First Time Buyer - Where To Buy In Brisbane

[NZGirl]

Hi

I'm a first home buyer in Brisbane – and trying to work out what the best plan would be for my circumstances. Apologies in advance for the long post, but after weeks of going around in circles, I need some advice!

My Situation

• I'm mid 30s, currently single, no kids and work in the city.
• I'm currently renting in Toowong
• I'm open as to what suburb to purchase in, as long as it takes less than 1 hour to commute to the city (the faster the commute the better, and I would prefer to be close to a train line rather than reliant on buses). However, my family are all in the 'burbs on the south-side of Brisbane – ie Calamvale, Springfield Lakes etc so I would prefer to be not too far north (although its not a deal breaker).
• I'm looking to spend up to about $400K. This is because I dont want to have huge repayments (as I'm doing this alone) and also because I have only about 5% deposit (due to travelling over the last 10 years rather than saving!).
• I want at least a 2 bedroom place - as I will be owner/occupying, at least for the short/medium term.
• I would prefer a house, townhouse, villa rather than unit or apartment (although again, not a deal breaker)

My dilemma
What type of property should I buy and where? After the changes to the First Home Owner Grants last year, I can get a $15,000 grant for purchasing a new property, but if I buy an established property I get $0 (except for the stamp duty concession). Right now I'm thinking that I should go for a new build, as why would you not take advantage of the grant, as $15K boosts my deposit significantly (and I'll only be a first home owner once so won't be able to take advantage of such a grant again).

However, looking at new build options (and only wanting to pay up to $400K), I'm unsure what is the best option to take (particularly as I am considering both my own requirements and in terms of it being a potential future investment). I'm also unsure about body corporate and what would be considered 'low' or 'excessive' in terms of BC fees. What I've found as potential new build options so far:

• Townhouses / Villas in Calamvale. Concerns: not close to a train line (so commute to CBD is reliant on buses), ongoing/increasing body corporate fees.
• Townhouse in Richlands. Concerns: ongoing/increasing body corporate fees, next to Inala, but close to train line and good commute into the CBD. I've also read about the future development in this suburb?
• House and Land Package in Goodna, Darra. Concerns: people have said that these suburbs are not desirable, and that I'd be foolish to buy and live there - particularly socially/entertainment wise, as a single 30-something female. (Note: I'm not sure how 'real' this is, as I tend to go out/socialise in the city anyway). However, the train line goes through these suburbs and its a quick journey into the CBD.
• Land options that I could then build on - potential land in my price range that I could build on is located in Wynnum (but backs onto a train line), Salisbury (subdivided block), Wacol ('undesirable' suburb), Goodna and Darra. Concerns: the land I can afford all have their draw backs - although are these actual draw backs or am I reading too much into it?)
• There are also apartment buildings out there, but these tend to have lifts, gyms etc that increase the body corporate fees, plus I am a bit over apartment/unit living (I want a bit more space!)
• Are there any other options that I have missed?

I also wonder whether I am just being too focused on the $15K grant, when in fact, I would be better off buying established. Another option would be to buy something established and far cheaper (ie $300K), and then paying more than the required mortgage repayments in order to pay it off quicker (which I could do at that price). Properties I have seen for this option include townhouses in Runcorn and Kuraby - close to train lines.

So.... as you can see, I am totally confused about whether to go new build or established, townhouse (with body corp) or house (freehold), or even what suburb to go with (it doesnt help that I'm relatively new to Brisbane). I've been doing loads of research and reading, but I think that has only raised more questions and make my decision making more difficult! I'm totally debt free, so the thought of entering into a mortgage is quite daunting and I'm freaking out that I will make the wrong decision! However, I really want to do this - I'm tired of renting and want to take my first step on the property ladder.

So any advice would be greatly appreciated - what would you do in my circumstances? Is there something I haven't thought of, or am over thinking?! Thanks so much for your help, any advice or feedback gratefully appreciated!

 

[norwoodman]

This is on Brisbane's northside, but in Nundah there's quite a few 2 bedroom units and apartments within walking distance of the train station, Nundah town centre and Centro Toombul under $400k. The brand new builds all seem to be very inflated compared to established properties though - more than the $15k grant. Might find a few 2-bedder houses under $400k a little bit further west in Stafford (no trains though, but the Northern Busway does run nearby)? These tend to be older homes though.

You may need to decide whether space or place is more important to you. I don't think you're going to find many brand new 2 bedroom houses for under $400k within 10k of central Brisbane.

 

[marg4000]

Don't get hung up on train lines.

I live around 12 km from the city, it takes 40 minutes by train and 10 minutes by bus via the new busway, and the buses are more frequent.

