QLD Buyers Agency suggests buying Kallangur @630K. Any thoughts?

Discussion in 'Where to Buy' started by Tintin, 23rd May, 2022.

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  1. Tintin

    Tintin New Member

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    Hi Everyone,

    Our Buyers Agency suggests buying in Kallangur, QLD. Our budget is $750000max (doesn't mean we have to use all of it). We were proposed a high set 3 bed x 2 bath house with double garage (older style) @ 630K in a quiet street close to schools and shops.

    My questions:
    • Do you think Kallangur is (still) a good investment suburb?
    • Does $630K seem like a reasonable asking price and how much growth would you estimate would there be in the next 2 years since the recent boom times. We are planning to hold for at least 10 years, but would like to use the equity to renovate in about 4 to 5 years time.
    • Any idea how much rent we could get?

    Any thoughts are welcome.
    Thanks!!
     
  2. sash

    sash Well-Known Member

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    Nope ....the BA needs his head checked.
     
  3. southern-investor

    southern-investor Well-Known Member

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    For $630k Kallangur still offers value for money. When you think about it its still affordable at that price range. There is not many places left in major CBDs that you can still buy under $650k. Not many at all. Even Logan suburbs are over that now and Ipswich is not far behind.

    If your going up to $750k I'd head down to Petrie, Strathpine, Bald Hills, Bracken Ridge.
     
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  4. sash

    sash Well-Known Member

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    There are still houses under $650k in Strathpine...
     
  5. southern-investor

    southern-investor Well-Known Member

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    I'm sure there is but they would need significant work I would imagine. Unless they are local (which I assume they are not since using a buyers agent) - probably better to avoid places that need a tonne of work.
     
  6. sash

    sash Well-Known Member

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    More dated and requiring a paint job. I know the areas well.
     
  7. BuyersAgent

    BuyersAgent Well-Known Member Business Member

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    If you hired a BA but come to this forum to 2nd guess their suburb suggestions you have bigger problems than where to buy.
     
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  8. sash

    sash Well-Known Member

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    Yep.
     
  9. Rentforlife

    Rentforlife Active Member

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    Sash violently opposes the suburb and has for 2 years. 30% growth with significant development still to come suggests his opinion should be questioned. BA would know the area better I would imagine....
     
  10. Sam123456

    Sam123456 Well-Known Member

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    Like consumers of any service sometimes people just want to make sure the trust they've placed in someone is not easy off the mark.
     
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  11. Sam123456

    Sam123456 Well-Known Member

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    You might be able to find worse houses in better suburbs around that mark but they would have a worse rental yield. If you get a decent house that appeals to lots of tenants, then the investment is less risky. Strathpine might have better CG but CG is always riskier than rental yield.
     
  12. Sackie

    Sackie Well-Known Member

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    I've always felt that buying for strong CG potential is 'less risky' in the long term than buying for a slightly higher yeild proposition. Both are important and depending on who is buying, yeild may be more imperative. But I've always focused on the CG element first. Then, whats an acceptable yeild.
     
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  13. Jerry Parker

    Jerry Parker Member

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    I like Kallangur, It's part of the North Lake, Mango Hill's new town center, and Mango Hill got a new train station s about 3 years ago. You also have the new University at Petri, and the highways have been upgraded, and continue to do so. Kallangur is enjoying a ripple effect from North Lakes as the prices have moved up there and it's only 5 minutes away. There is a difference between the Eastside or West side of the M1.

    As long as you get it valued...you did not mention the land size...or how depreciated the building is.
     
  14. Kholod45

    Kholod45 Active Member

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    I think Kallangur is a good suburb, the Moreton bay has a lot planned for jobs/industries and also relatively fresh management team to support the mayor.
    650k is the boom price and you will have to compete with Caboolture+ cheap unlimited supply. I think IMHO it is worth buying in mid or high 5’s.
    I rent 3 bedroom in Strathpine unrenovated for $325 and hard to find more expensive for stable tenants.

    For example I am considering this one in Gordon park, basically inner Brisbane with development potential at $700k with rental appraisal of 700-800. 5% yield.
    54 Stafford Road, Gordon Park, Qld 4031
    https://www.realestate.com.au/property-house-qld-gordon+park-139319579
     
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  15. Kholod45

    Kholod45 Active Member

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    Agree, I think asking round the table for versatile ideas are always healthy. Just remember that BAs do not have crystal ball, they are mostly clueless for macroeconomics, however they troll through lots of stuff and at times have an interesting opinion. Which is not set in stone, just a persons opinion.
     
  16. BuyersAgent

    BuyersAgent Well-Known Member Business Member

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    Sure thing I just meant it seems backwards. Ideally go to forums, do location research first, form some kind of opinion, then talk to BA's and hopefully once you sign up you should be confident of the direction by then. The BA relationship and buying process is very high trust (both directions), so I encourage and assist people to do whatever required to make an informed choice at the point of engagement.
     
  17. Jerry Parker

    Jerry Parker Member

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    Hi Re that Gordon Park property. 5% gross rental yield. being a q lander, and it's a nice one as well, which has to be maintained to get that rent.

    What do you project the R&M?

    I suspect first year may be lower, but you will have some years with big 5-10k. And redevelopment is not so easy with those, as they are historical.

    Is the frontage big enough for a future splitter block?

    i would look for the exit strategy
     
  18. Kholod45

    Kholod45 Active Member

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    Agree thanks! House is solid based on building report. And I thought to raise and shift it forward to make double garage and Grammy flat underneath, so willl reinforce. The splitter is easier with axed lot and drive in easement, but economics is tight, maybe only $100-150 net profit. There is a talk to remove Traditional character overlay from the road facing part of Kedron and Gordon park, maybe we can demolish the queeny one day, however I would not consider it given the new built delays.
    Exit strategy is next boom. See example of 40 Stafford road, Gordon park.you can buy those cheaper in buyers market and enjoy the same uplift in sellers markets. So I believe hehe ))
     
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  19. southern-investor

    southern-investor Well-Known Member

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    Why is this one so low compared to everything else in Gordon Park? You cant get anything under $1M there. Especially 5 bedder and 600+sqm.

    Something doesnt look right with that price tag. Too good to be true even though it needs a little TLC but that house could look awesome for $50k or less.

    Either someone got the deal of the century or this is not a real listing or incorrect sale price.
     
  20. LP7

    LP7 Well-Known Member

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    That exact house in Gordon Park sold a year ago for $700k. Purchasers/now vendors gave it a bit of a touch up. It's not going to go for 700k again, especially given how prices have moved in the market.

    That Gordon Park house will go for around a mil.
     
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