QLD Brisbane South Side

Thanks all.
What is the rental demand like? I am in the Southern Gold Coast and rentals are in hot demand around here

 

Guys I'm recently been thinking of buying in either Runcorn or Kuraby. What are your thoughts on these suburbs in terms of future prospects?

I've read somewhere in the forum that Kuraby seems to be a pretty bad suburb? However houses there are not cheap at all.

 

Seriously mate treat yourself to a drive and a lunch and a coffee at the place your looking at and you'll find the right vibe. There is a reason Moorooka is cheaper and will continue to get more so - I don't mean to be negative but locals are leaving the area, home invasions aren't unheard of (I personally know of some serious crime there I'd never have expected when I frequented Moorooka as a teen).

 

There's nothing wrong with south side too. I own on both sides and not much difference there. If possible look for inner (up to 5 kms) to middle rings (6-12 kms) suburbs and analyse there. Sometimes it is not just the suburb but the actual IP or the deal that make more sense.
I have a family member that lives in Moorooka and a friend bought a year ago there, great place with city views (but more to be redeveloped and PPOR I presume...). There are many opportunities with your budget but it depends on the strategy you adopt. Middle rings allow for larger land, inner suburbs closer in may restrict you to townhouses (if you do buy never brand new, and only very small complexes, and perhaps for future potential cosmetic renovation, or the idea would be to buy majority or all eventually, if possible?).
Whatever you do just please don't buy a unit! Buy land! All the houses I bought in QLD keep doing just great because of the land component. Some I own now with over 1000sqm and corner blocks, and that was only about 18-10 years ago (accumulated over 8 years or so at different times).

 

When I was looking for the last property I was looking from Salisbury all the way down to Kuraby (along the train line) - but we ended up purchasing in Coopers Plains.

We did got to negotiate on a house in Runcorn which was sold to someone else but we did go to contract on a house in Kuraby. We rescinded the contract in Kuraby as there was about 25-30k worth of foundation works that needed to be done and the vendor would only drop 5k - they later sold it for the same price we were after with the reduction but his/our loss. Parents have bought a house in Runcorn for ~300k and today it would be worth 600k and has been rented all the time with no issues with tenants.

In Kuraby there are good pockets - by good I am not talking like Mosman good but still good. However there are bad areas as it neighbours with Woodridge. When driving around you can quick determine if it is good or bad. Being close to the train station you are likely to be okay but the closer to Woodridge area and highways the less desirable the location may be.

 

Thanks Mate - I did as you suggested last weekend and drove around the area and had Nandos in Moorooka for lunch. The shops in the area are really crappy but the suburbs seemed ok. Do you think the area will gentrify in the short-medium term, it is so close to the city. I guess if the surrounding suburbs continue to increase in value it will drag Moorooka up also.

Thanks MWI that is great advice esp about the actual IP being possibly more/as important than the suburb!
Your point about buying a Townhouse within 5km(middle ring) is interesting. I had just sort of lumped townhouses and units into the one category in my mind. I will have to look into that.

 

Units and townhouse differ by many aspects and components! One just sold in Annerley from two only and it had own title so no Strata or Admin fee. So it varies greatly. I would not buy new any!
7 Marjorie Street, Annerley, Qld 4103
Also, you need to research the demographic, if people with kids live there would need to buy minimum 3 bed, 2 bath, 1 car or so rather than say 2 Bed, etc... So it is not all about suburb or IP but also what is most sought after there...
Below check out some which sold just in that suburb:
1/12 Somervell Street, Annerley, Qld 4103 - Property Details
7A Clara Street, Annerley, Qld 4103 - Property Details
3/117 Ekibin Road, Annerley, Qld 4103 - Property Details
So you need to choose your investment strategy, then some suburbs, then research the demographics, then actually look for the deal. For example I would never buy a 2 Bed townhouse say in Carina, as many families still live their with kids, so I wold go there for 3B, 2B,1C..
You need to do your own research and understand to buy there what is required.
If you go middle rings I would buy a house for sure, not townhouses, as land, IMHO, will continue to grow there as it will become more scarce.

 

This would make a very nice IP.

29 Rookwood Avenue, Coopers Plains, Qld 4108

Close and easy walk to station but far enough from the station not to hear the train. Close walk to shops and further close to schools, uni, shopping centres.

Also appears be a good yield with demand from location including proximity to Brisbane CBD and neighbours Sunnybank.

If I was buying I would seriously consider inspecting and likely to make an offer (depending on inspection and further DD).

Also I very much doubt it would be in flood zone giving the location.

 

Very interesting - thanks for taking the time to reply
I can see some benefits to buying a Townhouse over a house and land a bit further out.

• Better yield
• Can afford to buy a newer Townhouse (not brand new of course!). This means less maintenance costs and more depreciation at tax time.
• Being closer to the city may attract better tenants - maybe?

Of course there is no future development potential or much ability to add value early on but I don't really have time for that currently anyway.

I wonder if the huge amounts of units that have/are being built will affect the growth of townhouses more than freestanding houses?

I would think that people who are interested in a Townhouse may consider a unit especially if it is cheaper. Just me thinking out loud.

I have had a quick look online at Greenslopes, Annerley and Coorparoo. From my (very limited) research it looks to me like these suburbs have a mix of professionals, singles and families. Coorparoo possibly has more cafes and may be a little more trendy? Meaning less families?
I will have to ring a few agents and PMs this week.

Thanks again

 

Moorooka is not as bad as people think,as a lot of people that used to live there now live out around Inala -Richlands area ,now there are a lot of Indian people that are starting to resettle in the area ..Good schools private - public ..And any dual title houses on blocks above 812 sqm's and if you study the price on those blocks and the way people perceive the land value makes 2 bedroom walk-up units in the 270k range value ..imho..

 

yeah stop badmouthing Moorooka! its a nice suburb. i have a house there and my tenants love it, so do the neighbours. it's really convenient and a great entry point into the brisbane middle ring. sure there are some interesting characters around but that just adds to the charm of the place. 99% of them are harmless anyway. just typical QLDers ;-)