Guess which I use?
Marg

 

[RPI]

You might find a house in Salisbury sort of area for that sort of money.

D

 

[NZGirl]

Thanks for your replies, which are really helpful and give me something to think about.

I guess I'm overwhelmed with the different decisions I need to make (ie established vs new build, high end of my price point or cheap and cheerful etc) and feel like I'm going in circles. I just want someone (who knows what they are talking about) to tell me, 'looking at your exact circumstances, if I was you, I would go with XXXX (new build/established) in XXXX suburbs, for XXXX price range, due to XXXX reasons', or 'dont go with XXXXX due to XXXXX reasons'.

I did think about seeing a financial advisor, but I didn't think that they would advise me on new build vs established, suburbs etc and what the best option would be (I assume they only advise on the figures?).

So if anyone would like to advise what they would do if they were in my shoes right now, please feel free!

Thanks again for your comments and help.

 

[Angel]

Hello NZGirl

I can only speak from my experiences on the northside of Brisbane, there are plenty of others here who know the southside well.

I would not bother with the FHB myself if I was in your position because in my experience, brand new properties are simply overpriced. You will still be saving a lot of cash from not having to pay stamp duty. From what I have learned on SS plus going through the experience of helping Mum buy a lowset villa last year, an established townhouse 8 klm from CBD was about $100K less than buying brand new across the road. These prices have come closer as the new builds have had to lower their prices, but you will get what I mean. The suburb I know best is Everton Park which is 20-30 minutes to city by bus and a five minute drive to two train stations.

What price and quality are two bedroom townhouses in Toowong these days? Last time I looked one could get a solid, well built townhouse under $400K in several desirable suburbs within 10-12 ks to city but they sell fast.

 

[Tim86]

I agree with RPI, Salisbury would be worth considering.

Houses are around the $400 000k mark. There is a train station. It's a good suburb in that it is very safe, lots of young families, people studying at the nearby uni, and elderly people. We often walk the dogs at around midnight and have absolutely no problems.

Rents are also awesome as you can always rent out the place to students and charge them room by room which increases your rents considerably.

It's also only a 12 min drive to the city in good traffic, and in peak hour it's still only a 30 min max drive.

In my opinion it's a safer suburb than moorooka, I've lived in moorooka and had things stollen if I left them outside. In salisbury I've left my front door wide open accidentally while I went to work and came home 8 hours later and nothing was missing... Lots of parks too and a very quiet suburb.

Anyway it should be noted that I am extremely biased when it comes to this suburb as I have all 3 (soon to be 4) of my properties here lol.

If you want something closer in, and a unit/townhouse, I would probably look at indooroopilly, that's another nice suburb. But if you want a house with a good size block, and a safe suburb for the same price, then go for salisbury.

 

[Sean M]

Thanks for your replies, which are really helpful and give me something to think about.

I guess I'm overwhelmed with the different decisions I need to make (ie established vs new build, high end of my price point or cheap and cheerful etc) and feel like I'm going in circles. I just want someone (who knows what they are talking about) to tell me, 'looking at your exact circumstances, if I was you, I would go with XXXX (new build/established) in XXXX suburbs, for XXXX price range, due to XXXX reasons', or 'dont go with XXXXX due to XXXXX reasons'.

I did think about seeing a financial advisor, but I didn't think that they would advise me on new build vs established, suburbs etc and what the best option would be (I assume they only advise on the figures?).

So if anyone would like to advise what they would do if they were in my shoes right now, please feel free!

Thanks again for your comments and help.

Hi
In regards to whether a financial adviser can help you in this situation. Most likely not unless they do property advise specially. You are correct in saying that they will give you the figures. You will have to make the decision at the end of the day.

When I read your post I felt a bit of haste in there. Correct me if I am wrong.

Couple of things
1. Slow down
2. Sit with yourself and write out your goals/ ambitions
3. Figure out what you want -which have your doing
4. Do your research and talk to people ( your already doing)
5. Sit down again and ask yourself how you feel about this
6. When your ready get out there with a calm mind and know what you want to achieve.

I also noticed in your post that your confused. At the end of the day confusion comes from not having a clear mind and having too many options. Do a comparison of the options based on you doing Point 2. Match it to what you need and see if it meets your goal.

Personally, I don't know Brisbane that well so I cannot add any value there.

Wish you all the best.

 

[NZGirl]

Hi

Thanks so much for your replies. You're right - I need to slow down and really map out what I want. Sounds so simple! But its proven to me that I'm too emotional so need to calm down, and make an informed decision (and take my time to do it).

