Join Australia's most dynamic and respected property investment community

Buying in a housing commission area

Discussion in 'Where to Buy' started by Boston george, 6th Jan, 2016.

  1. Boston george

    Boston george Member

    Joined:
    1st Dec, 2015
    Posts:
    15
    Location:
    Sydney
    I'm currently looking at an older style home in bracken ridge QLD that seems to be in what used to be housing commission area (still may be). I'm certain I want to buy in the suburb but my budget constricts me to the older area. The thing that bothers me is the security screens on all the windows.
    Just after people's thoughts or experiences with buying in similar circumstances.
    Cheers
     
  2. Darlinghurst Boy

    Darlinghurst Boy Well-Known Member

    Joined:
    29th Jun, 2015
    Posts:
    866
    Location:
    Darlinghurst Sydney
    A lot of areas are now mixed with housing dept and non housing dept .
    Some even have a rich street followed by a housing dept street (Wollooollomolloo)

    You need to look closely more at the street your buying in and surrounds.
    Are there any private dwellings nearby?
    What are the neighbours like next door to the IP your buying?
    Have they got old cars with no wheels in the front yard etc etc
    See who they are because whoever will rent your IP will be living next to them.

    The thing that will turn potential tenants off is seeing the neighbours sitting on the front porch drinking and shouting... Unless of course your potential tenants are the same.

    If you want to buy it as a IP work out who would rent it from you .
    Would you personally live there? How could you make it better for more decent people to rent it out ?
    Do you need Bigger colorbond side fences and is it fully fenced for more privacy and to protect tenants kids and pets?
    Security screens and doors ? Modern security locks on the doors?
    Does it have a front fence ? Lock up garage ?

    Last year I went to look at a townhouse in Windale (Newcastle area) that was in a housing dept area , in fact the townhouse was an ex housing .

    It was about 10am in the morning when i went into the backyard only to see about 6 youths drinking on the house at the back before they decided to chuck brownies at me and the real estate agent.:p
    I spoke to the neighbour next door... He was a drunk guy in his 60's who thought we were from the housing Dept and called me and the agent a "C of things".o_O

    So ... I knew it wasnt the area to rent out... Who would stay ?
    The agent then got desperate and starts telling me , yiu can have it fir under 200k just make an offer ! I think the original price was 225k:rolleyes:

    No way Jack I said .... I wouldnt take it for 100k !
    And i think its still for sale too :eek:



    Who would want to live there ... Work that out ... Because if its vacant its likely to be trashed !
    Is the area becoming privatised ? In other words are the housing dept selling off houses ? This would be better for you if they are... The future of the area.

    Security screens... Tenants nowadays like them.. In that area you will need them to rent it out so hopefully the IP your looking at has them otherwise you will be up for expense .

    What would be your tenants ?
     
    Last edited by a moderator: 10th Jan, 2016
    Boston george and Sam Yue like this.
  3. Boston george

    Boston george Member

    Joined:
    1st Dec, 2015
    Posts:
    15
    Location:
    Sydney
    Thanks for the reply!
    I am sorry to hear about your incident with a wild neighbour, no one wants brownies thrown at them!
    I don't believe the area I'm looking at is anywhere near as bad as that (well I sure hope not) I wouldn't have a problem living there if it came down to it. The vacancy rate is quite low and the RE's I have spoken to assure me houses are filled quickly so it wouldn't be vacant for an extended time.
    There is a property I'm looking at that has recently been renovated inside and a new fence that encloses the front yard. I can't really find any reason for a particular tenant type to not want to live there.
     
  4. legallyblonde

    legallyblonde Well-Known Member

    Joined:
    23rd Jun, 2015
    Posts:
    685
    Location:
    TAS
    An area I am paying a little bit of attention to has recently had a lot of housing stock sold on the private market. it is a promising sign for an area.
     
    Boston george likes this.
  5. legallyblonde

    legallyblonde Well-Known Member

    Joined:
    23rd Jun, 2015
    Posts:
    685
    Location:
    TAS
    Housing Tasmania is selling heaps! Properties for sale | Housing

    Admittedly there aren't any areas there I would buy in... With the exception of South and North Hobart ;)

    Back on topic though, a tradie friend of mine recommends buying ex-housing stock, simply because they were built to last!

    Edit: That North Hobart place would be awesome for room by room letting, super convenient and desirable location.