QLD Need Advice (Griffin area)

i could point to any number of suburbs which have green fields subdivisions underway or areas under going infill which have significant population forecasts- that isn't necessarily a good thing ie your buying into an area where supply of what your buying is projected to increase significantly.

What type of jobs are expected to increase in the area? are these the jobs of the guys building all these new houses?- shoot through link to the reference you cited pls

 

I have no reference, the information I was supplying then was given to me from the team I am working with. I'm thinking from the advice I have been given here, by my parents and by one of me senior's at work just then, I will stay out of this investment. Also in the pack I was issued, it states the Median house price is 450K, the one I'm being offered is 355K and I have found similar townhouse's for 329K on realestate.com

 

The Team I am working with have just re-assured me on everything I raised this morning and now I am even more confused.

If anyone with property investment is willing, I'd like to forward the email to them and have them clear up how much of what I was told is true and relevent.

Thanks everyone.

 

O that's better - I must have read the 1000+ homes for sale without unticking the little "surrounding suburbs" box. 1000+ is still a lot of homes when you consider all the surrounding suburbs.

 

Sure, there's nothing better to do tonight. Post it up here in public and we can all play along.

 

Thankyou so much @Angel for the help as you can tell I'm only young and new to the property investment world. I'm super nervous also as I've worked very hard to reach the savings I have.

1. The population boom (additional 10,000 + people) that is going to occur in this suburb means that there is an additional requirement for 3,700 homes & they are not building nowhere near enough to cater for this growth at the moment. Outside of the population growth, there is also expected to be 10,000 university placements in the new University precinct which puts further pressure on rent, demand and therefore house prices.
2. Continual development is a natural part of every single suburb – however this is a small suburb & an infill development – meaning that there are homes already north & south of the suburb. All new homes that will be built in the future will be further away from Brisbane. Griffin Rise will continue to be reputable & desirable due to it’s proximity to the CBD, local amenities, jobs, good schools and new university, hospitals & infrastructure. These are the things that generate desirability & we are poised for the best growth.
3. With regards to interest rates, if you look at the last page of the information guide I gave you with the cash flows – you will see that I have run two cash flows for you (one at current interest rates & one with a significantly higher interest rates). If rates do go north, your out of pocket expense on a weekly basis will be less that $50 per week! Meaning that you will still be saving on a fortnightly basis. The reason we provide you with two cash flows is to provide you with certainty that if rates rise you can still afford this investment property – remember we’re here to help you for the long term during high & low interest rates.
4. With regards to your real estate search – homes available for rent are turned over / rented very quickly hence why the vacancy rate is so low in the suburb. The flip side is that you could have 5 houses available for lease in a suburb that take 8 weeks to rent but 50 properties in a suburb that take one week to rent. With regards to homes for sale – nearly every suburb in Australia will have between 75 & 200 properties for sale at any given time. Something to note about your Griffin search is that 2 or 3 builders will be advertising the same block of land to build a house as they are all in competition against each other – there are approximately 50 duplicates in the system. Also, with most new developments, there tends to be a generous supply to the market but this will inevitably be absorbed by the market demand in time.

Something you need to remember is that new homes will always be built in both established & developing suburbs. The thing you need to consider however is that if there is enough population growth, infrastructure spend, schooling, shopping centres, hospitals, community facilities in your investment region then your property will always be desirable – this is what drives capital growth. The Queensland government has pinpointed Griffin and the Moreton Bay region as one of the major growth corridors and have therefore invested heavily in infrastructure and amenities to cater for the current and future growth. Not many areas/councils can boast of such a big investment in a single area.

 

Correct. Very astute. Your first reaction is usually the correct one.

You've been given plenty of good opinion already. Here's one question I will pose and the answer to which should hopefully hit a rhetorical tone and drive you to the most fiscally correct decision:

Is there any shortage of land to develop around there that will help you hedge your investment from being diluted by other en masse estate subdivisions?

