QLD Need Advice (Griffin area)

Hi everyone,
I've only just turned 20 years old so I have very minimal experience with investment of any kind but have put my head down & have $40,000 put aside for investing.

I'm currently working with a company that has recommended the Griffin (QLD) area to me. They have provided me with many key statistics & state government predictions on population growth etc. I have the plans to the townhouse & everything with me.

I just can't help but have thoughts this may be a bad investment & they could potentially be after a commission on the sale.

Would love to hear some external opinions from others with experience and seperate from the process. I am happy to discuss anything else or provide anything else people may need to give me an opinion.

Hope to hear back, thanks everyone!

 

Opencorp?
Brand new townhouse 20 odd kms away from the city. How much are you looking at forking out?

 

Hello :) Advice needed

 

Hello and welcome to Property Chat. You seem very astute, having the sense to get other objective opinions about this potential expenditure.

I'm going to ask you to think about this. The salespeople gave you glossy folders and booklets - who did they say would be rushing to rent all the townhouses at Griffin?

I would suggest you google Griffin and do lots of map reading and looking at the equivalent satellite images. What do you see? Go to the real estate websites and investigate what is available now to rent or buy in that area.

Let us know what you think

 

No not open corp. the loan I will be taking out is 355K
With rental returns predicted at 350 per week

 

There is certainly a lot of infasture planned around and in the area including education, public transport, shops which should bring localised job growth whilst also being close enough to Brisbane to target workers from that region.

 

I work in Kallangur - Griffin is a fairly new suburb, lots of new housing, new school opened last year, small shopping centre to come. Close to Westfield northlakes. There is a lot of new housing in the surrounding burbs. Its a fairly long car commute to the city due to heavy traffic on the hwy but plenty of people do it and its easier to get on the hwy at Griffin than NLakes. The new rail line is not to far to drive to. Drawbacks? some of the housing could be close to the Hwy, lots of housing for tenants to choose, lack of CG.

 

Thank you very much for your opinion. I had the same question about lack of capital growth but the team I am working with believe it will grow as development continues out further and further. Making my townhouse a more central option.

 

NOOOOOOOOO Why would you believe them. Have you considered taking a flight to Brisbane this weekend and having a look yourself

The team you are working with want to sell you some real estate. Have you looked at the number of places to buy or rent in Griffin? I looked last night and there are at least 1000 places for sale. I didn't bother looking at how many are advertised for rent.

 

Hey Dane

a few red lights going of for me here- agree with Angel- some basic questions would be:
- how are they profiting from this?, are you confident you could price a house in Griffin within 2-3%, there is some infrastructure planned however suggest you really need to know about the supply side of the equation ie how much construction is occurring in the area/ how much more sub-dividable land is in the area, how susceptible is the area to mortgage stress if rates go north- as a first home buyer area this could get messy

 

Ignore all the advice above at your own peril.

 

Loads of new construction, new burb. Acres of land all around being developed.

 

Would it ever be a case where buying this townhouse in a more central area would make it more attractive opposed to suburbs that our developed further out?

Then again, I suppose one of the most attractive infrastructures being built it a 1.5B rail link which would mitigate the 'more central' factor you would think?

 

OK - so what is status of 1.5b rail link? Assume your referring to Morton Bay line to Redcliffe

Say u bought this townhouse and rented to young professional couple Archie and Betty who work in CBD- Bris is still fairly CBD-centric ie no Ryde, Noth syd, Parramatta (alternative CBD)

So just looked up Translink Journey planner and currently from Griffin to Central starting journey at 8am today takes either 1:34 hrs or 1.26 hrs via Murrumba Downs station- plus maybe 10 minutes walk to office from central.
So some key Q's are: are Archie and Betty OK to commute for that period daily? Is there park and ride facilities and how congested is parking at the station? Griffin is a couple of km away from the station so how many other areas have similar access to rail line and what is their current density vs future density? From nats replay above it looks like heaps

 

You want you to buy a townhouse - they can offer you another one but in a better location?

So buy one across the road from a hospital or a university instead.

 

@Angel
So essentially continual development in an area will cause selling at market price difficult? This is a long term investment for myself. I have predictions from an economist seperate to the company I am working with that predict a population growth of more than 87% by 2036 and also emplyment levels to increase by 84% by 2031. So by no means is this a short term investment for myself.
I'm just super hesitant as this was the first property offered to me and I'm nervous it may be being offered as a quick sale.

@WallyB66 Not all workers from the Griffin area will be working in the CBD. The QLD government have projected employment levels in Griffin, Mango Hill and North Lakes will grow approximately 84% from 2016 through to 2031. So around 5% annual localised job growth.
Like i said before, my biggest concern is the continual development in that area depreciating my townhouse so that when it comes time to sell it is no longer an attractive purchase to someone.

 

@Angel the particular site I am looking to purchase is
1km from Marrumba Downs Bus Interchange
3km from Kallanguar Train Station
3.2km from Murrumba Downs Train Station

So its almost within talking distance to a bus interchange and definitely close driving range to a train station.

 

In the Griffin area alone there is currently 89 homes for rent and 184 homes for sale.
Are those numbers high or low in terms of supply VS demand for the area currently?

 

Where did you get those stats? Did you include houses and townhouses, as they will both be competing for the same tenancies.

 

These stats were from real estate. com

Not including outer suburbs, only Griffin.

Yes, houses and townhouses were included in the search.