QLD Thoughts on 1 bedroom units in Brisbane

Wondering what peoples thoughts are on 1 bedroom units within 5km of the Brisbane CBD?

I've been thinking an established apartment with less than 20 in the complex in total. No real need for too much bling (like gym,pool in complex etc) so long as the body corporate costs are reasonable. Some of them are $7,500 per year which seems ridiculous! Looking for good rental return... it seems a sound investment when considering the prospects for Brisbane?

Yes I understand there will be an influx of new development in the coming years.... but population and economic growth is also significant.?

I would appreciate feedback on this option and any better locations from those in the know (with useful comment that is).

Looking at a budget of around $250k btw

Thanks in advance

 

I would suggest 90s low set villa within 15k from cbd. Rarely comes to the market and gone quickly. Watch out.!

 

Is your budget 250k or is that all your willing to invest?

Personally I wouldn't buy a 1 bed unit cause the market of people that can rent it or buy it in future is much lower than other options. That's before discussing the oversupply issue that brisbane may have soon.

 

Thanks guys. We can go up to $300k but this will be our first investment property and we are limited in serviceability right now (single but good wage as we have two little ones and my wife only works casual/part time). Looking for good rental return and longer term growth (lol isn't everyone!)

Looking to use equity from PPOR (we have $300k). Villas are well in excess our budget. Was also thinking hold for 7-10 yrs.

I appreciate that the 1 bedder limits the rental market but aren't trends moving toward 2 people households in inner city areas?

 

I would look at moreton bay region and look for something with a land component that may give better future valuation and future potential
Personally I don't like units cause
1. Can't really improve them beyond renovation of existing fit out
2. Can't knock them down and develop them
3. Rezoning is unlikely to help you.

In 20yrs time, what's special about your 1 bed u it that would make it valuable? It'll be surrounded by more 1 bed units that are newer and shinier than yours. Future value is in land

 

For $300k I would forget about units and look for land and house a little more out say < 35km from the CBD.

Look at Logan and Ipswich. Growing suburbs and you will get over 5.5% yield quite easily in these areas. Over 6% if your good and find a good bargain. There is significant growth happening in these 2 councils now and probably steady growth for the foreseeable future.

 

I agree with foxdan and electronic - i definitely wouldn't buy a 1 bed unit in Brissy, even if you are buying in a smaller block, you are still competing with thousands of other units for tenants and you will have far better capital growth prospects in Logan or Ipswich or up around Deception Bay area. Big oversupply of units in Brissy as well.

 

A two bedroom unit would have far wider appeal.
Marg

 

Maybe try and target the 7--10 ten year old blocks of 4 units on above 800sqms,with low body corporate and cashed up sinking funds within the 10klms range from the Southside Brisbane CBD..
Once you look into the 20 plus one bedroom complexes and the cost linked too those units investment wise on a time period they may well be the same price in five years time or even less..imho..

 

Thanks... being a newly I have a lot to learn... but these areas are much more attractive. I appreciate it.

 

Is that $300k equity in total? Or equity at 80% LVR?
Eg..
1) $1 mil house, with $700k mortgage? Or
2) $1 mil house with $500k mortgage?

Option 1 see's $100k equity at 80% LVR
Option 2 see's $300k equity at 80% LVR

 

A few years ago I was looking at this and I found South Brisbane/Kangaroo Point to be the sweet spot. Worth checking out, I'm not following the market closely anymore.

 

Thoughts on 1 bedroom units in Brisbane?

Yeah, don't do it. CG suicide.

 

I would not consider a 1brm unit as an IP anywhere other than SYD or MEL and even then with the proviso that it be >50m2 and not be in a new development.

 

A unit in brisbane is investment/CG suicide - dont do it.
Try scrounge a bit more and get a house further out. Brisbane isnt syd/mel.
The vacancy rates are awful and not a true reflection of whats happening on the ground.
I regularly pass buildings in the 4101 area and more than half have been inhabitated since being built. The scary thing is they are still building more towers..?
Read up, on more threads on PC and youll learn plenty and understand what we mean.
Good luck!

 

Brisbane apartment oversupply is only short term - so don't worry about that too much. Its already been mentioned by numerous sources that the oversupply will be absorbed within the FY18/19 year.

You will probably not see CG in the short term but investing in property is NOT short term anyway. Over a 5-10 year period even if you buy a unit you WILL make money 100% certain on that.

The question is how much? And how much more or less growth will it have compared to a free standing house with land. You need to weigh up both. In my opinion and I think its been instilled in me since I was young - ALWAYS buy house and land as an investment choice over an apartment/Unit.

Sure I've made a tonne of money on apartments in Sydney but when compared to the growth I have had on my home/land well its quite small. The only apartment that has done extremely well for me is my one in Parramatta. Bought it for $300k and now its probably $620k easy.

DYOR.

 

Curious to know what reports been projecting oversupply of brissie units will be absorbed by fy19. Seems overly optimistic but I am not from Brissie but have mates living there.

 

There has been a few actually. I'll try to find them when I get home tonight. I specifically remember reading an article because in that same article it was mentioning agents where giving away freebies to potential renters.

 

Thanks so much... the thread has provided the guidance I sought. I agree with your comments and will research other options... perhaps out of Brisbane, established freestanding homes with good returns and longer term CG prospect (flood, subsidence free of course!)

 

I'd stay within the Brisbane/Gold Coast area!
But houses are definitely the way to go.