Your top 5 suburbs

[grubar30]

vandalic,

Here we go:

I just inspected this arvo a 1 bdr, 1 bath, cavity brick, 55m2 (that’s a decent size for a 1 bedder) unit at Taringa...it even has its own little backyard. It’s going for $189k and would rent for ~ 190 pw in its current condition - well that's what the RE agent reckons...its ripe for a reno….big time…..

now, I'm thinking if you can pick this sucker up for between $160-$165 (probably a bit too optimistic) and drop a $15k reno on it, aka Reno Kings style cheap and nasty, then you could have a winner on your hands...

Ok, say it goes for $170 (give or take a couple of grand that’s the max I would pay), add the 15K reno, + ~ 6K stamp duty and your looking at a total outlay of $191K (not including conveyancing), which equates to $250pw repayments at a 6.82% variable, 30yr IO loan....I believe this unit would rent for around $220 (based on research)...thus, the diff. between rent and loan repayments (say you borrow 100%) would be $30 pw....so at $191K total outlays, rented at $220 its comes to a gross yeild of 5.9%.....not bad in my books....sure, its not super fantastic but you're in the game...oh yeh sh*t, I forgot about the depreciation schedule....worst case scenario, that's another $10 in your pocket.....so make that $30 pw now $20......all this is not literal, I’m just throwing numbers around....but this is how I look at these places

If you want, PM me and I'll give you the address and agent.....these are the types of places I'm looking at....I'd make an offer on St Lucia/Taringa but it would leave me too much in a grid-lock in terms of getting to work at the Airport....you see, I live in the places while I do them up and I’m very much over travelling long distances to work…that’s why I’m looking in the Nundah, Chermside and Clayfield areas….but they’ve got nothing over Toowong/St Lucia/Taringa in terms of gross yield….

Anyways…….

George "time for a bourbs" Grubar

 

[vandalic]

I couldn't agree more, thanks for the information. I work in Milton, so buying around my current renting area (St Lucia) would be nice travel wise, as I didn't enjoy long trips to work when I lived further out on the southside of town.

I am looking to initially purchase as a PPOR to get first home buyers and live there for about 12 months, then move out and rent again, and use that property as an investment. I would be looking for 2 bedrooms though, as 1 wouldn't be enough for myself and my missus given the amount of room we need for an office and junk!

Thanks for keeping me posted!

Josh

 

[markpatric]

Hey Grubar, are you allowing for body corp fees etc, your figures seem a more than a little off the mark.
I`m thinking on those figures you would need around $360 a week rent to CF neutral, rather than the $250 you estimate, even then the big if`s are always the difference, if you get the unit for $170,000, if the rental estimate is accurate and if you can renovate for $15,000 and get a tenant quickly, then allowing for the vacancy period.


I generally stay away from units but in six-twelve months time it might be worth checking some of these out, pretty good value and units are a breeze to renovate!.

 

[grubar30]

markpatric,

Let me clarify - I did (do) not take Bcorp or Rates into account....to bring those puppies into the picture you’re looking at a ~4.6% gross yield (say rates and bcorp come to $2.5K per year and you rent at $220pw).....or put differently, you’d have to buy this property at a 8.1% gross yield (so either it rents for $305 to make up for the $191K weekly loan repayments of $253 and the $48 per week for bcrop and rates, or you buy at $141K and it rents for $220 pw) to make it CF neutral....either way, its just not going to happen....btw, I'm not fudging the number to make it seem "nice"....I'm simply leaving out rates and bcorp and saying that if you buy it at around $171K, then factor in 2-3 years of rent rises to get it to that “self-sufficient” stage.….maybe I should have stated this…

But my point still stands – whether you factor in rates and bcorp or not, you’ll be hard pressed to find better yields in the unit market that St Lucia/Toowong….

George

 

[TryHard]

am not that partial to Brookfield etc....it is a long journey to the Bay and coasts, and it gets hot and dry out there...

I sold acreage at Beachmere a while back, and am in the process of building at Upper Brookfield. It all depends if you're into "seachange" or "treechange" -I wasn't too partial to Beachmere (too close to Caboolture, l-o-n-g drive to CBD, plenty of sandflies, not a particular great socio-demographic - but I love the serenity and greenery (hot and dry???) of Upp.Brookfield. Not for everyone for sure - limited public transport, and limited development opportunities as min. land size allowable is now 25 acres. Apologies to Beachmere lovers - I CAN see why some people would like it, and I guess you can't go too far wrong near the water.

Cheers
TryHard

 

[arriety]

No one has posted SA top 5 yet. (Duncan where are you??)

