QLD Kippa-Ring (Moreton Bay Region)

Well some good has to flow to each corner, or maybe, as you say, it may make things much worse for later on (at least for Sydney).

I am not that big on Super or what people have been doing, I know a lot have SMSF to buy property, that always seemed like a loop hole.

But what I am mainly saying is, we can see the locals really like to be close to CBD, more money or confidence is likely to flow more to those areas, than further out, the people going further out probably largely do so for lifestyle or lack of money, so I cannot see it having much of an effect.

I agree with much of your plan and ideas, but I do not think that what we think here drives what the majority do and def not OOs, like they say, most investors have only one IP

We will see how it all pans out.

 

Yes....it could be very dire for Sydney....because it could jump again...and if the rates say drop to 3.75%....and more people jump in .....at some point the rates head-up. A lot of people will borrow to the hilt again.....at some point the rates will head to 6.5-7%...work the numbers out on that.

I see Brisbane and some parts of Melbourne less affected because them are coming off a lower base. So even 2.75% increase will not be as painful as 8.5k (on a typical 340k morgage) in repayments can be managed so long as you do not loose your job. Over 3-4 years with some payrises that can be managed.

But a 20-28k jump on a $700-1m mortgage in Sydney will be a lot harder to manage.

 

Yeah, for sure.

So Sash, what is Moreton bay council charging, and how much is water, robbers like the rest up there ?

And do you know if you can do granny flats like Logan area, or are they like BCC ? What size blocks do they allow, can you split a 600 into 2 300's , anything else to know about dev in that council area ?

 

Moreton Bay are thieves like the rest of the councils up there.

On my places council rates are about 410pq

Water is about 450pq but the tenant pays 200pq so about 250pq.

So all up around 660pq comes out of the pocket.

This is based on my recent Clontarf purchase, here are the numbers:

1. Rents 350pw plus approx $800pa for water from tenants - $19,000
2. Mortgage repayments on 290k odd (deposit was 35k) - ($12,000)
3. Council and Water rates ($3450)
4. Insurance (included Flood) - ($950)
6. Mgmt Fees - ($1300)
7. Repairs - ($600)

Cashflow is $700 positive.

If a include the 45k sunk in to the deal and include as a borrowing cost it is about neg. by $1000.

Have no idea about granny flats because I won't get money back. Lot of people do them but do not look at the opportunity cost of money. You may put one on for say 100k on a purchase of 400k (more land needed)...but in the end is it worth it?

 

What I am trying to nut out, is for the future, if it is better to get a larger block and maybe only get 5% now, with a view to increase return or develop, or just keep going with buy and hold.

I like the idea of options going forward, I do not want all places 300 or 400 sqm with no further potential ever.

A GF would probably only do it as an attached, so it looks like one dwelling, not the usual duplex type of thing.

I got offered a property that is not yet on market up there, it is not much dearer than a normal 400sq block, and has also now been zoned higher density I am told, but I would think it would be another cycle before you would develop, or sell as a development site.

 

I think this sort of thing helps hold the areas back as well.

People worry about Western NSW regionals, and these clowns make them look like amatuers in pricing, even in places that have no water, they charge $1 per k/l vs at least twice or more up in a capital city that has water flowing everywhere....is a joke.

I know in Redlands it is dearer than BCC for rates, but you can actually see the difference, the council does a good job, places look clean and well cared for compared to across the Tingalpa creek, you notice the change straight away.

Also, I notice the water in parts of Bris seem similar to bore water !

 

Not for me...I want to pull the plug in another 4-6 yrs...so primarily looking for sure shot CG markets with near neutral CF.

I have worked out that if I get 150-200k growth in each of my Brissie properties (mind you some have already seen 30-40% of that amount since I bought some of them) over the next 3-4 years and another say 100-130k for each of my Adelaide properties...that should add another $1.5-$2m to my kitty. Even if it is $1m... would be okay.

 

Why sell them, change of mode or just chasing the cycles, or you starting to feel theer will be a big crash ?

Even if there was a crash, probably wont hurt you too much at your LVR.

 

Want to change direction at some point...want more bluechips and less of them.

I also want to buy land in Bluechip areas and develop housing for retirees....these homes needs less stairs and better finishes and layouts. I reckon there is huge market for this...which is largely unmet. Lots of units...and T/H but not enought smaller well appointed homes and Villas on the market.

Yes I could comfortably hold them...but also want 120k net to splash around every year.....you know the good life...that means halving the LVR. No issues from my perspective.

 

I think with Redcliffe just being close to the water is a draw card for some people, not everyone wants to swim at the beach, there are nice walks and bbq area's and the kids can still have fun even if its not like the beaches of the Sunshine or Gold Coast. Retirees like to be close to the water for cooler summers and the general lifestyle.

 

Yeah, some families prefer it to be a bit more calm in the water for the littlies.
Oldies tend to prefer it too.

 

How's that new train line going? Whens the official opening date?

 

'

• Project on track for completion - mid-2016'

Moreton Bay Rail (Department of Transport and Main Roads)

 

Email I received on completion date..

 

I'm surprised no one has used the Federal Election as an excuse to get this opened!

 

More waiting...

 

Sounds like another royal Government screw up.. although both Governments equally to blame.

Audit into Moreton Bay rail link debacle

Looks like sometime in 2017 seems more likely now!

 

Not related to the rail link at all but this reminds me of that game from the 90s, 'Transport Tycoon'.
If you had too many trains on the single line and messed up the traffic signals you'd either get traffic jams with the lines or collisions.

This is bad for business. Once they rectify it everything will be back on track (pun intended).

 

Better safe than sorry I guess. They've waited 120 yrs these people can probably wait 120 days lol

 

Privatising parts of QR would be a factor no doubt.
All of this should have been tested and modelled a long time ago.
Amateur hour.