Townhouses in Outer Brisbane

From: Ray Summerton

There seems to be some low price townhouses available in the outer Brisbane area at the moment. Can anyone shed some light on whether they are a good buy or not. They seem to be recently built, have lots of facilities like swimming pools, tennis courts, BBQ areas etc and on site managers. However, the Strata fees seem high making for -ve returns. Do they have low vacancy rates? Do they look like achieving a good long term capital gain? Are there other possible problems a South Australian should know about? What is the best way for a long distance investor to find out where the best deals are?
Regards Ray
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Reply: 1.1
From: Ray Summerton

Carrara, Logan,Springwood,Acacia Ridge, Kingston, Pacific Paradise, Hillcrest Ipswich,Wynnum, Tanah Merah, Slacks Creek. All a fair way out, but some may be go ahead areas. Any info gratefully received. Regards Ray
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Reply: 1.1.1
From: Paul Zagoridis

Those areas are littered with the decaying dreams of the Great Southern Palefolk (a.k.a. newbie interstate investors).

That doesn't mean that those areas are bad. I invest in at least two of them.

Don't let the low sticker price fool you. Check the rates and levies. Often these can take upto 13 weeks rent (ouch).

Many interstate investors can't take it anymore and decide to sell at any price. That impacts resale comparisons. Or there is the other type who paid so much that they can't bear to take the loss. So they hold on forever, never spending money on the common property.

I like land content in affordable housing.

Hope this helps. If it's too cryptic let me know, I'm tired.

WealthEsteem :: Psychology of the Deal
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From: Andrew D

I'll have a shot at explaining the areas very broadly.
Carrara - On the way to the gold coast. (half Way to Brisbane) This area is where a lot of southerners got burnt with fly in deals. Can get some good ones nw though in resale. The south-east corridor is becoming more popular though and will only continue to grow.

Logan, Springwood, Acacia Ridge,Slacks Creek, Kingston - areas all in lower socioeconomic areas but have had fairly good growth over the last 6 months. Yeilds of over 10% were common...not so sure now.

Pacific Paradise - not sure,
Ipswich - lower socioeconomic again and significant growth in Western corridor. Also had good price gain in the last year. corridor .
Wynnum - On the coast of Brisbane, Very strong growth over the past three years. Quite significant price rises.
Tanah Merah - not sure.

Hope it helps

Stumbling blocks are just stepping stones to the successful.
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Reply: 2
From: Eric Williams

Hi Ray
Yes a lot of the property seem to be a good buy when compared to other parts of Australia but be very careful. You cannot compare apples (South Australia) with pears (outer Brisbane). I look at a lot of houses in this area but many are over inflated for the areas.You would probably find the same in your patch.
I meet quite a few local agents and they smile when you talk about "out of towners" buying site unseen.
White ants are another problem to be careful of even in relatively new houses.
Make sure you get a reputable Building Inspector (avoid one recommended by the real estate agent for obvious reasons).

The same as any other part of the country Due Diligence and a building inspection are essential.

If you find a good buy it doesn't matter where your looking.

Eric W.
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Reply: 2.1
From: Ian Parham

'Evening Ray & All

One question from me Ray if I may...

Why do you feel you need to invest in Brisbane?

I am from Adelaide, now residing in WA...have a couple of IPs at Flagstaff Hill and one in Perth.

Regards Ian
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Reply: 2.1.1
From: See Change

The other thing to be aware of with Town houses and units in this area are, not only the strata fees high in some , but with rates at 12-1300, you can be paying almost half your annual rent before you think of, management fee's , insurance etc.. and finally yourself ...( or the bank )

see change

it's better to be guided by your dreams than your fears
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From: Ray Summerton

Thanks for all the info people, the picture is much clearer now.The reason I'm interested in Qld is because of the projected population growth in the next ten years. This should cause a high demand for rental props so would like to get in on the act.Has anyone any positive or negative experiences with capital gains in the areas? Is the best way to investigate further thro a property broker or direct to agents? Has anyone had similar I/Ps in Coffs Harbour or Cairns? If so what results have you achieved?
Regards Ray
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From: Greg Dunne

Brisbane has plenty of land for many years to come. The major reason for property prices to increase is the balance of supply and demand. If land is available at relatively low cost and builders can keep pace with demand, prices for House and land package will not increase (significantly).If you want good capital growth look for property with unique features such as close to shopping areas, schools, transport,water views, anything that is desirable but not common.Look for that which is in short supply and desirable.
Consider the Gold Coast strip (Southport to Coolangatta)east of the Pacific Highway. This area according to BIS Schrapnel is a growth area. Do not buy an IP in the corridor between Brisbane and the Gold Coast if your goal is capital growth.
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