Maitland area NSW v Brisbane Moreton Bay region v Brisbane inner south v Ipswich region

Hi All,

I'm a first time PI & have just started researching.

I'm looking to buy an IP in the $350-$375K range.

I've started researching suburbs around Maitland NSW (Rutherford) v Brisbane Moreton Bay (Redcliffe, Burpengary, Narangba) v Ipswich (Redbank Plains) v Brisbane inner south (Cooparoo, Holland Park, Greenslopes).

I would prefer to buy a house, but understand with my budget I would limited to Rutherford & Redbank Plains.

Most of the info I have read recommend Moreton Bay & regional NSW areas like Maitland, Scone, Muswellbrook.

I'm looking for opinions on potential capital growth of these suburbs & ease of finding tenants in these suburbs.

Any advice is appreciated, thanks in advance ...

 

Not familiar with regional NSW areas so can't comment too much on it. But for your budget it will be quite stretched even with the Moreton Bay suburbs you're looking at. You'll most likely be getting a very run down house on a standard block which you'll need to put in cash to tidy up, or something on a smaller block in Redcliffe. The former might work depending on whether you have extra cash after settlement and if done well, can potentially generate some equity.

I think Narangba/Burpengary is a bit far out so you'll be able to get a house on a bigger block but not too sure about the CG aspect. Very little infrastructure out that way too. And from memory there are still quite a bit of land in that direction towards Caboolture...lots of land usually isn't good to CG. Similar concept with Redbank Plains.

If for a house with that budget I would probably look at the likes of Kallangur (with "The Mills" precinct project going in) or Logan suburbs towards the south (keeping in mind vacancy rate may be higher so lots of DD required).

Just my 2 cents.

Cheers,
David

 

I personally like Moreton Bay but yes, you’ll probably be stretched there on that budget.

Remember, don’t buy a property based on price. An area only performs relative to the economic drivers but you can still buy the wrong property in the right area and have zero performance.

What I mean by this is that you should not be looking to just buy any type of property if you’re limited by budget just because you think the area will perform. You must buy a property that suits the demographic of the area in which you’re buying I.e. if people in that area want houses, don’t buy an apartment. Not only will it not ever grow in value, but you’ll always struggle to rent it too.

If you can’t make your purchasing work in a given area based on the demands of the demographic, don’t try and make a square peg fit into a round hole - move on an find another area in this big wide country of ours that has both the economics and demands of the population that fits your budget.

- Andrew

 

Thanks for your opinion & advice David, I understand houses produce better CG returns than units. What are you thoughts on CG & over supply issue for units in Coorparoo, Greenslopes, Holland Park areas closer to CBD ? Cheers

 

Thanks for the advice Andrew, much appreciated.

Are there any particular suburbs you would recommend in the Moreton Bay region ?
Cheers

 

Well, aside from the economics I like the small natural land lock of the peninsula itself. I personally have a house in Rothwell.

Cheers!

- Andrew

 

Thanks again for your advice Andrew, as a first time PI there are so many things to consider.

I will be going up to Brisbane in April to check out the Redcliffe peninsula & Moreton Bay region.

Cheers

 

All the suburbs on the Redcliffe peninsula (look at a map), including Deception Bay, will offer good long term growth and reasonable yields. Have a look at our recent threads about Moreton Bay for more info about the specific types of houses to select from. Had you started a year or two ago there was easy pickings in your budget in Strathpine and Bray Park for that budget.

 

The land component is what will really drive the CG, hence as investors we'll always prefer house over villa/townhouse over units.

If budget is a constraint then I wouldn't rule out units completely in the inner Brissie suburbs say within 5km. But they'll have to be the older style, red brick 2 level walk-up type with low strata. Preferably no more than 10 units in the block sitting on a big block of land (say over 800 or even 1000sqm). These will be relatively safe to hold in the long run as long as you can get it rented out, so it'll be suburb specific and a thorough due diligence will be required to understand the current rental listings available plus upcoming apartment projects to be completed.

Cheers,
David

 

Thanks Angel, I'll refer to recent threads, why did you single out Deception Bay as a good opportunity ? I have a friend who lives in North Lakes who advised to stay clear of Deception Bay area ... However, there opinion wasn't based on good IP fundamentals ...

 

To ensure you consider it when you are considering "Redcliffe".

Did you friend tell you that North Lakes adjoins D' Bay?

 

Thanks for your advice David ... I'll be definitely looking for an older style unit with low strata fees within 5-10km radius to CBD. .. A thorough due diligence will be required on my part to fuly understand the macro & micro economic factors affecting the suburb & property I choose ...

 

Totally agree Angel, I took their opinion with a grain of salt ! Is there a stigma with D'angelo Bay ?

 

D'Bay

 

According to some people, those who live on horse studs in Narangba and Burpengary probably . But it is nothing like parts of Logan. The worst parts of Logan aren't all bad either.

When you drive along the main road from Clontarf to Kippa Ring to D Bay, you will not be able to discern any differences. When you take the residential streets you will see which local blocks look inviting and which dont.

Stigmas are like flood reports - the gossip eludes to 100% of homes in a town being inundated when the reality might be 5 to 10%

 

I like your comment about Stigmas, very true ... I will drive along that main road in April

 

Gday @NewGuy88 - plenty has been written about the options approximately 2 hrs north and south of Sydney and it is still possible (just) to pick up a freestanding home on both sides for under $400k. Maybe consider Kurri Kurri, Cessnock and areas slightly closer to Sydney than Maitland just to increase the potential for demand from part-time commuters etc. Nowra on the Southside is another option. Regardless look for established areas (not new ones with acres of new land releases) and new infrastructure projects either employment nodes or transport corridoors. This increases future economic activity and jobs and inceases likelihood of immigration into a local area. I have spent time out in Ipswich, personally I would avoid as there is so much land - you need contstrained supply not abundant supply of cheap land and cheap houses. Myself and others have written quite a bit about this if you search the forum. You have plenty of comments above about Bris so will leave that for the others.

 

Thanks for your advice Matt, much appreciated ... the Stockland Green Hills & New Maitland Hospital developments attracted me to the Maitland area, from what I've read so far both Maitland & Cessnock will benefit greatly in the long term from the Hunter Regional Plan 2036 ... The forum has been a very useful source of info, Cheers

 

I actually live in dbay... there is defo a stigma, one that we have found to be completely unfounded to be honest. but we do get some judgy comments from long time brisbanites.

personally i would prefer to come 5min down the road and have a decent size block than live in the dog boxes that are north lakes but that's probably an unpopular opinion lol