Heading up to brisbane in two weeks :)

[eeew]

Hi All
Just an update.
Was in brisbane on the weekend
Landed 730am Saturday morning and left 7 Saturday night

Great trip with some great findings. Saw maybe 11-12 properties in Camp Hill, Coorparoo, Mt Gravatt, Mount Gravatt East and Bulimba.

JCamp hill looked like a nice neighbourhood compared to Coorparoo and Bulimba even nicer and given this both of the 2 bedder apartments I saw were north of 400k compared to the 2 bedders in coorparoo that were around 330-340k (Slightly lower north of old Cleaveland road and more expensive south)

The MT Gravatt places were all old houses, not sure if its just the ones i saw but it really made me think twice about the suburb. A lot of them looked like they could use a good 20k reno before renting them out again. I didn't see a single open house where the house was < 20 years old and didn't need some desperate TLC. Maybe i'm just being too picky or cautious as being out os state means i'd have to take some time off for a reno or hire someone to do it adding to the costs.

Questions

What are all the houses in the Mount Gravatt region old and fibrous? (or was I just unlucky?) ;-) Any nice roads/streets i should have looked at? I saw a properties on Tantallon, Cavendish and Creek roads

Bulimba - Seems like a blue chip upper middle class yuppie suburb? Thoughts on investment here? What are the growth prospects? I don't mind spending 450k on an apartment if the growth is there. Since 2011 the median property price seems to be stable and not really moving up or down. saw a nice place on Hawthorne road near oxford.

Camp hill - I'm getting mixed info on this area? Thoughts? Last few years the median property price hasn't really changed.

Coorparoo - Seems like a good investment. If I keep south of old Cleveland and find a nice road (any suggestions on streets/roads that are better than others) I should be fine.

My money would be on camp hill and the neighbours of coorparoo and carina heights for your budget. Your budget just won't get much in Bulimba, although it's a really nice area.I can't see anything 450 in Bulimba really growing more than equivalent in the camp hill area for the money.

 

[Evgen]

I've been checking Coorparoo 2br units online and found this attractive one:

http://www.realestate.com.au/property-unit-qld-coorparoo-119171143

What do you guys think? I reckon it's a good value for the quality unit with good location. It's also quite small complex which is also good as for me.

 

[Rixter]

I've been checking Coorparoo 2br units online and found this attractive one:

http://www.realestate.com.au/property-unit-qld-coorparoo-119171143

What do you guys think? I reckon it's a good value for the quality unit with good location. It's also quite small complex which is also good as for me.

Dont worry about what anyone else thinks Evgen. We dont know anything about your financial or personal situation.

After conducting your relevant Due Diligence and if it then stacks up, whether this investment is right for you, you need to ask yourself the following question-

Does purchasing this property move me closer to or further away from what it is I am wanting to achieve from property investing in the first instance?

I hope this helps by providing some food for thought.

 

[Azazel]

I've been checking Coorparoo 2br units online and found this attractive one:
http://www.realestate.com.au/property-unit-qld-coorparoo-119171143
What do you guys think? I reckon it's a good value for the quality unit with good location. It's also quite small complex which is also good as for me.

How many in the complex? It looks like they've split up a house.

 

[Evgen]

No idea. As for me it sounds even better if it's a split house.

 

[Evgen]

From the photos though it looks like a complex of about 4 or 5.

 

[Azazel]

Decent 812m2 block

11/04/2005 Sold Government Notified Sale (Normal Sale) Dwelling $750,000

4 x $330,000 = $1,320,000 (Edit: Looks like 4 letterboxes on Google St view)

Depending on how much it cost to reno them all, not a bad profit I guess.
But you would think a decent RE investment would double within 10 years anyway.

 

[Evgen]

Does not look like a good profit 10 years after purchase. However, with the Myer development I think it's going to get more CG.

 

[Richard Feynman]

I've been checking Coorparoo 2br units online and found this attractive one:

http://www.realestate.com.au/property-unit-qld-coorparoo-119171143

What do you guys think? I reckon it's a good value for the quality unit with good location. It's also quite small complex which is also good as for me.

Check the flood maps..

 

[Evgen]

Thanks for the reminder Richard. The flood map for that one looks good.

Overall, my only negative about the Coorparoo is quite high vacancy rate (various numbers, but looks like approx. 3.2% at the moment). What is your thinking guys about this?

 

[Evgen]

Dont worry about what anyone else thinks Evgen. We dont know anything about your financial or personal situation.

Thanks Rixter. I don't know much about Coorparoo yet. I was just curious about what's available on that market and what others think about that 2br as an example of IP in that suburb. As for me, the numbers look quite good and if I were to buy there I'd seriously consider that one.

As I mentioned before my only concert about Coorparoo is pretty high vacancy rate (3.2%). Any ideas why it's that high?

 

[Bran]

Thanks Rixter. I don't know much about Coorparoo yet. I was just curious about what's available on that market and what others think about that 2br as an example of IP in that suburb. As for me, the numbers look quite good and if I were to buy there I'd seriously consider that one.

As I mentioned before my only concert about Coorparoo is pretty high vacancy rate (3.2%). Any ideas why it's that high?

No idea.

This seems for units only, right? Relative oversupply?

I'm not a savvy investor by any stretch, but my basic impression is that despite the historical data, it just doesn't make sense to me that nearly limitless units can be built and we expect that these will increase in value. The more money they make, the more will be built.

A house on one block is already valuable, especially somewhere like Coorparoo.

