So what about Brisbane or Adelaide for 1st time investor?

Hey everyone

First time investor here and first time poster. I am about to invest in my first investment property with my husband. Our plan is to buy and hold for capital gains. We are Melbourne based but am a little discouraged by the rental yield here so am looking into other states for better cash flow / lower holdings costs. We still want decent growth over time though so want to balance this is not just chase a higher yield at the risk of good growth over time.

So what are your thoughts on looking at suburbs in Adelaide or Brisbane? Likely to be approx $500k purchase. We have even thought about purchasing one property in either Brisbane or Adelaide and then another in Melbourne.

Keen to get any advice or thoughts from you.

Cheers

 

Welcome aboard StaceyLen2109
I bought last year in the northern suburbs of Adelaide for under 300k
I've seen a slight capital gain
I used the expertise of a BA on this forum and i'm very happy with the purchase
Adelaide is a steady market whereas Brissy could have a bit more in it although its been slow to take off.
You will get plenty of great advice on here so keep asking questions

 

Either is fine really - I'd probably even aim for both as all places have gone up or down in different years.

If you're holding for the long term, then yes the better yield available in SA/QLD will help you minimise your holding costs while you wait for growth to do its thing - there's a recent podcast on that here Ep23 - Busting myths around investing in Adelaide!

 

500k is good budget and Brisbane and Adelaide are surely good markets to look at..

And you right on Melbourne. Yields are low but it's not bad time to be hunting. Some good opportunities to be found at great prices but yields won't be as good as Melb or Adelaide!

I guess it comes down to overall strategy/goal that will help define your first purchase.

Cheers,

 

Brisbane is a little more cyclical, Adelaide a steady tick. Either would be fine but if you can afford both then it is always best to diversify.

- Andrew

 

Both Brisbane & Adelaide could work. $500K will suit somewhere in the 10-15km range from Brisbane CBD and more towards the 10km range from Adelaide CBD.

Look for suburbs that attract family and has good amenities/infrastructure/transport with property on a block of land that you can add value to. For example a dated house that you have opportunity to cosmetically renovate or subdivide the block of land from 1 into 2 down the track. More and more of my clients are looking at buying blocks that they can do something down the track which will allow them to manufacture equity rather than just wait/pray for the market to go up. Pick one of these and it'll be a great start

Cheers,
David

 

Adelaide at $300k isn’t worth the hassle.

 

If you're purely looking for CG ( no add value potential) then look at demand medium to longer terms. Where do more people want to live with less and less land available. There's a reason why Syd, Melb and Brissy have ( generally speaking) performed best with RE markets imo. For me to buy in SA it would have to have add value potential. Everyone is different though.

 

Hi David.
Interested in your thoughts of suburbs including and around Zilmere?
Ie Bracken Ridge, Bald hills.. Sandgate etc? Talking about for the 500k price bracket with hope for manufacturing equity at some point.

Thanks
Kate

 

With $500k budget, I’d aim something that is within Brisbane City Council area. People have been waiting for its turn to boom since the beginning of the decline in Sydney and Melbourne. The Sunshine State hasn’t been able to shine its growth that well. A good friend of mine shared this interesting article about QLD, which you might find it interesting too: Queensland has double-digit growth potential, but what’s missing? - Propertyology

With Adelaide, I myself is looking to buy one there, actually driving up 8 hours this school holiday to look around what’s going on on the ground. The things I like about Adelaide is that it’s the only capital city, where overseas migrants can get regional visa to their pathway to Permanent Residency and that it’s a steady market, where there is not a lot of competitions to buy in.

 

Hi Kate,

Yes for $500K you can get a house on a block of land in and around Zillmere. But if you got that budget personally I would prefer towards Arana Hills/Ferny Hills for that budget. I know most of the stock there are now trending $500K+ but from time to time I still see something advertised that's below $500K where you can add value with cosmetic renovations. These are decent family suburbs with good schools nearby like Patrick Road State school.

Cheers,
David

 

What does a lazy half mill get you in Bris vs Adl?

https://storage.googleapis.com/htw-...htw-month-in-review-july-2019_residential.pdf

 

Hey Guys,

I'm wondering if anyone here has had any experience/knowledge of investment properties in Ipswich? I'm from Melbourne and a first-time Investor. I've been looking at some house and land packages around Brisbane and a few companies have suggested Ipswich/Ripley. How is the CG there and yields?

 

Let me guess they have property they can sell you...

 

Yep. Feel like there so much information everywhere that it's very confusing.

 

No need to be confused, they're trying to make money by selling you a property.

Don't be fooled... simple

 

I think there is merit is considering what impact a new extension to the springfield line will do in that region of Ipswich. It seems that a station near school road (redbank plains) is on the drawing board, and firther out to Ripley also.

Will that increase values given the lack of public transport options in much of Brisbane?

Is living near rail infrastructure a good idea..

My view is 'yes' ...

 

I personally wouldn't go that far out that way from Brisbane, I would stick closer to the m1 if my budget was limited.

There is alot of commercial development happening from Brisbane to Goldy and the M1 is only going to be kept being upgraded. Another highway was approved in principle the other day from Nerang to Helensvale to take 60k cars off the M1

I also think that when there is an economic down turn more people will leave goldy and/or work in Brisbane using the M1 frequently, this is what happened last time