Ipswich going down the gurgler???

[cu@thetop]

APM shows this property went for $150500.00 at auction yesterday:

http://www.realestate.com.au/property-house-qld-north+ipswich-117504467

48 Pine St North Ipswich.
UCV $145,000.00

RP Data tells me current owner purchased in2006 for $208,000.00

Anyone know what's going on?
(I checked and it is seemingly not a mortgagee sale or flood affected)

 

[Perp]

The listing says it's an incomplete renovation. Incomplete works always attract a heavy discount. They've pulled the house apart, but not put it back together again. :/

 

[Heinz57]

A good buy for somebody

 

[strongy1986]

APM shows this property went for $150500.00 at auction yesterday:

http://www.realestate.com.au/property-house-qld-north+ipswich-117504467

48 Pine St North Ipswich.
UCV $145,000.00

RP Data tells me current owner purchased in2006 for $208,000.00

Anyone know what's going on?
(I checked and it is seemingly not a mortgagee sale or flood affected)

Not sure what's going on bit I'll tell you why Ipswich has turned me off in the past
Main reason - in 20 years it will just be part of the greater Brisbane sprawl. Any identity it has may be lost??
I guess if you bought a really decent sized block then you will do well bit if you bought a 500sqm block then I don't see a heap of upside?? People will just buy the new house and land package 5 minutes closer to Brisbane for 300k - why spend 250 on an old place in Ipswich?

Just a theory happy for some counter arguments/ examples

 

[Heinz57]

There are people in Swich who never see the need to visit Bris Vegas. Bit like Parramatta v Sydney

 

[Coconutwheels]

Not sure what's going on bit I'll tell you why Ipswich has turned me off in the past
Main reason - in 20 years it will just be part of the greater Brisbane sprawl. Any identity it has may be lost??
I guess if you bought a really decent sized block then you will do well bit if you bought a 500sqm block then I don't see a heap of upside?? People will just buy the new house and land package 5 minutes closer to Brisbane for 300k - why spend 250 on an old place in Ipswich?

Just a theory happy for some counter arguments/ examples

That's interesting, I've been looking at Ipswich for my next purchase since Logan is too hot/moved too much for me now. Ex Gov houses around the low $200s, yields not as great as I'd like at about 6-6.5%

I was thinking the growth would push to Ipswich in a similar way to Logan.

What do others see as the main differences between the two?

I was thinking Ipswich would have even better growth prospects, but you raise an interesting point re house and land packages

 

[INVSTOR]

That's interesting, I've been looking at Ipswich for my next purchase since Logan is too hot/moved too much for me now. Ex Gov houses around the low $200s, yields not as great as I'd like at about 6-6.5%

I was thinking the growth would push to Ipswich in a similar way to Logan.

What do others see as the main differences between the two?

I was thinking Ipswich would have even better growth prospects, but you raise an interesting point re house and land packages

It's a bit colder in Ipswich
http://www.abc.net.au/brisbane/weather/

 

[Coconutwheels]

It's a bit colder in Ipswich
http://www.abc.net.au/brisbane/weather/

that's what I was thinking too.

 

[strongy1986]

That's interesting, I've been looking at Ipswich for my next purchase since Logan is too hot/moved too much for me now. Ex Gov houses around the low $200s, yields not as great as I'd like at about 6-6.5%

I was thinking the growth would push to Ipswich in a similar way to Logan.

What do others see as the main differences between the two?

I was thinking Ipswich would have even better growth prospects, but you raise an interesting point re house and land packages

Yeah I reckon if you buy in the current trough you will probably see a 20% gain over a couple of years

However I'm thinking long term

I just don't see how the surrounds of Ipswich (maybe excluding town centre) will grow above the price of a new house and land package.

Big blocks are an exception - but you sound like a yield player

 

[Coconutwheels]

Yeah I've notice a few on 1000m2 blocks that don't have too much of premium in the asking price atm.

Maybe not the margins atm for subdivision for most small developers, but as you say down the track.

I'm flying down on Wednesday to have a look around as I seem to be stuck in analyses paralalise wrt Ipswich.

 

[Rolf Latham]

Lotsa greenfields broad acreage around still, and a bunch of infill development ahead of that.

fair bit of supply ?

ta
rolf

 

[redwing]

wHere group have apparently been buying up in Ipswich for a while now looking for future growth

 

[RPI]

New supply that we have have been quoting on in the developments surrounding Ipswich include a 2000 lot subdivision, 2 x 1000 lot subdivisions and a 600 lot subdivision. Each one are staged divisions (eg the 2000 lot one was talking of releasing 200 a year while market boyant and dropping back to half that in the soft part of the cycle) over 10 - 15 years. That is a lot of supply for the next decade.

 

[Coconutwheels]

New supply that we have have been quoting on in the developments surrounding Ipswich include a 2000 lot subdivision, 2 x 1000 lot subdivisions and a 600 lot subdivision. Each one are staged divisions (eg the 2000 lot one was talking of releasing 200 a year while market boyant and dropping back to half that in the soft part of the cycle) over 10 - 15 years. That is a lot of supply for the next decade.

Woah! That is a lot.

How does that compare to southern parts of Logan, Eagleby, Beenliegh. Which haven't moved as much as areas closer to Logan Central? Would they be in similar boat wrt future new subdivisions?

 

[Ricky Tarr]

Bought in Ipswich in 2012, just had a reval - 17% gain in 2 years.

 

[Coconutwheels]

Bought in Ipswich in 2012, just had a reval - 17% gain in 2 years.

Nice, good return too? Where abouts?

 

[Ricky Tarr]

Nice, good return too? Where abouts?

8% return, just on the southern edge of the CBD near Limestone Park

 

[DCI]

Yep you need to buy as close to the Ipswich CBD as possible in my opion for solid future growth.
We bought in Woodend and started renting out at $285 now $330 siting neutral
at the moment. Good private schools there and our property is only 300mtr walk to the CBD. We are looking at putting a granny flat on the back end of the block for $120k which will rent for around $260pw which isnt to bad.
Most people don't know but Ipswich City council actually allows these to be rented out to non family related occupants. Never had any problems getting tenants because of its position. Just do your research..and buy well..

 

[Coconutwheels]

Yep you need to buy as close to the Ipswich CBD as possible in my opion for solid future growth.
We bought in Woodend and started renting out at $285 now $330 siting neutral
at the moment. Good private schools there and our property is only 300mtr walk to the CBD. We are looking at putting a granny flat on the back end of the block for $120k which will rent for around $260pw which isnt to bad.
Most people don't know but Ipswich City council actually allows these to be rented out to non family related occupants. Never had any problems getting tenants because of its position. Just do your research..and buy well..

Great! Thanks for Granny Flat tip, something to keep in mind.