Investing in Queensland

[Nash]

My husband and I have just returned to Vic. from a week looking at Real Estate in Brisbane/Gold Coast.

We had 8 days - spent 3 days in Redcliffe where we found the RE agents less than helpful. Rent returns are just not there.

Down to the coast - stopped off at Ormeau - very new area - 349 new b/permits issued in last 12 months. Infrastructure not quite there yet - school not being built until 2005 - lots of building going on. Seems like it could be a good investment - does anyone know about this area? They seem to like building duplex in Qld. seems like a good idea to start in Qld.

On to Southport - Hookers took us to University housing - competion June. 3bdrms - good rent. Anyone been involved with uni. housing?

Great exercise checking out the areas as researching on the i/net is not the same as being there and feeling the vibes of the places. Southport rather old and a bit daunting as well - soooo many units on offer - lots of them need work.

 

[Sunstone]

Dear Denice,

Sorry to hear you did not find what you were looking for in QLD.

Sometimes:
-Our expectations are higher than reality.
-Markets can change. I know that I can no longer get my 10%+ gross yields for brick, tiled roof easy walking distance to the station in the same area. However I simply modify my strategy slightly and now I am getting 11%+ by changing the mix.
-Research is not done thoroughly enough.
-We are too impatient. How many great deals are just waiting there? If I went into the market today and said I just HAVE to buy would I get the best deal? Or do I have to research my area and then wait for the great deal to come up? (My latest purchase I got from an 85 year old that had lived in the property for 53 years. Long story but this is not a property that comes up every week. If it was would it have been such a great purchase?)
-Are you trying to cover a too big an area? Redcliffe to Southport? Sometimes in trying to cover too many areas briefly or trying to be an expert in too many things the old saying rings true. Jack of all trades but master of none? How could this possibly impact on your IP search?

Anyone been involved with uni. housing?

Ongoing stream of tenants. Increased vacancy rates during the holiday periods. Niche market. Do some more research, if it fits with your IP strategy there will always be some demand for this type of IP.

Cheers,

Sunstone.

 

[BUNDY]

I'd be cautious with ormeau. Not quite the Coast, not Brisbane. It's stuck somewhere in the middle. Think you may have trouble with rent, growth and resale.

Best to try and decide either Brisbane or the Gold Coast.

Re Uni's. The Gold Coast areas of Parkwood and arundel are very close to Griffith Uni and experince quite good rentals. They have also grown a bith in the last 2 yrs.

Robina nd varsity lakes are near BOND Uni. BOND has a high intake of asian students who like to live close to uni and as such rentals are good.

Both areas are very central to most of the Gold Coast. Good infrastructure in place - transport, schhols, shops etc.
Worth following up with local agents in those areas.

Cheers
BUNDY

 

[Nash]

Parkwood/Robina

Thanks Bundy for the comments. We had a look at Parkwood and its a nice central neighbourhood, close to golf course, shops etc. We'll investigate that area a little more next time and probably Robina - will research Varsity Lakes - haven't heard of that. Being near the universities sounds like a good thing. Wasn't game to buy into the new complex being built near Griffith University - out of my comfort zone. They seem to have a great return though, even if for only 48 weeks of the year.

Is it possible to buy in Parkwood/Robina etc. for under $200,000 and still have rent return of $250 - that's the combination I'm looking for - it works in Melb. so I'm trying to repeat in Qld.

Would welcome comments