Hi all,
I'm very new to IP, just moved to Brisbane and have some cash available to invest. I'm considering three following options in Brisbane (no loan needed in any case):
1. Buy a UniLodge (104 Margaret St in the City) studio for about 140K, Seat back and enjoy netting around 6.2%. No CG here I guess.
2. Buy a house around 420K in Holland Park area. Netting of the rent may be around 2-3%, wait for the capital growth.
3. Buy a LMR land (about 300K) in (flooded) Rocklea, build townhouse or duplex & resell (apparently this require loan for the building part)
What are your opinions on these options? Are there better way to invest? I chose Holland Park because it's on the busway and prices seems still lower, are there better areas?
Your helps are really very much appreciated!
Seriously – none of those options looks particularly attractive.
In replying below I have assumed you have cash for all options.
First one – nets $8.5K and little or no growth. Studios generally only suit cash buyers and by extension the pool of potential buyers is limited.
Second one – nets $10.5K on a $420K investment with questionnable growth prospects.
Third one – after recent brushes with flooding in Qld/Brisbane area I doubt many (if any councils) will allow redevelopment on flood prone land. Even if you get the development passed by council buyers are more diligent with investigating, and steering clear of, flood prone areas.
Been a while since I looked closely at Brisbane market so cannot give any direction for you. Others will come along with a more comprehensive knowledge of the areas to make recommendations.
The agent I deal with all the time has a very negative opinion about your no 3 option. May be a hard sell if it is floodable land/
RPI | Certus Legal Group / PRO Town Planners
http://www.certuslegal.com.au
Email Me | Phone MeProperty Lawyer & Town Planner
Hi Derek & RPI,
thank you very much for your opinions. They're really useful. I think I'll go with option 2: find a good buy in a good area.
I was also wondering what expert investors would prefer:
one on 400m2 of land around 6km from the CBD,
another on 700m2 of land and 12km from the CBD,
given that the house, price and proximity to public transport are similar?
Cheers,
Tan.
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