Hi All, Im looking for investment grade property in Brisbane with a high capital growth. im 30 years old and i have 4k/month disposable income. I own a house in Coopers Plains (purchased in 2016) which i turned into an IP. Its currently rented at 300/week (slightly under market value) and i have 286K depth on it. The house was recently valued between 450-480K. Im currently renting myself. I am planning to use the equity in my first house and buy my next investment property. I have been advised by my broker that i can barrow up to 640K for the new property and i have the following questions: Is it smart in the current market to max my borrowing capacity ( barrow up to 640K)? or should i be keeping it under safe mark i.e 500-550K should the interest rate go up to a much higher level (above 7%)? What suberbs should i be looking at? i have been looking at the following suburbs Carina height Mansfiled Upper Mount Gravatt Mount Gravatt East I also have about 30k cash to spend on renovation is required on the right property. I also feel im a very slow buyer, i have probably looked at about over 50 properties in the past 8 weeks, and yet to buy one. Appreciate all your comments. Regards,
Keep in mind if you don’t borrow your max now and your salary doesn’t go up considerably it’s likly your borrowing capacity will decrease as time goes on due to the new measures being brought in by the banks . If interest go to 7% there will be people in Sydney and Melbourne in waaaaaaay worse situation than us here in bris so I say gear up brother
I think the ones you are looking at are good choices . Carina heights is very good I think . Try to get the largest land component on the best street you can . Some of the guys here will be able to also recommend some north side suburbs worth looking at also . Maybe around mitchelton way.
If you could stretch your budget just a little you could look at something like this at chapel hill ; 15 Robyn Street, Chapel Hill, Qld 4069
Looks pre nice from the photos... But haven't really done much research on these areas! Chapel does seem like a nice place though! I am very keen Carina Height but unfortunately there is not much in the market with my budget! Thinking about Carina too, any thought on that ?
Chapel hill is an awesome area. Set in the foothills of mt cootha , next to Indooroopilly , a lot of places there are also in the Indooroopilly school catchments which are some of the best public schools in Brisbane . If you cought get a place st chapel hill you would be on to a winner . I am not an expert on Southside @Leo2413 can you advise ?
Thanks Patrick, i am thinking to go check that house out in Chapel hill. Seems like there aren't many houses in within my price range in Chapel hill though.
With a budget of 650k, there are many options. I see value in Moorooka and Salisbury but having said that my approach to Brissy has always been I don't care if its N, S, E or W. How I decide is: 1. Buy closest to CBD as budget will allow for a house with above average land content. At least 550sqm. 2. Buy value suburbs, ie if 8km north side in X suburb is 600k and 8km south side suburb (all other things being comparable) is 520k then I go for the value suburb as long as its same distance to the CBD and comparable stock. I do a comprehensive cross check across all directions. 3. Buy older stock where I can add value to in some way.
I live next to Salisbury(coopers plains, I bought in coopers plains 2 years ago and its the only property i have and its IP). Salisbury prices have gone up really fast in the last couple of years and i feel like its over priced. Do you think Salisbury would keep its growth long term ? Could you please explain why you see value in Salisbury and Moorooka ? where would you buy with 600? Cheers,
Both are high demand markets. Price gap disparity from neighbouring suburbs a little closer to the CBD. If bought at a good price and you can add value, I see good overall medium to long term potential. However having said that, I would be doing a thorough check in all directions to see if there is any better value to be had. Also adding value is a big plus if you can add value in high demand OO areas then I don't mind buying in areas which I have already missed out on some growth. To answer properly I would have to spend a few days to do thorough, up to date DD and comparisons.
