QLD proximity to Brisbane CBD

Hey guys a question from someone looking to buy my first IP.
I am looking to buy a 3 bedroom house with potential for CG and good rental returns. Budget of 500k.

I am torn between looking at some suburbs say 15-25 km North of Brisbane which seem to have the potential to make good CG and have decent rental returns. Whereas in the 10 km radius of Brisbane prices have already increased and the yields aren't as good as northern suburbs.

My question is - is buying in say a 10 km radius of the CBD a better bet than going 20+ km out?

 

Closer to cbd will result in better CG and rental increase!

 

True but if there are no properties left in your budget, then look at the next ring out where you will still get something for $500K. Remember not everyone works in the CBD and we do have trains.

 

I think Redcliffe peninsula area is worth a shot:
1. Because of the upcoming train line and
2. Because it has the beaches.

Otherwise I bought in Birkdale which is east of Brisbane.
I may be biased but it really is a slice of heaven. Have a look around there when you do your search.

 

Proximity to CBD is a good rough guide but it's not the only thing. It's only a tool that's useful for out of towners that don't know much about the city. Look at Glen Waverly for example. It's ages from the CBD but going insane.

 

CBD proximity in Brisbane has been safe, as it in houses have stagnated but not really gone down. They often have not had the same tremendous (percentage) growth as further out. I remember people buying old houses in Ipswich for <$30k when I was buying within 5K of city at $140k, then prices took off and both lots of houses were in the $300k range, Ipswich then went backwards again.

I am absolutely no expert and don't even have evidence to back this up, it is just my recollections of being through 3 cycles. - My thoughts are always that when the price differential between inner and outer/logan/ipswich is substantial then, as long as you are not intending to sell, better growth may come from the latter. You just have to be prepared that if the price goes nuts it is very likely to go back down again. I wouldn't say the the price growth has gone nuts in those areas since preGFC.

 

RPI nailed it, i have not purchased in Brisbane but using my Sydney experience as a guide when the boom is on its on and everything goes up but the stuff closer to the cbd generally gives you more consistant growth year on year.

 

@Chip and chase : I assume that you've been offered and heard about Park Ridge QLD 4125 ?
I've got one of my friend who already purchased it last week for a great price of $305k for 3 bedders 265 sqM house & land package.

 

Park Ridge was an absolute dive in the 1990's, lot's of investors did their dough on 80's house and land packages in the area. The high school was terrible, people would resign rather then accept a transfer there. Location wise it always looked preferable to me compared to a North Lakes or a Springfield. Halfway Ipswich to the Coast - closer to Brisbane and large commercial, industrial, employment nodes really close.

I assume it still has an Inala like stigma with locals but if that is changing and the demographic along with it maybe there is more growth potential there than other estates. I honestly have no idea about it anymore, just thought it was worth sharing what it was like. Then again New Farm, Kangaroo Point and Bulimba were pretty rugged in the 80's and look at them now.

 

The water in that picture looks almost as inviting as the Brisbane River in the CBD

 

That's a 4 minute walk from my new IP...

I think its a nicer location than where my Sydney PPOR is (which seriously costs 3x as much).
Love it!!
I'd move up here if I had the right job! Better weather all year round, easy going lifestyle... Brisbane is growing on me.

Oh, and theres a beach volleyball court in a local park too, with water views, easy walking distance away. Where I live in Sydney I'd have to travel at least an hour to get there and fight lots of people for parking near a beach, here there's no such issues...

 

I didn't realise there are canals at Birkdale! I thought your photo was of the canal estate at Newport or Scarborough. Geez, I need to get out more.

 

Its a gentifying area. The canal homes don't dominate the place by any means so there's quite a few million $$ properties here if you want that kind of lifestyle but at the same time there's the opportunity to pick up sub $500k homes on good land too, and everything in between. Obviously I've gone for a cheapie with good location (water views!!) and land, 809sqm . But there's something here for most people, fantastic playgrounds and parklands, many places to launch your boats into the bay, trains nearby, beautiful weather all year round...

My neighbour said he moved in 7 years ago and back then it was a bit rough, but now there aren't too many old cheap houses, many have been knocked down to make way for much more upmarket properties. The house behind me recently sold for ~$825k, (and personally I think my location is superior).

He also said our street apparently got resurfaced 2 years ago so the street itself is nice and new, and I've been lead to believe the tarmac was quite poor before.

And my neighbour on the other side is planning to upgrade his house to put a 2 storey home there later this year... its all happening.
I'm landbanking the location now.

 

Wow this is a real insight into the Birkdale area!

 

It's going Birko.
Apologies to the resident Dad joke expert geoff.

Water views? Very nice.

 

Hehe. True. The neighbour said houses have gone up 50k in the last 2 years, which is not Birko by any means when you compare to Sydney. But the area is a little bit undiscovered and the neighbour said people move to the bay and then never leave, and I think she is right. Why would you want to leave here?

Anyway, apparently there's some outdoor dancing happening tonight at Wellington Point which is one suburb away so I'm going to go there this evening to check out the local action.

 

Careful, you'll be a local soon!
That's a nice spot, Victoria Pt and the marina at Manly are nice too.

 

I know! I'd just have to get a suitable job up here and I'd potentally say.... Sayonara Sydney.

So... If there's any Report Developer (SSIS/SSRS) SQL Server SQL/VBA (Excel)/Teradata SQL/Analyst roles up here in Brissie open paying reasonable $$ that are hiring with a great boss, likable colleagues and good working hours... in return you'll get a excellent analyst (with side passions for property investment and volleyball)

I'm great at figuring stuff out, understanding the root of the problem in order to resolve any issue. Oh, and not bad at building solutions in SSRS or Excel either. )

Ps. Did I mention I came top 1% of the students in the NSW maths comp back in year 10? That's my proudest school moment. I used to play tennis with some girls from James Ruse High School (which is the best performing high school in NSW year in and year out), and they thought that was pretty damn good achievement too. Typically only the top 30% of students enter the competition.

So I'm a natural analyst/logical thinker... love solving problems.

 

Wow, there's just soooo much flexibility there, you should have no trouble picking up a job in Brisbane…….. what was it you said you could do again?……… I think being an alphabet analyst sounded pretty close to the mark…………. (lol - you sound so qualified and skilled in such a scary, technical field, I wouldn't even know how to start looking for a job advertisement with those parameters )

 

Thanks KayTea. I LOVE my current job so it makes it difficult because I won't give up my awesome job unless I knew I would have another job equally as awesome. Hmmm.

Now I remember how much I liked working in the plant section of Big W.... (and doing nightfill at Big W... did that for 8 fun years... refits and everything)... but it doesn't pay the bigger bucks though.

#Firstworldproblems

I think my current role will be a tough act to follow!