Starting from scratch...what to do?

Hi,

I'm new to property investing and looking for some advice on where to invest. I live in Sydney but feel like now may not be the optimum time to make a first investment here. So considering Brisbane, central coast or possibly outer suburbs of Melbourne.

CG potential is more important than CF and looking to buy property value of ~$500k (preferably across 2 properties) initially.

The plan would be to get some good capital growth from an area that is yet to grow and then sell in a few years and buy somewhere in Sydney for the long term.

Where would you be looking if you were in my position?

Thanks

 

Hey @fx hedge , there are still some suburbs with houses below $500k in Brisbane, within 10kms of the City if you look hard. I'd be looking close to a train station - but not too close

 

Is that 500k each or 500k total?

If 500k total and two properties you will be looking at a unit very far out of Melbourne and Brisbane too.

 

Yeah, it would be further out for a unit in Brisbane, very far out for a house. You can still get a 2 bedroom unit within 10kms for just under $300k if you're a good negotiator.
Some people on here like Logan, can still get a house out there for under $300k. Apparently.

 

Go for a visit to the areas, especially night times. I would say look at data of the areas as well but dont let them be the sole reason/ dictate your actions.
These days everyone wants a piece of Brisbane and quite possible that I may consider it next year.

 

Hey @fx hedge, just curious, do you have the cash/means for a deposit yet or are you literally starting from scratch?

 

Focus on well-located property near conveniences ( shops, schools, transport ). Don't necessarily have to go for inner / middle-ring suburbs.

Also look for new infrastructure. Early phases is best to catch the growth and beat the rush. Ideally just after planning approval and funds actually allocated to project. A good indicator is geotechnical engineering has started.

Read planning codes for the areas you are interested in. It will help you identify future potential for a property - if development is a long term plan.

Recent renovations can help with depreciation benefits for older properties.

Avoid unit complexes with lifts, gyms, pools. The strata fees can be staggering!

 

without knowing your circumstances regarding income hard to say but for me i would get that 500k and spend it on one property close as possible (within 3km) to either Brisbane or Melbourne CBD. You will get good consistant long term capital growth like that which will let you then leverage into more cashflow type properties later. Grabbing something that offers consistant growth early on is key to building a portfolio imo even if it means buying something that is significantly negatively geared.

 

Someone on here just bought a 3 bed, brick house in Strathpine for $300k, take a look at the Brisbane North thread for details if you're interested. The other $200k you could still find a small house, not near the city though.

 

@fx hedge

as other said, look at investing in Brisbane market.

Few other options:

Look at brand new villas in Melbourne, closer to transport etc.
Buy a house in Melbourne with potential to add value (reno,subdivision)
house on big block in Wyong,Gosford or Wollongong.

 

There are plenty in QLD, as I said though, not near the city.
I can point you to some if you're really keen.

 

Actually, there are plenty 50mins to Brisbane CBD, 3 bedroom houses from around $150k, Macleay and Russell Island.

 

That's my strategy for my first property. I figure that as it is my first, I can't really afford to take a punt on a more speculative sort of area like Logan, as I can't cop the downside risk. This property isn't going to allow me to retire, but it likely won't send me broke either.

 

You probably could have if you did it 2 years ago before everyone jumped on it, there are plenty of other places around with better prospects, like Biz said, closer in is always going to do well long term.

 

Thanks for the replies everyone and apologies for the late response.

~$500k per property (maybe closer to $600k for one and then ~$400k for the other).

Yes we have the cash for deposits. I just mean starting from scratch in terms of investment journey.

 

If I was you I would look for ~600k property in Melbourne and ~400k in Brisbane (not sure about Brisbane market though).

I feel with these you are getting still an established suburb that would have good CG.

As to which suburbs that is the million dollar question, do your own DD but you might want to look at the invest map view on realestate.com.au along with other forum posts about what others look for in a house.