Thanks mate! Salisbury and Moorooka have been on my list but no at the top of it. The difficulty i have been having is that i found myself moving from one suburb to another in the last few weeks. Also the Property news that came out few days ago about the top 25 suburbs with CG ( the source of it seems to be CoreLogic) doesn't seem to match up with the whats out there on realestate invest and suburbs profile. My plan is to buy something that needs a bit of renovation done to it so i can add value to the property. I have been reading posts reading books, listening to podcasts and been doing research in the past couple of months and often i find myself jumping suburbs. The following suburbs have been my main focus in the past 8 weeks: 1- Upper mount Gravatt 2- Carina Height 3- Mount Gravatt East 4- Mansfield 5- Salisbury 6- Moorooka What sources do you suggest for narrowing my search down to 3-4 suburbs ? Cheers,
A post I made in 2016. Might be helpful a tad: --------------------------------------------------------------------------------------------------------------------- Goal Due Diligence 1. Before each purchase determine where I am in my portfolio and what the goal is for the next purchase. Is it a CG buy, CF buy, Neutral buy. 2. What strategy do I intend to employ for the purchase. B&H, Reno, Develop or a mixture 3. Ensure I have all my finance ready, and I know exactly my budget and how far I can go. Get refinancing of equity consolidated, pre approvals done, give lawyer and anyone else on the team a heads up that we're about to go into battle. Then: State Due Diligence 1.Which states do I think are at the optimal buying segment of the property clock, (7-9 o'clock mostly for me). I use HTW reports, Core Logic Capital Market Reports, Terry Ryder reports, any other on line reports, Property magazines and the media (to gauge sentiment mostly, and of course chatter on the forum as well as engaging with my peers for property market discussion. I try to make the best choice based on a mixture of all those factors. Choosing the state is a big decision for me. Once chosen, then: Suburb Due Diligence 1. Determine how far I want to draw a radius around my map from the CBD. Is it 5,10,15, 20km etc. Usually what will determine how far I go from the CBD is the particular state i'm looking at, the strategy i'm employing and any specific opportunities in areas that may be worthwhile exploring. 2. Choose a few suburbs that meet my buying criteria. I look for value suburbs, eg suburbs that are cheaper than their neighbours but share most of the same fundamentals to make them grow which is only a matter of time, the 'ripple effect'. Use websites like REA, Domain and even property magazines might alert you to a suburb in your chosen rough area that you can look at and do further DD comparing prices of dwellings to try and find that 'value surbur' or two. Of course make sure the suburbs have the usual good growth drivers like transport, infrastructure, amenities, cafes, hospitals, trendy hubs etc. Once I've narrowed it down to say 2 suburbs I then look at historical CG, SOM, Discounting Rate, Vacancy Rates, Supply/Demand etc. Property magazines and on line sites have all this. I make sure I use at least 2-3 sources to corroborate the data for further reliability. Demographic Due Diligence: 1.Research what the demographic is, and what they want, in your chosen area. Is it detached housing that is most prevalent? Villas? How many bedrooms is most common? Most wanted or common size of dwelling and land (so you don't buy a 400sqm home in an area that really values 500+sqm for example), How close to transport? Families or singles? Students? etc Any specific nationality in the area that may influence your purchase? Dwelling Due Diligence 1. When I know exactly what I am looking for after I have my list, I troll all real estate websites and look for stock that fits my description. I also call probably 10 or more REAs in the area to tell them what i'm looking for, i'm preapproved and ready to buy right now and ask that they alert me to anything that they think i might be interested in. Having 15 ppl looking for me is better than just 1 person. I also first make sure any dwelling I look at is not next to any major power poles, cemeteries, very busy main streets, noisy kindergartens, not in flood areas, bush fire areas, high crime rate areas etc. 2. When I have 'acceptable stock' in my sight, I will then use RP Data to do what I call 'Vendor Due Diligence'. See when it was bought, who bought it, for how much, etc etc. I want to know as much of the story as i can to try and put a picture together very fast to basically try and determine just how motivated the vendor might be. Really this only should take 20 mins. I then call the agent and discuss with him the property I am interested in to try and learn from him as much as I can. (i'll leave it at that for the agent because this is getting too long already). . Basically from there its a negotiation process. I try to find many properties that meet my criteria and put offers on all of them trying has hard as possible to buy BMV and create equity on the way in and also try to buy on favourable terms eg delayed settlement, building and pest clause (a negotiation tool in its self), Subject to finance, etc. Having said that it depends on the deal. If its in my interest to go 66w then I will.
@Leo2413 mate that post is gold I’m just starting to research the brisbane market and that’s helps so much thanks.
