sceptical about QLD

[Bran]

I agree, and put 3/4 of a mill where my mouth is yesterday on a beautiful house in the inner ring. I'm not after rental yields per se, but it should return 5% and I'm very happy with that.

It's not just the expensive properties, my mother is in real estate Browns Plains way and has zero listings for the first time she can recall.

No one is stressed to sell, perhaps not comfortable enough with employment to sell with the view upgrade, and she tells me Southern investors are snapping up everything (and more so than the Chinese which were in the picture the last 6-12 months).

Go ahead and buy in Brissie, I'm relying on it

Oh, and QLD buyers don't buy at auction. The jazzed up properties appear too expensive for their price range, and the poorly presented properties are dismissed. It's an unusual phenonomen. Plus, we are too laid back to have our finance sorted in advance

 

[Azazel]

I agree, and put 3/4 of a mill where my mouth is yesterday on a beautiful house in the inner ring. I'm not after rental yields per se, but it should return 5% and I'm very happy with that.

Awesome, which suburb did you go for?

 

[Angel]

I just got my two IPs in Moreton Shire valued yesterday and they came back about the same as what we paid in 2010

 

[Bran]

Frustrating.

We got vals from three different bank, and the same valuer knocked on the door three times.

Valued us over 10% less than next door sold last week, on an identical block and arguably lesser house. Said he doesn't pay any attention to the zoning. Anyway, it was enough, and hopefully leaves something for a few months time.


(My new one is under contract yesterday, won't share for another 2 weeks).

 

[Jaguar Driver]

I just got my two IPs in Moreton Shire valued yesterday and they came back about the same as what we paid in 2010

and this is why I would suggest sticking close to the CBD- Most of the stuff around the cbd has appreciated quite nicely.

 

[channon]

Depends on the purchase as well I guess, I got my Deception Bay place revalued, up by $40k since I bought it 12 months ago, that's almost 20% gain in 12 mths.

 

[Angel]

and this is why I would suggest sticking close to the CBD- Most of the stuff around the cbd has appreciated quite nicely.

Since when has it appreciated quite nicely? Do you mean over the past three years or since 2007?


It is one thing to sprout about buying close in for an investment. Not everyone can afford the huge gearing losses this would cause. Some of us have to buy further out or not at all. Second best is better than nothing.

Here's the sale prices history for my Scarborough property, which shows why it was an obvious choice when I bought it in 2010.:
March 2000 $117,500
Jan 2005 $219,000
Dec 2010 $320,000


It would have been worth about $400K just prior to GFC, $320 seemed perfectly reasonable once prices started to move up in 2010.

A run down place in any middle ring suburb was over $440K, closer to $500K

Two outer properties = finance. One inner ring at $600K = no finance.

 

[Azazel]

http://www.news.com.au/finance/real...-property-market/story-fncq3era-1227287419813

"The latest CoreLogic RP Data house price index [March] also revealed slight increases in values in all capital cities except Brisbane, where values dipped 0.3 per cent."

"Perth, down 2.7 per cent, Adelaide, down 0.9 per cent and Brisbane, down 0.5 per cent, were the worst performers during the quarter."

 

[Jaguar Driver]

Since when has it appreciated quite nicely? Do you mean over the past three years or since 2007?


It is one thing to sprout about buying close in for an investment. Not everyone can afford the huge gearing losses this would cause. Some of us have to buy further out or not at all. Second best is better than nothing.

Here's the sale prices history for my Scarborough property, which shows why it was an obvious choice when I bought it in 2010.:
March 2000 $117,500
Jan 2005 $219,000
Dec 2010 $320,000


It would have been worth about $400K just prior to GFC, $320 seemed perfectly reasonable once prices started to move up in 2010.

A run down place in any middle ring suburb was over $440K, closer to $500K

Two outer properties = finance. One inner ring at $600K = no finance.

I bough my place in inner to mid southeast Brisbane 2 years back and it has appreciated by about 15%.
Not Sydney type growth by any means, but decent steady growth. I know that most surrounding areas have posted similar numbers.

QLD is a very big place and the variance between cg is significant from area to area and also property to property.

 

[moses]

just bought a property in Algester & i honestly feel like im going to get rich off it

#steal

 

[tonyc00]

Just bought a great place in Oxley at the same price the previous owner paid in 2007, similarly in Labrador, bought at same price/s as previously sold/ bought in 2007.

