Mango Hill QLD (MBRC) - 6% Vacancy Rate

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?

 

SQM is the site I use for accurate vacancy data..

 

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.

 

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.

 

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.

 

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).

 

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

 

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

 

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).

 

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.

 

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.

 

Hi Coota9
We're also looking to purchase a house land package as an investment in Mango Hill. I'm a bit concerned by vacancy rates given all the building (we can't afford to have the property vacant for too long once built). As it's now a year later from your post, how are you finding renting your property?
Cheers!

 

Vacancy rate is at 11% according to this source:

Investment Property Mango Hill, Queensland, 4509

Call some agents and find out how long it is taking to secure tenants in this area.

Below 2% is generally regarded as a safer vacancy rate. Think carefully if you are absolutely reliant on the rental income.

Edit - when I was driving through North Lakes and Mango Hill in October there were lot's of fences with hand-painted signs with mobile numbers advertising for rent. Don't generally see this and perhaps evidence of owners having trouble renting their properties.

 

It's actually increased. 3.8% to 4.6% in a space of 1 year. Not sure it's other suburbs sharing the same postcode that is dragging it up though.
SQM Research - Residential Vacancy Rates

I am not a fan in hold stock in a new estate simply for the vacancy reason.. . When market go sideways, developer hold stock until a rising market.. In the meantime, they rent out their stock ..

Newer estate generally lack in renters market as they're considered more for owner occupier..

 

Be careful with house and land packages for various reasons! I'm typing on an iPad for this one and although I'd love to go into the details, if you search this topic you'll find plenty of reasons why!

 

As I've said on the Scarborough thread, I'm wary of the SQM vacancy number. While they are the only ones in town, and are great for comparison over time, I'm not convinced in using them for a point-in-time decision for a particular property.
Definitely talk with agents in-area, and just out of the area who want to convince you to go to their turf, to find out what's actually happening now - you don't care so much about historical vacancy or comparisons or last month's, you're interested in how difficult it is to find a tenant for your property - different DD needed.

 

The vacancy will include the masses of new townhouse complexes in both MH and NL.

 

I have just had my tenants happily sign another 12 month lease extension albeit at the same rate of $450 per week which is a 5.5% yeild of my purchase price.
Property Manager has just completed an inspection of the property and the current tenants are looking after the property as if it was their own.
In any market before you buy the key is to speak to local property managers and ask them what tenants are looking for in that market,for me in that area was a house with 4 Bed 2 Bath 2 Car and had finishes slightly above the bog standard H&L packages with side access which allows for boat,caravan or trailer to be stored secure off street..

 

@Helen
In my experience it has been important to own a house with extra parking space. My tenants have told us that their friends comment on how nice and spacious their home is. The typical houses and yards in 4509 postcode are usually smaller and getting smaller. Whenever I check rentals online, there are only ever 0 or 1 similar to ours being offered - land size greater than 400m2 and rent under $500 per week. Consider how far your's will be from schools - I know there are new schools on the MH and Griffin side but of course I dont know which estates you are considering.

You can look online at what is currently available, and also look at what has rented recently. You can calculate how long they are listed for too.

 

This is all really interesting reading - we have just completed a build in Capestone and are anxiously waiting handover - downside is that our house is the first to be completed in the street and lots of construction still happening. We are looking to be realistic about what we should be able to achieve for rent - given there appear to be 48, 4 bed, 2 bath, double garage properties listed on Realestate.com.au right now in Mango Hill. There's no point worrying about what we were told we should get by the brokers 8 months ago now! I still believe the area has huge potential particularly now the train line is in - the proximity to excellent shopping, great schools and the coast.

We are lucky too that the build has allowed (although small block size), no eaves touching and a really nice backyard space area for outdoor living. I agree with @Angel - parking is always a big consideration too, especially as these estates don't have very wide streets and covenants don't allow full garage width driveways to road.

We've got fingers crossed right now as the house is built so there's no turning back!