QLD What price point for best growth for Brisbane houses? $550, 650, 750, 850k?

Where?
Specific suburbs please rather than just "Logan" or "Ipswich" or "Moreton Bay"

 

I’m one of those that picked 800-900, i’d actually take it to a mil at the moment for best growth the reason is that national news dominated by sydney and melbourne has spooked buyers in bris. They are slower to act. The sentiment is cautious if not negative. Its a buyers market due to sentiment alone. At the moment the inner ring entry for good locations ($900-1.1) is heavily discounted at a mil i’d say about $50-100k. Those that need to sell will do so in unfavourable conditions. As the question is about growth, i think more cash return will come from the blue chip OO not the investor FHB markets and this is due to sizeable discounts. I think we’ll see this turn within a couple of years when the fear subsides and people buy in for the same reasons they needed to before but waited. Good schools, good streets, status, close to city. Many commentators are repeating that you’re buying the house not the market, these opportunities may not be reflected in the median suburb performance stats. They are out there though you’ve go to be looking. (this is only a question of growth, not vs holding costs, yield etc).

 

don't have large enough data sample to say which bracket works the best, just one example here from myself, a IP bought in early 2015 for just under $400k, now worth about $550k, not terribly great. but it costs minimum to hold.

 

@Eric Wu that's ~7% growth per year, I'd be happy with that!

OK @QldKoolies so your view is there is good opportunity to buy below market value in the $900k+ range. This makes sense.

Does this value present itself in the ~$600k properties as well? You'd think the sentiment would be somewhat similar? It's across the board gloom down here.

 

I was careful not to use that term because it is the current market value, my assessment is that when confidence returns those that secure blue chip CG properties during these times will be very happy. It does work market wide but at lower bracket there is broader competition so discounts arent as great. A bit of ground truth here at the moment:
1. Stock isnt as good, people want to hold in these times. But good properties are popping up.
2. Finance has been an issue and there is a bit of ‘lag’ in the system, buyers adjusting to new requirements and getting their affairs in order.
3. Even though there is less good stock, out of the brave ones there’s less people with cash ready to go at it in the higher price points.
4. At the lower end say 550-850, the result is more time on market but usually not a discount, as finance isn’t as much of an issue but buyers are cautious.

 

Are you referring to houses in Brisbane?

 

I responded by saying I'd prefer a house in the $600-650k range.

This was the response:

 

https://www.facebook.com/video.php?v=2086402271414949

Great video compliation of Brisbane

 

I would the best growth would be houses within 20klms of the city. If more then it needs to be needs to be near water and no more than 30 klms. Price point for would be 300-550k.

Older units say 6-10 blocks sitting on at least 800 plus sqm within 8 klms of the city in areas which are gentrifying. If you can buy under 330k you are doing well,

 

Logan has a river yeh?..

 

Yep full of sewage.....

 

So it seems the forum doesn't subscribe to the 'inner areas get better growth' theory?

 

In the context of Brisbane, I mean to say anything within say 20kms of the CBD would all be roughly the same growth.

Or do we think that the 500-600k properties have more upside because there is more room for them to grow?

One property commentator said that in Brisbane you don't get the astronomically priced Toorak and Double Bay $10M+ mansions to the same extent because you don't have the number of astronomically remunerated CEO's. Obviously you'll have some but not as many.

 

As others have said before it is the growth drivers and income to support growth that is relevant...whether it is 300 - 600k on its own is irrelevant...

 

I personally believe wherever you buy you need to identify value and understsnd the risks of buying in that particular area. For Brisbane, what is essential for me is sticking to inner/middle ring areas, strong OO homes with larger land if possible and able to add value. Why? After all my DD, that's the best mix for me of lower risk, long term high demand stock and high demand areas and greatest chance for short to medium term growth also allowing me to possibly manufacture equity to further reduce risk of slower organic growth than anticipated.

 

If you are focused on CG, for a predominately owner occupier area, you want a price point that a broad base of potential buyers can get access to funding for or have the funds/equity available for (i.e. cant be too expensive or not enough demand) but then again you wouldn't want it to be so cheap that purchase price is accessible to undesirable demographics. My view is that for Brisbane a good balance is around 600, and this allows you to get pretty close to amenities, a freestanding house, and ideally with some renovation for profit or GF potential.