Qland Investment
- Thread starter silas
- Start date
I have just come from Brisbane. I spent three days looking at properties in Deception Bay, or maybe I should call it mosquito bay.
Most properties that I looked at were around the 165-200K mark, there was nothing under that price range. Rents varied from 180-220 per week. Therefore it will be very difficult to find CF+ properties in Deception Bay.
I think I saw Shrek and Donkey there.
Johno
Most properties that I looked at were around the 165-200K mark, there was nothing under that price range. Rents varied from 180-220 per week. Therefore it will be very difficult to find CF+ properties in Deception Bay.
I think I saw Shrek and Donkey there.
Johno
Hi Silas,
Is there any special reason your friend is looking at Boonah?
it's a bit, well ,back of woop woop (or is he looking at acreage
or a farm,) he might do better closer to Bris for a rental property,
anywhere along the area serviced by the electric train between Bris and the coast or Ipswich / Brisbane appeal to him?
Just my 2 cent worth,but Im sure as heck no expert..
(BTW I think Deception Bay is a good choice, )
Is there any special reason your friend is looking at Boonah?
it's a bit, well ,back of woop woop (or is he looking at acreage
or a farm,) he might do better closer to Bris for a rental property,
anywhere along the area serviced by the electric train between Bris and the coast or Ipswich / Brisbane appeal to him?
Just my 2 cent worth,but Im sure as heck no expert..
(BTW I think Deception Bay is a good choice, )
I agree,
Both these place don't have too much appeal. Boonah is very far out. No major transport, shopping centres, education etc. Can't see big capital growth here, no rental return either. as for Mosquito Bay. MMMMMMMMM Pass. May be better sticking to the oter suburbs of brisbane or the Gold Coast.
BUNDY
Both these place don't have too much appeal. Boonah is very far out. No major transport, shopping centres, education etc. Can't see big capital growth here, no rental return either. as for Mosquito Bay. MMMMMMMMM Pass. May be better sticking to the oter suburbs of brisbane or the Gold Coast.
BUNDY
B
brains
Guest
You could do a lot worse than Morayfield.
I have just recieved a reply from Herriots Valuers stating that Caboolture Shire and particularly Morayfield and Deception Bay have the 2nd highest cap. growth in QLD last year after the Sunshine Coast and still rising. My properties in Morayfield have growth of min 30% in the last 12 months.
Ive looked on the Herriots website for the report but they dont have the current one on there, only the 1st quarter report. Ive emailed them so when i recieve it i'll post a link on here.
I have just recieved a reply from Herriots Valuers stating that Caboolture Shire and particularly Morayfield and Deception Bay have the 2nd highest cap. growth in QLD last year after the Sunshine Coast and still rising. My properties in Morayfield have growth of min 30% in the last 12 months.
Ive looked on the Herriots website for the report but they dont have the current one on there, only the 1st quarter report. Ive emailed them so when i recieve it i'll post a link on here.
I would suggest he doesn't buy at Boonah. I have a friend who lives there and it doesn't have much of a rental market.
He should try Ipswich. There are not the same amount of CF+ properties that there were 6 - 12 months ago but if you look hard there is still the odd one popping up.
For example: 2 bed brick Duplex in good area. Have to be about 10yrs old. Fully rented for $150 each side.
Asking $230,000 neg. I believe they will probably take $215- $220,000
So figures are:
Rent: $15,600
Loan (6% Int only on $220,000): $ 13,200
Rates: $1,400 ???
Only just CF+ but what more do you want.
Cap growth in that area for last 12 months is very good.
I better hurry and put in an offer..........
Jason
He should try Ipswich. There are not the same amount of CF+ properties that there were 6 - 12 months ago but if you look hard there is still the odd one popping up.
For example: 2 bed brick Duplex in good area. Have to be about 10yrs old. Fully rented for $150 each side.
Asking $230,000 neg. I believe they will probably take $215- $220,000
So figures are:
Rent: $15,600
Loan (6% Int only on $220,000): $ 13,200
Rates: $1,400 ???
Only just CF+ but what more do you want.
Cap growth in that area for last 12 months is very good.
I better hurry and put in an offer..........
Jason
Didn't Sunstone just sign-up on that one?
You gotta be quick.
Cheers Brenda
You gotta be quick.
Cheers Brenda
Dear Brenda,
Thanks :-------)
But you and I like our yields. If we can't get our 10%+ then it has to be a property that we can turn into a 10%+ one.
JPM's safe for a little while. (6.8-7.3% is still good for this market.) But if it was on a large subdividable block with medium density zoning............
The multiple sets of glasses are good for both of us Brenda.
Cheers,
Sunstone.
Thanks :-------)
But you and I like our yields. If we can't get our 10%+ then it has to be a property that we can turn into a 10%+ one.
JPM's safe for a little while. (6.8-7.3% is still good for this market.) But if it was on a large subdividable block with medium density zoning............
The multiple sets of glasses are good for both of us Brenda.
Cheers,
Sunstone.
Hello Silas.
There seem to be a lot of people who commute regularly to Brisbane from both Ipswich and Caboolture, i agree with Brains
about the Morayfield and Deception Bay area -there seem to still
be reasonably priced properties in the Caboolture area as well.