I drove around Salisbury today - and agree with the comments in this thread, its jumped up to the top of my list if I go for an established property, particularly if you think I will find a place within my price range in this suburb. I hadn't thought about Everton Park (I've focused less on the northern suburbs and had to google map to find out where it is!), but will go for a drive out there during the long weekend, and have a look around so thanks for the suggestion.

Due to my limited budget, Im not going to get exactly what I want for my first purchase.... so all my options have some downsides, either less desirable suburbs, or railway lines etc. So before I discard new build as an option, I just wanted to ask for opinions on a few suburbs?

I can do new build in Richlands (townhouse), Calamvale (townhouse or villa) and Darra (house) within my price range. Richlands and Darra both have good transport connections and relatively quick commute to work in the CBD. Calamvale has buses but no train, however seems to be a 'nicer suburb' than the other two. I've read about all three suburbs and been out for a wander around, but as I haven't been in Brisbane that long, I would be interested in knowing peoples views on these suburbs, particularly in terms of value and 'livability' in the longer term. Specifically, Do you think Darra or Richlands will improve, or are they likely to remain 'less desirable' for years and years? And do you think public transport options in Calamvale (in terms of commute to the city) will improve - is there a planned busway or anything on the cards that will link into this suburb?

Finally (sorry for another lengthy post!), I've also seen land in Wynnum North, which is closer to the city.... the houses in the immediate vicinity are quite old and worn looking, but at the other end of the street it looks like some new builds have gone up in the last 5 years or so. The one downer is that the land backs onto a railway line (the station is about a 5 minute walk away). There is a big concrete wall at the back to block out noise (which seems pretty standard) and I've found out that its only passenger trains (not freight trains all night) that go past. I've read views on train lines in another thread on this forum, but the opinions seem to be mixed - some think its great to be close to rail, others not so much. I'm not hugely bothered by train noise, but trying to look at the big picture about making a good decision...

Thanks for your advice and feedback, this forum is fantastic in terms of learning and sharing information... maybe one day I will be able to contribute or offer something back in return, but for now ,I really appreciate the help, so thanks!

 

[benprop]

Hi NZgirl,

I received an Email from Terry Ryder over the weekend which said he is affiliated with a company in Brisbane called 'Property Pointer'. They claim to have exclusive inner city property in Brisbane. I emailed the guy and they have a Brisbane CBD project and one at East Brisbane, Mowbray East or something like that? not sure where that one is. They are brand new and the email said prices from $340K... I am doing some research into it now as I don't trust people!!!

My sister is in the same boat as you, trying to decide on what to go to. I showed her the email and she is looking into that as well. But she really has her heart set on a new 1 bed apartment at Hamilton.

I have to say I do like the option of buying a block of land in the burbs and building on it.

Just a few of my thoughts!

Ben

 

[INVSTOR]

I lived in Parkinson, near Calamvale for 18 months up until interstate move recently. They have express bus service 130. http://www.brisbane.qld.gov.au/traffic-transport/public-transport/buses/buz-services/index.htm
I never caught the bus so don't know what it's like. It's about a 10 minute drive To sunnybank train station. Again, I'm not sure what train station parking is like during the week. it's a nice, laid back area to live. The shopping centres are easy access/parking. I loved living in the area. In the beginning I felt like I was living out in the sticks, but I really appreciated being away from hustle and bustl of inner city traffic and busy shopping centres. Feels like a safe area too.

 

[benprop]

ps... I went to primary school in Darra and never want to go back to that suburb. It has a high population of Asian people (not racist just a fact) and in my opinion not a desired place to go at all!!

 

[INVSTOR]

+ Algester is Ok too, looking a bit tired but you could pick up an ok house like this. http://m.realestate.com.au/property-house-qld-algester-113346279
You don't want to buy too close to coal train line though.

 

[devank]

Why not the south all the way to Beenleigh? Those suburbs are on the train line within 45 mins to the CBD. Most under 400K for a newish house with good land size.

 

[Angel]

Why not the south all the way to Beenleigh? Those suburbs are on the train line within 45 mins to the CBD. Most under 400K for a newish house with good land size.

Hi Devank
Because our OP doesn't "have" to buy in Beenleigh. Generally people in Brisbane do not commute like those in Sydney. We think that spending well over an hour to get to work, by the time one gets to the train station and then walks to their office, is just crazy. If she can afford to live half an hour's commute to work, then why wouldn't she?

Which location do you think will be the more desirable and have the better capital growth in the long long term? Ask Rixter about nice townhouses in desirable suburbs around Brisbane.

 

[Angel]

I can see the long term potential of buying a developable site, but for ease a nice townhouse can serve the purpose of offering affordable housing and decent growth.

