Cheaper ‘suburbs which may have a bad rap’ now hot for investors

Where others can’t look past crime or rundown housing, Justin Picker sees solid potential, which is why nine of his 15 properties are in cheaper outer Brisbane suburbs primed for gentrification.

Mr Picker’s current Greater Brisbane portfolio includes Woodridge – ranked the second cheapest suburb to buy a house in the middle ring – as well as parts of Caboolture, Logan, and Ipswich.

He loves “that kind of Logan Beenleigh area, suburbs which may have a bad rap”.

“Some of those properties I probably wouldn’t live in myself personally but they are fantastic investments. There are plenty of tenants who need a roof over their head and it’s a very central location. I do believe that over time, these areas will gentrify.”

“Most of them are within 45 to 50 minutes of the Brisbane CBD. You want to be in these areas that are sustainable, which you know are going through gentrification and also close to amenities.”

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Picker Financial Solutions director Justin Picker, 30, has 10 of his 15 properties in Queensland.

“A really good thing about that South East Queensland corridor is the amount of amenities in shops, schools, shopping centres, train lines, all those essentials are in very close proximity compared to somewhere like Sydney where it’s just crazy and you pay a ridiculous amount.”

Mr Picker said properties in cheaper suburbs could hold upwards of 6 per cent rental return, a solid number in a time of rising rates.

“This is where having a high yield is very, very important to ensure that it’s covering your expenses, 6-9 per cent yield would always be good if you bought these properties for sale at $150,000 to $300,000.”

Mr Picker said the only way for prices in Brisbane was up given everything it had coming in the next decade.

“When we think of Brisbane being on the international stage in nine years’ time for the Olympics, there’s strong value that you’re getting for those properties being so close to something like that,” he said.

“The projects and government spending that’s going to have to go into that area, as well as the interstate migration from Sydney and Melbourne, with the affordability there now, I do believe that the only way really is up.”

Article source: Queensland Property Investor