QLD Brisbane Apartments - cracks turning into craters

Discussion in 'Where to Buy' started by euro73, 30th Jun, 2018.

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  1. euro73

    euro73 Well-Known Member Business Member

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    euro73, 30th Jun, 2018
    #1
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  2. Angel

    Angel Well-Known Member

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    Someone slap him.

    One. This is last week's news, about one apartment.

    Two. Do you recall a few years ago mrEuro, I asked you a question about finance and you tried to sell me an apartment in Brisbane. Go Figure
     
    Angel, 30th Jun, 2018
    #2
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  3. willair

    willair Well-Known Member Premium Member

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    Makes a person wonder-when you see how many properties go under contract in Brisbane each day they target one unit and the economic decline with property prices ..The share price of that company went the other way..
     
    willair, 30th Jun, 2018
    #3
  4. Sackie

    Sackie Well-Known Member

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    Inner City Brissy apartments have been a dangerous/bad investment choice for a looong time now. Anyone buying overpriced shoe boxes can't expect a good outcome.
     
    Sackie, 30th Jun, 2018
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  5. TMNT

    TMNT Well-Known Member

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    So.... Are they just severely overpriced in the first price or has the market tanked?

    How is the inner city apartment market different to Melbourne?
    Melbournes inner apartment market hasn't tanked at all...
     
    TMNT, 30th Jun, 2018
    #5
  6. Scott No Mates

    Scott No Mates Well-Known Member

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    An oversupply in a city is a temporary thing, an oversupply in a country town takes a lot longer to be absorbed.
     
    Last edited: 30th Jun, 2018
    Scott No Mates, 30th Jun, 2018
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  7. TMNT

    TMNT Well-Known Member

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    Brisbane is a country town!! ?? :eek::eek::eek:
     
    TMNT, 30th Jun, 2018
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  8. Scott No Mates

    Scott No Mates Well-Known Member

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    :p
     
    Scott No Mates, 30th Jun, 2018
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  9. Joynz

    Joynz Well-Known Member

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    Joynz, 30th Jun, 2018
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  10. Eric Wu

    Eric Wu Well-Known Member

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    Eric Wu, 1st Jul, 2018
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  11. euro73

    euro73 Well-Known Member Business Member

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    Let me correct you. The apartments I sold in Brisbane over recent years have been in Zillmere, Mt Gravatt, Windsor, Sherwood , Taringa, Annerley and Alderley. Also sold some townhouses in Wynnum and Carina Heights. None of these locations constitute inner city Brisbane.

    The article above relates specifically to inner city Brisbane apartments. I even went to the trouble of writing "inner city " in the content of the message...not once, but twice..... and given the content is two lines long, that means once per line...... Its a pretty high level of saturation.

    I did that because I wanted to be clear that I meant "inner city" .... not suburbia, not sunshine coast, not Gold Coast; Inner City.
     
    Last edited by a moderator: 5th Jul, 2018
    euro73, 2nd Jul, 2018
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  12. Angel

    Angel Well-Known Member

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    Brsibane Apartments - cracks turning into craters
     
    Angel, 2nd Jul, 2018
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  13. Ed Barton

    Ed Barton Well-Known Member

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    Windsor is very close to inner city. Some would consider it inner city.

    How about Mt Gravatt? The area is very oversupplied in units. Thoughts?
     
    Ed Barton, 3rd Jul, 2018
    #13
  14. Sackie

    Sackie Well-Known Member

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    MG.PNG
     
    Sackie, 3rd Jul, 2018
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  15. Sackie

    Sackie Well-Known Member

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    Sackie, 3rd Jul, 2018
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  16. Sackie

    Sackie Well-Known Member

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    Sackie, 3rd Jul, 2018
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  17. Sackie

    Sackie Well-Known Member

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    Sackie, 3rd Jul, 2018
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  18. euro73

    euro73 Well-Known Member Business Member

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    The sales I mentioned were @ 3 - 4 years ago, so you'd need to look at the data over that period rather than the last 12 months. There's no doubt its become far worse over the last 12 months, and will likely get worse still over the next 12 months. No surprises there - we all know construction of apartments in Brisbane has been overdone. Particularly inner city locations such as Fortitude Valley, West End and Bowen Hills. That was the premise of my post

    I can tell you that I personally purchased in Alderley, Windsor and Mt Gravatt and have had all three properties revalued recently. They are up on the original purchases prices, but only by 3 or 4% But they are also NRAS approved, and have been producing 7-8K CF+ for the past 3-4 years, which represents another 5% of so in return over the time- although the real value is higher than that as it isnt dormant equity, its active cash flow which has been reinvested. So at worst they are up 8-9% over 3-4 years if viewed that way, with another 6-7 years NRAS eligibility remaining.

    Not spectacular. But let's see what the end game looks like in 6-7 years time. If the boom so many here believe is coming to Brisbane does in fact come.... the 10 year picture may be spectacular.

    Thats the value of cash flow.... it buys you time
     
    euro73, 3rd Jul, 2018
    #18
  19. TMNT

    TMNT Well-Known Member

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    Everywhere in many cities I read the units/apartments markets are falling. Etc etc

    So what would you guys recommend for a starting out invesror who doesn't have say 800k for melb with a Budget of 500k

    Invest in a good area where units are 500k
    Or go a further 30km out to look for a few standing for 700k
     
    TMNT, 3rd Jul, 2018
    #19
  20. Sackie

    Sackie Well-Known Member

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    Personally I'd never invest in units in Brisbane. Yes, yes I am sure there are some good deals somewhere. I still wouldn't. With a 500k budget I'd go (broken record on play) older free standing home, on as large a lot as you can get in the best OO area you can get into, add value potential and as close to the CBD as budget allows.

    That's what I would advise my son/daughter (I'd I had one) right now with a 500k budget and just starting out. I'd also strongly urge them to increase that budget just a little if they could safely and comfortably.    ​
     
    Last edited: 3rd Jul, 2018
    Sackie, 3rd Jul, 2018
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