Ipswich

[grubar30]

This is funny ---> I just rang up the RE agent looking after the aforementioned property. The conversation went a little something like this:

Me "$275 p/w for a$210K asking price - is this legit"
Agent "Yes. We only deal in legit properties"

Me "Ok, let me put it this way – what’s the catch. I know its been on the market for a little while"
Agent "There is no catch. It’s an honest return of $275 for a fully furnished unit"

Me "Hmmm, has there been any recent interest?"
Agent "Yes actually. Just last week for $212K. But that offer fell through on a failed building and pest inspection"

Me " Tell me more"
Agent "There's a crack in the building foundation causing movement. It’s nothing serious. It concerns a unit on the other side of the complex. You can’t even notice it"

lol @ "can't even notice it"

Apparently there’s an urgent Bodycorp meeting next week to discuss this issue. Worst-case scenario is a repair cost of $120k, which will be spread across the 8 units at $15k each over a 2 yr period, recouped through increased Bodycorp rates.


I reverse my previous position - go go Ippy go

 

[kissfan]

Hmmm, why would you bother when you have returns like this 5 min from Brisbane's CBD:

http://www.realestate.com.au/cgi-bi...0&p=30&t=res&ty=&snf=rbs&ag=&cu=&fmt=&header=

($275 p/w in St Lucia for a 2 bedroom unit going for $210). A healthy 6.8% yield and that's without factoring in a bargain price.

Better returns, stronger capital growth and low vacany periods (think uni students) - Ipswich doesn't even compare.

Hi Grubar.

Saw your update re the crack in foundation, but did you consider the I/P you were talking about was a unit as opposed to a house WITH LAND. By that , I mean that the land will (or should do) go up in value over time, maybe that is why someone might look at that deal.

Regards
Marty

 

[grubar30]

Hi kissfan,

Yes I did and I was going to give the line "maybe I'm comparing apples to oranges". But the returns are so much better in this comparison that I'm willing to compare the too. Btw, in terms of capital growth – let alone rental returns - I'd put my money on your average $200K unit in St Lucia over your average $200k house in Brassal or Raceview any-day. Big call, but we're talking blue-chip vs "the boonies".

Now listen, I'm not saying good buys don't exist in these areas. I'm sure they do - so yes I can definately understand why someone might look at the deal.

George

 

[resiwealth]

Developer

I am new to this site so forgive me until i am confident with posting here. I have just completed a small sub-division in Raceview and see good long term gains in this whole area.

Phil

 

[slades]

Isn't Delfin already out there in Forest Lakes or Collingwood Park, or is that classed as Brisbane rather than Ipswich?

 

[kissfan]

Isn't Delfin already out there in Forest Lakes or Collingwood Park, or is that classed as Brisbane rather than Ipswich?

Hi slades.

Collingwood Park is in Ipswich area, although close to the Brizzy zone and Forest Lake comes under Brisbane.

Regards
Marty

 

[markpatric]

Trihard I am in agreement with your veiws, and see that you are one of the few who actually try and help others (newbies).
Only investors who don`t hold this view are those that hold property there.
I also warn anyone away from Ipswich investing for the simple reason that I agree with the Courier Mail article someone referred to in that that North of Brisbane will be the preferred option, the reasons are obvious.
Given that many Ipswich areas have caught up in price with Brisbane and even overtaken some areas up North near the water, it`s a good city but why would people flock there?, young people would struggle to buy there as they would anywhere else.
The population is aging fast and cashed up, will they retire to Ipswich?.

 

[markpatric]

Hmmm, why would you bother when you have returns like this 5 min from Brisbane's CBD:

http://www.realestate.com.au/cgi-bi...0&p=30&t=res&ty=&snf=rbs&ag=&cu=&fmt=&header=

($275 p/w in St Lucia for a 2 bedroom unit going for $210). A healthy 6.8% yield and that's without factoring in a bargain price.

Better returns, stronger capital growth and low vacany periods (think uni students) - Ipswich doesn't even compare.

I know of places you CAN buy 3 bed house and land all between 1-15 mins from the ocean for this price, heaps of `em.

Yet another area is Bundy, in roughly three weeks I am selling a fully renovated workers cottage in Bundy Central for around $140-$150,000, will rent for $185-$200 a week.
Easy ten minute drive to Bagarra beach, huge new shopping centre 100 metres up the road.

 

[DD1]

Diversity

Wow you guys are amazing, not only bagging an area you missed out on buying yourself when it was $84k with a $160/wk rent in Ippy but you quote $210k buy with $275/wk rent.

$210k needs $315/wk to just hit 7.5% so you are $40/wk negative before you start. Then what new infrastructure are you getting in your "pet"areas, while Ipswich is hitting the ground running with all the forward thinking council moves regarding infrastructure, residential, and student facilities being upgraded out west.

Go play cynical somewhere else.

I have several properties there after selling 5 to buy a big home in Coffs. Would have liked to keep the full 12 but thats the way it goes.

With the average house in Ippy now $180k it will take a few years for rents to be back to reasonable there for investors buying now. So with your example as well its neg gearing for a long while before you see daylight and most small investors cant sustain those sort of losses for long.

With the tax scales changing, the benifits of neg gearing have all been quietly erroded and will further impact on those already neg geared where it hurts most, in the pocket. So try to be nice and keep encouraging people to make their own informed investment decisions rather than just being negative about an area as you missed the last boat.

Whatever you choose to do, good luck. Remember, research = results.

