Brisbane IP for first timer

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Matti
Participant
@matti-marjoniemi
Join Date: 2009
Post Count: 1
December 30, 2015 - 5:52 pm
Hi all,
I am a first time investor looking to purchase a property up to 550,000 in the 10km radius of the Brisbane CBD. I currently live and rent in sydney with my wife, and having trawled the forums for the past year or two and seen the sydney market skyrocket, SE QLD looks like an attractive place to start for a novice.
I understand that there are many different strategies available to property investment, but my main objective at this point in time is to get in the market with a buy and hold approach.
Initially I was considering areas such as coomera, narangba, redcliffe, loganlea and ormiston. Now, I believe suburbs around the 10km radius will be a safer bet. I like the idea of buying an established 2 bed unit in one of the trendy suburbs such as bulimba, but am slightly worried about an over supply of apartments in the east brisbane area.
In addition, I like chermside as a suburb for a house and think that the land value of a house will be worth more in the long term.
I have 50000 to put down as a deposit, and am happy to commit up to $200 a week to cover the gap in rent and mortage repayments for a solid long term investment.
I don’t expect any free advice in regards to suburbs but a little bit of guidance would be much appreciated.
Thanks again,
Matti
Corey Batt
Participant
@cjaysa
Join Date: 2012
Post Count: 1,010
December 30, 2015 - 6:58 pm
Just outside of the suburb areas – you might be stretching it in terms of deposit for 550k, you don’t quite have enough to support the minimum of a 95% LVR + costs. Likewise even at this level your LMI will be extortionate, upwards of 20k+ depending on the lender.
Leveraging up this high for your first purchase will leave you unable to release future equity for quite some time and exponentially higher interest costs.
Back to suburb areas, I think you’ve touched on a key point with inner Bris – buying a unit might see you in a sore spot with all the increasing supply from new developments. I’ve stayed in Bulimba and the area is starting to certainly pack them in.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
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Investment Focused Finance Strategist - servicing Australia-wide
Richard Taylor
Participant
@qlds007
Join Date: 2003
Post Count: 12,024
December 31, 2015 - 7:55 am
Hi Matti
Welcome to the forum and I hope you enjoy your time with us.
We have a number of forum clients who have engaged our services recently to buy something in one of the inner suburbs with a max price of $500-550K and we are certainly fulfilling these requirements. In saying this you are probably looking at a Unit rather than a Townhouse at that price depending on the location.
I prefer the Inner Western suburbs where i personally own over 26 properties and these have performed extremely well over the last 15 years.
There are definitely some areas to avoid (as with any area) but I think with a buy and hold strategy you can’t go too far wrong.
Let us know if you want any additional information.
Cheers
Yours in Finance
0-40 Properties in a decade. Ask me how.
- This reply was modified 8 years, 4 months ago by Richard Taylor.
Richard Taylor | Australia's leading private lender