I used to call Warner a no-go zone for investors, due to the fact you have to drive to the train station. Over time I have gotten used to it and the drive. It's not too bad really, I drive Mr Angel down to Strathpine station when his motorcycle is off the road, it's not the end of the world, and I am the next suburb further away then Warner..

    I don't think you will find anything in your budget in my suburb unless you can find a place with termites, if you are up for the challenge.
     
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