QLD Where to buy now for 4-5% pa growth over 5 years?

Keen to hear members thoughts on where to buy now with a budget of 500-600k, looking for 5% growth pa with a 4-5% yield. A 550k property @5% compounded will be worth 700k in 5 years.

Also taking in to account:
- Buy and hold strategy
- Regardless of individual goals or circumstances or finance or where you currently own
- Australia only

Just looking for opinions on locations that you think will achieve above the next 5 years.

Here are my picks I think might achieve this:

- Middle ring suburb of Brisbane - house
- Sunshine coast some suburbs - house

Anyone got opinions on these above or anywhere else?
.

 

Brisbane middle ring is good pick (North and South). It's also worth keeping an eye on Perth market. We probably will start seeing slow improvement..

And always the quiet achiever year in year out is Adelaide but more like 3% growth. Onkaparinga Shire close to water with right zoning ...

Cheers,

 

You looking for a house or holiday apartment

 

I think this is a worth a read 3 years, 3 properties, $400k equity, what now???
Buy off CF figures. If you get any CG than that is a bonus.

 

Thanks @Shogun i have been reading that thread. Looking for an investment property (not a holiday house) @Ricki. I am an experienced investor, have multiple properties and i do pay down debt and am in a strong cashflow position and can borrow again. Definitely not ignoring cashflow or P and I repayments and I do agree that paying down debt is a good strategy. However even in the new finance world we are in, i still think we will be sitting here in 5 years from now with several locations in Oz that have shown 30% growth in that 5 year period. Not talking a massive boom here. Could be a regional town with medians way less than 500k. The amount of these locations that return 30% growth the next 5 years may well be considerably less than the previous 5 years but they will be out there, just got to find them........

 

Not a holiday house for you.
I meant a appartment on the gold coast for people to rent out when on holidays

 

Toowoomba.

Probably get a house for around half that budget. So could buy two.

Yield should be 5%.

CG has been flat since 2012 (from memory); growth will return once Brisbane booms and the ripples flow out to Toowoomba.

Not advice, just my opinion.

 

@Todd Key indicators such as Interstate migration, economy and exports are on the upward trend for Brisbane so I will echo the opinion that Brisbane middle ring will be a good buy for a decent CG and rental yield.
Perth has bottomed or close to it. We should see turn around in a year or two as employment and exports will drive improvement in the housing market but getting good yield will remain a challenge in the short term.

 

Hi todd

Thanks for sharing I'm new to all this what did you mean by middle ring properties an example would be great also adelaide is this something you know about as well ?

Thanks

 

Qantas unveils its plan to help solve the global pilot shortage with a $35 million academy in regional Australia

 

Probably varies a bit. Starting at about 5km from CBD to 15 to 25km out.
Older already developed suburbs with very little to no new land to be released only what comes from block splitting if any left.

 

Told ya!!!

 

Great news for Toowoomba! I already own 2 x townhouses there. It's been dead flat for 4 years both for detached and semi-detached. That's a long time IMO to get zero growth in prices. The local economy is flying but there has been oversupply issues. Not sure where the situation with oversupply is at now, if anyone has knowledge please post. I am not sure it will return 25-30% growth over the next 5 years but I hope so. Am definitely thinking Brisbane middle ring for around 550-600k is a good, safer option

 

There is an activity ramping up over the next 5-10 years to design and build 9 new navy frigates in Adelaide.

Likewise the future submarines.

Keep in mind the defence industry growth to happen in and around techport.

http://defencesa.com/upload/media/publications/maps/3952/DefenceSA Map Techport.pdf

So anything within a 15-20 minute commute worth considering.

Adelaide locals can probably provide best advice on specific suburbs.

 

This may be worth reading....

Down. Down. Prices Are Down. - PropertyInvesting.com

Also if looking at the buy and hold strategy, you cant ignore yield moving forward as IR are rising and finance is tightening.

 

The sunshine coast is set to perform better than the Brisbane city market. This is a perfect example of a holiday/regional market performing better than the nearby city market. This is similar to the continued growth in the Mornington Peninsula while the Melbourne city downturn persists. In fact, the Mornington Peninsula had the second highest property price growth rate in Australia for 2017/2018. Definitely worth considering here too!