Why Morayfield at 4.5% yield?

[PEI]

The Residex report has Morayfield growing at 14-16% annual rate over the next 5 years which puts the average around $400,000. Presently the rental yield looks to be 4.5 to 5%. Even if the average rents grows to say 250 per week this leaves a yield of around 3.2% - hard to believe!

With the benefits of buying in areas like Caboolture and Morayfield being higher yield positive cashflow how long can these areas maintain growth? I read that the expected population growth of Caboolture to 2011 will be 153000 from 111000.

I know people on this forum can not see into the future but what has happened in this area over last peaks and lows. Can you see this sort of growth over the next 5 years?

 

[pennyk]

Morayfield

I have just returned from a trip to Burpengary, which is the suburb next to Morayfield - where my inlaws live. I would estimate that the prices have gone up over $100 000 in this past year. When we were looking for property there at the beginning of the year, we were thinking of either buying off the plan in Morayfield for $150 000, with rental returns of around $250, or in BUrpengary, a 3 bed villa for $130 000, nearly built, with rental return of around $200. Unfortunately we couldnt go thru with either at the time. This time, villas in Burp off the plan a couple of doors down are $250 000, with building not started yet, and a 1 bedroom villa!!!!
We have been going up there for 10 years and have kept an eye on real estate and it has never been these sort of prices before. But when you look at the growth in areas leading up the Bruce Hwy, it seems that the population is there to support it. It reminds me a bit of Kellyville in Sydney - a few years ago, you would never have believed that it would be as populated as it is now.
But I think if you are looking for rental returns, youve missed the boat. and obviously a lot of capital growth has already happened. Its not as affluent an area, so whether the prices can keep going up as they are is doubtful. But for my money, I'd be looking a bit further out again, cause the population will probably just continue to sprawl. The train line to the Glasshouse mtns is being extended at some time in the future. But i think it's probably better to stick to the coast.

Penny

 

[mcollins]

I have listed a number of properties in this area over the past year and I would suggest that each month you could almost place an additional $10,000 on the price from the previous month without too much difficulty in selling the property.

The area is developing in every angle with developments popping up all around the place continually. I must admit I thought the maximum a four bedroom, double lock up home with an ensuite would go for in Morayfield was $240,000 and now we are selling them for $280,000 only three months later. So I have now changed my mindset on the area into believing that anything is possible with the current structure of the shire.

Note: the above prices do vary from one area of caboolture/morayfield to another depending on the age of the properties and demographics.

On a personal note I stronly believe that there are certain areas of caboolture and morayfield that will continue to flourish in the future and others that will increase but not as dramatic over the next two years.


With the projected population growth from 115,000 to 153,000 in 2011 it is hard to imagine the area going backward from its current standing. The annual growth rate is twice that of the national average. It is consistently placed in the top five growth areas of queensland. Caboolture and Morayfield are approximately 20 minutes from the water - Bribie Island or Beachmere.

Caboolture and morayfield link to the Bruce Highway - National Highway. They are fourty five minutes from brisbane and only half an hour to the brisbane international and domestic airports.

There is currently an airfield in caboolture that can be used for recreational and/or personal travel purposes if desired. The shopping centre cost approximately 160 million dollars to construct so it is not a 'small' shopping village.

Overall, I certainly do believe the area will go ahead in leaps and bounds. Will it be 14-16% annual growth over the next five years I certainly hope so but to say yes or no is simply a prediction.

Final note: This a personal opinion from a real estate agent working in the area.

 

[kidders]

PEI,

I have just settled on a house and land package that I put a deposit down on in June. The inclusive price was $220k. I have been told that the house (when built in May) would be worth $300 - $320k. The rent / wk will be $250 / wk.
I hope that it continues to grow.

Cheers,

kidders

 

[RetiredBy50]

Residex Report predicts over 16% growth for next 3 years for Narangba which is in Cabooture Shire as well. Narangba seems to be a nicer suburb for families as well

 

[Angel]

I would like to ask if you are all still happy with your investments around Caboolture shire. I am thinking about Burpengary. Do you feel that there has been SO much capital growth pre GFC that there is no room for further price rises, or am I seeing what appears to be a good time in the face of expected growth over the next five to ten years?

There is a 3/1/1 house listed for $309K (600m) that I am about to enquire about, and many houses on big blocks in excess of 800 m for the mid $300Ks.

I have been looking around Redcliffe and the asking prices are much higher than Burpengary, with rents everywhere very low ATM.

 

[evand]

Interesting thread. I have owned houses in Caboolture/Morafield since 2001 and it shows just how wrong Residex can be.

No one can predict the future accurately. Not even companies that charge for the predictions.