Am considering Jacobs Well Qld as an area for my first investment property. Near the water, not far from the M1, reasonable prices, unlike the other near water areas of the Gold Coast and it is still an unspoilt little fishing village. Local agents reckon the rental demand is very high especially with boaties who work in the Beenleigh/Yatala area and don't want to live in the surrounding boring 'burbs. Also the pub has a trendy restaurant in it and there is a trendy cafe in the main street now. These are always good signs!! Would appreciate informed views (well, any views really).
Jacobs Well?
- Thread starter mannypalma
- Start date
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brains
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What is the rental return in the area ?(for lower priced properties)
If its below 6-7% youve probably missed the boat.
If its below 6-7% youve probably missed the boat.
Dear Manny,
Jacobs Well
Increase of average median sale price from $151,800 to $180,500 for March-June 2002 period equating to an increase of 19% for the quarter.
At 19% for the quarter that is the highest median quarter increase for the Gold Coast region after Surfers Paradise and Mount Warren Park.
Good capital growth for that quarter. However the question is do you invest after good capital growth in the area or before the growth takes off?
Average rent for Gilberton/Jacobs Well/Ormeau region for July-September 2002 period (Based on a 3 bdrm house) is $210/week.
Gross yield therefore equates to 6.04%.
Other questions:
What are the vacancy rates in the area (percentages)?
What developments/future developments are planned for the area?
How does a yield of 6.04% compare with other suburbs in the area?
What industries/business centres are going to create jobs for your future tenants in the area? Or do they have to commute to Brisbane? (If so what is the commuting time?)
Couple of things to think about.
Cheers,
Sunstone.
Jacobs Well
Increase of average median sale price from $151,800 to $180,500 for March-June 2002 period equating to an increase of 19% for the quarter.
At 19% for the quarter that is the highest median quarter increase for the Gold Coast region after Surfers Paradise and Mount Warren Park.
Good capital growth for that quarter. However the question is do you invest after good capital growth in the area or before the growth takes off?
Average rent for Gilberton/Jacobs Well/Ormeau region for July-September 2002 period (Based on a 3 bdrm house) is $210/week.
Gross yield therefore equates to 6.04%.
Other questions:
What are the vacancy rates in the area (percentages)?
What developments/future developments are planned for the area?
How does a yield of 6.04% compare with other suburbs in the area?
What industries/business centres are going to create jobs for your future tenants in the area? Or do they have to commute to Brisbane? (If so what is the commuting time?)
Couple of things to think about.
Cheers,
Sunstone.
Thanks for the input...we have taken the plunge and bought a place at Jacobs Well. Too tempting to pass up...and yes, we have bought after a period of high capital growth, but as Jan Somers says, don't hunt for that elusive bargain, but just get in at a fair market price, which we think we have paid.
All the running around and re-financing, etc is surely going to prove a pain but again, it should be worth it and after the first time it should become easier!
Another thing...we plan to hold the place for the long term as recommended by Jan in her books, so I guess that timing getting into the market is not as important as time in the market.
All the running around and re-financing, etc is surely going to prove a pain but again, it should be worth it and after the first time it should become easier!
Another thing...we plan to hold the place for the long term as recommended by Jan in her books, so I guess that timing getting into the market is not as important as time in the market.
Dear Manny,
Congrats on taking the plunge, too many talk about it and never actually do it. Enjoy the journey it is a fun one.
On fair market price it is a tricky one. I agree with the comment that "You never pay too much, you only pay too early". However if you keep looking in your area bargains do come up.
Yesterday I just bought another IP. Good thing was it was a divorce situation and a typical motivated seller. Gross yield 11.2% and the property just two numbers up (poorer quality property) sold last month for 21% more. Capital growth nothing to sneeze at either.
So as long as you stay in the market and keep looking, you have a bigger chance of finding the right motivated seller for number two.
Cheers,
Sunstone.
Congrats on taking the plunge, too many talk about it and never actually do it. Enjoy the journey it is a fun one.
On fair market price it is a tricky one. I agree with the comment that "You never pay too much, you only pay too early". However if you keep looking in your area bargains do come up.
Yesterday I just bought another IP. Good thing was it was a divorce situation and a typical motivated seller. Gross yield 11.2% and the property just two numbers up (poorer quality property) sold last month for 21% more. Capital growth nothing to sneeze at either.
So as long as you stay in the market and keep looking, you have a bigger chance of finding the right motivated seller for number two.
Cheers,
Sunstone.
