QLD Looking for first IP

I don’t think pointing out “low socio” is anything to do with people being amazing humans or not. It’s exactly what you said above, they simply may not have as much- IE income story, & can’t afford to buy - IE renters.

I’m not sure what you think puts pressure on prices to rise, but these 2 things definitely aren’t the criteria I would be looking for

Pick an OO suburb and you will do far better long term.

 

I would agree with @Angel - try stick with the established suburbs like Strathpine, Bray Park, Lawnton which has public transport/shopping centre as much as you can. You can't go wrong with these long term as population continues to grow in Brisbane and eventually people will start to realize how important it is to be close to public transport, like what we're seeing in Sydney today.

It's a cliche but there is a reason why everyone keep saying "location, location, location" in RE - at the end of the day a crappy location is not something you can fix by throwing money onto it

Cheers,
David

 

Can we discuss your situation first before we talk locations. You should first decide what suits your circumstances and then it will make finding an IP more efficient and effectively.

1. Do you have a high income? Why: high income = high tax rate = depreciation is worth more. Therefore the higher depreciatiin ofof new property may be more valuable to you if your marginal tax rate is high (37% or higher is my advice when it is very attractive)

2. Do you want income or CG? Do you need help paying the loan? Do you want to maximise CG thanks to better tax treatment? This will help guide whether to buy house and land (CG ) or apartment (yield).

3. Are you a cash buyer or do you need finance? Are you pre-approved? Do you have 20% available in cash right now?
If you are cashed up and preapproved, then consider buying a property from someone looking for a quick simple sale. Eg, apartment developers with stock left on the books or who have just launched and are looking for some quick sales. I work for a developer that sold a handful of apartments at 20-25% discount (actual discount to value, not just notional), for quick cash sales. Also you can try deceased estates or mortgagee advertised sales.

 

Some good points made in your post but buying an apartment over a house on land creates several problems for the buyer, such as having to deal with body corps which can be a nightmare.

I cant speak for Logan, but there are certainly many large unit complexes built across Moreton Bay that have no potential for any capital gains in the future. The very nice apartments on the waterfront are priced for owner occupiers and way beyond this buyer's budget. Given the history of the apartments near Westfield Chermside, I wouldn't be rushing to buy any proposed apartments around the Petrie University site or along the Strathpine/Lawnton train line.

Not sure what apartments you are referring to in these two locations.

 

OP has a budget of 430k, wants neutral to positive cashflow and CG. I think there are more apartments that would fit these parameters, though CG will be tough but if you buy cheap you can get there. Houses that have positive cashflow (decent rent) and are this cheap are going to be tough to find.

It is important to check what suits you and your tax/financial situation, not just what you think is the best solution. Especially if your advice is coming from an online forum.

 

Whilst the idea of apartments are being thrown out there, I’d advise being very careful with these in Brisbane, as your buying from interstate especially.

Key points I’d keep in mind if you do want to go down this track are keep it to small complexes - IE 6-8 unit walk ups, no lift or pool.
Location being most important, go as blue chip as possible. You would get into bulimba/hawthorn under $500k - pushing it for new farm now.

Considering it’s your first IP and your wanting to build a portfolio, I’d be aiming for a house & land in the best location possible, with Add value potential. You need growth and equity at this point, not $10 per week cashflow. IMO

If you get something as close to Brisbane CBD that has this potential, and Brisbane moves in the next 3yrs (houses middle ring are moving now) You could very well have your next deposit a lot faster than other options mentioned.