Brisbane CBD New Unit - Thoughts?

[2ndIP]

Hi All,

In the process of buying my second IP and have been told that Brisbane is tipped to progress well with alot of supporting evidence around population, infrastructure, position of property cycle....etc

Have been advised that the below property may be a good option, would love to hear others thoughts on this property:

Upper Roma : 2bedroom + study + car space $525-550k, advised should rent for $635/wk

http://www.realestate.com.au/property-apartment-qld-brisbane+city-113860171

Thanks in advance for all help and thoughts from all

 

[alexlee]

Who did the 'advising'?

 

[2ndIP]

Property Buying group.....Blue wealth

 

[Jacque]

Property Buying group.....Blue wealth

I'm sure you're already well aware but keep in mind that buying groups such as these can't really qualify as "independent" property advisors, given that the new stock they are recommending to their clients is done so because they receive fees for doing so. Sure, they've run it through their analysis systems and fancy checkpoint methodology processes yadah yadah and it all looks great on paper but you need to do your own due diligence and be happy with the purchase. Caveat Emptor.

As an aside, I know Brissy a little having lived there for several years and holding a few IP's- for $100K more you can get a whole house around the corner in suburbs like Petrie Terrace, Paddo and Spring Hill.... have you considered this as an option at all?

 

[2ndIP]

Havent yet considered these area or dwelling type. The rationale for Brisbane CBD unit was the yield - have you much interest in these same properties?

Petrie Terrace, Paddo and Spring Hill - whats the general feel of these suburbs, renters, home owners, families? Might have to look into these areas more.

 

[alexlee]

Havent yet considered these area or dwelling type. The rationale for Brisbane CBD unit was the yield - have you much interest in these same properties?

Look at the costs as well. A building like that.... body corp would eat up a big chunk of that 'yield'. Lots of things that would require special levies in the future.

 

[gottabespotless]

Body corporate fees would be huge in a complex like that. Speaking from experience (and a lesson well learnt) I'd avoid it like the plague.

 

[marks]

And upper roma street can be really cut off from the city. It can be a fair walk to get back into the city and transport hubs such as rail & busway.

 

[Point Break]

walk the street, knock on doors and speak to others who have invested in similar.
Personally I would do a U bolt and not look back
My 2 cents

Be Careful

 

[Tim86]

http://www.realestate.com.au/property-house-qld-woolloongabba-113134555

Similar money, 3 k's from the city.

 

[2ndIP]

Whats the rental demand for the Gabba area? Love going there myself for a bite to eat and watch the footy but the yields look quite low? Guessing it the CG aspect of this suburb that is appealing?

 

[alexlee]

2ndIP, actually have a read of what people are saying.

Yield isn't the most important thing.

 

[Tim86]

Whats the rental demand for the Gabba area? Love going there myself for a bite to eat and watch the footy but the yields look quite low? Guessing it the CG aspect of this suburb that is appealing?

Depends. I think if you just rent out your place as normal, you'd get maybe 4.5% per year.

But because you are close to the University of Queensland, and pretty much everything else, you'd be able to rent out each room seperately. Get yourself a 5 bedroom house. Rent $150 per room, minus about $20 of that for bills that are included in the rent, and for a 5 bedroom house you see $650 per week. The house might have cost you $600 000. So 5.6% A bit better. Capital growth I think would be good. And you might get $170 a room if it's a decent place.

 

[gronk007]

If you like apartments, rent one.