The vacancy rate is next door Greenslopes is 0.9%, I haven't looked at any figures elsewhere

 

[Rixter]

As I mentioned before my only concert about Coorparoo is pretty high vacancy rate (3.2%). Any ideas why it's that high?

Evgen, data Im reading shows 2%, so I dont know where 3.2% comes from

Maybe check is across other sources. I find the most accurate sources are speaking with 2-3 PM's who are located in the area to gauge a better understanding.

I hope this helps.

 

[Evgen]

Got it from realestateinvestar web site. It's inconsistent across multiple sources. PMs should be the best source.

 

[hugh72]

While that vacancy rate if it is correct is not great it correspondes to only 1.6 weeks per year, not a problem and is partially a function of very low interest rates. More people can afford to buy. It may mean the rental market might be flat for a while IMO

 

[Rixter]

While that vacancy rate if it is correct is not great it correspondes to only 1.6 weeks per year, not a problem and is partially a function of very low interest rates.

Using Evgen's figures, I think you'l find the industry looks at as 3 IP's out of every 100 lies vacant at any one time.

 

[hugh72]

Thats true, 3% is considered a balanced market. That sort of vacancy rate could be explained by a 1-2 week turn in tenants in the few properties that become vacant so its not a concern IMO

 

[Rixter]

Thats true, 3% is considered a balanced market. That sort of vacancy rate could be explained by a 1-2 week turn in tenants in the few properties that become vacant so its not a concern IMO

Yep I think so too.

 

[lonerwolfman]

My money would be on camp hill and the neighbours of coorparoo and carina heights for your budget. Your budget just won't get much in Bulimba, although it's a really nice area.I can't see anything 450 in Bulimba really growing more than equivalent in the camp hill area for the money.

Thanks!
Thats what i was leaning too. I could stretch the budget and buy in bulimba but i think i'd be buying it thinking i could live there one day.

Coorparoo - Best parts to buy? I keep hearing south of old Cleveland road is the place to be given its more of a residential area compared to commercial. Would everyone share the same sentiments? I thought closer to a station would be a win!

Creek Road and Cavendish Road are the other two main roads bordering the suburb, I personally wouldn't buy on either, but I'm averse to noise. Access to Cav Rd helps with transport though, the bus runs down Cav Rd to the busway.

Good luck.

Hmm ok, i'll keep looking.

 

[gman65]

JCamp hill looked like a nice neighbourhood compared to Coorparoo and Bulimba even nicer and given this both of the 2 bedder apartments I saw were north of 400k compared to the 2 bedders in coorparoo that were around 330-340k (Slightly lower north of old Cleaveland road and more expensive south)

The MT Gravatt places were all old houses, not sure if its just the ones i saw but it really made me think twice about the suburb. A lot of them looked like they could use a good 20k reno before renting them out again. I didn't see a single open house where the house was < 20 years old and didn't need some desperate TLC. Maybe i'm just being too picky or cautious as being out os state means i'd have to take some time off for a reno or hire someone to do it adding to the costs.

Questions

What are all the houses in the Mount Gravatt region old and fibrous? (or was I just unlucky?) ;-) Any nice roads/streets i should have looked at? I saw a properties on Tantallon, Cavendish and Creek roads

Bulimba - Seems like a blue chip upper middle class yuppie suburb? Thoughts on investment here? What are the growth prospects? I don't mind spending 450k on an apartment if the growth is there. Since 2011 the median property price seems to be stable and not really moving up or down. saw a nice place on Hawthorne road near oxford.

Camp hill - I'm getting mixed info on this area? Thoughts? Last few years the median property price hasn't really changed.

Coorparoo - Seems like a good investment. If I keep south of old Cleveland and find a nice road (any suggestions on streets/roads that are better than others) I should be fine.

Mt Gravatt is post-war, which means the majority of homes in the area were built on the cheap, using the common material at the time (fibro - cheap, fireproof, durable.. ok they learned the bad bit later). There was a boom in Brisbane in the 50's, where a lot of what is now "Brisbane" sprung up, which means there are a lot of houses around the same ring and closer of similar types. A large number of Brisbane houses, esp 15km in are pretty cheaply built, and of much lower quality/materials than either Sydney or Melbourne.

For a good house/nicely renovated in that 15km radius or closer, as per rest of Brisbane, expect around $600k and up. Still cheaper than Syd or Melb, but don't expect miracles. A lot around that area are close to land value only, circa high $300k, add ~$100k for old house. There are a couple of smarter ones buying for pretty much land value only that are demolishing and building new, but not sure if that will spread. When you look at the some of the ren'oed places (yet still bad design, efficiency, etc) for $600k, the sums aren't that silly.

The reason they are for sale is because a) they are cheap because its LMR still in that side b) probably why you are looking at them c) no, they haven't been renovated, see a).

For Mt Gravatt East, the cheap part is filled with Government housing (maybe 1/5), and people aged 70-80 (another 1/5) who will be gone soon. Brisbane is not like Sydney or Melbourne, much less money going around, much less speculators, much less renovate and flog. There is still plenty of old and run-down places close to the city.

Coorparoo is ok area, but many units around that area and nearby so supply is pretty big. Most established Brisbane apartments have hovered for around 5 years around $300k mark, don't expect significant gains unless something changes. If you want to get early gains in either rent or value, small renovations are where the profit lies.

Bulimba is yuppie, closer to the river, closer to where the cool kids want to hang out. It may be worth the premium.