Join Australia's most dynamic and respected property investment community

Starting from scratch...what to do?

Discussion in 'Where to Buy' started by fx hedge, 6th Jul, 2015.

  1. fx hedge

    fx hedge Member

    Joined:
    6th Jul, 2015
    Posts:
    9
    Location:
    Sydney
    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
     
  2. Azazel

    Azazel Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    8,113
    Location:
    Brisbane
    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 ;)
     
    fx hedge and pugstar205 like this.
  3. Big Will

    Big Will Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    1,546
    Location:
    Melbourne, Australia
    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.
     
    Azazel likes this.
  4. Azazel

    Azazel Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    8,113
    Location:
    Brisbane
    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.
     
    Last edited: 6th Jul, 2015
  5. jins13

    jins13 Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    932
    Location:
    Sydney
    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.
     
  6. Steven Ryan

    Steven Ryan Mortgage Broker Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    2,458
    Location:
    Sydney & Gold Coast
    Hey @fx hedge, just curious, do you have the cash/means for a deposit yet or are you literally starting from scratch?
     
  7. wombat777

    wombat777 Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    1,411
    Location:
    33°41'24.7"S 150°55'34.3"E
    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!
     
    fx hedge likes this.
  8. Biz

    Biz Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    1,471
    Location:
    Sydney
    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.
     
    fx hedge, ej89 and Tranquilo like this.
  9. Azazel

    Azazel Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    8,113
    Location:
    Brisbane
    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.
     
  10. wylie

    wylie Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    2,918
    Location:
    Brisbane
    Where would you find a house for $200K?

    I know there are still Ipswich cheapies for under 300K.
     
    MJS1034 likes this.
  11. Be Developer

    Be Developer Property Developer Business Member

    Joined:
    19th Jun, 2015
    Posts:
    1,078
    Location:
    Australia
    @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.
     
  12. Azazel

    Azazel Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    8,113
    Location:
    Brisbane
    There are plenty in QLD, as I said though, not near the city.
    I can point you to some if you're really keen.
     
  13. wylie

    wylie Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    2,918
    Location:
    Brisbane
    Not keen... just curious.
     
  14. Azazel

    Azazel Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    8,113
    Location:
    Brisbane
    Actually, there are plenty 50mins to Brisbane CBD, 3 bedroom houses from around $150k, Macleay and Russell Island.
     
  15. tomlloyd

    tomlloyd Member

    Joined:
    11th Jul, 2015
    Posts:
    8
    Location:
    Sydney
    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.
     
  16. Azazel

    Azazel Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    8,113
    Location:
    Brisbane
    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.
     
  17. fx hedge

    fx hedge Member

    Joined:
    6th Jul, 2015
    Posts:
    9
    Location:
    Sydney
    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.
     
  18. Big Will

    Big Will Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    1,546
    Location:
    Melbourne, Australia
    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.
     
  19. The Y-man

    The Y-man Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    898
    Location:
    Melbourne
    Allow for stamp duty and legals - maybe 10% on top of purchase price.

    The Y-man
     
  20. wylie

    wylie Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    2,918
    Location:
    Brisbane
    I wouldn't touch them. I believe the rental return could be okay but I have a friend who has been trying to sell a house there for a family member for well over two years. No takers.