QLD Ipswich or Deception Bay - IP

Discussion in 'Where to Buy' started by Kanpan, 6th Dec, 2019.

Join Australia's most dynamic and respected property investment community
  1. Kanpan

    Kanpan Member

    Joined:
    6th Dec, 2019
    Posts:
    11
    Location:
    Sydney
    Hello, we are looking to invest in Brisbane. Our buyers agent has sent us some dual house key projects in Deception Bay but I would also like to think about Ipswich as I see there is lots happening there. My budget is $500K all inclusive. I am looking at good rental yield and cash flow hence going for a dual key project. Any thoughts on Deception Bay or Ipswich please? This is our first IP and we want to be sure that we will get our good returns.
     
  2. My House QLD

    My House QLD Well-Known Member

    Joined:
    9th Aug, 2015
    Posts:
    1,316
    Location:
    Brisbane
    Alarm bells ringing LOUDLY! Where did you find your BA?

    You don't need a BA to find a dual occ in Moreton Bay or Ipswich, there are tons of them for sale new and used.

    How much research have you done on the Brisbane market, is a dual occ the right investment for you? How much is the BA charging to find you a dual occ?

    What's the land size, purchase price and weekly rent from your research (not the developer or BA)?
     
  3. Noobieboy

    Noobieboy Well-Known Member

    Joined:
    10th Aug, 2017
    Posts:
    2,172
    Location:
    Utopia
    Sooo. Both Ipswich and DP are ok. But dual occupancy? I would run. Also are they new builds? I will run twice as fast.
     
    My House QLD likes this.
  4. Kanpan

    Kanpan Member

    Joined:
    6th Dec, 2019
    Posts:
    11
    Location:
    Sydney
    He has given me properties only in DP. They are house and land package. You think dual occupancy doesn't make sense?
     
  5. Kanpan

    Kanpan Member

    Joined:
    6th Dec, 2019
    Posts:
    11
    Location:
    Sydney
    He isn't charging anything for me.

    Land size is around 380 m, purchase price is $502K and weekly rent should be $610 for dual properties. What do you suggest?
     
  6. Noobieboy

    Noobieboy Well-Known Member

    Joined:
    10th Aug, 2017
    Posts:
    2,172
    Location:
    Utopia
    Even more alarm bells ringing. Who do you think is paying him? And who’s interest do you think he is most interested in?
     
    Tom Rivera and My House QLD like this.
  7. Kanpan

    Kanpan Member

    Joined:
    6th Dec, 2019
    Posts:
    11
    Location:
    Sydney
    He has a good name in the market and few friends have bought through him. Isn't it the norm that for new properties BA don't charge anything? We have just started our research so apologies if I seem to be unaware of this
     
  8. Noobieboy

    Noobieboy Well-Known Member

    Joined:
    10th Aug, 2017
    Posts:
    2,172
    Location:
    Utopia
    I personally prefer Ipswich. Not as low socio economically as DP. Has more jobs, industry etc.

    Very long term wise, I think DP should be ok. But again I prefer Ipswich in at least 500 m2.
     
  9. Kanpan

    Kanpan Member

    Joined:
    6th Dec, 2019
    Posts:
    11
    Location:
    Sydney
    Thank you. And you think I should go for dual occupancy so that I get long term investment and cash flow?
     
  10. My House QLD

    My House QLD Well-Known Member

    Joined:
    9th Aug, 2015
    Posts:
    1,316
    Location:
    Brisbane
    Your free BA will be getting paid by the developer and the payment will be large. If he is getting paid by the developer is he working in your best interests or the developers best interests? What you most likely have is a sales agent NOT a BA.

    I cannot advise you on what to buy but 500k in Deception Bay and only 380m2 I feel there might be better investment opportunities around. There are lots of these dual occs that have issues with bank valuations once the property is a few years old, often valuing a lot lower than the original purchase price!

    Yes the yield will be good but will it be a good investment long term?

    Look for a property you can buy and add value to which will give equity if you want to refinance and buy more property.
     
    Skyegirl likes this.
  11. Closet

    Closet Well-Known Member

    Joined:
    23rd Oct, 2017
    Posts:
    564
    Location:
    Australia
    I would have a look at the market closely. You can still buy a large block with existing dwelling in db for $330k and build a 2nd dwelling for 110k. Rental return of $650 - 700 easy depending on the existing house. Some blocks are zoned next gen too.
     
    Angel likes this.
  12. Angel

    Angel Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    5,740
    Location:
    Paradise, Brisbane
    Ipswich is an entire city - you want to research it independently and work out for yourself what suburbs to consider and what kind of properties are in high demand from tenants.

    D'Bay is one suburb of Moreton Bay Region. If you use the search function on this website, there will be plenty of threads on each location for you to peruse.
     
  13. Kanpan

    Kanpan Member

    Joined:
    6th Dec, 2019
    Posts:
    11
    Location:
    Sydney
    Thank you. How much do buyers agent charge generally and do you know a good one?
     
  14. Kanpan

    Kanpan Member

    Joined:
    6th Dec, 2019
    Posts:
    11
    Location:
    Sydney
    Thank you . Let me research on that
     
  15. My House QLD

    My House QLD Well-Known Member

    Joined:
    9th Aug, 2015
    Posts:
    1,316
    Location:
    Brisbane
    You'd generally be looking at $10,000 give or take. Better to pay 10k and get a GOOD investment and have someone working for YOU rather than a free BA working for the developer that could cost you a lot more than 10k in a poor investment. I've heard of dual occ's valuing much lower than the purchase price after only a few years of tenant wear and tear, just heard about one yesterday the investor paid 520k new it valued at 430k used... The investor was wanting to extract equity to buy another property now they are well into negative territory.

    Do you know a good one?

    I don't know, I think I'm ok :rolleyes:
     
    Archaon and The Grinch like this.
  16. Mr_Gray

    Mr_Gray Member

    Joined:
    21st Jan, 2020
    Posts:
    7
    Location:
    Sydney
    Can anyone hint where is good to look in Ipswich?
     
  17. investoradam

    investoradam Well-Known Member

    Joined:
    15th Jan, 2017
    Posts:
    58
    Location:
    WA
    You gotta be careful with Ipswich as it’s build on kilometres of tunnels of old coal mines and is known to have a lot of ground movements & sink holes appearing and houses sinking

    the ground was that volatile that they eventually stopped mining under ground mining and only the open cut remained
     
  18. Angel

    Angel Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    5,740
    Location:
    Paradise, Brisbane
    Type "Ipswich" in the search function at the top right of your screen
     
  19. Angel

    Angel Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    5,740
    Location:
    Paradise, Brisbane
    Hi @Kanpan What did you end up doing?
     
  20. Jana

    Jana Well-Known Member

    Joined:
    19th Apr, 2016
    Posts:
    430
    Location:
    Sydney
    If he doesn’t charge from you, doesn’t it worry you? I would further investigate how is he been paid?
     

PFA Property Expo is designed in a way that visitors can gather maximum real estate knowledge with added benefits. Different speakers will be presenting on different topics as where to buy, when to buy in this market...