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Mango Hill QLD (MBRC) - 6% Vacancy Rate

Discussion in 'Property Management' started by Tim & Chrissy, 31st Jan, 2016.

  1. Tim & Chrissy

    Tim & Chrissy Well-Known Member

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    Investment Property Mango Hill, Queensland, 4509

    I have been looking at houses for sale in Mango Hill recently, it seems to be a newer area, similar style and close to North Lakes.

    According to realestateinvestar it currently has a 6.02% vacancy rate, 85 properties for lease, but only a 26.79% rental population.

    Any thoughts? Do you think this is accurate?
     
    Last edited: 31st Jan, 2016
  2. Coota9

    Coota9 Well-Known Member Premium Member

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    SQM is the site I use for accurate vacancy data..
    Mango Hill Vacancy.png
     
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  3. Tim & Chrissy

    Tim & Chrissy Well-Known Member

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    Thanks Coota,

    3.8% still concerns me, I'm use to seeing under 2%.

    In all honesty I'm really not sure what is an acceptable vacancy rate and what is a concerning vacancy rate.
     
  4. HUGH72

    HUGH72 Well-Known Member

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    4509 also includes North Lakes so I'm not sure what to make of it.
    Sub 3 is ideal, 4 is ordinary, it might mean a few weeks vacancy between tenants depending on the property. Once you get to 5+ expect to see competition for tenants and possibly falling rents.
     
  5. Coota9

    Coota9 Well-Known Member Premium Member

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    Vacancy peaked in July 2015 at close to 5% but have declined and now have flattened out.
    It will be interesting to see next report as I believe that will fall again in line with the normal increase in renters prior to the school year starting in late jan early feb.
    Also whilst rents have dropped slightly in the last qtr they have kept pretty steady over the last 12 months.
    Mango Hill Rents.png
     
  6. Tim & Chrissy

    Tim & Chrissy Well-Known Member

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    Could it be a temporary situation due to increased construction?

    I was comparing it to similar properties in Warner but Warner seems to achieve higher rents and is at 2.1% according to SQM (Thanks @Coota9 I will use that website from now on).
     
  7. Tim & Chrissy

    Tim & Chrissy Well-Known Member

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    What's the verdict Coota9? Try use it as a bargaining chip or steer clear :)
     
  8. Coota9

    Coota9 Well-Known Member Premium Member

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    My view is biased as I have an IP in that area.
    When you look at the google earth image attached there is not a massive amount of "developable" land in that area as the majority is affected by a flood plain due to pine river etc.
    My thoughts are that once that land is exhausted that prices will increase as this has held back CG growth in that area over the last few years
    12 month CG increase whilst only a modest 8.7% is a good start:)
    Mango Hill.png
     
    Last edited: 31st Jan, 2016
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  9. Tyler Durden

    Tyler Durden Well-Known Member

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    I think you might have nailed your own question Tim, now you just have to ask yourself how long you consider temporary. Keep in mind that the Warner postcode encompasses Strathpine and Brendale. These tend to have Loganesque style vacancy rates due to the demographics.

    Jump on SQM and check out Enoggera, Chermside, Aspley, Albany Creek and you'll see a fairly obvious trend. I agree with Coota that things should tighten up in February but for clear seasonal anomaly take a look at Toowong (probably the best illustration).
     
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  10. Tim & Chrissy

    Tim & Chrissy Well-Known Member

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    I have been trying to stick with places already tenanted, ideally a 'set and forget' style property so I don't have to fly up for reno's, major repairs etc.

    Warner only came onto my radar last night, haven't been able to find out much about it but it looks reasonably located, just a little further from public transport.

    I lost a place in the Redcliffe area yesterday, multiple offers situation. Excellent return but unapproved granny flat made my offer a bit more conservative.
     
  11. Tim & Chrissy

    Tim & Chrissy Well-Known Member

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    Bit cheaper to get into Mango Hill but that is also reflected by the rent.
    The new train station is making it a bit more appealing to me as well as the uni plans.