Why is that risky? Do you think it's better that I pay 25% above what the place is worth just to get one? I don't think so, Tim! I have several options available to me, I'm just deciding which one to take.
Mark
Strong Growth in Brisbane
- Thread starter Andrew_A
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Why is that risky? Do you think it's better that I pay 25% above what the place is worth just to get one? I don't think so, Tim! I have several options available to me, I'm just deciding which one to take.
Mark
Thought some people might be interested in just how hot the market is. Just rang an agent in relation to a property in Alderley (nice area, about 5k's from the city) - 2 bed townhouse on the market for 350K. Currently rented until July 2008. So I asked the agent how much the tenant is paying right now - she told me $215 p.w. I then asked her what she thought they could realistically get at market rents (I know the answer, but I wanted to hear it from her). She said $260 - $270. So even at something close to fair market rent, it's still 20% over valued. If you bought it for asking price with the current rent, it's almost 40% overvalued.
So a whopping 3.2% yield, fantastic... I tell you I would surprised if it didn't get that or maybe even a bit more. Although to be fair, I have found a few properties around that are hovering around the 5% mark (assuming they sold for the asking price, which is unlikely).
Mark
So a whopping 3.2% yield, fantastic... I tell you I would surprised if it didn't get that or maybe even a bit more. Although to be fair, I have found a few properties around that are hovering around the 5% mark (assuming they sold for the asking price, which is unlikely).
Mark
how old was it??? 350k actually sounds a little cheap unless its a real oldie...
Alderley and surrounds are doing some bizarre things with prices at the moment.
had some t/houses in Aldereley itself end of last year - brand new 3 bed city views top class finish etc...all for high $400k's and now in Ev Park/Mcdowall border i can sell you a pre-construction 3 bed unit for $599k... couple of years back that was unheard of.
its all gone mad
Alderley and surrounds are doing some bizarre things with prices at the moment.
had some t/houses in Aldereley itself end of last year - brand new 3 bed city views top class finish etc...all for high $400k's and now in Ev Park/Mcdowall border i can sell you a pre-construction 3 bed unit for $599k... couple of years back that was unheard of.
its all gone mad
I'm of the opinion that even though the market is overvalued as you've said, the rental price correction, if any, will occur by....next March (my prediction). Unfortunately, prices in Brisbane will not drop, so get in as early as you can for CG...yeah, crap for cf+, but hopefully the correction will see to that...
how old was it??? 350k actually sounds a little cheap unless its a real oldie...
Alderley and surrounds are doing some bizarre things with prices at the moment.
had some t/houses in Aldereley itself end of last year - brand new 3 bed city views top class finish etc...all for high $400k's and now in Ev Park/Mcdowall border i can sell you a pre-construction 3 bed unit for $599k... couple of years back that was unheard of.
its all gone mad
Yeah bloody oath mate. It's ridiculous. I would hazard a guess that the complex was 15(?) years old, maybe a little older. I know that's the relative asking price for the area right now, maybe even a little 'cheap', considering 2 bed units in Kedron are asking 300+ now...
Mark
2 bed units in Kedron are asking 300+ now... /quote]
bugger!!!
I made a flogging off them last year when 250-260k was top dollar...maybe i should've kept playing in there...
actually thinking about it, you're dead right - we sold a new two bedder in stafford for 349k a couple of months back and i remember thinking that was high - so over 300k for a 2bed in a 6pack is not all that surprising - especially if its in the avenues...
Recent Story - Brissie market
This is in the last month or so ...
I know someone who put a townhouse on the market (Carina Heights) expecting to get around $330K. First inspection, half an hour, 60 people came through. That weekend got several offers over the listed price.
The following Tuesday night (I think), more inspections - another 30 or so - ended up taking an offer of $370K. One of the other townhouse owners was so impressed they had the real estate contact bidder number 2, and sold them their townhouse for the same price. Incredible!
DJ
This is in the last month or so ...
I know someone who put a townhouse on the market (Carina Heights) expecting to get around $330K. First inspection, half an hour, 60 people came through. That weekend got several offers over the listed price.
The following Tuesday night (I think), more inspections - another 30 or so - ended up taking an offer of $370K. One of the other townhouse owners was so impressed they had the real estate contact bidder number 2, and sold them their townhouse for the same price. Incredible!
DJ
DJ,
The scary thing is that Herron Todd White rate Brisbane in the Property Market Indicator list as "rising market" in the property cycle, ... you'd imagine that the sort of price action you described will continue a while longer yet.
I'm just so relieved that we bought 2 x IP's up there in April 07, and we have seen some amazing growth in only 5 months.
Martin ....
The scary thing is that Herron Todd White rate Brisbane in the Property Market Indicator list as "rising market" in the property cycle, ... you'd imagine that the sort of price action you described will continue a while longer yet.
