Brisbane

Hi there Davo,

I was just reading your comments in the forum and you mentioned some of the areas such as Ipswich, Inala, Acacia Ridge & Archerfield.

I am interested in buying property in Brisbane but thanks to your comments I was tossing between buying a property in the the Redland Bay area for $500,000 or say buy 4 or 5 properties in cheaper places like Redbank, Goodna, Ipswich, Sunnybank or Ipswhich area…… I would love to hear your opinion!!!

Thanks – Raylee[]

Hi everyone, []
As a Investment consultant I would advise you to consider the purpose of your investment property before purchasing. Do you want cashflow or capital growth? This is a most important consideration as this will dictate what and where you buy. For example new properties give maximum depreciation which helps with cashflow. The timing of where you buy in the property cycle will determine the rental yield while the population growth and other economic considerations will affect capital growth. Buying early in the property cycle ensures that a negtively geared property will go into positive cashflow sooner. Hope this helps with your decisions.

Bryce Inglis
Ph: 03 9530 2111
http://www.ipal.com.au

Hi Davo70
I’m new to Brisbane too would i be able to contact you at your office to discuss the local market and the financing options you have available? My email address is [email protected] if this would be okkay with you.
Thanks
Iain

quote:

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Hi everyone I am a Finance Manager in a Real Estate office in the Redland Shire (Where Redland bay is located). The rents in the area are for the most part only around 5-7% gross return and declining.

There is a strong surplus of rental properties. We are the largest real estate office in the shire and we can’t rent all the properties we have.

Prices have moved by a staggering 30% in the last three months. I am now having a lot of clients having difficulty being able to afford to purchase and some of these people have quite good incomes and equity in their current homes.

I would not suggest this area for positive cashflow properties yes for negative and capital growth.

The areas around Ipswich, Inala, Acacia Ridge and Archerfield are close to the city good rent returns and still can find positive cash flow properties there. (just be careful even these areas are rocketing).

Hope this helps!

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I live in Brisbane’s South and we bought our first house almost a year ago. We wanted to buy earlier, but we were given some bum finance advice and stupidly didn’t shop around enough to confirm it was in fact wrong. Anyway, we bought reasonably well, and after some low cost but high impact upgrades our house is worth double our purchase price. This is great for our equity, but interestingly, the rental returns if we were to lease the house out, have probably only increasd by 15% in the same time period.

The vacancy rate for this area is quite low and demand for rentals probably higher than average. We would probably have a small cashflow positive situation, given our initial purchase price 12 months ago.

Looking about the market as I do on a very regular basis, I really don’t see cashflow positive returns. These fantastic captial gains won’t last forever, and I do not want to be the last one holding the contract befero the market bursts.

I think interstate investors who come to Brisbane for short visits are very brave to evaluate the market in such a short time. Agents have buyers queueing at the door so the likelihood of making successful low offers seems very limited to me.

As another poster has mentioned, their may be iopportunities int he lower incoerm areas such as Archerfiled, Acacia Ridge, perhaps even Woodridge or Loganlea. I remeber evaluating a $35000 unit two years ago returning $115 a week. My family put me off, appalled at the ethougth of buying in a “less desirable” area. If only I had stuck to my guns I would be laughing all the way to the bank now.

Anyway, these are just the disjointed thoughts of
Brisbanite. It’s not easy finding cashflow positive properties in Brisbane, and after reading Steve’s book, I’m more interested in good, long trem cashflow than the fickle trend of capital gain.

cheers,
Darren.