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Where would you buy?

Discussion in 'Where to Buy' started by Cudareli, 7th Oct, 2016.

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  1. Cudareli

    Cudareli Member

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    Hi all,

    I've read through countless amounts of threads with similar titles. Some can be useful, others go way off tangent and you end up spending hours reading without gaining much from it.

    My situation is that I am looking for an investment property (mainly focusing on CG) that I have no plans to live in. I live with my family in Sydney at the moment so I'm looking to purchase something that I can rent out and forget about for the time being.

    My budget is $720k to max $750k and I'm not worried whether the property is in Sydney, Melbourne or Brisbane. For the last 2 months I've been told to do everything, someone tells you to get an apartment in the City, someone then says stay away from that and get land out west in Liverpool, then someone else says you are crazy being in Sydney and find something in Melbourne or Brisbane.

    If you were in my position now, finance ready to go, where would you be looking? House or townhouse or apartment?

    Please ask me any questions if I haven't given you enough information!
     
  2. See Change

    See Change Timing Lord Premium Member

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    Sydney is getting close to the top of its cycle so as an investment I wouldn't buy there . We've sold three in Sydney in the last years.

    Melbourne is moving but as an example, a friend is looking at a place in ascot vale which has moved up 60 % in the last few years , so to me that indicates it has less potential for growth .

    We've bought in Brisbane in places which are still below their peak for the last cycle . Personally we've bought in Brisbane as I think that in the next 5-10 years it will go up more than Melbourne in terms of total percentage growth over that period. Though melbourne may well out perform Brisbane in the shorter term .

    If you go for Brisbane the question is where . Personally we've gone the path of buying three for under 250 each , though now you'd be struggling to get that where we'Ve bought in the goodna region . The only place you could realistically do that is Riverview . Eg in Bannerman a couple have just sold for around 230 . The other place is Ipswich , which is a little bit further behind in the cycle .

    The other option would be to buy two places closer towards the city , either north side or south side , or one around goodna / Gailes for 250-260 and then another more expensive property closer to the city or in somewhere like manly , Wynnum ,Sandgate , Brighton .

    Something to think about .

    Cliff
     
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  3. Steven Ryan

    Steven Ryan Mortgage Broker Business Plus Member

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    Concur with Cliff's overall comments.

    Will also say buying anything but a house with that budget wouldn't make a whole lot of sense if your focus is on capital growth. It's the land that appreciates, not the building.
     
  4. Cudareli

    Cudareli Member

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    Doesn't that go against what Cliff said?

    Cliff advised me to look at apartments in Brisbane, you advised to look at a house?
     
  5. wombat777

    wombat777 Well-Known Member Premium Member

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    Also think about future potential. That's why Kallangur, Petrie and Lawnton/Strathpine are so popular at the moment.

    With the opening of the new rail link last Monday there are more and faster services into the city. The new University campus set to open at Petrie in 2020 is a big factor.

    I'm in Brisbane today and both agents I have spoken to in Moreton Bay have said they can't get enough stock to satisfy the demand in Kallangur/Petrie in particular. Well-located properties are being snapped up right after listing.
     
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  6. Marg4000

    Marg4000 Well-Known Member

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    Afraid I must disagree. Some of our greatest capital gains by annual percentage came from well located units. By well located I mean a good location within the complex, and in a complex in a good location.
    Marg
     
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  7. silverman47

    silverman47 Member

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    +1
     
  8. Steven Ryan

    Steven Ryan Mortgage Broker Business Plus Member

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    Are you sure? :)

    ....and located in a market that isn't at top of cycle, or facing a few years of oversupply.

    If this post was from 2011, different story. I should have been clearer :) However, I would still take a house every day of the week.

    I have some Sydney apartments (couldn't afford a house) that have done very well but it wasn't the building that went up. It was the land upon which it sat :)
     
  9. C-mac

    C-mac Well-Known Member

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    To me, 720-750K for a first time investor is a lot to align against just one property. My idea for you (do your due diligence of course...) is to consider splitting budget and buying two.

    $300K unit in small block in inner brisbane suburbs or possibly outer Melbourne. Then $450K outer-brisbane house or outer-Melbourne (if afforable and appropriate to this part of the cycle. Not a cookie-cutter house on 300sqm in the outskirts, pls!).

    Depending on your risk profile, consider/entertain prospects in Adelaide or even Newcastle, both of which I believe offer prospects for houses.
     
  10. Vk8975

    Vk8975 Well-Known Member

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    Bugger...I have one in Bray Park but have my fingers crossed that prices dont hit the roof yet as I am looking to purchase another one around Kallangur/Strathpine next year.
     
  11. See Change

    See Change Timing Lord Premium Member

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    Where ? I haven't specifically mentioned units vs house , ( though I'd be happy to buy a old unit / townhouse close to the bay in manly ( Brisbane one ) , wynnum etc

    Riverview for 230 is for a three bedroom house which would rent for 280 . ( see Goodna thread )

    We have done well with units BUT in places where it's hard to build new ones , mainly in manly and Mosman in Sydney.

    Cliff
     
  12. JDP1

    JDP1 Well-Known Member

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    Or the location of the land?
     
  13. daves88

    daves88 Member

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  14. See Change

    See Change Timing Lord Premium Member

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    Limited market for resale . Most people don't want dual OCD properties , only investors . My recollection is that Toowoomba has done quite well in recent years . Personally that would be all the DD I'd be doing before eliminating it .

    Cliff
     
  15. Seal

    Seal Well-Known Member

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    Hey Cliff, what reasons do you have for this area in manly wynnum etc for units/townhouse?
    We have a townhouse in brissy (not this area), but after having bought one, i have seen how many thouses are going in certain places. (and obvioulsy units in close to CBD..oversupply etc). don't you find that it's easy for developers to put in a whole heap of units or thouses and so increase lots of supply. so what are your thoughts re these areas (i was looking a few months ago on macro DD at these areas, but houses were out of my range), so keen for your thoughts. Thanks
     
  16. See Change

    See Change Timing Lord Premium Member

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    The ones we bought are in positions where it's hard ( under current guidelines ) to produce an oversupply of similar properties . We have three in the area . A waterfront unit ( yield is slightly lower on that one , just under 5 % , a townhouse in wynnum about 50m from the water and a townhouse in manly , very close to the CBD .

    We thought they were good properties in good positions and at the time we bought there was plenty of choice in the area and not much competition

    We've down well with located units , so I have no problems with units , though in q'land the bc fees can be problematic in some places

    Cliff
     
  17. Angel

    Angel Well-Known Member

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    NO. Isnt even in Toowoomba. Who do you think would want to live there?
     
  18. Stoffo

    Stoffo Well-Known Member

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    Hobart ?

    As stated earlier, for $700K + buy 2 :)
    In doing so, should one be unoccupied the other is still generating income ;)
    Thus reducing risk :D

    If your not in a rush (you said you wanted to hold for a number of years) go find a bargain in Darwin or Perth, the market/cycle should turn in a few years back to growth (hopefully) and you have the potential to ride it back up :cool:
    (*not financial advice, Perth has a long road ahead)
     
  19. See Change

    See Change Timing Lord Premium Member

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    Perth and Darwin are still going down ......

    Why even think of buying there ?

    Cliff
     
  20. igor1234

    igor1234 Member

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