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.
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)?
Sooo. Both Ipswich and DP are ok. But dual occupancy? I would run. Also are they new builds? I will run twice as fast.
He has given me properties only in DP. They are house and land package. You think dual occupancy doesn't make sense?
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?
Even more alarm bells ringing. Who do you think is paying him? And who’s interest do you think he is most interested in?
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
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.
Thank you. And you think I should go for dual occupancy so that I get long term investment and cash flow?
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.
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.
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.
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
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
If he doesn’t charge from you, doesn’t it worry you? I would further investigate how is he been paid?
