QLD Murrumba Downs- future potential?Growth?

Just wondering if there are any opinions on Murrumba Downs? Location seems good, situated between north lakes and the potential activity happening in Petrie.
Seems to be a range of properties in the area. 400k -700k+
In terms of investment, rents seem strong for certain stock. Anyone hold stock in the area with recent CG increases
Tossing up whether to look closer to the cbd

 

I hold one IP at Murrumba Downs, with minutes walk to Kallangur Station - so it's probably more Kallangur than Murrumba Downs. But address suburb is still Murrumba Downs

Bought 2.5 years ago for $335K and recent sales shows it's close to high $300K now. Current desktop valuation comes back at around $380K, so on average 4-5% growth each year for the time I've hold it. Renting at $350/week 2 years ago so gross rental yield at about 5% from date of purchase and now renting at $360/week so about 5.3%. I'm quite happy with it.

What's your budget and what are you looking to get out of this property?

Cheers,
David

 

Congrats David,
Trying to gauge future potential for the area.
Looking at budget 450k
With a 5% yield and avg 4-6% growth annually.
Is that unreasonable to expect? My strategy atm would be more conservative as I have two children and the wife and I considering a third

 

To get close to 5% gross yield I would aim for purchase price closer to $400K and rent around $400 a week. I believe that should be achievable based on a recent sales in the suburb but note there hasn't been a lot of $400K stock - mostly in the $500Ks now (due to new builds around the area).

I don't know whether it'll still be able to perform 4-6% CG every year moving forward though - no one has crystal ball. I'm sure long term Murrumba Downs will perform well due to the new USC and that's why I bought there. If you're willing to sacrifice the yield slightly, personally for that budget I think you can still get something closer to CBD in the vicinity of Bracken Ridge/Zillmere with value add potential to maximize your opportunity for CG and still be able to manufacture equity down the track. Watch out for the housing commissions areas in these suburbs.

Use cashflow calculator to do cashflow forecast so you know exactly how purchasing this upcoming IP will impact your cashflow position and your lifestyle. You can even do a comparison say, property A at 5% yield and property B at 4% yield. If you're gonna have a new addition to the family I would strongly recommend you to plan cautiously before pulling the trigger.

Cheers,
David