QLD Brisbane/Ipswich markets,are they poised to move?

Hi everyone
We have 2 houses in the Brisbane/Ipswich areas.
Whilst our other proprties in Melb have increased,the QLD properties have gone no where.
Does anyone think the QLD market will increase anytime soon?
Im pretty sure there has been a lot of talk about the Brisbane market increasing,hence the decision to buy there 2 years ago,but not much has happened.
Thanks in advance for replying!

 

I suggest you read this thread

Why Hasn't Brisbane BOOMED

 

Then you bought the QLD properties of the wrong type and/or location.
Thosr who haven't have seen substantial gains in thr last 3 years.
There is no widespread relatively uniform boom like Sydney and Mel.. It doesn't have the supply constraints nor the economic demand that those 2 have..however well selected ones have posted Sydney/Mel type numbers..it's just not widespread.

 

Depends where you bought.
Brisbane suburbs have seen annual gains up to 10% or higher.
Marg

 

Thanks for that info.
We bought a 4 bed/2 bath relatively new house on a full 650 block for $295 k in Redbank Plains and a 4bed/ 2 bath (again) relatively new house on a full 650 block for $375k in Bray Park,both 2 years ago.
Im aware that there is vacant land around both of these areas.
We recieve really good rents and the properties have gone up but just not at the rate of our Melbourne ones.
I guess its a case of you cant have great capital growth as well as high returns.
Thanks again everyone.

 

I plan to have my cake and eat it too... but it takes a bit of management.... (not quite set and forget)

 

me thinks, even though there were suburb(s) that had 10-15% annual increase, there are only very few suburb that achieved 10-15% per year increase over a 3 year consecutive period....

Newfarm house achieved a 38-45% increase 2013-2016...
New Farm Suburb Profile & Property Market Trends
I know nothing about this suburb, except it is a prestige suburb with a current median of over $1m.

 

Hey Mark, in the same boat with you mate. I picked up a nice clean 900sqm corner block in Newtown, Ipswich April last year with the intention of putting a GF on it. However, due to a few personal reasons didn't proceed with it and only started looking into it again recently.

I just found out from a local PM, however, that the vacancy rate in area is currently hovering around the 8% mark(?!?) and so am reconsidering the GF idea. The block is also suitable for a subdivision/build so am carrying out due diligence into that as well at the moment.

The annoying thing is the property has seen next no NO growth over the last year. RPData's auto valuation report spits out the same figure as it did last year. I wasn't expecting double digit growth ala Syd/Melb or anything but pretty much zilch? Fairly disappointed tbh!

Here's to hoping I'll manage to manufacture some equity via one of the value-added strategies above but some upward market movement in the near future would be a nice bonus!

 

Sqmresearch.com.au says vacancy rate is 2.1% for Newtown 4305.
8% sounds too high, rents would be dropping significantly with that vacancy rate.

 

Hey cadbury, thanks for checking that for me. Wasn't aware of this site, very useful! Will save it for future use. Thanks heaps.

I was wondering the same thing, 8% sounded ridiculous I couldn't believe it. This was what the rental manager told me after my last tenant broke lease and left due to a domestic violence issue to convince me to drop the rent a bit....it appears she blatantly lied to me in order to get a quick lease. Unbelievable!

 

Ok it appears I've made some assumptions in my original reply which I've since assessed and discovered to be incorrect! Going to share them so anyone who comes across my posts do not get the wrong idea:

1. First of all, Ipswich does not have 8% vacancy rate; this was a miscommunication between the managing agent and I. The 8% is in fact their agency's internal vacancy rate, Ipswich's latest vacancy rate is 2.1% for Mar17

*Source: SQM Research - Residential Vacancy Rates

2. I just generated another RPData's auto valuation report just now and surprisingly it shows an almost 20% jump in value compared to a report generated in Jul 16. I did not expect this at all as the last report I generated was back in Dec 16 and it showed minimal growth so essentially the bulk of this growth took place within the first 3-4 months of this year! Very interesting indeed.

Conclusion: these 2 findings seem to reflect the view shared by the article below

 

Lots of land in redbank I think. Might be some more waiting for you. Those that bought in better areas have experienced 10% or more growth pa.

 

what other areas in Ipswich would be better than Redbank (lots of lands)?

 

Sorry I'm just not the person for this. I know quite a bit about south-Brisbane having lived there for over 10 years, but Ipswitch and North Brisbane are kind of a blur to me.

 

Both of those places you bought in Redbank Plains and Bray Park would have went up already. Your expecting too much in 2 years time especially in Brisbane when 2 years ago Syd/Melb was still booming and increasing exponentially.

These areas will increase more in the next 5 years I personally think. I also have a place in Redbank plains. 3 bedder 1 car and 1 garage. I got it for $280k and its positive geared. When I bought it the avg 3 bedder was $295k < 6 months ago. Now the average 3 bedder is $308k.

A 4 bedder/2 car and 2 garage in redbank plains is now avg $340k. So for ease of calculation taking averages.

You already made $45k growth in 2 years. On a house you bought for $295k thats 15.25% growth in 2 years. What are you complaining about? That is pretty damn good growth and your also benefiting from depreciation/other tax offsets.

Your not going to get $100k growth every year up there. Its no Sydney/Melb yet. The boom is coming but not here yet.

If you were after quick CG you should have invested the 2 properties you bought in Brisbane 2 years ago into Sydney. You would have probably made $200-$300k or more easily.

Now is probably not the best time to sell and why sell you would be positive geared on these properties by a huge margin. Just sit back and relax. Investing in houses is usually a long term thing. Not 2 years. More like > 10 years.

 

Thanks for that info,yes,when you look at it that way i guess they are not too bad !
I think im just comparing them to my Melb properties which have literally doubled in the last 4 years.
I think that QLD will have some strong growth soon as investors cant go to Syd/Melb anymore as the rental returns are bad.
Yes,you can still get houses in Redbank Plains and Bray Park that wash their own faces so hopefully this wilk be attractive to investors and push the prices up !
I hope

 

West end kicked some butt also.

 

Both of the suburbs you bought into are BNE's equivalent of the outer west of Sydney. Lots of vacant land around. Far from the CBD. Lower socioeconomic demographic. Lowset bricks with not much capacity to add value. Overall lower demand.
Also given those were newish properties they are competing with brand new ones right now nearby.
The suburbs you bought into are the first to fall and last to rise in Brisbane.
But there is nothing fundamentally wrong with them (like a rubbish tip nearby or something). They will rise. Eventually.
If they are walking distance to rail that will really help.

 

Also general reply about Brisbane is that you are correct that BNE was expected to boom. It didn't but it will. Its historically way undervalued and there is a load of infrastructure on the way/happening. Its the current pick for investors.