We can worry about the cost of BC fees. If one purchases in a small complex with no lifts, gyms etc, the fees can be quite reasonable. Council rates and building insurance are far lower for the owner than they would be for a single dwelling. You still require a small building component with your insurances (in case the kitchen, ceilings or bathroom ever require replacing), but the cost reduction from lower rates and insurance will often compensate for BC fees.

 

[Tim86]

If I were to buy another house, the suburbs I would be looking at for a bargain on the southside would be: Salisbury, Moorooka, Coopersplains, Sunnybank, and Nathan.

But with that said, sometimes I just search realestate.com.au for Brisbane Greater Region, chuck in a max price of $350 000 and see what comes up. Really any suburb within 10k's of the city is going to be decent.

Instead of rushing into suburbs with bad reps like Darra, Ipswich, Beenleigh, Woodridge, Inala, Logan, etc... I would spend the extra time and effort to find a good bargain in a nice suburb.

However it is getting harder to find bargains right now as everything is selling like crazy! Honestly I can't believe how much is selling right now. However if you keep your eye out you may still get lucky. There are still places on the market that haven't sold for ages due to the last two years being very quiet. And there are still people that aren't expecting top dollar for their properties.

There isn't much for sale in salisbury under $420 000 right now, but in the last year I've managed to get a 5 bedroom house for $305 000, a 4 bed with granny flat and 1310m2 for $370 000 all in Salisbury, and just this week I secured the contract for another property in salisbury subdividable block with an existing house to one side to renovate for $406 000. Each of these investments needed renovating though, so you may have to be prepared for that in an older suburb like salisbury if you want to get a bargain.

Also use your key search terms on realestate.com.au "deceased" "mortgagee" "liquidation" "bargain" "land value" , etc...

 

[devank]

Which location do you think will be the more desirable and have the better capital growth in the long long term?

In my view Logan has better local 'drivers' for potential capital growth.

Shopping (Hyperdome): Largest shopping centre in Logan City and the largest single story shopping centres in Australia.

Health: Large major public hospital – (Few years ago they installed new MRI machine, redeveloped their intensive care unit, emergency department and transit lounge)

Education: There are about 35 primary schools, 13 state secondary schools, 20 non-state schools, 50 special schools, 1 university and 1 TAFE college.

Transport:
Train stations: Edens Landing, Homeview, Trinder Park, Woodridge, Kingston, Loganlea and Beenleigh.
Major road links - Logan Road, the Pacific Highway and the Gateway Motorway.

Is Logan the 3rd largest QLD city? Regardless of that it still sits between first two largest QLD cities (Brisbane & Goldcost)!

Here are few stats of few southern suburbs closer to the CBD.
Suburb - Yeild - Median
Salisbury – 4.65% - 427K
Moorooka – 4.75% - 456K
Sunnybank – 4.19% - 495K
Most of these are at the higher end in terms of price with low rental yields (compared to Logan).

Here are few Logan ones.
Suburb - Yeild - Median
Daisy Hill – 5.7% - 366K
Edens Landing – 5.24% - 321K
Tanah Merah – 5.2% - 361K
Waterford – 5.41% - 360K

I think Logan suburb prices have room to move up. Entry prices is decent and also it's yields are decent.

Disclaimer: I have and IP in Edens Landing. I don't have any on-the-ground knowledge. All based on desktop research

 

[Angel]

All very true Devank.

I'll now mention a few other statistics that you can research on your desktop. I cant be bothered researching these myself, besides I have lived in Brisbane for more than 50 years so I think, with all due respect, I have a bit more Creds than you.

How many meth labs have exploded in Logan this year, killing or injuring occupants of the building?

How many fatal shootings in Logan this year?

How many race riots in Logan this year?

 

[rowena]

Hi op,

If you did a brand new build buy another thing to consider is your repayments while building under a construction loan. For example if it takes 6 months to build you will be up for interest repayments over that time as well as rent for where you are currently living! This could end up being well over $15000 which basically nullifies any benefit from your grant! You would have both rent and repayments to pay at the same time so you need to consider the costs.

Take a look at the suburbs and what they have close by that you use the most! If you take a look at the services offered along with the general feel of a suburb You may be able to rule out some that don't fit with your lifestyle! Drive around the area go to the shops and shopping centres! U might buy somewhere but hate the area!!!

Cooparoo is one suburb that might suit being town houses/units/Vila or green slopes.. Near buranda

I pay $1200 a year for body corp and that is cheap At mount gravatt east. If the property has a pool, lift, gym your body corp costs just go up big time! But it's only a. 15 min bus ride to cbd and hence I love that area.

If you go a house there is the land value and sub division potential to consider for future. Houses at banyo are under 400k close to rail on nth side

Good luck