Just was having a look around Greenslopes Brisbane area for properties similar to this one... 1 bed unit in Greenslopes My reasoning why this might be a good buy:- 5 km from CBD Complex with seven units so no mass stock Low body corporate fees Price is affordable Demographic in the area has working professionals Close to railway station and hospitals,good school area.. I just wanted a general opinion from experienced property buyers because I am sure this unit won't last until I make up my mind... My general opinion is if its a unit buy in 5km radius of CBD and for house go out of city as prices aren't affordable in the inner radius...Growth for units isn't great yes but it gives me lifestyle choices and if I don't live in it I can easily rent it out especially in that area for say 280-300/week... Just wanted to know your opinions...and anything I am missing here...
Serviceability wise I am good... Deposit also can be covered... I wanted to know if the factors I am considering are right?
@KnockKnock If it's a lifestyle you desire, then don't let anyone stop you - I'd hate for you to live in some place that was a "great investment" but you don't enjoy. The Y-man
Why a bad investment... It has potential for good yield and I have read that a portfolio must have a combination of yield and growth
One bed limits you to singles or young couples. No sharers, no families. Schools arent important to people without kids, and noone with kids will live in a one bed. Renting it out should be ok but capital gains ar dodgy.
Agree - CG is based on having a market to sell to. In the near-medium term, bank lending criteria means buyers for sub 50sqm units are limited (as we are discovering with our 1BR) - and a small market means lower prices (plenty sellers, fewer buyers). The Y-man
Be very careful with 1-Bedroom Units, especially small ones. Lending might be easy for you, but it wont be for anyone else- it's an entry level property but entry level buyers can't pass serviceability. It also seriously limits your tenant pool, unless you get a couple you can't get two incomes in there. Third issue with cheap units is that rates and body corporate -regardless of how cheap- become a really high proportion of outgoings. Gross yield looks great, but net yield is woeful. I must say, to the credit of the agent, that marketing is beautifully presented. He's made me want to buy the property.
Totally agree about it only being a one bedroom unit. In saying that tho you are close to the PA hospital so a nurse or doctor on contract may rent the unit but you are closing the circle on what kind of tenants you will be able to attract with only a one bedroom unit.
thanks for all the points put forward... Boxing out the stream of potential renters is a good point... I honestly feel that the demographic and the mindset of Aussies in the SEQ is changing...As in traditionally ppl who loved to live in a big house with a big backyard are looking for something smaller...Especially considering the high density living habits of the Asian community... I think a townhouse would be the best of both worlds but they are pricey..Will keep looking...
Going from a big house with a big backyard to a 1 bed unit being 46m2 is a very dramatic change and the people who wanted the big house and big backyard were likely families which will be against this type of property. I would personally would not touch it as others have mentioned along with the old saying 'land appreciates & buildings depreciate'... Also how will this 1 bed compete with the newer ones being built? Hint your answer is drop your rent/price, there is a reason why it appears cheap.
At list price renting at $280pw it is about a 6.3% yield which isn't bad but I would encourage you to shop around to see how that compares to other examples. The fact that it is <50sqm and a 1 bedroom does cap the potential from both a rental and resale perspective. I wish someone would have told me this when I first started out as we've ended up with asset which have underperformed over the long term (let's be fair they've still done well in time!) If you're looking to purchase a unit my ideal unit would be 2 bedrooms, 50sqm+ and with some potential to add value with a quick cosmetic renovation!
I cant answer for Greenslopes suburb in particular as I am a north side girl. In my experience, Brisbane "townhhouses" are little houses with their own block of land, garden, parking plus communal facilities thrown in. By little, my mother's 3/1/1 TH is exactly the same floor area as her three bedroom family home was, just without the large garden to maintain (the dwelling is approx 100m2). She pays Body Corporate fees which basically gives her a fully serviced swimming pool and covers other costs that she would have had to pay herself if she was still living in a single dwelling. Mum's is in a complex with a mixture of single storey and 2 storey homes. The single-storey townhouses can also be called "villas". They are very rare but highly sort after by the elderly. Builders like to build 2-storey as they can fit more on the block of land. Our TH is a 2 storey 3 bedroom home in a block of five dwellings. They have internal stairs, private balconies, a communal driveway but each house has its own private fenced courtyard. Ours doesn't have a pool. Think of a Sydney "Terrace" but with a BC. Both our family's properties may be desirable to developers wanting to rebuild on the sites in the future. If you go any higher, then they become "apartments", because they are built on top of each other and I have no idea how the land at the bottom is owned. "Units" in Brisbane are the old-fashioned (usually) Six Pack with a row of carports on the ground floor and a row of, well basic units, above them. They each open off one long single verandah or walkway whereas the newer townhouses have individual entrances and their carparking is a part of the home. Units are not as desirable as townhouses.
Nice unit I agree, good use of space. However Cornwall St is a very busy road and a lot of trucks use it to get from Ipswich Rd to the freeway.
