My Brisbane Sub-Portfolio - is 2018-2021 the years for growth?

80k Over 8 years is pretty poor to say the least. 10K a year is not a good investment in my eyes. Just goes to show how bad these areas are and for some reason they get regarded as a hot spot.

 

What's interesting is that I have built up a portfolio nearly the same size as yours for Brisbane and I did it with 3 properties compared to your 7. It's a lot easier with only 3 properties to manage.

 

If you don't mind me asking, where did you buy and at what prices?

 

A

Also, what sort of yield are you getting and what's the cashflow position?
Since you opened up the debate of apples vs oranges, it'll be interesting the similarities and differences of the Brissy portfolio between the two. I'd expect if you have houses closer to the CBD area you'd possibly find greater capital growth but your cashflow position might not be as good.

 

Sure, here we go:
Redcliffe House purchased in 2014 for $450,000, now worth $530,000
Carina Heights House purchased in 2002 for $280,000 and renovated in 2012, now worth $800,000
Mansfield purchased in 2016 for $580,000, now worth $630,000 maybe a little more. About to renovate Mansfield for 2018.

 

Redcliffe now neutral for the most part and Carina Heights positive. Currently living in Mansfield property.

 

My strategy is all about capital growth and to a lesser extent cash flow. Mansfield and Carina Heights are high growth properties. Mansfield turned a 50K profit in less than a year due to it being in a high demand suburb.

 

What's a sub portfolio?

 

I would imagine it refers to part portfolio, as he has properties in VIC and QLD.

 

Maybe....it looks by reading below...you have made mostly of the equity via your 2002 purchase.

I any case many road to get to the same destination. I did this across my portfolio and it worked well.

The other reason I take more properties is if you trap over say 500k in CG...you will have a harder time managing your CG liability.

 

Stupid question. Answer below

 

Agreed..

Mate you have too much money.....those are Chinese nuclear class subs...are you getting one of those as a toy?

What is your sub-portfolio in Brissie looking like...or it is it a state secret....that is where growth will come from over the next few years ....

 

Yes true. I did have a hiccup when I purchased 2 properties in Ipswich and then the flood hit and no growth for many years. I sold these 2 properties and purchased the Mansfield one and already 50K up in less than 12 months. Interesting with the CG. I am ok with a bit longer due to my losses in Ipswich so no capital gains for a bit longer. I won't have to worry about GC for a while, no plans to sell now. You managed to amass a large portfolio, how on earth do you manage it all?

 

With great difficulty......it does give me the shoits occaisionally till I work out how how much they have gone up.

You are in the drivers seat now....Carina...Mansfield are potentially 900-$1m median suburbs...Redcliffe could hit 600-700k medians.

 

You did well. so hard nowadays with APRA and credit file checking etc. I had a lot of issues when I applied for the third IP, banks knocking me back for no good reasons. I was considering number 4 IP for 2018 but need to renovate the Mansfield house first as it's painful to live in with a 1950 kitchen and bathroom and no deck. Yes Carina Heights and Mansfield and Redcliffe are all going ok. I notice you have Margate, that's a great little suburb, Redcliffe and Margate where my picks when I started looking there back in 14. The house I have is walking distance to the water.

 

Never say never...there are lenders who you can use..but may take a bit of doing.

Yes...Margate one is the wrong side of Oxley...but some houses there are getting into the 5s now...

 

yes your right and I always try everything and anything to get it through.
Mine is east of Oxley, hence the 10 mins walk to the water. I reckon I have made around 70/80K
out there for about 3 years, coming into 4 years next month actually. It's ok, but nothing like Carina Heights. Mansfield is a new property for us, but it's already proving it's worth over the last 12 months. Next year we start the renovations provided I can pull out some equity to start the raising of the house.

 

@Lawrence Barnes

Re: Carina I have one in the pocket below that I purchased a few yrs ago.

How does it compare to the rest of Carina? I know the suburb is well regarded, central etc but I seek confirmation bias

 

Chugging along I guess...my observation is that Brissy prices have stalled somewhat after a few yrs of decent growth. It's still growing in patches but nothing extraordinary. Great value when compared to Sydney/Mel for sure....but I think the blunt sledgehammer that is APRA has battered all markets, including Brisbane.

I take comfort in the fact mine are all houses. Wouldn't be overly comfortable holding an apartment there in the short-medium term environment.

 

I'm actually in Carina Heights myself, so a little different. As long as you followed the general rules of being close to shops and public transport you should be fine. I purchased close enough to Carindale Shopping centre way back in 2002 when this was my PPOR. The shopping centre had a major renovation completed about 4 years now and it made a big difference to the area with the demographics changing.