QLD Crestmead

Discussion in 'Where to Buy' started by Yinka Dare, 30th Dec, 2018.

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  1. Yinka Dare

    Yinka Dare Well-Known Member

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    Went up to Brisbane last week and had a look around Moreton Bay. Saw what the place had to offer and I saw a lot of potential there. Nice cafe strip, community feel, nice scenery of ocean and jetty, lagoon, etc. I ended up getting a house in Redcliffe near the hospital, place requires no work which is great news as I’m in Melbourne.

    Hopefully there is a bit of capital growth over the next few years. Nice area - almost a cross between rye and Geelong
     
  2. wilso8948

    wilso8948 Well-Known Member

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    Long way from Crestmead..
     
  3. Yinka Dare

    Yinka Dare Well-Known Member

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    But that’s a good thing right?
     
  4. wilso8948

    wilso8948 Well-Known Member

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    Depends.. Purchase price, budget, plans, goals, strategies, etc
     
  5. AndyPandy

    AndyPandy Well-Known Member

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    Don't know about good area or not but the value of my property has only gone down in the last 2 years. Rents are pretty bad for older houses too due to a lot of new developments in the area. Not sure if I can even refinance due to the value having dropped. There's forever a bargain to be had in the area of course because values in the area are only going down. Not to mention the council rates are a killer. Just hanging on to the tenants I have and sort of regretting a few decisions.

    Thankfully my cash flow is good and I have buffers in place. I have a longterm view, so I'm not losing sleep over it.

    How are other finding the area?
     
  6. wilso8948

    wilso8948 Well-Known Member

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    Care to share some details on your purchase?
     
  7. AndyPandy

    AndyPandy Well-Known Member

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    Sure, bought for 300k rents for $355. 600sqm block 4/1/drive way. Weatherboard. Based on recent sales etc I think it's worth 280k to 300k.
     
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  8. wilso8948

    wilso8948 Well-Known Member

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    As you said cashflows are fine if you keep tenants. We bought for $323k 6 months ago. 4/2/2 on 600sqm. Rents at $380 and looking to secure for another year. I did look to increase but agent suggested keeping stable as there's still plenty of options for tenants. Seeing more and more 4/2/2 going for higher $3s. As you said there are the odd low figures but most of these seem to be flood affected or have underlying issues if you dive further in. I did see a 4/2/2 go for $430k the other day which in my opinion is over paying at this stage. I can see the larger, low maintenance, family friendly houses doing better for obvious reasons.
     
  9. virhlpool

    virhlpool Well-Known Member

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    Any insights on Crestmead? How is sell as well as rent market doing now?
     
  10. Tom Rivera

    Tom Rivera Property Manager Business Member

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    Sales all over Logan is doing really well- I've got a couple of clients who have decided to sell ahead of what we feel might be a longterm depression and interest has been great. Hopefully we're wrong and it just keeps getting better.

    Rentals are also weirdly good, all over the place. It's probably the best rental market since we started the business four years ago....!
     
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  11. Gen-Y

    Gen-Y Well-Known Member

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    Why sell if it is making more income than the out going?
     
  12. Tom Rivera

    Tom Rivera Property Manager Business Member

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    Everyone has their own individual situation and reasoning- e.g. opportunity cost on a better return, change of life circumstances, loss of income, betting on a market decline, underperforming investment, etc etc.
     
  13. wilso8948

    wilso8948 Well-Known Member

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    Anyone had any bank vals in the area recently? Interested to see how they are stacking up. Planning a refi end of year.
     
  14. Gen-Y

    Gen-Y Well-Known Member

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    I do understand the opportunity cost, change of life circumstances, lost of income.
    But one would think those can't be avoided.
    I just can't understand why they would not think about this prior? As buying properties isn't a cheap exercise with the fees and stamp duty, and etc.
    It can easily burn a hole at $10 to 20k just like that.
    I am definitely not judging anyone, but some due diligence should be exercise with care before committing.
     
  15. boganfromlogan

    boganfromlogan Well-Known Member

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    Nice to hear that sales and rentals are going well Tom. Are there any stats to back this one up? The (bank) valuations on some properties are low, there was a dip of 5% (or similar) a little while back. March ish. I heard/saw it first hand in both Logan and Gold Coast. Is there a bounce (dead cat or otherwise) that can be seen in the stats?
     
  16. virhlpool

    virhlpool Well-Known Member

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    I think that one of the reasons behind selling an IP in this market could be consolidation. For rentvesters like me, this (or coming year) could be a better time to buy a PPOR in Melbourne or Sydney though I am not planning on those lines yet. Selling an average performing IP can help you push your PPOR budget a bit higher.
     
  17. Tom Rivera

    Tom Rivera Property Manager Business Member

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    Cant say I've seen any market-wide stats to share with you, but every other agent I've spoken to is agreeing that things are good right now (stats do take a while to come through). Our rental listings aren't hanging around either- I'm seeing about a full week less vacancy than "average" over the past couple of years for similar rent amounts.
     
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  18. virhlpool

    virhlpool Well-Known Member

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    Do you think the lower vacancy rates will be followed by increase in prices in Logan (long awaited)? Particularly referring to Crestmead - Marsden area.
     
  19. Ko Ko Naing

    Ko Ko Naing Well-Known Member

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    From my experience in April/May, it took us 4-5 weeks before getting a new tenant at one of my IPs in Crestmead, with a lower rent. But it is understandable that the virus situation was at peak back then in QLD.
     
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  20. Tom Rivera

    Tom Rivera Property Manager Business Member

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    The Virus was at its peak till Easter (mid-April), we saw up to an 80% drop in enquiry in that time- it wasn't good. Interestingly, as soon as Easter passed and some more positive press started to come out, the market turned around almost overnight.
    ________________________________________________________________________

    @virhlpool I don't know why the market is doing well right now, so I'm hesitant to make any predictions on where it'll go. Any market movement in Logan is likely to be off the back of SEQ growth (slow) or improvement in amenities (not a lot going into Crestmead/Marsden), so I dont think you'll see any big changes anytime soon, but who knows the way things are going!