I’m a first time investor, 25 years old – looking to purchase my first investment property with a budget of 300-350k max. I’ve been studying the market as well as speaking to other successful investors and I’ve narrowed my target area down to:
1. Morayfield area (3/4 bed house, 600m2 +) block.
2. Southport/Labrador area (2/3 bedroom unit, low body corp).
rental return appears generally on par with property value within this price bracket (i.e.. 330 per week for 330k property). My investment strategy would be 2-5 years, relying predominately on capital growth. Prelim calculations suggests this property would cost very little (if anything) for me to hold. I’m after some opinions on:
a) best growth potential of the two
b) comments on any risks with this strategy, recommendations on alternate strategies or other areas in SE Queensland to look into.Thanks,
Keith
a) best growth potential of the two
(depends on a ton of variables, but considering the potential billions of development going into Southport its not a bad choice but also the return on Morayfield is quite good)
b) comments on any risks with this strategy, recommendations on alternate strategies or other areas in SE Queensland to look into.
(as long as you afford to cover the related costs your on the right track)
Jaxon | Jaxon Avery – Financial Adviser
http://www.jpafinancialservices.com.au
Email Me | Phone MeJPA Financial Services Pty Ltd
risk is lower in southport
BuyersAgent | Precium
http://www.precium.com.au
Email Me | Phone MeSouth Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW. DOWNLOAD OUR FREE 14 POINT PROPERTY BUYER'S CHEATSHEET to avoid painful mistakes at precium.com.au
Keith,
I would suggest you stay away from south of the Brisbane CBD. There is way to much supply in the market and reduced longterm potential for capital growth.Morayfield has better potential but I would recommend heading closer to Brisbane to pickup the commuter tenants.
Northlakes is 30 minutes drive into Brisbane CBD and will be 25 minute commute by train next year. The area is about to go off with very strong buyer demand. The days on market have plummeted and the prices are set to takeoff.
We have bought over 100 properties in the area for clients over the last two years. This area has the new train line being built, with stations opening next year. Westfield have recently redeveloped their shopping centre, both Costco and Ikea are building stores in the area.
We are seeing 7-8% capital growth between the purchase of the land and the completion of a house with tenants moving in 26 weeks later. Rents are rising too, So I can’t recommend the area highly enough. If you would like a full cash-flow analysis on a 4 bedroom house in Northlakes message me your name and email address. My number is below.
Remember: Capital growth precedes cash flow
Modernity Investing
Email Me
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