DD1

 

[markpatric]

DDI I have bought similar properties elsewhere with the same figures you quote in Ipswich, in fact it is similar all over the place before the boom, which is the very reason I would not buy there, why would someone buy in an area they see as less in many respects that other more desirable areas?, especially given the returns are the same.
I would jump at buying in St Lucia before Ipswich, all things being considered.
Everyone is entitled to an opinion, mine is that Ipswich is as overpriced as anywhere at present.
Ipswich is a good city but it is both hotter in summer and colder in winter than Brisbane and other areas, also it is further from the coast.

 

[ggumpshots]

Alas, I cannot go to the next BIG meet and I did want to go. Les will be 6hrs drive in the opposite direction, and I have to hold the fort at home and mind my children.

My prediction, for what it is worth, is that the median price in housing for Ipswich will not stop quietly rising until it just tops over the $200k mark. I am patiently waiting to see if I will be correct.

How does Brassall, in ipswich look these days for an IP.
Is it still worth investing here or are there better returns locally?

I am only talking generally and not specifially as there are always bargains to be found in any market at any time.
What would be an average return/ good return for Brassall?

The places I have researched are returning 3.2% gross, which is not a problem if the capital gain can compensate over the coming years. Normally i would be looking for much higher but Brassall and the future seem to have a lot still going for it?

 

[TryHard]

Brassall

I'm not coming on to "Ipswich knock" again, but I was only just looking at Brassall so here's my opinion for what its worth, or not worth ....

I drove over to Brassall for a friend from up North who was considering a DHA rental package deal in the new estate called "grammar park". I was gobsmacked at the prices being asked ($365K-$380K). Looking around briefly at what local agents had on the market, the asking price for something similar seemed to be $300-$312K, and some of these also mentioned they had DHA as tenant. Even then, the prices still floored me, for personality-free lowsets crammed as close to each other as you could without marrying the neighbours.

They say Amberley is going to be the biggest airforce base in the Southern Hemisphere or some such thing, so I guess there will be no shortage of tenants. Capital growth, at those prices, considering there is still a ton of land apparrently surrounding the estates, would in my limited experience, be a lot slower than a place where there is some scarcity.

I respect the people who have made lots of dough out of the meteoric rise in the Ipswich property market. I also understand its in their interests to sing its praises, and good on 'em.

But to be blunt (and I justify my comments as I live 15km from Ipswich myself) it isn't the sort of area I'd raise my family. A friend of mine was attacked (absolutely) unprovoked last week in the local nightclub (unfortunately for the local who hit him, he wasn't aware my friend has been a martial arts fanatic for 30 years). The 15 yo single mums are still pushing the prams down the street with a cigger in hand, the poker machine lounges are chock full after the dole arrives. The crowds gather outside the Correctional Services office, Centrelink etc. with the same enthusiasm as yuppies at a barrista's. I shop there a lot, and I still don't let my wife and kid go there on their own.

I'm not trying to sound like I'm high class - I'm as knockabout as they come. But for the prices versus atmosphere and safety factor, man I reckon Ippy is out of the stratosphere. Brassall is a little more new estate-ish, but other than the reasonable sized shopping centre there, you're still in Ipswich.

Having said that, the Ipswich City Council is WAY more progressive and forward thinking than the surrounding councils IMHO. Good luck to everyone that is making their strategy work there. I just think you need to go visit and spend a week there before you decide if its for you or not. After that, if it is, and the figures still stack up too, go for it

Have a great weekend....

 

[rj]

Hi guys,
While I havent read over all the posts in this thread I can be certain of a few things as I work for Ipswich City Council and have done so for the last 8 years.

1. Theres a great deal of refurbishments of the area happening. As in shopping mall upgrades, parks and public areas being upgraded. Infact some areas have been really well done. Its good to see as Ipswich in some places are really damn ugly.

2. There are some fabulous homes out this way. Some awesome queenslanders. Some untouched. Honestly the place is a goldmine for renovators who love traditional workers cottages and so forth.

3. Theres a mix of new and old. Some areas are terribly old and run down, and within minutes you could find yourself within a completely new modern development. Its odd.

4. Council are really trying to promote and upgrade the reputation of Ipswich. Theres work going on everywhere - parks, community centres etc. Ive overheard some figures and theyre astronomical.

5. Theres a huge 5 star hotel thats just gone in on south street. And apparently theres more happening down at riverfront or whatever they call it.

6. Id have to say theres definitely movement happening, as to whether or not it goes full steam ahead or runs out of puff - who knows, but its definitely taking place.

RJ

 

[rj]

The 15 yo single mums are still pushing the prams down the street with a cigger in hand, the poker machine lounges are chock full after the dole arrives. The crowds gather outside the Correctional Services office, Centrelink etc. with the same enthusiasm as yuppies at a barrista's. I shop there a lot, and I still don't let my wife and kid go there on their own.

I'm not trying to sound like I'm high class - I'm as knockabout as they come. But for the prices versus atmosphere and safety factor, man I reckon Ippy is out of the stratosphere. Brassall is a little more new estate-ish, but other than the reasonable sized shopping centre there, you're still in Ipswich.

Having said that, the Ipswich City Council is WAY more progressive and forward thinking than the surrounding councils IMHO. Good luck to everyone that is making their strategy work there. I just think you need to go visit and spend a week there before you decide if its for you or not. After that, if it is, and the figures still stack up too, go for it

Have a great weekend....

Well I wasnt going to go there but youre absolutely right. Its a shithole. Its not the place - its the people. Absolute deadheads. Honestly, if theyre not lined up outside centerlink smoking winnie blues, theyre outside video easy, the courthouse or driving aimlessly in circles around town centre in $600 XE falcons.

RJ