Where to buy? Brisbane or Melbourne?

Hi PC,

I’m looking to purchase my first IP and have some questions.

- I’ve got a budget of up to 500k (plus willing to do some value add renovations) and looking to invest in either Melbourne or Brisbane. My preferences are for capital growth and I am comfortable with negative cash flow. Would anyone be able to suggest some suburbs within this price range?

- I have started looking in Werribee for a Melbourne IP however when viewing property via websites, is it normal for REA to not provide a floor plan? How do you gauge the size/characteristics of the property without a floor plan? My primary concern is flying interstate to view a property without properly vetting it with a floor plan is wasted time/flight money

Cheers,

KL

 

500k in most inner and mid brisbane suburbs will do more CG than an equivalent 500k property in weribee. Id think about that rather than the floorplan.
Why? weribee is significantly lower denamd to supply than the average of melbourne.
Melbourne is somewhere near the top of its cycle ( although probably has a bit more to go). Ask yourself if the demand in mel drops ( and will because of cyclical activity) what will happen to weribee ? ( given that its already well below mel demand-supply, and this is supposed to be near the top of the cycle).
Compare that to inner and mid brisbane suburbs- exactly the opposite ( and that too they and brisbane are no where near their top of the cycle). Ask yourself what will happen to these areas as brisbane becomes more desirable?

 

personally would stick to Werribee and buy anything in the ACZ - that will easily smash any of the ip in Brisbane for CG.

 

The question then becomes:
How much more savings do you need to obtain a stronger potential CG property in Melbourne and work out the break even CG over time to determine if you should buy now or hold off, save and then buy.

 

More savings does not necessarily mean stronger potential cg.
Assuming the budget is fixed.(500k as per op).like for like property just different locations, I'm making the argument that all factors that go into supply and demand in both local markets relative to their city averages presents a clear difference (source rpdata demand to supply) and that given their trajectories with respect to cyclical activity, there is a clear winner.

 

with the budget of 500k, even to get good property in werribie is difficult . At least u need budget of 900k to get good property in west and north of melbourne. Forget about eastern suburb of melbourne. Town houses are heading more miilion dollar. Otherwise, with ur budget, u can buy house and land package in melton

 

Werribee is flavour of the month. Last year noone wanted to know about it.
As soon as melbourne stops booming and they keep releasing new estates around werribee the heat will go out of it.
500k in brisbane gets you in to a much nicer suburb.
Just because brisbane hasnt boomed yet doesnt mean it wont. It has in the past and it will again
So do you buy in one of melbournes least desirable areas at the top of a boom cycle or buy in a desirable area of brissy which is probably at 8-9 oclock?

 

What a headache @KL Enterprises must be getting after posting this.

 

Brisbane.

 

Thanks for the responses! Looks like Brisbane is the place to be, which suburbs would you recommend on a 500k budget?

 

You would have to do more research..
Generally, most inner and mid say within 12 km from the cbd should be good. With 500k, I would avoid high rise that dominate the cbd and immediate surrounds.
Townhouses would present an attractive option for that price say 6-10 km out and that's where I would focus 500k..need to make sure larger the better and location is tops of . Houses would likely have the highest cg in inner and mid Brisbane, but will likely be more than your budget ( unless you're willing to do very significant improvements to it).
Avoid flood prone areas..check the flood maps.
Most importantly, remember to bring pesos. North of the border, we accept all currencies and no visa required.

 

I would agree with this argument. Melbourne has a bit to go. But Brisbane has a lot to go.

 

Like to ask all those suggesting brisbane, can you name areas that the op should look at buying for 500k in brisbane, actual suburbs please? Not just say buy in brisbane, are you all expecting every inner suburb to grow at once or something?

Also like to add the Melbourne market doesn't peak as a whole and all areas move at different times. You can definitely add value in Werribee and it's still going strong which should also get growth in a location that's in actual demand now as population is growing and housing is needed.

 

The original question was Werribee in particular in Melbourne.
Here are some Brisbane suburbs that should show higher cg than Werribee in the next 5 years (at least):
North - aspley, nundah, clayfield, etc
East - Carina, camp Hill. Seven Hills etc
South- annerley and Moorook
West - Corinda, Kenmore, chapel Hill etc.
This is a partial list..I'm sure others Cann add to this.

 

So you're just gunna decide how to spend HALF A MILLION dollars by the opinions of a few strangers on the internet? Wowza! I'd encourage you to read, learn and research, to put yourself in a position to make your own educated decision. Or engage a trusted quality BA.

For what its worth I own in both locations and I think both will do well. I don't believe Werribee is at the top. Too many growth drivers in place, namely population and employment growth- The grand daddies of all growth drivers!

It's Brisbane's time, and I'm banking on 30% growth over next 2-3 years for my BNE portfolio

Good luck with your investing.

 

And how many of those can you get into for the OP's budget of $500K? Zero I'd reckon! I do like your list though. I'd like to own in some of those!

 

Won't get you much for $500k in Melbourne or Sydney. Out of of all the other cities Brisbane seem to have the economic and demographic fundamentals for the next big boom.

 

Read the other posts on this thread. I've said house with land is very difficult ( unless it's run down badly).. Townhouses are possible for sure in those areas for 500k.
I've also said to do individual research. ..

 

Can you get houses in those locations you mentioned?

 

Problem with Brissy is....there're still too many stocks to be absorbed... Unless the migration inflow spikes up, there are still a few years to wait before any significant growth happens. And it's too wide spread with so many towns close by each other. I'd prefer something more concentrated...