Does anyone still want to buy a unit in a massive complex in Brissy after reading that??
Leo
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Does anyone still want to buy a unit in a massive complex in Brissy after reading that??
Leo
Great info - thanks all.
I agree with you LeoT, not sure purchasing massive highrises is ever a good idea - your reasons make sense and seems to be consensus view.
Sumterrance - makes sense, the data over 5 years isnt as pretty. Over ten years its much better.
Cheers,
Redom
Maybe im wrong, but there are not many massive high rise unit developments in Brisbane- rather many medium sized ones.
The meriton skyscrapers are apartments and yes id watch out there, as the Brisbane skytower as well.
But apart from those, there arnt Melbourne type 50+ story apartment towers??
OK so the general consensus is to stay away from Brisbane CBD and big complexes and houses > units, is that right?
In regards to purchasing properties with a view to value-add either through reno or dev, does this pose as a challenge for you if you reside in another city to your IP? How do you overcome the distance factor during the reno/dev? Or does the majority of you stick with areas near by where you reside for these projects and buy&hold properties in other cities/states?
I'm looking at Brisbane for my next purchase and wouldn't mind a detached house with land with potential to value-add later but the distance is a big deterring factor for me.
, does this pose as a challenge for you if you reside in another city to your IP? How do you overcome the distance factor during the reno/dev? Or does the majority of you stick with areas near by where you reside for these projects and buy&hold properties in other cities/states?
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I don't think anyone is saying stay away from the CBD. What I think the overall feeling is to watch out for large apartment buildings such as the 1000 unit Brisbane skytower, because of reasons as outlined earlier by another poster on this thread....similar to those in Melbourne.
Ultimately, it depends entirely on what you are after/your strategy. You have mentioned that you are after reno/value add. In that case, the potential to reno and add value is generally less for apartments than houses/townhouses, so if I were you id stick with the latter, and about 5-10km [ properties will be smaller for reno closer you get to the CBD] from the CBD given your budget. As for doing a reno whilst in another state, not sure...there are others on this forum who could advise better.
Hi JDP!,
Yeah I tend to agree there aren't too many skyscrapers in Brissy like Melb. For me personally, I classify a unit complex as 'too big' if there is more than 50 units. This is my personal criteria.
Cheers
Leo
I'm the same Leo, for me it's even at 20 units is too many.
The 'distance factor' is only in the mind. Lets just talk about reno (because development is a whole different ball game).
1. you buy a house with scope for reno.
2. You can fly down (some do it over photos by REA or friends who live there and help them but better to fly down for a day or two) and inspect the place. Take note of the things you want renovated.
3. Call trades people to go over, have a look and give quote. The tradies can get the keys from the PM or if you engage a new PM they will hold the keys and assist the trade people as they come for the keys. (ideally this should be done before settlement and a clause in the contract should request that renovation work can start before settlement)
4. Tradies finish work and you can get your PM to take photos and send to you.
5. rent it out and job well done.
IMHO The 'distance factor' is something investors need to get over, as its important to buy IPS in a few states. While some states have flat or little growth, other states will experience stronger growth, therefore a portfolio of mixed state properties will always be growing well. This also mitigates some risk, and allows for a portfolio to expand much, much faster.
leo
4.
Thanks for the advice and insight, Leo. I'm assuming that you have done many of these interstate reno projects in the past successfully? What about managing the tradies and overseeing the whole process from beginning to end; it's a big enough hassle being on top of them when you're in the same city how do you suggest you do this effectively remotely especially if you have never dealt with these people before? I'm guessing having a trustworthy and reliable third party locally acting on your behalf would be critically important but who, property manager?
I'm also keen to know what suburbs they are.. Were these vals done by the bank? refinancing wasn't a problem?I bought a unit at the start of 2013 for 200k, just got valued mid year at 280k. Another one at the end of 2012 for 250k, last val 360k. Wished I knew they they were terrible investments.
I bought a unit at the start of 2013 for 200k, just got valued mid year at 280k. Another one at the end of 2012 for 250k, last val 360k. Wished I knew they they were terrible investments.
HI Moneynevercsleep,
yes I have done a few in my time. Depending on the scope of the reno, you don't always need someone to oversee unless your doing a complete major reno of the entire house. In that case speaking for myself I have done a few things (assuming were talking about full reno of kitchen, bathroom etc.)
1. Get a rea/friend/anyone you trust and know to help oversee the reno
2. Make trips down there on key dates, eg when the kitchen is being done or bathroom to show your presence and further clarify any issues
3. I used a project manager one time when I was thoroughly too busy to focus on it and they did a decent job.
Leo
It's good to know it is not as much of a challenge as I initially thought! Thanks mate
OK so the general consensus is to stay away from Brisbane CBD and big complexes and houses > units, is that right?
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