Bundaberg, Colundra, Yamanto, Chemside or Kawana Waters for first IP?

[Speedracer]

Hello,

I am a Sydney resident still searching for my first NRAS investment property. I have been focusing on QLD and ideally would like a Land and House package under 400K but I do like the idea of a unit in Brisbane. After recently giving up on Gladstone I have narrowed down my options to Three Land and House packages (Bundaberg, Colundra, Yamanto); One off the plan unit (Chemside) and One apartment (Kawana Waters).

However I need help to filter this list down to one or two so any advice as to everyone?s picks as the areas that has the best chance of long term capital gain as well as a bit of early growth to help my equity. Any insight would be greatly appreciated.

Property 1:

Suburb: Chemside, Brisbane.
Type: Unit (Off the Plan)
Size: 84sqm

Price $390,000K
NRAS - After Tax Cash Flow $10,975
Rent: $310

Capital Growth prospects: ??

----
Property 2:

Suburb: Kawana Waters, Sunshine Coast.
Type: Town House/Apartment - 2 bedroom
Size: ?

Price $355K
NRAS - After Tax Cash Flow $9000 ish
Rent: $270

Capital Growth prospects: Hospital development

----

Property 3:

Suburb: Branyan, Bundaberg. http://www.realestate.com.au/neighbourhoods/branyan-4670-qld
Type: Land & House
Size: 684 sq mt

Price $395,990K
NRAS - Return about $120pw
Rent: ?? Currently Tenanted

Capital Growth prospects: ??

---

Property 4:

Suburb: Colundra
http://creekwood.com.au/

Type: Land & House
Size: 350 sqm
4 bedroom *off-plan*

Price: $438K
NRAS ? After Tax Cash Flow $7,839
Rent: $300

Capital Growth prospects: ??

---

Property 5:

Suburb: Yamanto, close to Ipswich QLD. (2 kms south of CBD) http://www.realestate.com.au/neighbourhoods/yamanto-4305-qld
Type: Land & House
Size: 800 sq mt

Price: $399K
NRAS ? Return is Neutral
Rent: $350-360 weekly rent expected to increase to $360 - $365

Capital Growth prospects: ??

 

[strongy1986]

You would be mad to buy a house and land package in bundaberg for 400k

 

[Speedracer]

You would be mad to buy a house and land package in bundaberg for 400k

Well, i guess i can knock that one off the list. What do you think about $400K at Yamanto?

 

[strongy1986]

Also mad

Seriously for 400k you can buy a house on a decent size block in suburbs much closer to Brisbane or look at something bayside

You'll look back in ten years and be happy you went for the older house in a better area on a bigger block

 

[Speedracer]

Also mad

Seriously for 400k you can buy a house on a decent size block in suburbs much closer to Brisbane or look at something bayside

You'll look back in ten years and be happy you went for the older house in a better area on a bigger block

It's the depreciation of a new block and cash flow form NRAS that we want. I know that you pay a premium but surely Land and house packages make sense in some areas.

 

[Angel]

It's the depreciation of a new block and cash flow form NRAS that we want. I know that you pay a premium but surely Land and house packages make sense in some areas.

Not in South East Qld where there is miles and miles of open space all around them waiting to be released as your competition. No potential capital growth in the far outer suburbs. Nor in western Melbourne, just in case you ask that question tomorrow.

I have studied NRAS and it is on my radar, but it would have to be what we call an infill location. By that I mean a small townhouse development in an inner or mid ring suburb of a capital city or a new house in a very large regional city. Again preferably a development rather than a housing estate out in the boonies.

By the sounds of it, you are reading too many sales brochures and not enough Somersoft. You want depreciation and you want the cash flow that NRAS offers. Do you realise that if you want depreciation as your major reason for investing, then you would have to be on a very high income. In that case, you can well afford the cash shortfall of buying a higher priced house on a developable city block for around 500K. Please understand that depreciation is the icing on the cake and not the primary reason to buy a house. If you believe otherwise then maybe you might want to do more research and Due Diligence.

BTW, good on you for asking questions rather than rushing into something you might regret later.

 

[Bigtone]

Not in South East Qld where there is miles and miles of open space all around them waiting to be released as your competition. No potential capital growth in the far outer suburbs. Nor in western Melbourne, just in case you ask that question tomorrow.

I have studied NRAS and it is on my radar, but it would have to be what we call an infill location. By that I mean a small townhouse development in an inner or mid ring suburb of a capital city or a new house in a very large regional city. Again preferably a development rather than a housing estate out in the boonies.

By the sounds of it, you are reading too many sales brochures and not enough Somersoft. You want depreciation and you want the cash flow that NRAS offers. Do you realise that if you want depreciation as your major reason for investing, then you would have to be on a very high income. In that case, you can well afford the cash shortfall of buying a higher priced house on a developable city block for around 500K. Please understand that depreciation is the icing on the cake and not the primary reason to buy a house. If you believe otherwise then maybe you might want to do more research and Due Diligence.

BTW, good on you for asking questions rather than rushing into something you might regret later.

I have quoted this so you read it again, spot on IMO

 

[Speedracer]

Not in South East Qld where there is miles and miles of open space all around them waiting to be released as your competition. No potential capital growth in the far outer suburbs. Nor in western Melbourne, just in case you ask that question tomorrow.

I have studied NRAS and it is on my radar, but it would have to be what we call an infill location. By that I mean a small townhouse development in an inner or mid ring suburb of a capital city or a new house in a very large regional city. Again preferably a development rather than a housing estate out in the boonies.

