Kangaroo Point, Qld

[Kanyil]

Hi All,

Long time lurker, first time posting. Really enjoy the depth of knowledge and insight on this forum.

Just wondering if anyone has any views on Kangaroo Point, Qld. We having been thinking about buying a PI in that area.

It seems to be excellently located (albeit a tad too close to the river at some areas) and has good appeal to professional tenants. Transportation into the City, northside and southside seems good. BC fees seem quite high though.

Any downsides other than flooding, high prices and BC fees?

 

[vbplease]

The amount of stock there.. too much in my opinion. The noise from the Story Bridge on ramp is worth thinking about too.

I really wonder what the developers are thinking building so many units in Bowen Hills, Fortitude Valley, and now West End.. there is also Brisbane's tallest resi tower being built next to my work.. they might still be using population growth figures from a few years ago.

 

[Kanyil]

Thanks vbplease. We used to rent there a few years ago and thought it a fantastic place for professionals, which we believe tend to be less hassle as tenants. The area has quite a different vibe from the other professional areas such as City, Southbank or New Farm.

Guess we might keep our eyes on the area for a bit longer. Thanks again!

 

[vbplease]

I agree, fantastic place to live for young professionals.. there is the broadwalk around to southbank, rock climbing on the cliffs, stumbling distance to "story bridge hotel", views of the river - great for riverfire..

how did you get to work? by the ferry to riverside?

My other 2c would be not to buy emotively - some places are just better to rent, and don't make good investments. I did this a few years ago with the valley.. since buying, the bc fees have skyrocketed and new apartments are being built at an alarming rate. Although the yield for fully furnished is great, I can't see CG happening any time soon.

 

[eeew]

Kangaroo Point:

Pros:
- Good tenants- professionals who have jobs, decent salaries...
- low crime rate
- Close to city- but transport options are a bit limited.
- Mostly built out already, so not much more free land for developers to build in the future.
- Easy to rent out, and rental returns seem good as well.

Cons:
- Absolutely sky high body corp rates.
- Some, but few, areas are purely rental/holiday and thus attract tranisiting tenants.
- Lower land to price ratios
- Expensive to live. Operational costs are high.


Overall, i think its a good area to buy and live in, but be wary- only consider the ones that are more established with space, and have longer term tenants[ preferrably owner occupiers], and probably most of all, are not asking super high body corp rates. Look for low rises that dont have extensive gardens, super gyms, and fancy pools that command those high rates.

 

[Tin Tin]

i'd go to woolloongabba if I were you - more future development happening there. not far from kp. but i'm a little bit biased - have ip's there.

 

[YPG]

i'd go to woolloongabba if I were you - more future development happening there. not far from kp. but i'm a little bit biased - have ip's there.

Hey Tin,

I have been looking at a few units in woolloongabba as I also see it as a place with potential. (Although I am in no position to buy anything now anyways, still like to look )

However there doesn't seem to be much selling their at the moment - I may be wrong but i've seen many places that I think show potential that have been listed for months and still haven't sold. Obviously there is DD that needs to be done but just by the listing i'm surprised why more haven't been selling.

Do you think it is going well? And am I wrong about current demand for purchases?

 

[russellpeter]

I live and work in the south brisbane area and love it.

there is not a lot of sales at the moment but i can comment on the rental market.

Things are still strong Im finding that the proeprties I open are getting good number of people/applacation and quality tenants. the floods have not affected the rents at all. and we are still seing the rents going up. with little vacancies.

good luck if you are buying in the area as plenty of deals around.

 

[Kanyil]

Thanks again everyone for your input. Very helpful and very much appreciated. Just noticed some recent lowering of prices, we will keep an eye on the area.

What would constitute "high BC fees" in the area? In the Kangaroo Point area BC fees seems to range around $4~6,000 p.a.

 

[Andrew_A]

Thanks again everyone for your input. Very helpful and very much appreciated. Just noticed some recent lowering of prices, we will keep an eye on the area.

What would constitute "high BC fees" in the area? In the Kangaroo Point area BC fees seems to range around $4~6,000 p.a.

Well those are huge B/C fees full stop, I would want a considerable discount to consider something with this much B/C, have a look at what it does to your holding costs.

 

[gottabespotless]

Thanks again everyone for your input. Very helpful and very much appreciated. Just noticed some recent lowering of prices, we will keep an eye on the area.

What would constitute "high BC fees" in the area? In the Kangaroo Point area BC fees seems to range around $4~6,000 p.a.

Back in the 90s, hubby and I bought a unit in inner-Brisbane that ended up having body corp fees of around $1200 to $1500 a quarter - it's the reason we sold it. They used to bleed us dry! When we considered the annual cost in bc fees we really wished we had borrowed extra and bought a house instead. It was a big lesson learnt for us. Never again have we or will we buy in a complex. I should point out that the complex had a swimming pool and gym and we were young, gullible and naive at the time, bought off the plan (STUPID!) and believed the developer's agent's lies when he drastically underquoted the predicted bc fees.

I wish we could go back in time and buy the old Queenslander (that needed some improving but wasn't that much more in price!) The house would be worth well in excess of $1m today whereas units in the complex our unit was in rarely sell for over $500 000. Oh well...