I'm just so relieved that we bought 2 x IP's up there in April 07, and we have seen some amazing growth in only 5 months.
Martin ....
Mystery Martin
Me too!
Picked up a place that settled in mid July. During the four week settlement period properties similar to mine went up $40 week in rent, and around 5% in value. Glad to hear it'll continue! Happy happy joy joy!
DJ
Me too!
Picked up a place that settled in mid July. During the four week settlement period properties similar to mine went up $40 week in rent, and around 5% in value. Glad to hear it'll continue! Happy happy joy joy!
DJ
My property finalized last week in Annerley. 2 Bed 1 Bath, wooden floor unit with big garage and closed off rampus area downstairs (basically 2 garage made into 1 + rampus).
Currently rented at $280 but I will be moving in to satisfy FHOG and by the time I move out I'm hoping it'll be $300. I paid a touch more than it was worth (ie. I didnt get a bargain) but I'm betting that (who doesn't love a good bet) it will be the next Newmarket/Taringa style area to hit a boom based on closeness to city, public transport and the green bridge.
Should be fun to start playing the IP game. Need this to grow so I can get my hands into real investments (no FHOG grant etc).
Matt
ps. sucks how you can't choose your real estate agent. Mine was an uneducated, unethical fool who didn't deserve $10 from the sale.
Currently rented at $280 but I will be moving in to satisfy FHOG and by the time I move out I'm hoping it'll be $300. I paid a touch more than it was worth (ie. I didnt get a bargain) but I'm betting that (who doesn't love a good bet) it will be the next Newmarket/Taringa style area to hit a boom based on closeness to city, public transport and the green bridge.
Should be fun to start playing the IP game. Need this to grow so I can get my hands into real investments (no FHOG grant etc).
Matt
ps. sucks how you can't choose your real estate agent. Mine was an uneducated, unethical fool who didn't deserve $10 from the sale.
Some more info about the Brisbane median going above 400k
REIQ media release
REIQ figures show the Brisbane median house price for the 12 months to the end of June 2007 is $405,000, up 9.5 per cent - from $370,000 - on the same period last year.
I think a large chunk of that 9.5% would have come from the first 6 months of 2007.
REIQ media release
REIQ figures show the Brisbane median house price for the 12 months to the end of June 2007 is $405,000, up 9.5 per cent - from $370,000 - on the same period last year.
I think a large chunk of that 9.5% would have come from the first 6 months of 2007.
do you think prices in Brisbane will keep going up like this for a while?
Thinking of buying my first IP there, wonder how long this growth will last, don't want to by just before it goes flat.
ahhhhhh...YEP!!!
IMHO, the only thing that will slow down those figures at the moment is that there is a distinct lack of stock across most markets and sales are down as a result.
the irony in that (or rather the effects of supply and demand) is that if there was to be more stock come one, things would probably skyrocket even further...
IMHO, the only thing that will slow down those figures at the moment is that there is a distinct lack of stock across most markets and sales are down as a result.
the irony in that (or rather the effects of supply and demand) is that if there was to be more stock come one, things would probably skyrocket even further...
Just found out today that my block of land in Nth lakes has gone up $10k in 6weeks....not being greedy but was expecting more just based on what's happening in the market. I have no sources up Nth so had to ask the Stocklands people directly..which was a bit awkward.
I guess it's pretty good considering I haven't even paid for it yet. I wonder if the bank would take that into account as I'm getting valuations done atm to get finance. Coming from the developers and that all land at that size now is worth at least $10k more...hmm would Westpac buy it?
Westside has been witnessing phenomenal growth aswell. Forest lake now no houses under $300k and average $400k to $450k. The gem is Heathwood...it has really outperformed beyong my expectations in such a short time frame. Enquired again last week and land has just jumped another $20k from 2 weeks before.
Growth along the logan motorway corridor is phenomenal.
I guess it's pretty good considering I haven't even paid for it yet. I wonder if the bank would take that into account as I'm getting valuations done atm to get finance. Coming from the developers and that all land at that size now is worth at least $10k more...hmm would Westpac buy it?
Westside has been witnessing phenomenal growth aswell. Forest lake now no houses under $300k and average $400k to $450k. The gem is Heathwood...it has really outperformed beyong my expectations in such a short time frame. Enquired again last week and land has just jumped another $20k from 2 weeks before.
Growth along the logan motorway corridor is phenomenal.
I couldn't get the bank to revalue mine when we refinance, even though there was a $60k prices rise.
I'm just hoping my houses will hurry up and get built so I can get rid of 2 of them to take advantage of the rising market.
actually, we had delayed settlement on 3 blocks and after a few mths, they had all doubled in value and Westpac did accept the new valuations...this was years ago...doh...I already know the answer!!
but for just $10k..it's probably not worthwhile doing.
