Potential first I.P in redbank, QLD. Advice?

[Luckyrooster]

Hi guys,
I'm seriously considering the purchase of my first I.P (I'm in my mid 20's, new to the forum) and as I'm from sydney, I heard about Redbank, which sounds pretty good.

I saw this place on realestate.com.au. It sounds like a bargain. Am i missing something?



Its a 3 bedroom townhousehttp://www.realestate.com.au/cgi-bin/rsearch?a=o&id=103965800&f=0&p=10&t=res&ty=&fmt=&header=&c=91116435&s=qld&tm=1178539493?a=o&id=103965800&f=0&p=10&t=res&ty=&fmt=&header=&c=91116435&s=qld&tm=1178539493"]
Seems close to the train station and the only decent thing under 200 grand in the are with 3 bedrooms.

It dosn't say, but perhaps the strata fees are very high in such a place? Its a gated estate with pool and tennis courts, which is nice to have.
So whats the catch?
Is the capital growth bad, because its some sort of gated community? Something seems a little off. Also its currently rented at 175 a week. Do you think an offer of $155k could get this property? (whats the strategy for making lower offers? Is that normal in a strong brisbane market?)

Sorry for all the questions. I'm potentially excited at the prospects.

Regards
LR

 

[alexlee]

Seems close to the train station and the only decent thing under 200 grand in the are with 3 bedrooms.

It dosn't say, but perhaps the strata fees are very high in such a place? Its a gated estate with pool and tennis courts, which is nice to have.
So whats the catch?
Is the capital growth bad, because its some sort of gated community? Something seems a little off. Also its currently rented at 175 a week. Do you think an offer of $155k could get this property? (whats the strategy for making lower offers? Is that normal in a strong brisbane market?)

Pool and tennis court ARE nice to have, but you pay for it via higher body corp fees.

No catch, but the question is, is 5.5% a good yield? Don't compare it to Sydney: compare it to similar properties in the area.

Generally that part of Brisbane has higher yields. I have seen older houses around Redbank Plains yielding 6%+ (that was a year ago, though). Check whether $175pw is a reasonable for that type of property. As for making lower offers, I'd research that area a bit more. How much are you willing to pay? If you're willing to pay $155k, make that offer and walk away if the seller refuses. Lots of fish in the sea.
Alex

 

[Luckyrooster]

Thanks Alex, for the reply.

I'm still learning plenty about the Brissy area and getting in at a good price.

Do you know if Redbank is a seen as a more of a low social demographic area? Is it known for crime? Why are the prices so cheap in that area,when its only 12km from Brisbane CBD?

Thanks mate.

 

[alexlee]

Thanks Alex, for the reply.

I'm still learning plenty about the Brissy area and getting in at a good price.

Do you know if Redbank is a seen as a more of a low social demographic area? Is it known for crime? Why are the prices so cheap in that area,when its only 12km from Brisbane CBD?

I'm not sure but remember 12km is further in Brisbane than it is in Sydney. A suburb that is closer to the city isn't always more expensive than one that is further from the city. e.g. Acacia Ridge is distinctly cheaper than all suburbs around it.
Alex

 

[Miss V]

Redbank is definately NOT 12km from Brisbane CBD, not even as the crow flies. Maybe from Ipswich CBD? To get to Brisbane you have to travel along a very busy Ipswich motorway, which is always congested in the mornings due to accidents etc

 

[mja]

Do you know if Redbank is a seen as a more of a low social demographic area? Is it known for crime? Why are the prices so cheap in that area,when its only 12km from Brisbane CBD?

Try 28 km from Brisbane, as the crow drives.

http://maps.google.com.au/maps?f=d&...pn=63.190312,64.775391&ie=UTF8&cd=2&z=12&om=1

It's a working class area. Redbank, Redbank Plains and Goodna are all next to each other and have similar demographics. There's a small shopping center in each suburb.

-- MJ.

 

[happy2beme]

Redbank

I have lived in Brisbane for 3 years and have never been near Redbank.
It is definitely a lower socio economic area and I'm pretty sure I have heard it mentioned in the news at different times for Crime. When I hear the name I think of that suburb in Sydney --was it Redfern?? that had the riots a few years ago.

At the same time it is cheap! And this property seems to be looked after. Do remember to factor in body corporates when doing your figures.
Properties like this always rent well because of the facilities and low maintenance. The property value in complexes here doesn't increase as quickly as the standard house and land properties do.

With Brisbane as with any city there is a real divide with North and South that I have noticed in the years I have been here. Similar to the Eastern Suburbs and North Shore divide I noticed in the 2 years I lived in Sydney.
Those that live South aren't interested in buying in the North and the North have no desire to live in or buy in the South.

Brisbane West has been less desirable for some time now but has had alot of activity over the last couple of years--due to cheaper property prices--there are alot of land developments going in there aswell.

I guess the thing to remember is that Rental Properties in Brisbane are in demand and if you're buying at a good price --anything under $200K is cheap!(well it is from a North Brisbane perspective!!)--and the numbers work for you then it may be worth looking at. This is the city that is supposed to have 1 million extra people in the next 20 years!!

 

[danwestlake]

Northsiders

Happytobeme:?
Obviously you have no clue about realestate in the Western Suburbs of Brisbane. Redbank is actually West of Brisbane in Ipswich. As far as comparing it to Redfern.. Really??
I would recommend, Redbank to any investor or 1st Homebuyer. I have just recently left the area, but approx 1 year ago I sold a unit to a young couple for $165k it is now worth appox $200k. Yes they have done well.

 

[kskyring]

Heaps of gvt and private investment planned on the Ipswich corridor should see strong CG medium term in Redbank. Makes a lot of sennse to invest there. If you can pick up a strong yield above 6% it wont take long to be cashflow positive with strong CG growth potential. Just my 2 bobs worth.