Zillmere and Carseldine?

[Mattatnoosa]

Hi Guys,

I've been looking for somewhere northside brisbane (CBD to Morayfield / Caboolture) for a prefurably 3bed place (hope for townhouse, no body corp) to live in for 6months and then rent out, looking at no more than $350k, but more likely $300k. I recently stumbled onto Zillmere and Carseldine and it looks like the prices are quite good, and its only on the fringe of what i consider 'brisbane' I expect that in 10-15 years the prices would increase in that area considerably. Thoughts? (I am planning on buying in approx 3-4 years, with a $70k deposit, but am trying to find places to watch for trends etc)

 

[mattysavager]

Hi There.

I know a fair bit about Zillmere, as my office is very active in that area, not so much in Carseldine.

Zillmere, as you may know is a housing commission area, which is why prices are low. The low prices attract developers and if you drive around the area, there is a mixture of old fibro housing comm stock and new 4-6 unit complexes.

As for rentals - you can get a brand new 2 bedroom, 2 bathroom unit for $340 - $370. 3 Bed Brand New townhouses from $360 - $390. If you buy from a developer they will probably promise you more rental income - but due to the massive amounts of new construction, the market is very very competitive there and rental prices have fallen over the past 12 months.

There is also usually a large vacancy rate. if you look on REA.com, you will see that there are many units/townhouses that are offering free rent and bonuses to try and get tenants.

I am sure that you will see housing prices rise in your 10-15 year timeline due to all the infrastructure around Chermside etc, but be prepared for the realistic rental market once you decide to rent it out, and budget on 3-4 weeks vacancy and 10% lower rental return than what you might be told by a developer.

If you can afford to hold the property with those realistic expectations, then I can see prices in that area heading up in the mid-term future

 

[Mattatnoosa]

That's what I worry about, zillmere currently looks good to buy, but not for renting, I worry about that as in 2-3 years when ill be buying the prices may already have risen, but not the rent...

 

[russellpeter]

try andrew allan real estate he is on this forum and can help you find the right property for an investment property

good luck