Queanbeyan 1 BR unit.

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Beebop

Hi all,

I am considering buying a one bedroom unit in Queabeyan as a first property (to live in at the moment, short to medium term). The reason is that it is cheap so I won't have to pay much interest and the interest payment would be roughly the same as rent... also FHOG and stamp duty exemptions. I would also like to potentially turn it into an investment property at some point.

I'd do it tomorrow but my worries are about the area. Is Queabeyan full of and incredibly low income /centrelink/ people who play loud music until 2am ect.. and will burn your car down if you complain ? Because I really need to sleep.

I've been to a few inspections and the people showing up seem to be pretty normal. I imagine a lot of people like myself would be interested in the area... I a public servant (newly APS6).

Would anyone be able to please advise me on the area ? Is it all a myth or are Quenbeyan 1 bedroom units really a no go zone ?
 
Last edited:
Beebop said:
Would anyone be able to please advise me on the area ? Is it all a myth or are Quenbeyan 1 bedroom units really a no go zone ?
Click to expand...

Go or no go, people still want to buy them.

In the mid-1990s they were typically advertised for $29 - 39k (2 bedders were under $50k).

Now look at their prices!
 
Spiderman said:
Go or no go, people still want to buy them.

In the mid-1990s they were typically advertised for $29 - 39k (2 bedders were under $50k).

Now look at their prices!
Click to expand...

Sorry, I don't understand what you are trying to say. (I might be a little slow today).

So they've gone up an average of 10 grand a year ?
 
Hey hey...ease of Quangers! It's a beautiful place this time of year :)

All jokes aside....I think Queanbeyan's a great place to invest. It's relatively cheap compared to Canberra and most of the units can be tarted up for instant equity.

As you've mentioned, the yields are quite strong as well.

Only prob with the 1 bedroom units is that the body corp fee's of about $1200 p.a will quickly turn what looks to be a positively geared property into negative territory.

I see more value in the 2 beddies around the $210k mark that can do with a basic reno.

My wife and I have an IP in Queanbeyan and it's been great so far. We're actually having an open house this Wednesday to find a new tenant - the current one is moving out (he was great).

It won't be hard to find a decent tenant - if you self manage, you'll have to be selective and ensure you've got all the checks and balances in place to help weed out dodgy tenants.

I say go for it!

Cheers

Jamie
 
We had a 1 bedder in Queanbeyan, we sold it earlier this year after a reno. We got an excellent rent return and made a good profit on the sale after a basic reno.

I like Queanbeyan as an investment location .... I don't think you can go to far wrong with the area. Tenants ... I suppose you can get some dodgy ones, but then again that applies to anywhere Australia wide.

One bedders are fine, but as Mortza say's ... if you can stretch to a 2 bedder that needs some TLC, then you will make some good gains down the track.

Good luck

Mystery
 
But what about living in one of those 2 bedders ? I guess you rented them out to tenants so someone must live in it.

edit : I could afford a two bedder, sorry, my inital thought was for a one bedroom because they are cheaper and therefore you pay less interest.

So what % growth do you think is reasonable expecatation/do you know anywhere you can find data on this sort of thing ?

I might set up a couple of spreadsheets with growth rates of between 1 and 5% to see what my return might be after 5 years.

Option 1 is to live in and collect FHOG and stamp duty exemption.

Option 2 is to buy as investment and rent elsewhere, the benefit is negative gearing.

Option 3 is property is too expensive and I can't afford it, ever and invest in enjoying life instead. LOL.

Option 4 is give up and hope to get an EL1 after 5 years LOL !!!!

I suspect option 1 will be better.
 
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Beebop said:
I've been to a few inspections and the people showing up seem to be pretty normal. I imagine a lot of people like myself would be interested in the area... I a public servant (newly APS6).
Click to expand...
This made me laugh. My closest friend and her husband have been living in Queanbeyan for years now. She's back at Treasury now, but spent two years as a very senior ministerial officer with Albanese. So yes, there will be a few other APS slumming it around the same area. You won't be alone :p
 
Jen_PFR said:
This made me laugh. My closest friend and her husband have been living in Queanbeyan for years now. She's back at Treasury now, but spent two years as a very senior ministerial officer with Albanese. So yes, there will be a few other APS slumming it around the same area. You won't be alone :p
Click to expand...

So.... did she live in a flat ?
 
