Redcliffe Peninsula
- Thread starter billie40
- Start date
Does nil earnings sound like it has a place in your portfolio?
In the words of Pauline: "please explain" ?
Exactly DT, ..... don't people sit down and break down the numbers anymore.
Becaben, .... sit down and work out your holding costs .. BC fee, Insurance, Council Rates, PM fee's, mortgage repayments ... and at 6.5% gross you will lose most of that return in holding costs each year. What DT means is that by the time your costs eat into your gross return you will be funding the whole investment.
All the best in your search
Mystery
Would you like to post the link to this unit ?
Scarborough is a small area undergoing gentrification. Any block of land is going to be within one kilometre of the water because it is a narrow peninsula. The high land in the centre includes good private schools and a few period homes. On the western side you have the marina, boat clubs and the canal estates. On the eastern side are the cafes and new apartments. The council seems to be supportive of beautifying the whole Redcliffe region.
Many properties have water or island views. Some properties flood but most are on the ridge/cliffs. Check out the amount of apartments.
We bought ours in 2010.
Scarborough is a small area undergoing gentrification. Any block of land is going to be within one kilometre of the water because it is a narrow peninsula. The high land in the centre includes good private schools and a few period homes. On the western side you have the marina, boat clubs and the canal estates. On the eastern side are the cafes and new apartments. The council seems to be supportive of beautifying the whole Redcliffe region.
Many properties have water or island views. Some properties flood but most are on the ridge/cliffs. Check out the amount of apartments.
We bought ours in 2010.
Thanks for spelling it out to a newbie, Mystery. I've looked at the numbers and after depreciation deductions, I am putting in approx $50/wk. Does that make it a bad investment against other properties in the area?
Thanks
Becaben
Hi Tyla, Just for a matter of interest can you list the pros and cons?
Becaben, have you looked at houses in the area? I just don't like the idea that a developer can knock down a couple of houses and build a new apartment, subject to council approveal of course.
Pros - being close to water and view of water, that is pretty much it.
Cons - apartment (risk of oversupply in the area) and too many stuffs that you will hardly use but that would cost you dearly in the future such as lift, pool, gym etc. Hence excessive body corp fees (there is definitely only one way for it and it is up). looks like a big complex too, which is definitely no-no for me.
$50/wk negative cash flow may not look too bad. But compared to other opportunities in the region, it won't provide better returns in the long run.
I see your point expensive stuff to maintain. I think oversupply could been a big issue espically if the market really takes off. thanks.
There is some flooding in Scarborough and surrounds so best you look over flood map. And the prime locations are East of Oxley but all the agents will tell you that anyway. Good luck!
Thanks Tyla. Would you be able to list a couple of opportunities in the region so I can see the sort of properties that would make a better investment?
No, I pay less than that for a house in Gladstone which is apparently now "cyclone affected region".
Do check the flood map for the property. There is a large open concrete drain running through Clontarf and several places are at sea level. I just paid $1100 for our house at North Lakes which is near Redcliffe, for $300K building replacement and LL insurance, with EBM.