Ipswich new build. Is it a good ip?

Hi, im from WA and am looking at purchasing another investment property. We currently have one in heathridge in perth. My main reason is too claim back against the amount of tax i pay plus obviously growth.
I didnt want to put all eggs in one basket and invest only in my back yard.
After reading, research and talking too various people im looking at a new build (good depreciation) in the ipswich area. In particular brassall. On 600sq 4 by 2 complete turnkey for 400k.
Has any one any opinions if this would be a good investment decision?
Thanks for all responses, i appreciate all advise.

 

Welcome Bruno. Nothing wrong with Brassall, new builds or wanting to minimise income tax. However like all new and shiny things you are paying a premium for it.

Look at sold prices for similar to see if you would make a loss if you had to sell quickly. And always check flood maps for Ipswich.

Lot of new supply happening in the west, South Ripley etc.

 

Imo thats a very poor main reason to buy an investment. Dont know why anyone would want to spend $3 for the main purpose to get back $1 and probably less.

Also if your buying new in Ipswich then the developer has most likely sucked all the equity out and you'll be waiting for a very long time for CG over there.

If your set on the area then look for older stock on generous blocks or with development potential or reno potential and get it for alot less than 400k if possible which looks like you easily can from what I've just seen.


If you can stretch the budget by 100k I'd buy in Keppera qld any day over a new place in Ipswich.

 

To see how badly a premium your paying and getting ripped off, look at this older home on 809sqm site

51 Moffatt Street, Ipswich, Qld 4305 - Property Details

 

I would buy an older Queenslander but that’s just me.

 

I agree. Alot more chance to make money in Qld this way and not pay a hefty premium for some shiny cabinetry.

 

Agree with what others have said here. You can get much better bang for your buck for or below that price, easily. Ipswich is a pretty unique area, one of the largest LGAs so be very calculated and deliberate when choosing what suburb you are going to invest in. The old town itself and nearby surrounds have some of the most historical buildings/houses in Brisbane and many beautiful Queenslanders typify the housing stock in the area. This brings with it a charm of yesteryear and it’s a quality that Ipswich relies on and the council aims to invest in and protect. There is quite a bit of money being spent if Ipswich CBD as we speak, including some rather impressive restoration work. So that being said, I’d be aiming my property search for houses that typify the area and are the reason that many O/Os are choosing to live there. By in established areas, bigger blocks, and character/Qlders houses with associated amenity to transport, schools cafes shopping etc etc. I personally would actively avoid new builds in Ipswich, they stick out like a sore thumb. If you’re an o/o skipping cheaper suburbs closer in with equally new properties to buy further out into the lifestyle that Ipswich offers, are you going to buy a beautifully renovated timeless Queenslander or a 5-10y/o new build that looks aged and was of prob average build quality? Which will command a stronger price going forward? I know which I think is the riskier purchase. Try and put yourself in the shoes of those buying here. People moving to Ipswich are not just choosing the area because it’s cheaper, as there are plenty of cheaper areas closer in.

 

Thanks for your in-depth explanation and too all others advice

 

There is a new Costco being built in Bundamba, I would consider an older house further east (check flood maps) in areas such as Redbank Plains, Gailes etc.

 

I don't necessarily agree with the comments here saying that new homes are automatically better. For example, that GORGEOUS home on Moffatt Street might be cheaper, but it's also only a 3-Bed 1-Bath and wont rent as well as a new 4-Bed 2-Bath 2-Garage home. I mean, I know which one I'd prefer to live in, but tenants will pay more for a bigger modern home.

$400,000 isn't too bad as long as the house is the right size and specification, and it will rent well. Brassall isn't a GREAT area, but it's not bad either. There's quite a big going on a little west of it, plus it's the most popular suburb for parents with kids going to the excellent WMAC high school and it's got easy access to the West Ipswich shops (Costco, Bunnings, etc.) to the house plus direct access to the Warrego on the north.

Personally I'd prefer Logan over Ipswich for a new home, it offers higher rents and better growth potential and the land cost isn't much higher depending on what you want.

 

how much will one pay for renting in Ipswich is an important question. Nice to have shiny and new but higher rent and perhaps under-utilised room have to be in consideration.

 

Buy the queenslander every day of the week

Not only was it cgeaper but it was also in a way better area! Oh and the land was 25% larger....

The build cost of your 4x2 is probably only 200k
So your paying 200k for the land as well to get your 400k price - problem is the lands probably only worth 100k in that area


The price to build a queenslander of any quality would be 400k these days (if anyone does it?). So basically you get the land for free if your buying for 350k
And the land would be 200- 250k in that area...

So your getting 500 - 600k in replacement value for 350k

Whereas with the new house your getting 300-350k for 400k

I know which one has the better chances of future capital growth

 

This is how you make money with land and house packages, first you buy the land and then you source the builder. Land and house packages work very well in rising markets, read @sash and @melbournian posts, this is what they are doing in the Melb market.

Generally you will find perhaps 20% profit on completion, could be more??.

If you are buying a packaged product (land and house) the margin will not be there.

Very important to look at market conditions with this product, if there is too much land and too many houses getting built, in other words too much supply the chances of growth will be slim. In fact your investment could even go backwards.

MTR