QLD Ipswich

Inner Ipswich vs masterplanned Ipswich

Ipswich's inner-city suburbs led the way in 2016

 

Some solid returns there. I am more than happy with an 8.5% return for my 12 months. These statistics really are backing up my thoughts on the area and I reckon there is still quite a bit left in the tank.

 

Gees the growth wave must have skipped Newtown where my IP is!

I purchased a nice clean 900sqm corner block there in April last year with the intention of putting a GF on it. However, due to a few personal reasons didn't proceed with it and only started looking into it again recently.

I just found out from a local PM, however, that the vacancy rate in area is currently hovering around the 8% mark(?!?) and so am reconsidering the GF idea. The block is also suitable for a subdivision/build so am carrying out due diligence into that as well at the moment.

The annoying thing is the property has seen next no NO growth over the last year. RPData's auto valuation report spits out the same figure as it did last year. I wasn't expecting double digit growth ala Syd/Melb or anything but pretty much zilch? Fairly disappointed tbh!

Here's to hoping I'll manage to manufacture some equity via one of the value-added strategies above but some upward market movement in the near future would be a nice bonus!

 

Can't really verify your quote on vacancy rate however my property rented within 3 days at the back end of last year. I can't stress enough that you buy the right type of property in inner Ipswich, especially if the numbers you quote are true. I personally wouldn't really be going down the granny flat route in inner ippy at present, and I really don't know if they are doing well or not. Because the rent in the area is still lowish, you can get a full on nice house over a granny flat and prob not be paying much difference in rent. Is there demand from families with relatives? Haven't looked into it. When you account for how much it costs to build a decent gf, you have to ask yourself if the numbers really add up at present in ippy. I'd be sitting on the property for a while and to be honest, inner ipppy hasn't been rapidly rising so unless you bought under value or do a decent Reno, you'll be waiting g a while to get a decent equity pull from growth only. I'd be buying in 5-10km from Brissie for faster equity pulls from growth, if that is your goal. That being said I see good things for well located inner ippy character properties in the 5+ year bracket. The more Brisbane grows, the better it'll be for growth in these well located character outer areas. Just my opinion. Be interesting to see how the cbd redevelopment shapes up.

Haven't had any recent vals done but briefly looking at online sites my inner ippy property is now up 30k over the last 5 months when comparing to online vals back then. This is in line with the type of property it is but more than I expected for growth in this area over the last 6 months. But I take these sites with a grain of salt. Sales have slowed but the ones that do sell are still showing good growth. So far, it's as expected for me.

 

Well what do you know, someone in another thread just showed me how to check for vacancy rate (sqmresearch.com.au) and guess what it is for Newtown, Ipwsich? 2.1%!

So now I know my property manager lied to me to get me to drop the rent and get a quick lease. Unbelievable!

I thought it was a decent property. Large clean even corner split-table block right opposite the new H&L development on Blackstone road. I actually purchased it through a BA who has done a lot of GF in the area with good results. Unfortunately things didn't work out with them and I had to park the plans.

I did ask a few agents in the area about the potential of a GF and have received positive feedback overall. Would definitely make it highly +CF. However, as is the nature of GF, it's hard to say whether it will add any equity so that's one of the reasons I'm hesitant to proceed with it.

That's very good result - congrats! Which online sites did you use to produce these vals? I use RPData and it hasn't shown any growth for mine for the last 12 months.

 

Ok it appears I've made some assumptions in my original reply which I've since assessed and discovered to be incorrect! Going to share them so anyone who comes across my posts do not get the wrong idea:

1. First of all, Ipswich does not have 8% vacancy rate; this was a miscommunication between the managing agent and I. The 8% is in fact their agency's internal vacancy rate, Ipswich's latest vacancy rate is 2.1% for Mar17

*Source: SQM Research - Residential Vacancy Rates

2. I just generated another RPData's auto valuation report just now and surprisingly it shows an almost 20% jump in value compared to a report generated in Jul 16. I did not expect this at all as the last report I generated was back in Dec 16 and it showed minimal growth so essentially the bulk of this growth took place within the first 3-4 months of this year! Very interesting indeed.

Conclusion: these 2 findings seem to reflect the view shared by the article below

 

PM ME

 

@G TOWN are you loaded and ready to Ipswich? I'm itching after seeing some beautiful Queenslanders.

 

Ipswich is defintely growing. Got a new land evaluation from the council last year the land was $150k this year the land valued at $175k. Cant complain with that.

 

Sadly it's not Ipswich time for me just yet. Circumstances have changed a little and now I am looking for a period PPOR in Ballarat.

But when I am ready to Ipswich - it's gotta be a period home. Period Ipswich is good Ipswich.

 

Costco settles on green field site

 

@larrylarry @Danmicb @Mick Butterfield @Alfiesausagedog how are your investments going? Hopefully I can make my long awaited purchase within the next two months, depending on how my East Geelong property goes on revaluation

 

I'm waiting to find time away to see Ipswich myself!!!

 

Hi guys, I was looking to buy in Ipswich earlier on the year but missed out on a few good deals because I was afraid to offer them a little higher - regretted it now! I have been thinking about Redcliffe area instead roughly the same price bracket of $350k-$400k.

Question: Would it be better to invest in Redcliffe or Ipswich area? I am thinking to purchase sometime end of this year once my current renos are complete. Thinking I might have missed the boat by then?

 

Going well, my tenants just renewed for another year for rent considerably higher than average. No major maintenance issues for the 1890s house, replaced an aircon earlier this year, that's it. I like the fact that there is lots of positivity and perceived and actual upside to the area with development and jobs coming in. Great tenants, beautiful properties and solid yield, it's so damn easy to hold here. If you're wanting faster growth you'll have to pay a **** ton more and get into inner Bris for anything equivalent in amenity and character. Old Ipswich has been tracking upwards the last year , along with the median price for houses in the area (up 50k). Not copious amounts of growth but it is contributing to the portfolio as expected and depending on what you are after, it's been easy investing in Ipswich.

 

Excellent! I've been talking up #hipswich for months now but I think over the next few weeks I will finally be ready to buy. Inner city weatherboard character home of course. As an interstate investor, I'm a little concerned about buying on my own, did you guys use buyers agents??

 

U can buy on your own I did buy several properties on my own but do lot of due diligence good luck

 

Depends on the time you have available, it took a while for me but I did everything on my own. A BA will speed up the process.

 

Agree with the others, you can definitely buy on your own. Plenty of resources out there. Thoroughly research the area/streets/overlays and exactly what kind of property you want (reno/unreno/size etc) so when the right one pops up, you're good to go. Keep a trusty property manager close-by and a sold B&P inspector, and maybe a friend/acquitance or someone that can be your impartial eyes on the ground. I'm not sure where this next purchase sits for you in your portfolio and what you're wanting to achieve, but i would err on the side of whatever inner ippy character property you do get, that all majors have already been tended to (roof, stumps, electrical etc - They were expensive/time consuming headaches i didn't need). Look for add value, but make sure its getting bang for your buck. A new roof prob won't get you higher rent Lots of people steer away from older character properties because they fear high maintanece costs, once again such risks can always be mitigated against. With the price of rennoed properties in old ipswich town, and the rent they achieve, I think you can justify it, considering you'll get a tenant quick smart and for a decent yield. I don't think this will always be the case but...

 

If anyone has narrowed down to a particular property or a shortlist, let me know and I'd be more than happy to head over and take a look for you. I'm not quite as "connected" to the buying market as a buyers agent, but with a lot of experience as a PM in the area, I still know my stuff.