QLD Acacia Ridge

Discussion in 'Where to Buy' started by bne123, 7th Nov, 2020.

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  1. bne123

    bne123 Active Member

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    Queensland
    I know the suburb tends to have a bad reputation - low socioeconomic, industrial, housing commission, crime rates etc. Wondering if things have changed much these days? Do people see potential in this suburb?

    - which pockets/streets of the suburb are better?
    - is the aircraft noise significant? especially the area near Acacia Ridge State school as it is closer to Archerfield airport?
    - not sure about public housing? saw some posts about the area being ex-housing commission. Are there any and is there a way to find out where they are?


    Any insights would be much appreciated! :)
     
  2. Codie

    Codie Well-Known Member

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    I regularly drive through acacia ridge, still seems fairly run down. The streets and properties don’t look very appealing to be honest, has been a couple of townhouse developments in select streets

    I’d love to see it gentrify as it’s still fairly close to the city, schools, Sunnybank hills etc. Yet still only $350-$400k entry. ($50k higher than 12-18 months ago)

    However bit of a gamble hoping it’s going to get better any time soon, it may and it may not.
     
  3. bne123

    bne123 Active Member

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    Thanks for your reply :)

    I do agree that the houses are very old and almost impossible to find any brick houses.

    50K increase over a year or so doesn’t sound too bad though.

    What’s holding me back a lot is the percentage of public housing in the suburb which is 17%.. although Zillmere also has the same percentage and I think gentrification has kicked in Zillmere?

    Do you think the same could happen with Acacia Ridge? The proximity to CBD is quite appealing with the possibility of a train station being added?
     
  4. AV777

    AV777 New Member

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    I own an IP in Acacia Ridge. Would I buy another one there? Probably not. Do I regret buying there to begin with? Not really, no. I purchased in 2016, and in hindsight there are plenty of suburbs I could have purchased in that would have returned higher gains, but in saying that, hindsight is always 20/20.

    Large portions of Acacia Ridge are zoned LMR2, meaning they support low/medium development. Because of this, there was a bit of a flurry back in 2016~, people bought properties on the impression Acacia Ridge would gentrify/be lumped into the "Logan growth rush", and also carry a solid chance of being bought up by developers at a premium, once the suburb gentrified a little.

    The reality is, Acacia Ridge, like many lower-socioeconomic/less desireable areas in QLD/Brisbane rings, didn't see the growth that many expected (think Western Sydney, pre-boom, albeit to a lesser extent) (note, many suburbs did see this growth - AR wasn't really one of them). Because of this, property prices have grown a little, but all in all it's been slow. The proximity to Brisbane CBD, coupled with the development potential, still has me believing long-term Acacia Ridge will be a good investment, but I think hoping for growth short-term (2016~2022) was probably a little optimistic, in my case.

    On the topic of tenant/the rental market, personally I've had the same tenant for years, and they've been fine. The property condition has also remained pretty good, everyday wear and tear aside.

    Acacia Ridge 10-15 years from now will probably have worked out great for me, but in the Aussie property market, that isn't saying much, given it always appears to be on the up. Long term, I'd say AR is a great option to be looking at.
     
  5. bne123

    bne123 Active Member

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    Thanks for the insight! Really helpful to hear from a current investor’s point of view.

    If I was to buy in AR, I would definitely be looking at long-term. I guess we don’t know how long it’s going to take to gentrify.

    Do you mind if I ask which part of AR you bought? The ‘right’side close to Beaudesert Road seem to have a lot of LMRs concentrated but I heard some say that the ‘left’ side near the State school is better? What are your thoughts?

    Thanks :)
     
  6. KevinJ

    KevinJ Well-Known Member

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    Acacia Ridge is great for a longer term hold (5-10 years), I've got three LMRs here which have all been long term tenants. One of my tenants is in the lowest socioeconomic bracket and receive government benefits, another is lower socioeconomic, although not on benefits. The third tenant is in the mining game and has a very high income and chose to rent to Acacia Ridge. All my tenants have been long term so far, generally pay rent in advance and cause no issues.

    I've not seen significant growth and do not expect significant growth in the short run, however the proximity to the city is killer and there may be a passenger train terminal, later this decade. One interesting observation that I'm seeing is that there are more and more renovated post wars being sold every year.

    @Tom Rivera is very familiar with Acacia Ridge
     
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  7. Tom Rivera

    Tom Rivera Property Manager Business Member

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    Area is definitely improving more slowly than we would've liked, but ultimately it's bloody affordable for 15km from the city. Solid old homes wont cause you big headaches till it's time to knock them down, no residential flooding, city proximity, decent land sizes, reasonable holding yields and like any area you can get a good tenant if you make the effort.

    Zillmere got a kick start because it's so close to the airport, but I can't see Acacia Ridge resisting cash inflow forever.

    Also, I'm not 100%, but I'm pretty sure there's not a lot of housing commission left. From memory they sold the majority of it between the 90's and 00's.
     
  8. bne123

    bne123 Active Member

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    Hi guys, thanks so much for your replies :)

    I am gearing more towards areas with LMRs.

    Any ideas about the aircraft noises being right next to Archerfield airport?
     
  9. Tom Rivera

    Tom Rivera Property Manager Business Member

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    I have honestly never noticed the aircraft noise in all my time in Acacia Ridge. I'd say you're more likely to hear the big jets on their flightpath over Morningside, Bulimba, etc.
     
  10. Angel

    Angel Well-Known Member Premium Member

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    The Acherfield airport is for tiny little planes. Their noise gets drowned out by the trucks and trains and other general traffic.
     
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