Zillmere/Aspley vs Runcorn, Sunnybank

[traveller]

Hi All,

Thinking about purchasing an IP in Brisbane and the areas that i have narrowed down through my research are:

1- Aspley, Zillmere/Carseldine OR
2- Runcorn/Sunnybank area

Budget = Low 300's(300-325k)

Aim is to get a 3 bedroom town-house in a smallish complex with low BC. Gross Yield expected 6.5%. I can stretch my budget but will not like to compromise on the yield as cashflow is important in this deal.

Will like to have opinions and suggestions from the forumites as to the Areas mentioned and if town-homes in these areas will be good investment as buy and hold....Thanks.

 

[Ed Barton]

Sunnybank area has a LOT of Asian (mostly Chinese and Korean) Australians living there, and because of that a lot of Asian students live there. Don't know if the drop off of overseas students has effected rental demand in the area. I've noticed more Indians at the shops, but don't know if they're starting to move into the area or just shop there because of the Asian grocers.

There are heaps and heaps of very good cheap restaurants in the area. mains road has very good bus transport to Griffith uni and the city.

 

[A'PEXi]

The 6.5% yield is after BC fees? Both areas have train stations and close to major roads/highways, shouldn't have an issue with renting them out.

 

[traveller]

Thanks for your replies Ed and A'pexi.

6.5% yield i am calculating is Gross and thus before any expenses.
Simply Price/Annual rent *100

From CG point of view which suburbs will be preferable? Runcorn or Zillmere?

 

[The Y-man]

Don't know if the drop off of overseas students has effected rental demand in the area.

Not really....

The Y-man

 

[The Y-man]

From CG point of view which suburbs will be preferable? Runcorn or Zillmere?

Due to aforementioned Asian factor, I'd actually look closer to Sunnybank Plaza.... but then I'd be biased because it's the only area of BrisVegas I visit with any sort of regularity

A Melbourne parallel would be Box Hill.

The Y-man

 

[Rixter]

I have investments in Townhouses in Sunnybank Hills and surrounding suburbs. Have had them for a few years now and got some very nice CG from them over that time.

 

[The Y-man]

Ed and Rix,

Do you guys reckon there's been some (serious) lull in prices for the past few years around S/Bank, S/Bank Hills, Robertson, McGregor (esp the mcmansions)?

I occasionally look at the prices for the area, and I had a feeling it's come off quite a bit.....

The Y-man

 

[Rixter]

Ed and Rix,

Do you guys reckon there's been some (serious) lull in prices for the past few years around S/Bank, S/Bank Hills, Robertson, McGregor (esp the mcmansions)?

I occasionally look at the prices for the area, and I had a feeling it's come off quite a bit.....

The Y-man

Its been in a lull (since GFC) but that the norm with property cycles. Its never a constant steady growth year by year. Its due for more growth. As expected tho yields have always been increasing over that time. Again its all part of the cycle.

 

[traveller]

Seeing from the posts...it seems that Sunnybank, Runcorn area has more going for it...

Are there any positives for Zillmere/Aspley area? Anyone investing there in townhouses???

 

[INVSTOR]

Ed and Rix,

Do you guys reckon there's been some (serious) lull in prices for the past few years around S/Bank, S/Bank Hills, Robertson, McGregor (esp the mcmansions)?

I occasionally look at the prices for the area, and I had a feeling it's come off quite a bit.....

The Y-man

I have been looking more at Mansfield, Wishart, Sunnybank, Sunnybank Hills. They do look decently priced at the moment. I find Sunnybank really different... It's got a mix of new mansions, 100 year old houses, the shops are like stepping back in time (30 years), yet there is rail.

Getting back to the question, it's good that Runcorn is close to rail also. My friend has lived in a townhouse there for about 10 years. I think she is in a complex of about 40. If you were within close distance to rail would be good.

 

[Hysteria]

Public transport for Aspley is the bus .The closest train station to Aspley is Zillmere or Geebung. Aspley is mostly low residential. Some older houses can be picked up on the east side of gympie road which would be closer to train the geebung train station.

Zillmere is slightly further out but has a train station there. More townhouses and units being built. More LMR blocks around this area for development.

 

[marg4000]

Check out busway options as well as trains- they are MUCH quicker.

We live near Sunnybank, around 1 km from a train station and 1 km from a busway station. Train to city takes 45 minutes, bus takes 17 minutes and buses are far more frequent.
Marg

 

[Ed Barton]

Ed and Rix,

Do you guys reckon there's been some (serious) lull in prices for the past few years around S/Bank, S/Bank Hills, Robertson, McGregor (esp the mcmansions)?

I occasionally look at the prices for the area, and I had a feeling it's come off quite a bit.....

The Y-man

i follow sunnybank, SH, and runcorn 70's double stories. asking prices have come back a bit over the last few years and seem to have stabilised now. there seems to be quite a few being marketed for a few months and then being withdrawn.

 

[traveller]

Again thanks for all the replies and inputs...

I have done some more research as well and it seems i will narrow down my search in the Sunnybank/Runcorn area only and leave out Zillmere side for the time being.

Are there any major differences between various suburbs in this area like:
1- Runcorn
2- Sunnybank
3- Sunnybank Hills
4- Kuraby
5- McGregor/Robertson
6- Eight Mile Plains
7 - Underwood

I mean differences in terms of prices and demographics???

 

[Ed Barton]

Again thanks for all the replies and inputs...

I have done some more research as well and it seems i will narrow down my search in the Sunnybank/Runcorn area only and leave out Zillmere side for the time being.

Are there any major differences between various suburbs in this area like:
1- Runcorn
2- Sunnybank
3- Sunnybank Hills
4- Kuraby
5- McGregor/Robertson
6- Eight Mile Plains
7 - Underwood

I mean differences in terms of prices and demographics???

McGregor/Robertson would be the most expensive.
Underwood is (i think) not in Brisbane city council, that would be a negative, but probably make it cheaper.
Parts of Kuraby and Runcorn (fruitgroove) have cheaper ex housing commission places
Kuraby has a large Muslim population.

 

[benofbrisbane]

Zillmere

Hi

I would definitely look at Zillmere. It is only 26 minutes on the train to the CBD, 5 minutes drive to the massive Chermide shopping centre and surrounding office and retail. It is also close to a the light industrial in Geebung. Accordingly, lots of employment around.

You can pick up a new townhouses for high $300s or a new unit for mid $300s - this gives you the benefit of significant depreciation.

The areas you mentioned on the southside such as Runcorn are really in the middle on no where and a long way from the CBD.

my two cents...........

 

[Andrew_A]

Just to throw an idea out there, work off net yields instead of gross yields and you might find a good deal on a house will get you a similar net yield as a townhouse after strata fees with your budget, especially if you can do some cosmetic work to the property at the start.

 

[Rixter]

Just to throw an idea out there, work off net yields instead of gross yields and you might find a good deal on a house will get you a similar net yield as a townhouse after strata fees with your budget, especially if you can do some cosmetic work to the property at the start.

Dont forget to include all buildings & public liabilities insurances, plus also a portion towards outside repairs / building maintenance, into the house calculation then to gain a closer more realistic comparison of apples with apples.

 

[traveller]

Dont forget to include all buildings & public liabilities insurances, plus also a portion towards outside repairs / building maintenance, into the house calculation then to gain a closer more realistic comparison of apples with apples.

Thanks Andrew and Rixter.

Rixter - Can you please elaborate on what you mean? Should i be increasing the costs for the townhouse when compared to house as i have to pay BC or decreasing it???