VIC Melbourne anyone (or is Brisbane the go?) 400k range

Hi all, it's decision time so... looking for opinions please.

Time for IP#2 - Torn between Brisbane or Melbourne??? (400k range - Planning for med to long term buy and hold for CG (while still mindful of cash flow so aiming for neutrally geared or as close to it.)

Currently leaning towards Brisbane (north) outer suburbs but have been reading, and also been told, that Melbourne suburbs could be good in this range as well.

Any thoughts?

Note: I am a little familiar with Brissy but not at all with Melb but will be using a BA either way. Just want to gauge opinions and maybe get some advice from people currently purchasing in these market ranges.

Also, what questions do the experienced investors on here ask themselves when at this stage in the process?

Cheers

 

Before you employ a BA keep researching and view posts on both markets.

I prefer Melb market and believe some pockets still represent good value, but it's just my opinion

all the best


MTR

 

Northern & Western suburbs 450k and under are value markets IMO

 

Hi coota,
You talking in Melb or Bris?

Cheers

 

Melb I assume. Not many people refer to Ipswitch area as the "western suburbs" like they do in Mel and Syd.

 

Melbourne

 

was looking at the stats on domain for melbourne. not sure if villas constitute houses or landed units are houses or units but still a good macroeconomic view.

 

Could you name a few?

 

point cook definitely under 450K although i wouldn't say there are under valued. Werribbe, hoppers crossing, wydham vale and tarneit.

 

Brisbane 100%

 

For that money, it will go further in brisbane. Id be lookinh at perhaps a 2 bed unit in one of the satellite suburbs in brisbane. Q voiding oversuppied and otp. You should be qble to get neutral cf or maybe slightly neg cf . As long as outlook is med to long term, the cg will be there as well with the qbove.

 

Aren't point coo, wydham vale and tarneit full of land releases? Werribee and Hoppers Crossing sound better to me. Having said that, the returns don't look good as Brisbane ones.

 

yes but that is what the ranges around 400Kish which i can think of and i did say i don't think there were undervalued, 2 years ago it was around mid 300Kish in pt cook now it is 400Kish. I know there are still lots of land releases but pt cook is one of the highest selling areas aus wide.i going to get rid of the ips anyway.

Yeah the rental returns dun look good at 400Kish to queensland 300Kish. although you do shave off a few K in council rates. But take into account population growth, jobs in melbourne, schools, univerisities and migration is high in melbourne and really a new family who worked a few years with both earning say 60K each per year would realistically be only able to buy in those areas. i'm currently hoping to close a sale with an IP in the west with my tenant. no intention to do just rely on rentals. if it was 500Kish, you head to other suburbs like braybrook, sunshine etc - and possibly other outer suburbs in the east.

 

Brisbane seems to be the lazy choice.
But looks like Canberra might be a good pick for this year.

 

I was interested in this post in the 50,000 apartments for Bris thread

If you're looking for long term growth and demand, possibly Melb is the place (I say this with very little research, just glancing across some stats that pop up across various reports).

To get a gauge about how the cities are performing (generally), I also look at the monthly Comsec State of the States report (https://www.commsec.com.au/content/...ublic_Home:::State_of_the_States:Download_Top) and the Herron Todd White reports http://www.htw.com.au/Downloads/Files/277-Month_in_Review_December_2015.pdf.

 

Werribee also has a lot of land & there is new estates and large housing/commercial plans, there is land all around actually.

 

I have subscribed re.com Let's for Werribee tarneit hoppers crossing Wyndham Vale etc and mostly are land releases.. Using Google earth I see very little trees I'm these estates and there's alot of land...I love trees.

 

Here is food for thought ...land could have been bought for 90k in 2006 for 400 sqm...now you are paying about 200k....that says it all........

House in Werribee bought for 130k in 2006......2016.....is about 290k. That is about a 123% gain..happy with that!

 

True..but its not always about the % gain. Its the dollar value as well.
Eg in 2006 i could have bought a house in glen waverley for abot 500k. Now a mil. Thats only 100% appreciation , less than the weribee example but significantly more $ than the 170k gross profit werribee example.
Given the title of this thread, yes look at both the %gain and the real $ gain...

 

In either case I think I missed the boat.