QLD Property investment in Bellmere Qld

I am considering buying an investment property in Bellmere - Brand New 4 bed room, double garage, 630 sq land for around $390k. I don't know too much about the area but looks like a good investment opportunity. Appreciate your thoughts and comments in regards to property investment in Bellmere.

 

Do you know where Bellmere is?

 

Bellmere is just outside of the Caboolture/Morayfield area, and needs to be viewed in light of that area. There's been quite a bit of new construction in both Morayfield and Bellmere, which has dragged rents down of late, and capital growth has been slow for some time. That said, many agree that the entire area is the only affordable place on the Northside of Brisbane. Consider looking at Morayfield for better access to the highway, shops, schools, etc for higher renter demand. If you're trying to get a house, I believe there are still good buys on older homes with large lots in the area for about the same price that you're looking at.

 

Thank you for your response. Do you believe Bellmere has potential for capital growth maybe not short term but say over the next 3-5 years. I am after a low maintenance hassle free property hence looking to purchase brand new instead of older ones.

 

No offence but I think you need to spend a bit more time on here before making a purchase.

I don't know much about Bellmere but in general most investors don't buy new properties. Some do and have specific strategies around new builds that work well.

Generally if you are buying something new then there will be other new places being built which means there is land available. If there is a lot of land available then there is no scarcity and therefore you won't see a lot of capital growth.

Usually you would look for an established house / unit in a suburb that has no more land to release.

This is fairly general and not always the case. There are always exceptions to the rule.

 

Anything is possible but I wouldn't be banking on it. In addition, you want to buy new stock - a double whammy for smashing CG gains. Imo its most likely going to make a poor investment. This is how people get into trouble making poor choices and are never able to grow a portfolio. Not trying to be harsh, just think very carefully and do a lot more research.

Demand picture: This is what I call 'negative' demand.

 

So I guess the general rule for successful property investment is to only buy existing stock ideally at below market value, but never brand new? Reason for wanting to buy new is because I live in Sydney and want a hassle free interstate investment.

 

@Jaytom 988 Nothing stays new forever. And new doesn't always mean hassle free either (your building inspection will be critical).

Yes, do your numbers first!

 

Everyone has their own approach and strategy according to their situation. For the most past, I don't know too many people who bought brand new stock at premium prices and made good CG any time soon (could be 10 years before you see any decent gains), especially in areas which are nothing special. ​

Well new stock can also have hassles, which your PM should be looking after anyway. Often when people say 'hassle free investment' with real estate, its going to mean buying a poor investment and just letting it sit there for many years. I don't know if this is just a 1 off buy for you or you are interested in building a portfolio, but definitely do more reading and networking with others here before you pull the trigger on something that you likely may regret,