Beebop said:
So what % growth do you think is reasonable expecatation/do you know anywhere you can find data on this sort of thing ?
Click to expand...
Queanbeyan units, according to data in the back of Your Investment Property mag have been growing at just under 10% for the last 5 years. Whether this will continue is anyones guess. The fact that public servants like yourself are wanting to buy them....suggests yes :)

What sort of deposit do you have? With concessional stamp duty in the ACT and the FHOG you might be able to afford something here.

Cheers

Jamie
 
Beebop said:
I'd do it tomorrow but my worries are about the area. Is Queabeyan full of and incredibly low income /centrelink/ people who play loud music until 2am ect.. and will burn your car down if you complain ? Because I really need to sleep.

Would anyone be able to please advise me on the area ? Is it all a myth or are Quenbeyan 1 bedroom units really a no go zone ?
Click to expand...

I have been living in Queanbeyan since Jan of this year. It is 2 bed unit in block of 9 units. I have only twice experienced some loud music noise. It was during summer months when I initially moved here and it only went till 11pm.

So apart from that it's been a very quiet neighbourhood. No issues whatsoever.

Cheers,
Oracle.
 
Hi Beebop

I've been in Queanbeyan for a few years now. I don't have knowledge of units now, but I have had experience.

I had a block of 9 1BR ubnits for 3 years. Bought for $490K in 2004, sold three years later for $770K. (8 of the units were renovated in that time- just cosmetic stuff). They were nicely cash flow positive for that time. Im only sold due to needing cash for business.

We did especially well by renting them out as furnished units. There was a good demand for those, and we had a very high occupancy rate. There are many people who come to Canberra for work, who only need a Monday to Friday accommodation- where work does not pay them. There is also a demand from newly separated people- these are generally shorter term.

There are some blocks which are in resi areas- building regs have changed and you are not likely to get more unit blocks in those areas. Others are unit ghettoes. You are probably likely to get better tenants around the resi areas.

I would highly recommend Maxwell and Son for property management. They recommended furnishing in the first place, and that really improved the returns. Jason Maxwell knows Queanbeyan very well, especially from an investor's viewpoint.
 
Jen_PFR said:
They did to start off with, then bought a renovator's delight about five years ago.... I've heard stories about them having no roof in winter for a week or so. Apparently it was pretty cold!
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No roof in a Canberra winter! That's hardcore renovating right there. The blocks got nothing on those guys!
 
Hi Beebop,

I was born in Queanbeyan and bought my first PPOR there. I think Queanbeyan has great potential and there has been some great capital growth there. There would be demand for one and two bedroom units but I think two is better if you can afford it.

Queanbeyan is just like any other place and there are a few areas or blocks that it would not be a good idea to buy in.

The are some definite no go areas close the the railway. Are you buying close to the railway where all the high rise flats are or in town?

Cheers,
Tracey
 
traceyim said:
Hi Beebop,

I was born in Queanbeyan and bought my first PPOR there. I think Queanbeyan has great potential and there has been some great capital growth there. There would be demand for one and two bedroom units but I think two is better if you can afford it.

Queanbeyan is just like any other place and there are a few areas or blocks that it would not be a good idea to buy in.

The are some definite no go areas close the the railway. Are you buying close to the railway where all the high rise flats are or in town?

Cheers,
Tracey
Click to expand...

Dunno where to buy. I was hoping the closer to canberra avenue the better. Part of the reason I haven't really taken serious steps is because I lack local knowledge and a lot of Queanbeyan has really bad karma. What areas near the railway are no go zones ? What areas of Queanbeyan are no go zones ?

Canberra is weird as I've seen areas I swore were bad which have turned out to be really expensive and full of well off people and areas people bag (like kambah) which end up being perfectly fine...
 
Beebop said:
Dunno where to buy. I was hoping the closer to canberra avenue the better. Part of the reason I haven't really taken serious steps is because I lack local knowledge and a lot of Queanbeyan has really bad karma. What areas near the railway are no go zones ? What areas of Queanbeyan are no go zones ?
Click to expand...

Since you live in the region, why don't you just go spend some time there?

Do your grocery shopping there. Have your breakfast or lunch or dinner at the cafes on the weekends. Go to a couple of school fetes or sporting events. You'll soon figure out which ends of town, which schools, which shopping precincts have respectable people and which ones attract trouble.
 
Hey Beebop

Your best bet is to spend a few weeks popping into open houses. Chat with the real estate agents, tell them what you're looking for.

Queanbeyan's not a huge place, it won't take you long to work out what a good deal looks like.

On a side note, we've just recently signed up some new tentants for our Qbn property - and, touch wood, they seem like very 'normal' (I know, it's relative) people :)
 
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