First time investor - Toowong, QLD (4066) / Serra property?

J

jdenhaan

Hello all,

I'm a first time investor (31, 90k income, 50k savings) based in Sydney, looking to invest about 4000-450k. I'm a bit intimidated by the market in Sydney at the moment, which I feel has peaked and in the long run might not be sustainable.

I'm therefore looking into OTP property in Brisbane and so far my eye has fallen on the suburb of Toowong, 4066. It's not too far from the CBD, is well connected by road, train and bus, has a sizable professional population, has a shopping village, good schools and just seems like an overall decent and stable suburb to get started in.

I found this particular development, which seems to tick all the boxes for me on paper: http://www.realestate.com.au/property-apartment-qld-toowong-117022379

My questions are:

- Is Toowong a good place to get started? Is there any growth potential?
- Does anybody have any experience with this particular developer Serra Property?

Thanks!
 
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Hi

It is well located and from my understanding they have reached the presales requirement of their funder which means that construction can commence.

Serra have not done something of this size before but have done plenty of smaller stuff.

Other ones that we have been having a lot of people buying are Liberte at Kangaroo Point and also Tom Dooley's Skyring @ gasworks at Newstead
 
I to am looking into OTP units in inner Brisbane. I'm a little worried about the possible over supply. I might hold off for the next year or so and try and grab another unit in Sydney I can add value to.
 
I'm afraid Sydney is not an option for me given my budget. But if anyone knows any other good suburbs in Bris, I'll happily take any recommendations :)
 
I'm afraid not. I'm really going off what I can find on the web. I have registered for interested and have requested a few floor plans within my budget. The 384k unit is without car space and only offers a motorcycle spot. Arguably a car space might not be necessary given how well connected this location is.

The M type units seem of a rather oddly thinly stretched shape (thin and deep); I wonder how practical these are compared to the more conventionally shaped "G" type units.

Let me see if I can post some images when I get back to my computer tomorrow.

The liberte project posted here earlier seems interesting too. Registered there as well :)
 
I live in St Lucia which is right next to Toowong. I would also have a look at St Lucia and Taringa, which is also next to Toowong.

Taringa is slightly cheaper than the other two

All 3 suburbs are close to the CBD and The University of Queensland (within a 30min walk)

Here is some info on the vacancy rates and number of vacancies:
Taringa, 3.8%, 179 vacancies
Toowong, 4%, 181 vacancies
St Lucia, 3.3%, 93 vacancies

Personally I wouldn't buy in a development with that many units. But that depends on your investment strategy and what your goals are.

Cheers
Andrew
 
superAndrew said:
I live in St Lucia which is right next to Toowong. I would also have a look at St Lucia and Taringa, which is also next to Toowong.

Taringa is slightly cheaper than the other two

All 3 suburbs are close to the CBD and The University of Queensland (within a 30min walk)

Here is some info on the vacancy rates and number of vacancies:
Taringa, 3.8%, 179 vacancies
Toowong, 4%, 181 vacancies
St Lucia, 3.3%, 93 vacancies

Personally I wouldn't buy in a development with that many units. But that depends on your investment strategy and what your goals are.

Cheers
Andrew
Click to expand...
Why not if I may ask? Is that because of strata fees?

I'm really looking for something to get me started in the property market. I'm looking for something that's safe (ie close to a CBD, where the work is and -it being Brissie- at a level that cannot be flooded), doesn't require any major overhaul (new / under builders warranty) and can be managed easily (no gardens, fences, trees, etc).
 
Why not if I may ask? Is that because of strata fees?
Click to expand...

No. It's fact that you will be competing in price and rent with 100's of other units in the same building, when it comes time to sell or rent out. Most of them will also have the same floor plan.

There were some smaller developments last time I had a look.

Cheers
Andrew
 
Hi jdenhaan. Toowong is a very popular place to live (yes, I have an interest in Toowong).

It has excellent transport connections (bus, train and ferry) to the city, uni and Indro, and attracts a mix of students and professionals. The main street has a good mix of shops/restaurants and there is a major shopping centre. It should also benefit from the Legacy Way tunnel which will open next year.

The shopping centre is halfway through a $50M redevelopment, including the station and a new dining strip. The huge Woolworths site has been approved for a 20 storey tower and multi-use "precinct" at street level - although there's no sign of action on this yet.

The 38 High Street development is the biggest of several unit developments going up around the area (mainly 8-12 units, more boutique style). A lot of sites that have been vacant for years are suddenly being developed.

Prices for units have risen slowly in the past few years, and there probably is a risk of over-supply in the short term. However, long term I think Toowong is a great choice due to its location and transport connections.

edit: oh yeah, you're right about the schools too...St Ignatius, Toowong Primary, BBC, all excellent schools.
 
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jdenhaan said:
Hello all,

I'm a first time investor (31, 90k income, 50k savings) based in Sydney, looking to invest about 4000-450k. I'm a bit intimidated by the market in Sydney at the moment, which I feel has peaked and in the long run might not be sustainable.

I'm therefore looking into OTP property in Brisbane and so far my eye has fallen on the suburb of Toowong, 4066. It's not too far from the CBD, is well connected by road, train and bus, has a sizable professional population, has a shopping village, good schools and just seems like an overall decent and stable suburb to get started in.

I found this particular development, which seems to tick all the boxes for me on paper: http://www.realestate.com.au/property-apartment-qld-toowong-117022379

My questions are:

- Is Toowong a good place to get started? Is there any growth potential?
- Does anybody have any experience with this particular developer Serra Property?

Thanks!
Click to expand...

Brisbane is going to get get overbuilt . However I think prices will still rise even though rental yields will drop.OU NUMBERS

There are better avenues for early capital growth.

Looking at your numbers, a sharp rise in interest rates and a rental vacancy period could be painful.

You don't need to follow the heard to Brisbane. There are areas of infrastructure growth and scarcity that create more safety.

If you would like some locational 3rd party research PM me and Ill try and send it to you.

Jerry Parker
 
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