Brisbane South West Property Investment Strategy

Brisbane South West Property Investment Strategy from Brisbane Buyers Agent Alistair Kelsall will show you the right suburb and the right property to invest in and why in a simple and easy to understand way that will highlight and activities within the Brisbane property market that will lead to growth.

Investment Strategy Brisbane South

There is no better location in Brisbane where you can purchase a 4 bedroom 2 bathroom Brick and Tile home on land bigger than 400m2.

They return over 4.5% and are cash flow positive and the area attracts long term tenants. 

Author

Target Location

Target locations, undervalued suburbs 13 to 18 kilometres south of the Brisbane CBD.

Target Suburbs

  • Doolandella
  • Durack
  • Richlands

Fast Fact

Overview

In my opinion, the best type of investment property is one that is in a suburb that is low down on the property price cycle with room to move upwards and clear evidence of future market drivers. There is no point in purchasing an investment property in a popular suburb as demand will have increased which places pressure on the local market which. drives the values up. You end up paying top dollar for a property and have to wait for the next property cycle.

I look for the suburbs that are not popular right now but show clear evidence that the potential for future growth is there. 

Doolandella, Durack and Richlands are showing very strong signs of increased market activity and strong capital growth due to outer lying estates with small lot sizes selling for the same price as a bigger lot size, closer to the Brisbane CBD. 

General Comments

The main focus of this strategy is based on the Suburb of Doollandella and in particular north of Blunder Road where the properties are of a higher quality.This strategy includes Durack which is slightly closer to the Brisbane CBD and Richlands.We do not purchase in Inala, we do purchase in Durack.Doolandella is a suburb that is relatively close to the Brisbane CBD with a low price tag. There are very few suburbs left where you can buy a property on a good-sized block of land this close to the city for under $500K.

Access to Brisbane is relatively simple with access to Ipswich Road, which then leads directly into the city. The suburb is positioned well to access all parts of Brisbane and the South East Queensland region with access to the Logan Motorway taking you to the Airport, the Sunshine Coast and the Gold Coast with relative ease and speed.

This is a suburb that is going to increase in value over the next 5 years as land gets harder to source this close to Brisbane. New developments affecting this suburb are in Pallara and Richlands where block sizes are getting down to 300 m2.

Property Criteria

The Criteria I have selected for property in this area are as follows :

  • Budget $500K – $600K
  • As close to Brisbane CBD as budget allows
  • Largest Block of Land within Budget
  • Brick and Tile Construction
  • 4 Bedroom 2 Bathroom Double lock Up Garage
  • Cash Flow Positive
  • Strong Capital Growth
  • Low Vacancy Rate
  • Ceiling Fans in all Rooms
  • At Least 1 Air Con to Main Living Area

Example Property

Doolandella Investment Property

Location Map

Buyers Agents Comments

Doolandella has long been one of our favourite locations in Brisbane due to its relatively cheap land prices, distance to Brisbane and the higher median house prices of adjoining suburbs like Oxley.

Located just 16 kilometres South of Brisbane it is one of the few locations where you can buy a good sized property this close to Brisbane for under $550K.

The neighbouring suburb of Oxley has a median house price of $570,000 for a 4 bedroom house whereas the median house price for the same property in Doolandella is $511,000. But what is going to really drive this market is the new estates coming online right now with much smaller land sizes.

There is only one pocket of Doolandella that we purchase in. There are a number of newer estates located on the Northern side of Blunder Road that contain many newer housing estates that are less than 10 years old. Properties here are typically 4 bedroom 2 bathroom brick and tile homes on block sizes averaging 500 m2. The Southern side of Blunder road contains many older homes that at this stage we do not purchase. This side of the road contains cheaper older homes which at this stage we can purchase the same type of property in the suburb of Durack, slightly closer to Brisbane.

Why Invest in Doolandella

This area is going to be in high demand in the next 5 years. It’s a suburb where you can still purchase a very big home relatively close to the city for under $550,000 and receive strong returns.

It’s not about how it looks now, it’s all about how it will look in the future and this is one of the few suburbs that is affordable with good-sized blocks of land.

Market Drivers

There are 6 major new estates either selling now or under construction. These new estates are being based on smaller lot sizes of around 300 m2 of land at a higher price than you can pay for larger blocks of land only 500 meters away from one estate.

Remember it’s the land that is the highest value part of a property. 

Not Every Part of Doolandella is right for investment. There is a little pocket of newer homes that were built by Ausbuild less than 12 years ago. These are the homes we want for clients with a budget under $500k.  Those with a lower budget of around $400K go onto a completely different strategy that will also benefit from the new estates.

Median Property Price Trend

Property Price Cycle

The chart below shows the current position of the price cycle for the suburb of Doolandella 

Local Schools and Child Care

Comparable Properties Further Out

The 2 properties below are real-life examples of properties available right now for sale. Note the land sizes and the property prices.

Investment Strategy Post Template
Investment Strategy Post Template

Example Properties

The example properties below are real-life actual homes purchased for my clients. The read me button will take you to the actual property where you will find further information and a virtual tour. 

Summary

If a properties value is measured primarily by its land value. And the closer the land is to the CBD, the higher its value. Then does it not make logical sense that in the future Doolandella and Durack are going to see significant capital growth in order to correct the high land values currently seen in suburbs further out from the Brisbane CBD. 

Further to that point, it would make logical sense that 5 years plus into the future, these bigger properties closer to the Brisbane CBD are going to be in higher demand than the smaller lots located further out. 

Free Property Consultation

Tell Me About The Property Your Are Looking For, Your Goals & Objectives & I will Provide You With a Free 30 Minute Phone Consultation.