I personally think that investment rental properties in Boonah
would be a pretty risky,( be a long wait for any capital gain I suspect.) Ipswich area is a good bet as JPM suggested,
there used to be lots of cheaper houses in the Brighton/Deagon
Geebung but dont know about those areas now..
Nambour comes to mind as a possibility as well but I havnt been there for a while.. perhaps someone else knows if its a good bet for rentals?
There seem to be a lot of people who commute regularly to Brisbane from both Ipswich and Caboolture, i agree with Brains
about the Morayfield and Deception Bay area -there seem to still
be reasonably priced properties in the Caboolture area as well.
I personally think that investment rental properties in Boonah
would be a pretty risky,( be a long wait for any capital gain I suspect.) Ipswich area is a good bet as JPM suggested,
there used to be lots of cheaper houses in the Brighton/Deagon
Geebung but dont know about those areas now..
Nambour comes to mind as a possibility as well but I havnt been there for a while.. perhaps someone else knows if its a good bet for rentals?
Sunstone you are right. 10% is the way to go. BUT it is now very hard to find. I picked up a 10% IP late last year and another one early this year but have been hard pressed to find any since. I was just suggesting something to look at for now.
Sunstone, What would be some of the ways you have been able to turn a IP into a higher yielding one?
Jason
Sunstone, What would be some of the ways you have been able to turn a IP into a higher yielding one?
Jason
Dear JPM,
A couple of methods that I am currently using are:
-Dual Occupancies. Convert a council approved 5th bedroom external extension into a dual occupancy. Adding another rentable dwelling and proportionally increase the total rental income.
You could be looking at existing highsets. Some key points are checking the height underneath. Legally you need to have 2.4 metres as the minimum height from the floor to ceiling. If you are raising a house then you need to make it 2.7 metres from the bearers so that you have 300mm to play with for the slab and the termite protection. Additionally check the zoning and steer towards blocks that are 800m2+. The 800m2+ ones only require code and not impact assessments and so are quicker to get council approvals depending on the number of dwellings added to the block.
-House Relocations. Look at Michael Croft's great posts on the issue. However I am taking my 1862m2 block with a Qld'r on it and relocating several houses onto it. Have signed a contract on a duplex to relocate and am going through the process. Again putting more dwellings on your existing land so increasing the total rental.
-Conversions. Take an existing old Qld'r and change it from generating one rental into several units. If it is highset then you could look at changing it into a 4plx or extending the back out and making it a 6plx.
-Boarding Houses. Similar to conversions. Changing multi-bedroom houses into being rented out per room with communal facilities.
I am physically doing the dual occupancies and the house relocations. Conversions and boarding houses I believe could be a viable option down the track.
Use your imagination, there are always ways of increasing yields. GeoffW has been successful with his one bedroom apartments through furnishing it. The drawbacks are the more transient tenant but if it improves his DSR then something worth considering.
Some thoughts...........
Cheers,
Sunstone.
A couple of methods that I am currently using are:
-Dual Occupancies. Convert a council approved 5th bedroom external extension into a dual occupancy. Adding another rentable dwelling and proportionally increase the total rental income.
You could be looking at existing highsets. Some key points are checking the height underneath. Legally you need to have 2.4 metres as the minimum height from the floor to ceiling. If you are raising a house then you need to make it 2.7 metres from the bearers so that you have 300mm to play with for the slab and the termite protection. Additionally check the zoning and steer towards blocks that are 800m2+. The 800m2+ ones only require code and not impact assessments and so are quicker to get council approvals depending on the number of dwellings added to the block.
-House Relocations. Look at Michael Croft's great posts on the issue. However I am taking my 1862m2 block with a Qld'r on it and relocating several houses onto it. Have signed a contract on a duplex to relocate and am going through the process. Again putting more dwellings on your existing land so increasing the total rental.
-Conversions. Take an existing old Qld'r and change it from generating one rental into several units. If it is highset then you could look at changing it into a 4plx or extending the back out and making it a 6plx.
-Boarding Houses. Similar to conversions. Changing multi-bedroom houses into being rented out per room with communal facilities.
I am physically doing the dual occupancies and the house relocations. Conversions and boarding houses I believe could be a viable option down the track.
Use your imagination, there are always ways of increasing yields. GeoffW has been successful with his one bedroom apartments through furnishing it. The drawbacks are the more transient tenant but if it improves his DSR then something worth considering.
Some thoughts...........
Cheers,
Sunstone.
Sunstone,
I thank you for your reply. It has opened my eyes to a few things that I had never really given more than a passing thought to.
In regards to the 1 bed unit. I take possession of 14 x 1 bed units early next month and will have to give some thought as to wether it is viable to furnish them. I have previously picked up bits of info from this forum, like putting a roller door on the carports to make L/U garage. Also things like Air con as it gets really hot here in summer and really cold in winter. Other things like building a BBQ area are options as well.
Always good to hear your opinion Sunstone,
Thanks,
Jason
I thank you for your reply. It has opened my eyes to a few things that I had never really given more than a passing thought to.
In regards to the 1 bed unit. I take possession of 14 x 1 bed units early next month and will have to give some thought as to wether it is viable to furnish them. I have previously picked up bits of info from this forum, like putting a roller door on the carports to make L/U garage. Also things like Air con as it gets really hot here in summer and really cold in winter. Other things like building a BBQ area are options as well.
Always good to hear your opinion Sunstone,
Thanks,
Jason
