How about Ipswich QLD?

fyang1024

fyang1024

This is my first poster for my first IP, although I joined the forum a while.

A real estate company pushed me to buy their new development(to be finished next year) in Mackay at the price of 380k for 3bedroom/2bathroom townhouse on Blacks Beach Road, Mackay.
Since I'm based in Sydney and not familiar with QLD market, I did quite a bit searching on the web and this forum, I feel it is perhaps not a good investment.
I happened to notice Ipswich could have a greater potential as a lot of infrastruture construction and rebuiding is planned by the government. And the household is expected to increase 170% by 2026.

This will be my first investment. I don't wanna fail to frustrate myself.

Any ideas/suggestions?

Thanks in advance, guys.
 
Besides being closer to Brisbane's CBD, and therefore more likely to have better capital growth in the long term, Ipswich itself is slated for much expansion in the coming decade. I would definately choose somewhere there over Mackay any day. Personally, I like the suburb of East Ipswich, but it's probably getting expensive nowadays.
 
Hey but if you're taking advice from me as to where to invest, I'd still choose inner Brisbane over Ipswich!

I think the main thing is though, don't let yourself get pressured by a real estate company.
 
I was also thinking of inner Brisbane, because the rent should be better. But my budget is about 300k and I heard house is better in terms of long time CG. These 2 factors leads me to thinking of Ipswich.

ianvestor, I would appreciate it if you could point me to some suburbs in Brisbane?
 
fyang1024 said:
I was also thinking of inner Brisbane, because the rent should be better. But my budget is about 300k and I heard house is better in terms of long time CG. These 2 factors leads me to thinking of Ipswich.
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Fyang, do you mean the rental will be better in DOLLAR terms, or % terms? Higher rent in dollar terms doesn't mean all that much if the price is also higher.
Alex
 
alexlee said:
Fyang, do you mean the rental will be better in DOLLAR terms, or % terms? Higher rent in dollar terms doesn't mean all that much if the price is also higher.
Alex
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Alexlee, really I mean it in % terms. For example, in Brisbane central, a 1bedroom/1bathroom sells at 300k and its rent is like 350-450/pw; while in Ipswich, a 300k 3bedroom house's rent is about 250-300/pw as I searched so far. Not sure how close it is to the reality?
 
fyang1024 said:
Alexlee, really I mean it in % terms. For example, in Brisbane central, a 1bedroom/1bathroom sells at 300k and its rent is like 350-450/pw; while in Ipswich, a 300k 3bedroom house's rent is about 250-300/pw as I searched so far. Not sure how close it is to the reality?
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You're not including body corp into this, which will change your numbers significantly, not to mention future potential in terms of land content. Body corp on a unit in a building with lots of expensive perks might be 1% of the purchase price a year?
Alex
 
alexlee said:
You're not including body corp into this, which will change your numbers significantly, not to mention future potential in terms of land content. Body corp on a unit in a building with lots of expensive perks might be 1% of the purchase price a year?
Alex
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Actually I agree with you, Alex.
 
Also you might want to consider that your % capital growth for a 3 bed house with land tend to be larger than for a 1 bedroom flat.

Cheers

kaf
 
I prefer to take into account only half the body corps as this expense covers building insurance, exterior cleaning, maintenance of landscaping and basic maintenance that you have to pay for yourself on a house. Body Corps also include sinking fund payments for future expense such as exterior painting, replacement of gutterings etc.

Body Corps are not simply an extra payment, they include items that have to be paid for if you own a house.

Having said that, do your sums....
Marg
 
My own experience has been that maintenance and insurance for a house is cheaper than body corp for a similar priced unit, and mine don't have pools or anything like that.
Alex
 
fyang1024, obviously make sure you do your own research, but if I had a budget of $300k, I would look as close to the CBD as possible for a 2 bedroom unit in a small botique block (eg. 4 to 6 units, definately no more than 8 units).

You won't be able to get a house for that price close to the city, however a unit in a small block (I'd really stick to 6 or less), will still have a good land component.

Get yourself a poster-style street map of the Brisbane area - The UBD brand does a good one for about $9 and it's got the perfect zoom - about 8km around the CBD.

For specific suburbs, I'm not sure I'd want to recommend any because for me that comes down to gut feel, after getting to know the city for 15 years, but generally I like Western suburbs (Actually this kind of brings the conversation full circle as the Brisbane-Ipswich corridor is set to expand).

-Ian
 
ianvestor said:
fyang1024, obviously make sure you do your own research, but if I had a budget of $300k, I would look as close to the CBD as possible for a 2 bedroom unit in a small botique block (eg. 4 to 6 units, definately no more than 8 units).

You won't be able to get a house for that price close to the city, however a unit in a small block (I'd really stick to 6 or less), will still have a good land component.

Get yourself a poster-style street map of the Brisbane area - The UBD brand does a good one for about $9 and it's got the perfect zoom - about 8km around the CBD.

For specific suburbs, I'm not sure I'd want to recommend any because for me that comes down to gut feel, after getting to know the city for 15 years, but generally I like Western suburbs (Actually this kind of brings the conversation full circle as the Brisbane-Ipswich corridor is set to expand).

-Ian
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Thank you very much, ianvestor, alex and eveybody here. I'll take action in January anyway and let you know what's going on after that.
 
ipswich

ianvestor said:
Besides being closer to Brisbane's CBD, and therefore more likely to have better capital growth in the long term, Ipswich itself is slated for much expansion in the coming decade. I would definately choose somewhere there over Mackay any day. Personally, I like the suburb of East Ipswich, but it's probably getting expensive nowadays.
Click to expand...


Hi guys this is the first time that I am on this forum and wanted to add my 20 cents worth re: ipswich. I work for a large development compnay as a developmnet manager and we build spec homes all over QLD and recently we build a few in Ipswich for a investor couple. Yes we made a profit but the real winner were the investors who build 4bed, 2 bath double garage home total cost was $325k and sold for $375. That $50k profit for doing very little - not too bad I say.
 
ml320 said:
Yes we made a profit but the real winner were the investors who build 4bed, 2 bath double garage home total cost was $325k and sold for $375. That $50k profit for doing very little - not too bad I say.
Click to expand...
Is that profit after tax, the 50 k would be blown out the back door very quickly if it's before tax..willair..
 
fyang1024 said:
I happened to notice Ipswich could have a greater potential as a lot of infrastruture construction and rebuiding is planned by the government. And the household is expected to increase 170% by 2026.

.
Click to expand...

No ones mentioned it, but isnt

And the household is expected to increase 170% by 2026.
Click to expand...

less than average?

Also

This is for houses,

One version of 10 year trend (RP data in your investment property mag. 2007) shows

Ipswich 9.6% over 10
Blacks Beach 12.7% over 10

Compared to 10 year trend (Aust. Prop Monitors in API mag jan.2008)

Ipswich 13.1% over 10
Blacks Beach 12.0% over 10

Who to believe?




Dave
 
willair

That's gross profit. Sorry I should have been more specific, this couple buy land and build about 10 - 12 homes per year with our company. At 20k a pop x 10 homes per year that's pretty good going, considering they both have F/T jobs
 
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