QLD Where to buy Brisbane - ~$350K for balanced investment.

Discussion in 'Where to Buy' started by Pete Prescott, 28th Jan, 2018.

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  1. Pete Prescott

    Pete Prescott Member

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    Hi All,

    I am looking for suggestions on which suburbs and types of properties in Brisbane to look at for approx. $350K investment property. I am looking for a good yield property with some upside of capital gains due to location. I am a interstate investor so I would eventually be looking for a buyers advocate to complete the sale for me, but I want to do a bit of research first. I don't mind renovating to add value to a property but ideally as I am interstate I would like something that is desirable by tenants initially.

    At the moment I have been researching.

    Kingston
    Slacks Creek

    I normally like properties in locations close to a city center with a bit of gentrification happening.

    However this is hard for me to tell as I can't drive around to get a feel for the suburbs on a weekend.

    Any help or general advice is welcomed.

    Peter
     
  2. jazzsidana

    jazzsidana Well-Known Member

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    Around Logan or Moreton Bay Qld are your best options in that price bracket. Something with decent block size. Yields are generally good but they starting to drop little due to price increases...

    Things to watch out for -
    Flood zone (street by street)
    Crime rate is high, hence again need to know the area down to street level.
    Make sure to find really good property managers.
    Bigger the land with some upside, the better (granny flat/duplexes)

    Council is actively promoting development in the area, hence right property will surely do well..

    Hope it helps..
     
  3. Pete Prescott

    Pete Prescott Member

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    Thanks for your reply.

    From what I have seen so far the local government seems to be putting in a bit of money for developments in the Logan shire. This seems like a positive for the area and hopefully will see some gentrification.

    Do you have any suggestions on how to search flood maps? Is there a good site I can search this on?

    Does anyone know if double story is preferred by tenants in these areas?

    Thanks,
    Peter



     
  4. DCO90

    DCO90 Well-Known Member

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    I live in Slack's Creek. There are a few really nice pockets, a few really terrible ones. PM me and I'll give you my 2c about anything. I've lived in Logan my entire life, so I know the area well.
     
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  5. Property Twins

    Property Twins Mortgage Brokers & Buyers Agents Business Member

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    Hi @Pete Prescott
    As suggested above, Moreton Bay is another option.
    Is $350k based on max borrowing or is it based on savings/equity available or is it a price point you have decided? If you could increase it a bit, you may find better quality assets.
     
  6. Czechia

    Czechia Well-Known Member

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    Is it better to go North-side with slightly higher budget, or just closer to the city from South?
     
  7. SMTY

    SMTY Well-Known Member

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    Logan City Council - Logan Planning Scheme

    make sure you tick overlays and that flood overlay is selected.
     
  8. Property Twins

    Property Twins Mortgage Brokers & Buyers Agents Business Member

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    How much closer to the city from the South?
     
  9. Czechia

    Czechia Well-Known Member

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    assuming better quality assets will be closer to the city...will extra $100k make big difference?
     
  10. Property Twins

    Property Twins Mortgage Brokers & Buyers Agents Business Member

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    Different price points, different markets - there are markets within markets. So not too sure if spending an extra $100k would be better than going up north. You will just need to look at the fundamentals in the area and compare the two in deciding which direction to go in.
     
  11. Pete Prescott

    Pete Prescott Member

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    Thanks for your reply!
    Unfortunately $350-380K is the max purchase price I would like to go to as its based on available equity at the moment. I would like to balance out a existing portfolio with a positive yield property and Brisbane looked to be a good option as its on the upward trend in it's cycle.

    I have started researching Moreton Bay area, is there any specific type of properties in these area's that I should look for.
     
  12. Pete Prescott

    Pete Prescott Member

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  13. Gockie

    Gockie Life is good ☺️ Premium Member

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    My thoughts:
    Freestanding house on flat land. Ideally a walk to amenities. Flood free.
    Next gen or urban zoning if you can get it.

    At the rail corridor (but probably not possible with your budget)
    Street should present well, or at least have signs of gentification

    If you can get a corner block, I think that's good (might be difficult on your budget)
     
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  14. Property Twins

    Property Twins Mortgage Brokers & Buyers Agents Business Member

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    Fair enough @Pete Prescott

    Look for anything close to infrastructure - owner occupiers and tenants like convenience vs purchasing out in the suburbia.

    Also watch out for flood zones.
     
  15. Angel

    Angel Well-Known Member

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    For yield I would consider a highset home that has been decently built in underneath. Most likely it will not have been built to council standard, nor would it be legal height. But there are plenty of households who dont care about the council rules and just want that space downstairs for all their older kids to live. You can ask higher rents for a house that is legally three bedrooms (upstairs) but has a bathroom, "utility room" and rumpus downstairs.
     
  16. Tom Rivera

    Tom Rivera Property Manager Business Member

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    Not that anyone seems to actually enforce it, but it is illegal to use areas designated as utility rooms as living areas. For example- if the tenants have beds, couches, etc in these areas then the Lessor and/or Property Manager is obligated to breach the tenants for improper use of the property.

    There's also legal precedent (I can't find/remember the case unfortunately...) of tenants claiming back ridiculous amounts of rent for having been allowed to use these areas as living areas during their tenancy, even if they were correctly advertised as utility rooms!

    I suspect that at some stage in the future, councils will begin cracking down on this and the value of homes that are built in below at illegal height will fall.
     
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  17. Angel

    Angel Well-Known Member

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    Not disagreeing at all, Tom, as your points are really important.

    Yet a few years ago on these forums, various people were suggesting this as one way to get higher yield. Just last week on the Net I was viewing houses advertised for sale as 4 bedrooms yet the photos and floor plans made it clear it was 3 upstairs and a utility room downstairs, complete with obviously low ceiling height and a qs bed.
     
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  18. Whitecat

    Whitecat Well-Known Member

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    As in 50% of the properties in the 13-20km ring. I.e. almost all the 60s and 70s highsets in Brisbane. Its so common.

    I am amazed Council just doesn't drop the height requirement to 2.1m for properties built before X date. I just don't understand the 2.4m rule when there are so many highset properties with downstairs built in. In fact I don't understand why when they were built why they didn't go up 30cm. So many questions.
     
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  19. Whitecat

    Whitecat Well-Known Member

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    that is illegal to advertise as 4 beds if not 2.4m. I am surprised. Normally they just show the pictures and describe and 'imply' they can be used as bedrooms/living space.
     
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  20. Tom Rivera

    Tom Rivera Property Manager Business Member

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    It's so frustrating! By my understanding the main reason 2400 is the minimum ceiling height in living areas is to provide a 300 high 'smoke reservoir' above the doors in order to aid in fire escape. Surely there's some way to deal with the fire safety issue (e.g. smoke operated high flow battery back-up fan? Haha!) that would allow these areas to be legally used as living areas.
     
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