Looking for IP #3 in QLD

Hi all,

I'm currently in the process of organising finance for IP #3 thanks to my 2 Western Sydney IPs having some good growth in the 6 months I've had them. I'm planning to buy #3 in QLD in April so I'm starting to research areas etc.

I'm open to look at all areas but my criteria is $200-300k with at least neutral CF. Buy and hold is my strategy so long term growth is the most important requirement, but short-term growth would also be nice to help grow my portfolio :)

Logan areas such as Logan Central, Kingston, Beenleigh, Woodridge, Eagleby and Waterford West seem to be well recommended on this forum and it looks as though they're only starting to see shorter 'Time on Market' periods and increases in prices, which is what I saw Western Sydney do 12 months ago before it went crazy...

Just wondering if anyone can offer any advice pertaining to:
1) Anything I should look out for? ie bad parts of certain areas, flood prone zones, DoH areas etc
2) Units/Townhouses/Houses. Are they all generally on par when it comes to finding tenants, quality of tenants etc?
3) Am I correct with my above assumptions (market is only warming up)?
4) A lot of the houses in the area seem to be older.. Are building issues common or are they generally quite hassle-free?

Beanie Girl has posted some good links here pertaining to new zoning laws which I haven't yet read through but will do tonight.

Any help is appreciated!

Enjoy your weekend.

Cheers
John
 
JM,

Best person to speak to is Beanie Girl. I would call her the resident Logan fanatic.

Very knowledgeable of the Logan Area.

Peace out!
 
Personally I would steer clear of those areas due to low socio economic areas, with all the usual issues attached.

But with your budget I dont think you will find something anywhere else.

If you can push up to $320k you could get into the better Brisbane City Council Precinct.

Better areas have a higher purchase price.

Having said that, have a scroll through these IP's...

http://seqsales.com.au/for-sale?orderBy=price&disposalMethod=buy&_fn=searchResultsSortOrder

I hope this helps.
 
Thanks Rixter, I'm not particularly scared of low socio-economic areas. My Mt Druitt tenant paid 6 months in advance up front and my Penrith tenant is always ahead in rent - Landlord insurance will cover any problems and I think choosing a good PM is important.. But point taken and I'm more than happy to consider alternatives.

I may be able to stretch to the $320k level depending on the yield. What areas do you suggest I take a look at?

Cheers
 
Thanks Rixter, I'm not particularly scared of low socio-economic areas. My Mt Druitt tenant paid 6 months in advance up front and my Penrith tenant is always ahead in rent - Landlord insurance will cover any problems and I think choosing a good PM is important.. But point taken and I'm more than happy to consider alternatives.

I may be able to stretch to the $320k level depending on the yield. What areas do you suggest I take a look at?

Cheers
Check out this link .... http://seqsales.com.au/for-sale?orderBy=price&disposalMethod=buy&_fn=searchResultsSortOrder

I like southside Brisbane Metro... Calamvale, Sunnybank Hills, Upper Mt Gravatt
 
Thanks Rixter, I'll have a look now.

I found this one with a 11.1% return lol what's the catch? Ridiculous strata fees? Hard to tenant?
 
Thanks Rixter, I'll have a look now.

I found this one with a 11.1% return lol what's the catch? Ridiculous strata fees? Hard to tenant?
Hi jmillar, is it possible to provide the link to the property with the high yield? I would like to take a look at it. Many thanks!
 
I think the catch on that may be it's tenanted only for the uni year, 9 months year? Then the students go back home to Asia. Just guessing.
 
Let fully furnished, room by room to students.

There would be a nice little sideline business kitting out each one with a hot & cold food/drinks vending machine.

I would hazard a guess the machines would outstrip rental incomes.
 
It's purpose built student accommodation. Which means you might not even be able to occupy as normal accommodation, limiting your buyer pool. Not that anyone other than students would want to live there.

http://www.genesis1.com.au/

Would you get 52 weeks rent, or nothing over the summer? That will affect the yield.

With that many amenities, body corp is going to be significant.

Any issues with borrowing?

Bottom line, this values like a commercial property.
 
probably best if agent/owner can supply the rent received on annual basis for last 3 years.
sales history indicate the property for sale last 4months, and purchased $370k in 2007
 
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