QLD Help with “analysis paralysis” please

Could be like saying what did better in Sydney, a unit in Marrickvile or a house in Liverpool.

 

yeah this part is very true. This is what it really means when they say buildings depreciate and land (rather location Iof land more so than just land per se) appreciate.

 

I was near to buying a unit in Wynnum, but only because I could get it at 40K under market. Bris has a lot of units coming in various areas.

You will need to look at actually how many units will be in that area, land locked yes, sky locked....well, no. In saying that, an older unit at the right price and location and outgoings I would not dismiss.

Do you want a house with land, or a unit ?

Unit is probably easier to maintain, but not always and not all strata buildings are run in a reasonable way, a house you do with as you wish, but is all yours to worry about and check etc too.

You probably have seen that some forum members been buying in the area you mention, there it would need to be a house, any vacant land costs lots to develop and also build, so at the 250k or so mark, I would not let the land part worry you too much.

Decisions, decisions -- nevermind, whatever you do there would always be something better, or worse

 

Thanks for everyones input. I appreciate it. I seem to change my mind on a weekly basis now (instead of daily ).

I am seeing this one as a set and forget. So I think if I can pickup a 10 year old house between Gooda - Redbank Plains area. Yield should be over 6% with minimal maintenance (hopefully).

 

Have you visited the area? I sometimes deliberate for weeks on an area or house I see looks good on the internet. Most times it is a write off once I physically go there.

 

Have flights booked for next month but I have spoken to a few forum members who have done recent drive throughs.

I think the drive around will help decide which suburb along the Gailes - Ipswich corridor.

6% yield will be enough for me to service it and the buy in price gives me enough buffer for any issues. Budget wise it will also allow for interest rate rises.

 

That's good, be interesting to hear your feedback.

 

Do you have a calculations spreadsheet so you know what type of yield you require to hold the property? e.g an xx% yield may buy a CF+ve property in one location, while in other locations the same yield will give a -ve CF. Reading what others have said on the forum, 6% sounds pretty right for this corridor, but it's always good to understand what you'll be up for to hold the property. I like to do these figures before visiting the area so I can build this into the overall picture.

 

Goodpoint. I will do one up now.

 

Here is a quick one I just did up. Some of the figures are approx (rates, waters, insurance).

100% LVR + 5% STAMP DUTY & COSTS

Assuming house price $330k and rents for $350 PW.

 

Looks good, but the rental income should be $18,200?
And an allowance for maintenance would be more realistic

 

Any particular reason for leaning towards the Ipswich corridor rather than say, Logan or Strathpine areas?

What are the growth drivers for the Ipswich corridor? Is it just affordability?

 

Thanks, only having 4 hours sleep didnt help. For some reason I thought there was 56 weeks per year!!

What sort of figure should I apply for maintenance?

 

I think Logan is getting a bit pricey now for the area.

Pretty much affordability. Yield seems to be a bit better. Springfield Lakes development. Springfield Lakes railway development going through Redbank Plains. A lot of development going on in the area.


Goodna - Brisbane 24km - 25 mins
Logan - Brisbane 25km - 29 mins
(much the same really)

 

50 weeks of rent a year would be a more conservative figure in the case of new tenants, letting fee's etc

 

Also take a drive into the city of Ipswich itself. You may be surprised at the beautiful colonial houses and infrastructure compared to the brick and tile burbs that surround it.

 

Hey Markson

I normally allow $2k per property per annum - its a very rough figure though.

 

I agree with @Jamie Moore about the maintenance. I usually add in about 4 weeks for vacancy and $1000 for 'other things' (e.g big maintenance issues, longer vacancies) (I like to add in a few fudge figures in case I've underestimated other figures). Your water supply costs appear higher? (I say that without any prior knowledge of Ipswich costs). I don't think Land tax applies at this point would it ( it's not included)?

 

Thanks guys. Wow doesnt take long for the holding costs to really add up. Have added $2k maintenance and 4 weeks vacancy per year

 

I'd be going for a house if you could afford it.
Tipped to be an oversupply of units in Brisbane for quite some time.