QLD Ipswich

Discussion in 'Where to Buy' started by Priyan, 6th Sep, 2017.

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  1. Priyan

    Priyan New Member

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    Sydney
    I'm looking to invest in a dual-occupancy in Ipswich however I'm not too sure on the area as I'm from Sydney. I know there is a considerable amount of money being pumped into it by the government and also the Springfield Lakes precinct nearby. Just wanted to get your thoughts on whether Ipswich is a suitable place for 1) an investment property and 2) demand for a dual occupancy?

    Cheers
     
  2. Property Twins

    Property Twins Mortgage Brokers & Buyers Agents Business Member

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    Hi @Priyan
    Are you looking at dual occupancy house and land packages?
    What are your reasons for not buying closer to Brisbane?
     
  3. Priyan

    Priyan New Member

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    Yes a dual-occ and land package.

    I currently have a property in Griffin which is doing well, however im a bit unsure as to whether i should ' throw all my eggs in 1 basket' by buying in Brisbane. I'd like to know what the negatives are with Ipswich.
     
  4. Mick Butterfield

    Mick Butterfield Well-Known Member

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    Hi @Priyan there is already a thread on Ipswich which has a few people who have bought there discussing. I suggest having a read of that.
     
  5. Tom Rivera

    Tom Rivera Property Manager Business Member

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    Hey @Priyan, be careful with Dual-Occupancy properties up here, especially in Ipswich. The answer to both of your questions is both yes and no depending on where you look and what you're looking at. It's a VERY board question with complex answers.
     
  6. Jjjb

    Jjjb Active Member

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    Would mind explaining in a little more detail?
    Obviously good for a cash flow move?
     
  7. Tom Rivera

    Tom Rivera Property Manager Business Member

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    They're GREAT for cash flow, with gross yields around 6.5-7.2% depending on where and what.

    It's a bit of a "bird in the hand" strategy, where you're forgoing likely capital growth in return for a very strong yield. There's two main reasons they're riskier or less likely to perform compared to a traditional home;
    1. Investor specific. You're always going to be appealing to investors who don't make emotional decisions.
    2. New product. It's an unknown quantity, we don't know what demand will be like in e.g. ten years.

    There's also plenty of tenant demand for them which I was initially quite surprised by, but people love the whole new/modern house thing and don't mind the size. My own Dad moved out of his older 4-Bed house on 800m2 into a 3-Bed Dual-Occ with nearly no yard and he loves it, even though he pays almost the same rent...!? Beats me, but he's not alone!

    Most of the builders who build these are set up to sell through marketing channels so the prices are over-inflated, which also causes them to undervalue because the banks aren't stupid. People still buy them because even at the inflated amount, the yield stacks up.

    There are a couple of builders out there who will build them for an honest price and make sure the inclusions levels are appropriate.

    I personally prefer building them in Logan because you can fit a 2-Bed auxiliary dwelling in the 70m2 limit, whereas Ipswich's 50m2 limit forces 1-Bedroom which doesn't yield as well. As a general rule Logan also has stronger rents and better growth potential, but the land isn't that much more expensive.
     
    Bright star shine likes this.
  8. Jjjb

    Jjjb Active Member

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  9. Jjjb

    Jjjb Active Member

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    Thanks, great info
     
    Tom Rivera likes this.
  10. Bright star shine

    Bright star shine Member

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    Hi Tom,
    Do you have any suggestions on good and honest builders and what to look for while dealing with a builder. I'd appreciate it. Please send me a message on your recommended builders.
    Cheers
     
  11. Tom Rivera

    Tom Rivera Property Manager Business Member

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    I can't seem to message you, I think you need to make more posts first. You're welcome to get in touch with me directly (see my signature).