By the sounds of it, you are reading too many sales brochures and not enough Somersoft. You want depreciation and you want the cash flow that NRAS offers. Do you realise that if you want depreciation as your major reason for investing, then you would have to be on a very high income. In that case, you can well afford the cash shortfall of buying a higher priced house on a developable city block for around 500K. Please understand that depreciation is the icing on the cake and not the primary reason to buy a house. If you believe otherwise then maybe you might want to do more research and Due Diligence.

BTW, good on you for asking questions rather than rushing into something you might regret later.

Very true, i am reading sales brochures and tempted by the easier options. Finding time to do the hard work and find properties as suggested is challenging and I just don't have the time. As a mid -income earner, depreciation benefit is limited to an extent and cash flow is the most important.

 

[strongy1986]

Well with Brisbane shaping up the way it is I would buy for capital gains. Mind you , you can still get a 5% yield in good areas which will negate your interest expenses at 5%. So all you will need to fork out us rates , management fees and insurance., done maintenance so say 5k all up or 3.5k per year in after tax money
Give it a couple of years and your 400k might now be 500k. Take out some equity and then maybe focus on cash flow properties.

I just think Brisbane is going to boom 'I hate that word' in the be t couple of years and it would be a shame to miss out for some depreciation benefits

 

[Angel]

Chermside then, if you must

From your list of suburbs, you could get an existing property at Chermside. It is already an exxy suburb, but at least it ticks all the investment boxes, if you don't mind paying top dollar for something that will certainly give some growth.

 

[Angel]

Very true, i am reading sales brochures and tempted by the easier options. Finding time to do the hard work and find properties as suggested is challenging and I just don't have the time. As a mid -income earner, depreciation benefit is limited to an extent and cash flow is the most important.

Contact our local Buyers Agent, Andrew Allen. Pay him the fee to do it for you. Simple. You will make up the fee within a few months of CG.

 

[Brady]

Contact our local Buyers Agent, Andrew Allen. Pay him the fee to do it for you. Simple. You will make up the fee within a few months of CG.

I don't personally use a Buyers Agent, don't have the need. But sounds like the OP definitely does.

Andrew Allen has been recommended on SS many times before, might be worth a call.

The initial costs of the BA could save you in CG

 

[Brady]

Not in South East Qld where there is miles and miles of open space all around them waiting to be released as your competition. No potential capital growth in the far outer suburbs. Nor in western Melbourne, just in case you ask that question tomorrow.

I have studied NRAS and it is on my radar, but it would have to be what we call an infill location. By that I mean a small townhouse development in an inner or mid ring suburb of a capital city or a new house in a very large regional city. Again preferably a development rather than a housing estate out in the boonies.

By the sounds of it, you are reading too many sales brochures and not enough Somersoft. You want depreciation and you want the cash flow that NRAS offers. Do you realise that if you want depreciation as your major reason for investing, then you would have to be on a very high income. In that case, you can well afford the cash shortfall of buying a higher priced house on a developable city block for around 500K. Please understand that depreciation is the icing on the cake and not the primary reason to buy a house. If you believe otherwise then maybe you might want to do more research and Due Diligence.

BTW, good on you for asking questions rather than rushing into something you might regret later.

Great post!

 

[eeew]

From your list of suburbs, you could get an existing property at Chermside. It is already an exxy suburb, but at least it ticks all the investment boxes, if you don't mind paying top dollar for something that will certainly give some growth.

I would probably agree here. Of the suburbs the OP has listed, Chermside is the only one that I would consider. The others are either too far/regional or too small and thus high risk.
Chermside is more of a sure shot than the others, but as the above poster has noted, you will be paying a price for that stability of being closer to a bigger city [Brisbane]. Over the long term, the locality of inner and mid-ring Brisbane [most capital cities really] suburbs will deliver more consistent and stronger gains than smaller and more risky/speculative plays like say Yamanto [which is 45km from Brisbane]

 

[Speedracer]

I would probably agree here. Of the suburbs the OP has listed, Chermside is the only one that I would consider. The others are either too far/regional or too small and thus high risk.
Chermside is more of a sure shot than the others, but as the above poster has noted, you will be paying a price for that stability of being closer to a bigger city [Brisbane]. Over the long term, the locality of inner and mid-ring Brisbane [most capital cities really] suburbs will deliver more consistent and stronger gains than smaller and more risky/speculative plays like say Yamanto [which is 45km from Brisbane]

Thanks for the tips everyone. Much appreciated. I am feeling good about Chermside and Kawana Waters but I will get speaking to a buyers agent as well.

 

[Ausprop]

some time back i posted up a bundaberg nras property, after pages of debate even the nras experts conceded it was a good deal. I ended up taking it up myself... large land holding yielding 10% mostly tax free, hard to see the downside

 

[strongy1986]

some time back i posted up a bundaberg nras property, after pages of debate even the nras experts conceded it was a good deal. I ended up taking it up myself... large land holding yielding 10% mostly tax free, hard to see the downside

The downside is that you can buy houses on subdividable blocks for under 200k

It would be fairly easy to get 8 or 9 % on these

Yet this one is almost 400
I think 300 would have been a fairer price

Even then I would be worried about capital growth

 

[Angel]

some time back i posted up a bundaberg nras property, after pages of debate even the nras experts conceded it was a good deal. I ended up taking it up myself... large land holding yielding 10% mostly tax free, hard to see the downside

Yes, true. NRAS is basically a good thing.
May we ask, how much is it worth now compared to the price you paid for it?