More Brisbane advice please

With a budget of $500k plus legals. My idea was to buy two cheaper investment properties (houses) originally my plan was purchasing one in Brisbane and then the other in Cairns. Areas in Brissy I was looking at are Redcliffe, Bald hills, suburbs in Logan and suburbs in Ipswich. I have now reconsidered purchasing in Cairns manly because of the expensive insurance and rates will eat up any positive return. So now I am looking at possibly two properties in Brisbane. Buying two properties for $500k I'm scrapping the bottom of the barrel and I could slightly increase the $500k by dipping into my PPOR LOC to increase the deposit maybe up to $550- $600k but I would prefer to leave the money in my LOC. The idea behind buying two lower priced properties is to spread the risk by buying in two different areas and I think a better chance of a positive geared properties. I'm just not sure if I would be better off spending up to $500k on one property buying a better quality property in one of those suburbs or maybe closer to the city would be a better opportunity for growth or would two cheaper properties have as much chance of growth?. Any words of wisdom?
 
Spend 450-500k in brisbane metro on a house + splitter block. Subdivide and sell land for 300k. Rinse and repeat. Pay off PPOR and retire.
 
The main thing to know about Brisbane that outsiders don't really understand is that the buses are the lifeline of the city. If you come from Melbourne or especially Sydney you're probably obsessed with trains (as I am, I always look for places along the train line, I've lived in both cites for over a decade)...but in Brisbane they are not as much of a draw. The lines are limited, there aren't as many express trains as Sydney and the bus ways are very very good. Locals love the buses there.

So trains are good but don't get obsessed with them like you a lot of investors would elsewhere. I would only go out of my way to buy near a train station in Brisbane if it was literally just a few stations away from the CBD. Even as close as 10-15k's out, buses already have an advantage.
 
I think you'll have a hard time finding two properties that will allow you to buy at least one in the Moreton Bay/Pine Rivers area within a $550k budget given that there's very little in the way of houses under $300k around. Certainly possible for the Ipswich and Logan areas though.
 
I know that you mentioned houses but what about units or townhouses? What about one house and unit? Units and townhouses normally give you a better yield if you are looking at cash flow positive properties.
 
I know that you mentioned houses but what about units or townhouses? What about one house and unit? Units and townhouses normally give you a better yield if you are looking at cash flow positive properties.

I have only ever bought houses the few times I've looked into apartments, units and town houses I found the gross yields look great but once I have taken all the out goings they aren't that attractive. I always thought that land had better opportunity for CG. I know this isn't always the case but I think you have to do your homework when it comes to buying, apartments, units and not so much townhouses just something always stuck in my mind that developers can come in and rip down a couple of houses and build in your area dropping your property price or decreasing the chance of growth. But I haven't ruled it out completely.
 
250 is scraping the barrel

But considering 500 will get you into a good suburb I would just buy one - the yield will be lower but one set of expenses will help - you could still find 5% I think

The way I look at it from a melbourne perspective is

A crap suburb in melbourne you can get a house for 300 - 360k
A good inner city suburb you can get a house for 1.2 - 2 millio

Currently Brisbane sits at 250 vs 500

If you do go down the path you mentioned I would go house in clontarf and a townhouse in thorneside

I would only look at Logan or Ipswich if I could subdivide straight away whilst keeping existing dwelling
 
Dave please show me a house in Brisbane metro on a splitter block of 450-500K, where you can get $300K for the land.

Plenty of examples RPI has linked to over the past 6-12 months

Even with some price creep and paying 550-600k, better than buying 2 x 240k houses in logan for a whopping $1000 pa CF+
 
Dave please show me a house in Brisbane metro on a splitter block of 450-500K, where you can get $300K for the land.

I bought one the other week. Lower end of that figure with unimproved land value of 300k before sub division.

And as far as the bus vs train comment goes I kind of disagree. Buses are great; if you're on a busways. But if you're not then trains are better IMO.
 
I went to an auction behind Market Square.

Tiny 2 bedroom house sold for $680k.

Number was 4.

I think people will put their superstitions aside if the location is really good:)
 
I went to an auction behind Market Square.

Tiny 2 bedroom house sold for $680k.

Number was 4.

I think people will put their superstitions aside if the location is really good:)

They will possibly apply to have the number changed to 2A. This happens a bit.
 
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