QLD What would you do? Purchasing property in Brisbane

hello everyone!

Brand new poster to the forum (have been reading for quite some time). I’m looking at getting into my first investment property with a range of 300-700k (large range as I’m not sure if I should go cheap and diversify or spend more in an investment property).

I’ve tried to do a heap of research throughout Brisbane and I find most of it conflicts in terms of favourable locations, where you should buy, where you shouldn’t etc so I’m having a hard time figuring out my next steps.

For people purchasing in this range is there any specific suburbs etc you’d recommend? I’ve considered a buyers agent and it seems your property hound and quite well regarded. Feel free to point me towards any resources you’d recommend also!

thanks in advance

 

Sorry - to further my post. My strategy is to purchase an investment property to build a portfolio. As for set times I need to retire by etc. i'm quite young at 26 so i will be looking at holding the asset for quite some time. All going well the property should be successfully paid off by 31 (assuming I purchase towards the higher end of my range).

thanks!

 

Just do a search within the site about Brisbane..
There has been a lot of good post's that have covered various area's within the BCC footprint..
welcome to the site..

 

Thanks Willair - I've been reading through all afternoon and will continue to do so. If there's any you could recommend specifically i'd love for you to link them through.

Cheers

 

You're going to pay off a $700,000 property in 5 years?
Averaging it all out including interest, that's about $160,000 per year for 5 years.

 

Problem is there is so many posts on Brisbane ,I would not know where to start..
A very simple way would be go back too the other site and track the posts within that site and work through that site first ..

Some of those old posts are priceless for someone starting out..imho..

Where to Buy

Search Results for Query: brisbane | Somersoft

 

Since you're still young my suggestion would be to focus on buying blue chip properties that can give you the best capital growth in the long run. So perhaps the like of northern Brissie within 10km ring such as suburbs around Everton Park. Look for budget around $450 to $500K sitting on a decent block of land with value add potential down the track such as cosmetic renovations or subdivision. Those areas should also give you 4.5% to 5% yield so won't be too difficult to hold long term.

Personally I would look at diversifying into two separate IPs rather than 1 large value IP. With 2 IPs you'll have two streams of rental income coming in so in case one goes vacant you still have the other leg to stand on. In your scenario if you want to pay off your debt quicker it helps mitigate risk.

Cheers,
David

 

I'll invest in the knowledge/team first before worrying about where to buy ..

 

No one should be suggesting any type of property or price point until they have a better understanding of your goals and financial situation. One of the biggest mistakes people make is just buying a property without a full assessment of where they are, where they want to be and how they're going to do it, taking into account both planned and unplanned life and financial changes.

To say "buy a blue chip property" or "buy a cheaper, cash flow property" is empty and baseless advice. As was suggested by Jazz above, educate yourself a bit first with regard to your plan and pay for some professional advice to get that plan, then put the plan into gear.

You don't generally get in a car and start driving without a destination in mind and hope you'll end up where you don't know you want to go in the first place. You pick the destination then work backwards and plan how to get there. Property investing is no different.

Build a team around you to remove risk and yes, if you can afford it, this includes a Buyer's Agent. Not all BAs are created equal either so put them through the wringer before choosing one (we welcome that approach) and do this for your mortgage broker, accountant, property managers etc. This will give you the best chance at success.

All the best with your journey, whichever way you decide to go and whoever you decide to work with.

- Andrew

 

Thanks for the reply David.

That’s exactly where I’ve been looking and it’s great to have confirmation I’ve been on the right path.

That’s a great strategy to look into, I hadn’t considered two. Would you recommend seeking a buyers agent?

Thanks again.

 

Terrific Andrew and a good point. I’ll have a look further into this and your profile.

Cheers!

 

Yeah definitely different products. At this stage I’d like an asset close to Brisbane city as I have huge faith in Brisbane’s growth over the next 5-7 years

So I guess I’d be looking at the Stafford heights area around there. Where I’m struggling is to choose a bigger block (7-800m2) with an average/ needs work house or a smaller block with an already renovated house. Also if I go a bigger block what should I look for specifically.

Thanks Rolf

 

Yeah Mikey, I’m in a really fortunate position with deposits and whatnot.

 

Two is assuming you have adequate resources (both cash + borrowing cap) to be able to afford two. Your broker should be able to help you with this.

In relation to BA and this is just my personal suggestion – in early days consider using a BA and learn from the overall process on how they pick certain suburb, types of property and the underlying thinking of such asset selection. It’s a learning process and I know most BAs are very willing to help coach/educate first time investors along the purchase process.

Once you’ve gone through this a couple times then you’ll gain more confidence and develop the ability to do your own DD and identify what a decent IP should look like. That's when you know you've become a "sophisticated investor", and can then look at refining your strategy and taking on more of a DIY approach from there.

Cheers,
David

 

Terrific idea. In terms of making sure I get the best buyers agent is there anything specific I should look for?

In my research I know to make sure they're independent/don't receive kickbacks, look at their longevity in the industry, awards and make sure they have a portfolio themselves.

Cheers

 

Just a quick question,did you grow up in Brisbane if so sometimes as you would know your local area the best deal's apart from ""Noddy-town"" boxes are found in your local area or in sites like the link below..imho..
Regional Sales & Auctions - The Public Trustee of Queensland

 

I certainly did grow up here - however I have a lack of trust in myself when it comes to pricing real estate. At this stage my only guide is looking at previous sales in the suburbs and the suburb data.

I'll look into the public trustee auctions - that's a great idea.

 

Yep I think that's a good start. Once you nailed down the list of BAs then you can reach out to speak to them directly and see how they communicate and how well you connect with each other. To me that's vital as you'll be working closely with this person as a team.

Also ask to see if the BA can give you some examples of what they were able to achieve for their customers based on your criteria of importance. And if you can, speak directly to investors who has used the BA before so you get some first hand feedback.

Cheers,
David