QLD Birkdale

Hi, have a few IPs in Brisbane, including Albany Creek and Chermside West areas and PP also on the northside- I tend to hold, haven't bought for over 10 years, one I have had for nearly 30. Looking at an off market property that I have been contacted about in Birkdale - corner block 500m, 3 bed, 1 bath, 1 car, has been vacant for a long time, property manager states that it needs carpet, aircon, dishwasher, paint, fans etc - nothing too major for return of about $380 per week, they are wanting about $370k for it, which seems reasonable as it is a walk to the station, not on a busy road etc. I don't know Birkdale, went there on the weekend and thought it was nice enough, and the house seems sound, just rundown. Keeping for the long term. Appreciate any thoughts. Cheers.

 

Birkdale's prices seem to be holding up!

 

Thanks for this info! That looks pretty good to me. I was looking around Scarborough, like all the $ that have been spent up there. But this is stacking up nice for me, especially using my buy and hold strategy.

 

Funny you should mention that... I own in both Scarborough and Birkdale. I think Scarborough has a large retiree/pensioner community who don't care about Brisbane commute times! Thus, I think the Redcliffe Peninsula is a prime place for people to go to retire. They have a train to the city but the commute is crazy long.... Which makes it not really a place for professionals to want to live. It's a nice place to be but the jobs are too far away.

My current Birkdale tenants have been trouble free since moving in. And I think the property managers are doing a good job.

Scarborough chart attached.

 

I was thinking that I wouldn't mind retiring to Scarborough in the near future, but then I put my investor hat on as I couldn't find anything as good as the one I found for the price at Birkdale. I think anyone will do well at Scarborough. I thought Birkdale would be good because of Capalaba for work and a shorter commute on the train. The house for $370,000 at Birkdale looks like a great buy, not close to the water, but the cheapest around. There are still a lot of people at open homes at Birkdale and Scarborough, especially closer to the water. Two good areas.

 

If looking at the Peninsula, browse over Clontarf, the closest suburb to Brisbane CBD and under-rated. Average age group for the area is 45-55 and 65-35 split on PPOR / Rentals.

Dark horse of Redcliffe for growth imo.

 

Yes, I was looking at other areas on the Peninsula, staying "East of Oxley", but I don't think the "East of Oxley" is as important in Scarborough. I always try and stay in the lower end of the market, but I am finding that even

 

For the same dollars in Birkdale/Thornside areas I am finding larger blocks and better built houses are available at the moment. Won't rule out the Peninsula as I really like it for a future PP

 

"East of Oxley " is more of a hit in Margate and Redcliffe.

Woody Point its a mute point. Most of the suburb is walking distances to waterfront

Clontarf stick to Golf Course district (Bradley rd, Frost st , Valerie st) Clontarf beach area (Gerald ave to Hornibrook esp) Haysmouth Pde estate (only around 40 homes in there & tightly held)

There have been some 2 -3 bedders in these zones in high 300's.. with alot of 4 bedders hitting 600k-850k , I see those 3 bedders selling for land value almost.

 

Agree, they are nice areas and would certainly do well buying in the high 300s. Interestingly, today I have received 4 emails (2 from the same agent) stating that contracts have crashed on the Peninsula due to finance. I look at a few areas, there are so many factors that come into play- the property, the circumstances of the owner and the agent themselves (some wouldn't be able to negotiate themselves out of a paper bag-some are just order takers).

 

We have found Andrew Reibelt gets good stock before it comes on the market, he has been on the Peninsula for 20 plus years as a Agent and the gets alot of the "older demographic " listings, if you get a chance put your name down with him and state your preferences. We have purchased a few homes well under valued from him as the clients are looking to move into care or have passed away ect ect..

 

I have a couple of properties in the Redlands and also bought in Birkdale (Thomas St) in 2014 for ~400k for a 3 and 1. In hindsight, we paid to much at time however our bank is valuing the property today at 490k. Of my properties in the Redlands (Birkdale, Wellington Point, Alexandra Hills, Ormiston), only my Wellington Point property has fared better. Its been a pretty slow 5-7 years out in the South East. For alls its worth, if your getting in now, you havent really missed any capital growth ... as for tenants, obviously at the lower end you need to be careful, but Ive found that the Redlands seems to attract pretty quality tenants over other areas and Ive never had any trouble with any of my props.

I'm paying 7% (inc gst) for management (consolidated from a couple down to 1) however hadnt had any issues with the property managers in the area (Ray White/LJ Hooker).

Growth seems to be slow and steady...pretty safe bet however at the low end of the market, growth is probably not going to be steller in my opinion...at least, I cant see where its going to come from in the next few years.

370k seems like a really good price all said..

 

Thanks for this information. I was at an open house last Saturday at 92 Thomas Street Birkdale (they did an excellent reno), wall to wall people, must have been about 20 plus groups- very popular position. I went and had a look at the property for 370k, put in an offer and am just waiting (bit complicated as it is a deceased estate). My best performer over the last 10 years has been Chermside West and Albany Creek (only due to being the worst house in the street, had been trashed by the Defence Housing Tennant, most houses in the street are getting around the 900K). Most people shy away from Defence Housing, they heave expensive management fees, but I haven't spent a cent on the property for 11 years and DHA has renewed everything- carpets, painting, laundry, kitchen, bathrooms, air con, lights, water heater etc- for an older house it can be ok.

 

20 groups at an open home in Birkdale???
Thats a good sign considering its a fairly slow pace there
Any main demographic of people inspecting?

We bought in 2013 and would be up about 50 percent but ours is sub dividable

 

Can't complain 50% since 2013. Yes, about 20 groups for 92 Thomas Street Birkdale- there were a range of groups, young couples, young families and older people- I may have been the only investor.

 

That is a damn nice reno, easy to see why its so popular. Very nice interior design/decorating and perfect fit for the location.

A lot of the existing stock in Thomas st is being knocked down and rebuilt, as you can see from the surrounding houses. May have been an option for the owner here, pretty ballsy to go all in on a reno like this but the results are really nice.

 

It was a great reno, would really suit people who work from home, she has set up a salon. The agent contacted me again about this one, they are looking for around $610-$620. Purchased $410,500 FEB 2014 - can't see them making any real profit from it for the dollars spent.

 

Saw a property at Thorneside, low $300k- a real dive, trashed and a crap extension which will have to be removed 3 bed, 1 bath and a garage that has to be removed. Will be a mortgagee sale if owner doesn't sell this week. But I am thinking low $300k for Thorneside is good buying, even if I have to spend $100K, all the street is over $520K and it is a 620m block. Appreciate any thoughts on Thorneside.

 

Thorneside is also nice. Lots of parks, places to play sports, lots of trees, and even a scenic park with a beach volleyball court! (Beth Boyd park!) As a volleyball player, you can't imagine how excited I was to see that . Perhaps just check the risk of floods for any address you are interested in.

 

The further from the bay, the lower the value.
The suburb statistics may be misleading as there are multi-million dollar waterfront properties.
Marg