10yr ave yield Brighton, Qld

[Ecogirl]

Hi guys
I wasn't sure where to put this thread. I'm doing an exercise on working out 'true value' thru the Navra 'Rental Reality' scenario.

I was wondering if someone could tell me what the average yield (last 10yrs) is for Brighton in Qld.

I've seen a property listed for $290k renting for $200/wk for a 3 bed, 2 bath on 653m2 in Brighton. Located close to the water and shops, I'm wondering if it is a good buy.

Any info would be appreciated. Thanks
Ecogirl

 

[Jamie]

Hi Ecogirl,

The latest issue of Australian Property Investor has the ten year rental yield in Postcode 4017 as 6.31%. This includes suburbs such as Bracken Ridge and Sandgate, as well as Brighton, so not sure how representative it is of the suburb you are looking for.

I dont really want to comment on the property youre looking at, but if you work out the rental reality using the ten year yield for that postcode youll find the property might be way overpriced based on that formula.

Best wishes,

Jamie.

 

[Ecogirl]

Thanks Jamie

So that means the true value of the property based on the navra rental reality scenario is $164 817.

ie true value =(200*52)/6.31%

If this is correct then the property is over priced using this method. Interesting. I forgot to mention that it also has a study that can be used as a bedroom.

Would someone buy this for the capital gain benefits for the long term? Is this typical of the Bris market at the moment?

Ecogirl

PS: I'm not planning on buying the property, I'm interested in the Bris market at the moment.

 

[JumJones]

It would probably be a little more meaningful if you could single out the yield for Brighton in particular. Is it an average house for the area, so you are confident the yield figure is correct? Have you rung any REAs to confirm?

Are there any short inexpensive (<5K) improvements that could be done to the place to up the rental amount?

What is the age of the house? Is it close to private schools

What else are you considering when asking " I'm wondering if it is a good buy.
"?

Any other due diligence aspects you have considered?

 

[willair]

Ecogirl,
imho,one simple item to keep in mind is Brisbane covers a very large area.
The rapid and substantial price increases over the last 3 years are starting to slow
some inner city areas are better off avoided,everyone i talk to has a different
conclusion on what will happen over the next 2 years ,i only look at the relationships
between sales volumes and prices they tell the ture story.anyway ill jump back under my rock now.
good luck.
willair..

 

[SANDY]

Re: Capital Gain Brighton. You've already missed the best gains. As someone who lives locally these properties 2 years ago were less than $200k on average & have taken off on the back of the increases in Shorncliffe & Sandgate. The increased interest in Brighton is due to these 2 suburbs in general platueing or falling slightly over the last 6 months.Even some of the quality properties are taking longer to move. The Brighton area varies in quality & aspect from hilltops over looking the bay to low lying areas near mangroves & renovated queenlanders to small workers cottages.
Homes in the Bracken Ridge area are more modern (read brick mostly) with the new estates that have been progressivly opened up over the last 20 years.
In my opinion without having viewed the property I would probably wait 6 months. I personnally believe much of the area is over valued unless it is an exceptional property but then I probably believe mine is worth more.

Sandy

 

[thefirstbruce]

I have a long history living near this area, and agree with Sandy. I've been watching Sandgate/Brighton for 6 months and believe Brighton in particular is overpriced. The area has a very mixed demographic so you have to be careful where you buy. I don't know how strong rental demand is either. Most people have to commute towards town from here. Personally, I think you are better buying IPs around Geebung Banyo way.

A friend just paid $340k for a lowset chamferboard, away from the foreshore in Brighton. But it was a house behind her son and daughter in law, who she wanted to be close to. far too much in my eyes.

As for Bracken Ridge, it is hard for me to overcome my bias against most of this suburb. it was quite housing commission-ish years ago.

 

[Ecogirl]

thanks guys for the feedback
it just goes to show how important due diligence is when looking at new IPs. it seems that emotions are still running high and ppl are paying above the real value of the house.

cheers
Ecogirl

 

[Steve Navra]

I was wondering if someone could tell me what the average yield (last 10yrs) is for Brighton in Qld.

Hi Ecogirl,

Rental reality is basd on the 5 year average yield!
(Ten years is too long ago . . . inflation and economic conditions were very different that far back.)

As far as I know, the best place to source the rental yield figures is through Residex. (At approx $62-00 per code.) I agree that including other suburbs in the postcode might give a less accurate result . . . however it should still give a good 'ballpark' indication.

regards,

Steve