Mine are in no particular order and since there is no criteria except good for investment, I'll think need to look at Capital growth cos rents are quite low at the moment

Unley
Morphett Vale (underated)
Pt Noarlunga/Seaford (minutes from beach)
Golden Grove (pretty)
Pt Augusta/Pt Pirie/whyalla country towns (new industry)

Unley is already blue chip area but you can still buy some old units and it is the only suburb which is always increasing in price.
Morphett Vale is 20Kl from city, at the moment very unpopular and so cheap - I think it will have a big increase in 5 years time.
You can still pick up bargains in Pt Noarlunga area (30kl from city) - a renovated home on esplanade for 400Ks
Golden Grove is a newish treed organic area - I think it will boom soon
Pt Augusta etc -There is going to be some new industries coming to the country towns in next few years so rentals will be good and houses can still be bought for $150k now.

Of course this is my wish list - I can only afford to buy in Morphett Vale or the suburbs adjacent to the seaside ones.

 

[thefirstbruce]

I sold acreage at Beachmere a while back, and am in the process of building at Upper Brookfield. It all depends if you're into "seachange" or "treechange" -I wasn't too partial to Beachmere (too close to Caboolture, l-o-n-g drive to CBD, plenty of sandflies, not a particular great socio-demographic - but I love the serenity and greenery (hot and dry???) of Upp.Brookfield. Not for everyone for sure - limited public transport, and limited development opportunities as min. land size allowable is now 25 acres. Apologies to Beachmere lovers - I CAN see why some people would like it, and I guess you can't go too far wrong near the water.

Cheers
TryHard

Hi Try, suppose it comes down to where you live and your lifestyle too. I wouldn't commute into town from Beachmere, nor Upper Brookfield. And I wouldn't enjoy the trip from Brookfield to the Sunshine Coast on a regular basis.

 

[FrankGrimes]

Redcliffe peninsular (Scarborough, Redcliffe, Woody Point, Margate) - Again residex predicting well above BNE growth, seriously undervalued, only real sandy swimming beaches in Brisbane, will be BNE answer to Sydneys northern beaches. Recent record waterfront sales and intense development recognise this.

I hope so. My Redcliffe place has been a bit of a dud and I've had it for over 2 years now, or could just be the current climate. Wait and see I guess.

 

[Keen]

Pick 5, just about any 5 suburbs between Rockingham and Mandurah in W.A. and you should do well.

Keen

 

[joannep]

Top 5 suburbs:
Anywhere in Perth's western suburbs...great place to invest & great place to live!!

 

[presto]

I have read that young first time investors should look to try to buy in areas that they know personally; in reality most of those areas would be out of their reach unless they got help from parents.
But I found that by them doing their homework, the CBD's within Country towns in NSW have a lot to offer and would be a good starting point for them.
I understand that QLD & WA are always touted to be such good places to buy, I personally would leave them to the people in QLD & WA and stick to my own State there are plenty of opportunities out there.

 

[Brenda Irwin]

For Brisbane I like Clayfield, Hendra, high areas of Windsor, Highgate Hill and Uppr Mt Gravatt.
For Ipswich it's Sadliers Crossing, high points of One Mile, Bundamba, CBD Denmark Hill, and Booval.
Toowoomba has Rangeville, Kearney Springs, Toow City, East Toow, Centenary Hts.
See any pattern? Most are geographically highish or have their own shopping centres.
Small towns in Qld, I like Murgon, Warwick, Dalby. Those are my main ones but to make up 5 add Roma and Kingaroy.

 

[Grego]

I'm new to the forum and still feeling my way around it,
my top picks are all in Sydney

Mount Druitt area
St Marys Area
Hawksbury region
Cambridge Park
Port Stephens/Nelson Bay

These are area's I invest in and firmly believe they are under valued area's with great infrastructure and capital growth prospects.

Dash

I have been travelling to Port Stephens since I was 2 (now45) for our family holidays and I absolutely love the place (Or parts of it anyway). I have had family live there for a few years (local teaching staff) So I feel I have a pretty good Idea of the place. Each year my wife and I say to each other after returning From PS why would you drive 10-12 hrs to the Gold Coast when you have got such a beautifull holiday spot so close to Sydney

However I'd be interested in what parts of Port Stephens you think are undervalued?
And Where is the Great Infrastructure?
And are we talking holiday or long term leasing?

IMO its a great and Expensive Holiday location I was up In Port for New Years Eve so Decided to find a nice spot to Dine with the family before watching the fireworks on the beach. Well we walked into and quickly out of 2 places where most meals were what i would expect to pay in the heart of Sydney in some wanky Restaurant. $20 more for a seafood platter for 2 than I have paid in Darling Harbour!

