Redbank plains Queensland

[esh]

Hi does anyone know anything about Redbank Plains Qld?
My parents have had this property there for almost 7 years and the last few years I have been telling them to sell. They are negatively geared and there is a shopping Center being built around there?? They've been told that ever since they bought the property.

Am I right in tellin them to get out of it and sell??? I don't know much bout Redbank Plains so best place to ask- Somersoft

 

[Random Eagle]

Hi Esh. I have an IP in Redbank plains but don't know how much help I can be as I live in WA and don't get over that way too often. However, I can tell you that Redbank Plains is about 10Km (I believe) from Ipswich and roughly 30Km from the CBD. Thankfully my property was also unaffected by the 2010 and 2013 floods.

By way of background, I bought in 2007, just before the GFC hit and at that time prices were going gangbusters reaching almost 20%pa. So, there is potential under the right conditions. Ever since however, it's been as flat as and rents have flatlined aswell from my experience. This has been a bit of a puzzle for me as I had believed that Qld had a well diversified economy but GFC and the high Australian dollar has been a kick in the guts to tourism, the coal industry and agriculture I expect. In additon I have never been able to fathom where all of those potential tenants, displaced in the floods went. I had expected to see rents rise but nothing happened. Maybe they all moved in with relatives.

My property is a 3X1 but I do know that during the time that I've held mine there have been a fair few 4X2's built in and around RBP's which has brought in unwanted competition and impacted my yield.

I also find Queensland a more expensive state in which to hold a property. Rates in particular are fairly punishing, compared with SA for instance.

On the plus side, a new train station is due for completion at nearby Springfield either later this year or early next. I also believe that the NBN is due to be rolled out in Springfield in the not too distant future aswell.

As for selling or not, you'd have to judge that on the numbers once you've gained a clearer picture of its potential for further improvements and captial growth in the area. Perhaps you should contact someone in the Ipswich City Council planning department or check their website. All the best with it, Random Eagle.

 

[esh]

Hmm thanks for your feedback! I didn't know about the train line. but i felt that my father would do much better investing his money in something that would right away be cash flow positive. I'll give the council a call and see what I can find out

 

[mystery]

Hmm thanks for your feedback! I didn't know about the train line. but i felt that my father would do much better investing his money in something that would right away be cash flow positive. I'll give the council a call and see what I can find out

esh, ... Random Eagle makes some very valid points. I also have IP's in Redbank Plains since 2007, ..... I can't give direct advice on what you should or shouldn't do, but your parents have held it through the tough times since 2007 until today .....

Property prices seem to have stabilised, but to sell now would lock in losses including selling costs that would add to those losses. I'm not saying prices are going to give solid growth from now on, I'm just saying your parents have done the hard yards by holding it through the tough times, but if holding the property is causing them financial hardship then that is more serious and something only they can decide what needs to be done.

To ease your fears why not take a cheap flight up, hire a car for a couple of days and go and get the infrastructure update first hand ...... I visit a couple of times each year and the speed of infrastructure growth and new housing estates opening is astounding. It always gives me a renewed feeling of confidence in the area when I see the improvements going ahead.

Randon Eagle's advice on seeing if you can do anything with the property, development wise is something you could also look into if you go up there. Speak to council. We have just finished a dual occupancy development that is totally cash flow positive whereas before the development it was very, very negative. As it's Ipswich Council your parents IP would probably need a minimum block size of 800m2 to do anything, but no harm in asking.

Good luck with whatever decision is made. My advice is just get all the facts before they make that decision.

Mystery

 

[Kit]

redbank plains

Redbank Plains has a train station namely Redbank Station on the Brisbane to Ipswich line. There is a new train station being built at Springfield (different line). It will be many years before there is a connecting line to Springfield.
The main shopping centre is not far from the station. Don't know what new shopping centre you are referring to - there is a new Woolworths. No other plans for a new shopping centre in Redbank Plains that I have heard of.

 

[JT7]

esh, ... Random Eagle makes some very valid points. I also have IP's in Redbank Plains since 2007, ..... I can't give direct advice on what you should or shouldn't do, but your parents have held it through the tough times since 2007 until today .....

Property prices seem to have stabilised, but to sell now would lock in losses including selling costs that would add to those losses. I'm not saying prices are going to give solid growth from now on, I'm just saying your parents have done the hard yards by holding it through the tough times, but if by holding the property it is causing them financial hardship then that is more serious and something only they can decide what needs to be done.

To ease your fears why not take a cheap flight up, hire a car for a couple of days and go and get the infrastructure update first hand ...... I visit a couple of times each year and the speed of infrastructure growth and new housing estates opening is astounding. It always gives me a renewed feeling of confidence in the area when I see the improvements going ahead.

Randon Eagle's advice on seeing if you can do anything with the property, development wise is something you could also look into if you go up there. Speak to council. We have just finished a dual occupancy development that is totally cash flow positive whereas before the development it was very, very negative. As it's Ipswich Council your parents IP would probably need a minimum block size of 800m2 to do anything, but no harm in asking.

Good luck with whatever decision is made. My advice is just get all the facts before they make that decision.

Mystery

Great post Mystery.

I've got one in the area myself and you are bang on in relation to the market topping out in 2007. That's sound advice Esh that Mystery has provided and I would seriously take it into consideration.

There is little doubt the property was bought at the top but as Mystery has eluded the worst may be over and it may be beneficial to just hold instead of taking the substantial loss. Mystery is right there is a huge amount of infrastructure being put in place and it may be well worth your while to take a trip up there to have a look.....

Best of luck mate

Jack

 

[esh]

appreciate the advice

Thanks guys-very sound advice. I will be going down in a couple of months to check it out. I last saw it like 5years ago, so def willbe good to suss it out now

 

[Angel]

The Centenary Highway now goes through to Yamanto west of Ipswich. This opens up easy access to Amberley and Willowbank. I saw on TV a few years ago that the Fed Govt has purchased a huge tract of land for an army base just west of Yamanto. I haven't heard anything further but that will be a big positive for your parents whenever it eventually happens.

Secondly the Legacy Way tunnel at the Toowong end of Centenary Hway is due for completion in 2015. This will make access to Brisbane and the Airport much better.