QLD Deception bay

With all the development and infrastructure going into north brisbane the redcliffe peninsula is kicking along nicely.

Whilst not a great area deception bay now has a considerable gap between it and neighboring suburbs (some would argue for good reason ;-)

What do people think about its long term prospects for growth and gentrification - worthy or not?

 

The general consensus is long term you have close to water and reasonable proximity to Brisbane and little further to Sunshine coast. Deception Bay is very cheap (very rough in part) sweet spot now, but different kettle of fish to Caboolture area where you have significantly more abundance of land. Not everyone wants to be literally on the water, but 5 or 10 minutes away compared to 20 or 30 minutes can be a deal breaker (or perceived) when it comes to choosing where to live or rent.

How many close to water places are there left in Australia this close to main cities where you can find houses on their own land for under 300k. Adelaide, and maybe parts of Perth probably the only ones left? The rest is in regional cities only.

It will grow when rest of Brisbane does, and possibly a bit more if Redcliffe areas booms more like Elwood / Brighton in Melbourne.

When you consider the close to water rule applies to Melbourne, but in the colder months it has zero value. Up north you can really enjoy that factor all year round.

 

Long term - it's a semi-rural location.
Unless there is investment in long term well paid jobs I would look elsewhere for good rental prospects.

 

deception bay is the hastings of brissy
Redcliffe is frankston
Brighton and elwood? - maybe manly and wynnum in 30 years time

 

Thanks abbyfresh that is my view also as i think long term it well do well. I think that with the airport upgrade, university, and the north lakes commercial precinct the area will change over time.

However My main reservation is the very high level of renters to oo which always translates to falls when the market turns. investors are the ones to bail out first...not good in a future climate of tightening lending and io to pi cliffs ahead.

 

Some of the properties there have Urban Neighbourhood zoning.

Depending on site specific height restrictions you can in the future develop Units or Townhouses.

I have a 600sqm site in Deception Bay I bought 3 weeks before the zoning changes. Luck largely but near-water location suggested future gentrification. Currently holding with a 5%+ yield.

From memory my site with a 15m frontage has 21m height restriction. Perhaps 4-5 townhouses or 10-12 units.

I have an even smaller site in Petrie with same zoning and confirmed with a town planner and building designer I can do 4 townhouses or 8 units ( subject to planning approval of course ).

 

Where do you check this zoning situation for the area?

 

Moreton Bay Council website has this information. You can use My Property Look up and it'll tell you the zoning a specific property is in:
My property look up - MBRC Planning Scheme

Cheers,
David

 

There have been some strong sales in Deception Bay in the last 6 months. This is for the Urban-Neighbourhood zoned area near the water.

24 Water Street Deception Bay Qld 4508 - House for Sale #128631286 - realestate.com.au

52 Osborne Terrace, Deception Bay, Qld 4508 - Property Details

16 Balmoral Place, Deception Bay, Qld 4508 - Property Details

Would suggest on averages based on land size my property should be up anywhere from 15% to 25% since 2015.

 

Not a bad area at all to invest in. High yielding properties with future development potential..
Try and stay close the water. Check flood zone and property zoning!.
Can easily find properties under 400k mark.
I only bought one recently on 600sqm block with development potential ..

Cheers,
Jazz Sidana

 

Hi wombat, did you speak to a planner re DB property? Is your plan to hold till uni comes at least and then potentially build townhouses? I am in a similar boat and have a house on land 700sqm in urban neighborhood zone.

 

I have a property in Petrie in Urban Neighbourhood zone as well. If I can pull together funds to develop it I will do that one first. Hopefully a 4-5 year timeframe.

From concepts I have had done for my Petrie property I think I could do 5 small townhouses or 12 units (low-rise) on my DB property. I have some planning advice for my DB property but bought the property before the zoning occured. I spoke to the same planner when looking at buying a site next door, instead bought the property in Petrie. I just got quick assessments in both cases but put a great deal of time into understanding the codes myself.

Will consider all scenarios, do nothing (hold), sell with DA, develop, etc. Really depends what happens to the market. Feaso calcs I did for Petrie gives me a good understanding of what options are. Design concepts helped. This also gives understanding of potential should a developer come knocking down the track.

Personally with DB I think you should wait until there is more evidence of gentrification.

Preferred strategy is to develop one of my sites for cashflow, then progressively selling down over a 4-5 year timeframe ( to put profits into dividend stocks and LICs ). My current thinking anyway.

 

Definitely worthy, given the price point, proximity to water, and broader South East Queensland play. As others have noted, checking flood zone mapping is an absolute must - and even then, I would make sure that your insurance policy covers floods. Over the long term, the area will likely gentrify and at such a low cost of entry, prices should start to see some movement on the upside.

 

If investing say up to 300K to 350K in IP do you think this money would be better spent in Deception Bay, OR in VIC in an area like Newcomb, Norlane, or nearby Geelong suburb?
I.e. which do you think will get better capital growth in next 3-5 years?!

Many new projects announced for Geelong, but my gut feeling is QLD is a better investment.

(Sidenote: I know money could probably be better spent closer to Redcliffe, but would be at the low end of Redcliffe or nearby suburb.)

 

I don't know much about VIC, but I feel Deception Bay has plenty to offer over the long term. With more of the housing commission getting sold off/ moved to Caboolture can only help D'Bay.

 

For budget up to $350K you may struggle to find a decent house in Geelong now. Newcomb is at the $400K mark now and Corio/Norlane has also gone up heaps last couple of years so $350K will probably get you something that needs quite a bit of work or on very small land component. Otherwise you may want to consider units instead.

More DBay house is in the $300-$350K range so I think that suits your budget more and will in general give you better yield than Geelong which means easier to hold. So there are definitely pros and cons of each - and it's up to your DD on which area you're more convinced in

Cheers,
David

 

Would you have a rough idea of how much it would cost to get a permit to develop in MBRC?

 

Looking at my old numbers I think $35k to $50k for a 4 x townhouse scenario for Development Approval Stage ( plans approved by council ). My figures included initial concept drawings, then DA-level drafting / design, town planner, council lodgement, engineering design/assessments needed for DA.

( at this point you could perhaps sell with a “DA-approved” qualifier )

Once you have a DA that you wish to proceed to build, you then need building approval with further working drawings, further assessments/certifications, legals and fitout specifications. Perhaps another $25k+ ( again 4 x townhouse scenario).

Note - my numbers above very much preliminary but hopefully right ballpark. Talk to both a town planner and a building designer for a better-qualified opinion.

Cost of building excluded in all the above and for titling you then have to add infrastructure contributions per dwelling. See page 21:

https://www.moretonbay.qld.gov.au/f...nt/development/icr-no8-charges-resolution.pdf

Costs certainly add up.

Council infrastructure costs are quite expensive. They are incentivising development until 31 December 2019 by waiving contributions, but from memory there was a cap and there are conditions:

Incentivising infill development

 

Thanks so much, very helpful!

 

https://www.realestate.com.au/property/93-97-bancroft-tce-deception-bay-qld-4508

I definitely like it. A recent purchase there. Pros are
- proximity to water and airport
- north lakes employment and shopping hub
- limited land available as freeway and bay on either side

Is a long term play for me.