Unless you work on one of the fishing Trawlers or in Tourism there would be no long term employment for Locals. Sure they can travel to Newcastle.. but most end up just staying there. No decent hospital to speak of either

I have a friend who has an investment unit at Salamander Bay ( don't know why you would want to rent there long term or short term.) His own teenage kids don't even want to go there as they are to young to drive but its to far from everything to have any fun unless mum & dad take them,. They did have a couple of six month leases to some buiders while they were constructing units nearby but no real interest since.

Places like North arm Cove and Lemon tree passage are too far from any where to be of much interest to long term renters

Unless you buy in Nelson/ Shoal bay and those burbs are certainly not undervalued (IMO only of course)
Especially when they have penthouses listed (XMAS 05) for $2.4mill. OK nice views of the harbour an probably fantastic in side but these are Sydney Prices not Regional NSW. Basic red brick 2 bedders $350K plus. without views

I remember when I was about 15 I went looking at land for sale with my brother (6yrs older) up on a hill at Salamander with fantastic views looking back down the bay towards Nelson/shoal bays and the blocks while quite steep in parts were selling for $7,000 They are now with huge homes on them & I look back and think maybe that was undervalued but not any more. But then again I guess I might look back on this post in another 10 yrs when the prices have again doubled and I will print out this post and literally eat my words

Greg

 

[arriety]

I have relatives who live in St Mary's (Sydney) so have been there to visit a couple of times. It's an older suburb and rather a looooog way from CBD - I couldn't see any good shopping area. The main street is Ok but not great and the buses are terrible. It does have train station, though but doesn't everywhere in Syd??? I've taken the train to Penrith and was impressed with shopping there. No one has mentioned Penrith - is it too expensive now or too far?

(from one who doesn't live in Sydney but is interested in the Real Estate situation there)

 

[lizzie]

greg - i live in newcastle but have rele's retired up at port stephens. personally wouldn't buy there as an investment at all. very expensive, seasonal holiday rental (high letting fees/maintenance and crap annual returns) which are not guaranteed and all the other drama that goes with holiday letting. i'd only buy there if it was a development site to on sell when finished, or if i wanted to live there myself. there are better options within newcastle itself for better returns and similar cg.

 

[kero]

joannep & keen, is there any suburb in Perth (max 1 hour travel to Perth City) where 1 acre land is still available for residential developments? I'm looking at rural living yet accessible to city facilities. And

if there is:

1. what price range would i be looking at?

if there isn't:

1. the nearest suburb that oftens that block size;
2. travel time from the suburb to Perth city and
3. what price range?

thanks in advance.

 

[kph]

kero,
I believe that you can get land around Jandakot, Baldivis, Serpentine that will meet your requirement.
I know some ppl staying at Settlers Hill who are looking for something similar.
At the moment it is possible for them to go to the end of the street,and catch an express bus into the city ( I think they said 25 mins), but you would have to factor in some extra travel time from the acerage land a bit further out.
Prices were from $350k from memory..( land only)

kp

 

[Grego]

Yes Lizzie I agree with you and I also don't think it is undervalued as referred to earlier in this thread. What is your view on its value?

Cheers
Greg

 

[lizzie]

well, the relo's actually live in hawks nest - the other side of port stephens - and i know some people who bought investment properties at the peak of the boom. figures we're looking at are $500k to buy, reno of $10k, holiday rented for around $16k/yr, currently perm rented for $180/wk and have been desperately trying for last 12 months to sell for a measely $560k (barely enough to cover purchase costs) .... no buyers, market has dropped around 20% since they bought.

i don't necessarily see port stephens going the same way, and they're had some huge multimillion dollar sales for waterfronts - but i wouldn't buy there as an investment, unless it had good water views on a development block or waterfront, and even then i think you'd be better off spending your million on 3 houses in hamilton, or two in merewether for better cashflow and better spread cg. anything without a waterview, or 2minute walk to the water isn't worth buying and, after what i have seen, i just flat out wouldn't invest in holiday rentals anyhow - to reliant on the economy booming, seasonal and a lot of hassle.

 

[quoll]

No one has posted SA top 5 yet. (Duncan where are you??)

Unley
Morphett Vale (underated)
Pt Noarlunga/Seaford (minutes from beach)
Golden Grove (pretty)
Pt Augusta/Pt Pirie/whyalla country towns (new industry)

I agree, Pt Noarlunga and Seaford are good, had huge cap growth and expect more next time round.

I like the beach suburbs and would happily buy a good deal anywhere along the Adelaide coast but very near the beach so I'm only looking in a 2-3km strip.

My picks:
Marino
Seacliff
Seaford
Port Noarlunga
Chrisites Beach

Cheers
quoll