Great townhouses (3 beds/ 2 br/ garage/ tenanted), and all positive geared.

However, ask me in 5 - 7 years if they were a good investment in terms of cg.

Tony

 

[Angel]

I bough my place in inner to mid southeast Brisbane 2 years back and it has appreciated by about 15%.

QLD is a very big place and the variance between cg is significant from area to area and also property to property.

I don't think you get what I am talking about. Wouldn't any property in SEQld have appreciated 15% over the past 2 or 3 years. Anywhere in SE Qld was affected be the same factors since 2007. How much was YOUR property worth in 2007? and in 2010?

 

[Bran]

Angel,

I'm confused - isn't yours the post above saying your Moreton Bay properties haven't shifted since 2010?

Brisbane isn't always Brisbane, as they might say

 

[Angel]

Angel,

I'm confused - isn't yours the post above saying your Moreton Bay properties haven't shifted since 2010?

Brisbane isn't always Brisbane, as they might say

Prices across the city dropped significantly in 2011 and have since came back up to where they were in 2010. In 2010 they had already increased a bit since the GFC. That is why I thought 2010 would be "business as usual', 7 o'clock, after a share market downturn, as was the case in 87 and again in 2000/2001.

Those of you discussing increased value over the last two or three years are happy if you purchased within that same time frame. Those who purchased after the GFC and before the flood wont be anywhere near as happy because if all of our equity vanished we would have been unable to take any advantage of the decreased prices.

Before anyone says that someone in my position, for example, should have developed our blocks, well that is fine if we had a developable block and we had the income to offset the holding costs. I didn't purchase any developable blocks in the first place, because they sell for an even higher price than any non-developable block whether BCC or greater Brisbane.

As for different parts of Brisbane - we are all confused. Many writers call Redlands, Logan, Ipswich and Moreton "Brisbane" while others only consider Chermside to Mt Gravatt and west to Oxley.

Maybe I have missed the point others here are making?

 

[hugh72]

No I think your point is clear, it just sounds like bad timing IMO, at least it wasn't in 2008 in a hot market. Hopefully things will turn around over the next few years.
I think recent growth has been more limited to the BCC area at this stage compared to Ipswich or Moreton, I would we interested in others people's opinions on this.

 

[vbplease]

As for different parts of Brisbane - we are all confused. Many writers call Redlands, Logan, Ipswich and Moreton "Brisbane" while others only consider Chermside to Mt Gravatt and west to Oxley.

The article linked above says bris dropped 0.5% in the last qtr.. Dragged down by Logan and Ipswich I think the author of the article is a little confused regarding bcc boundaries.

Anecdotally, I've seen the (6-10k from cbd) suburbs being warm for a while.. Seeing very little value $550-650k bracket

 

[Azazel]

The article linked above says bris dropped 0.5% in the last qtr.. Dragged down by Logan and Ipswich I think the author of the article is a little confused regarding bcc boundaries.

Do you mean the author or Cameron Kusher of CoreLogic RP Data?

 

[Angel]

Do you mean the author or Cameron Kusher of CoreLogic RP Data?

The author of the article was quoting Kusher. See the quotation marks around the comments. I have read other articles in other publications also quoting the same.

A few months ago someone was saying that Brisbane's median price was up around $600K (Domain, RP data, real estate institute, I don't recall which). I had to look again, $500K maybe! That data came from the sale figures in the previous month. That could be because some properties way over $1m were squewing the stats. This would not be indicative of the values of all the properties that were not for sale. In other words, stats can tell you whatever you want them to tell you. I bet for every $1m+ property along the river, there are twenty thousand worth less than a million.

Anyways, a $400K property in an outer suburb increases 10% and goes to $440K, a $600K property within the BCC boundary increases 10% and goes to $660K. Same percentage increase but a different dollar number. Of course the closer to the CBD one buys, the higher the dollar profit.

 

[Azazel]

Annual population growth vs. annual dwelling approvals, Brisbane

 

[tonyc00]

Thanks Azazel

A great chart - can you reveal the source of the data since I would be interested in similar trends for other areas, eg Gold Coast, or specific areas within the Gold Coast.

To my mind the chart is worrying in terms of "Brisbane" as an investment.

Economics 101 - price is determined by the interaction of supply (new housing approvals) and demand (population), and with increasing supply and declining demand then lower price. Comments welcome.

With the caveat of ceteris paribus, and that there always markets within markets.

Thanks again for sharing.

Tony