Congratulations on striving to get ahead at your age. Nice work. Please devour this great forum and let us acknowledge that this is not the only suburb in Australia that might be investment worthy. Read here as much as you can. It's free.

 

@Player thank you very much sir. I will think about your question tonight.

 

Good morning Dane


1. The population boom (additional 10,000 + people) that is going to occur in this suburb means that there is an additional requirement for 3,700 homes & they are not building nowhere near enough to cater for this growth at the moment. Outside of the population growth, there is also expected to be 10,000 university placements in the new University precinct which puts further pressure on rent, demand and therefore house prices.

10,000 people.... In one suburb or spread across two or three suburbs?
They are building hundreds of townhouses in adjoining suburbs to Griffin. I own a house in North Lakes, I have a vested interest.


2. Continual development is a natural part of every single suburb – however this is a small suburb & an infill development – meaning that there are homes already north & south of the suburb. All new homes that will be built in the future will be further away from Brisbane. Griffin Rise will continue to be reputable & desirable due to it’s proximity to the CBD, local amenities, jobs, good schools and new university, hospitals & infrastructure. These are the things that generate desirability & we are poised for the best growth.

True. Griffin has limited land due to the wetlands and the river, the motorway and Mango Hill established to the north. Mango Hill/North Lakes, Dakabin, Kallangur etc are also building like crazy. If you really want a townhouse, look in Petrie or within walking distance to a train station. Consider the Body Corp fees for townhouses.

3. With regards to interest rates, if you look at the last page of the information guide I gave you with the cash flows – you will see that I have run two cash flows for you (one at current interest rates & one with a significantly higher interest rates). If rates do go north, your out of pocket expense on a weekly basis will be less that $50 per week! Meaning that you will still be saving on a fortnightly basis. The reason we provide you with two cash flows is to provide you with certainty that if rates rise you can still afford this investment property – remember we’re here to help you for the long term during high & low interest rates.

Does that $50 a week take your personal tax rate into consideration, or is it assuming everyone pays the top marginal tax rate? Are their guesses of income and expenses accurate? You have discovered that completed homes are renting for less than the rental guide they have suggested to you. This should be a big red flag that the brochure is offering a few porkies.


4. With regards to your real estate search – homes available for rent are turned over / rented very quickly hence why the vacancy rate is so low in the suburb. The flip side is that you could have 5 houses available for lease in a suburb that take 8 weeks to rent but 50 properties in a suburb that take one week to rent. With regards to homes for sale – nearly every suburb in Australia will have between 75 & 200 properties for sale at any given time. Something to note about your Griffin search is that 2 or 3 builders will be advertising the same block of land to build a house as they are all in competition against each other – there are approximately 50 duplicates in the system. Also, with most new developments, there tends to be a generous supply to the market but this will inevitably be absorbed by the market demand in time.

I wasn't searching vacant land, only houses and townhouses. They do have a point though.
Secondly as a tenant, why would I want to rent in Griffin when I can rent nearby and walk to the train station. I agree Griffin is a nice area, but then so are all the other estates within five miles of it.

Something you need to remember is that new homes will always be built in both established & developing suburbs. The thing you need to consider however is that if there is enough population growth, infrastructure spend, schooling, shopping centres, hospitals, community facilities in your investment region then your property will always be desirable – this is what drives capital growth. The Queensland government has pinpointed Griffin and the Moreton Bay region as one of the major growth corridors (correct) and have therefore invested heavily in infrastructure and amenities to cater for the current and future growth. Not many areas/councils can boast of such a big investment in a single area.

See the threads about Brisbane booming and why Brisbane hasn't boomed yet and the Mill Petrie precinct.

Dane Clarke, Yesterday at 5:34 PM Report

And I concur with the positive comments by Player above. Best wishes.

 

@Angel thankyou so much

 

Would be interested in how you found this company and what they do. It sounds to me like they package everything including your lending.

You might be better served by spending some time here, increasing your savings and talking to a broker who will help establish your budget.

After that, possibly engage a buyers agent. They may indeed still recommend Griffin, however you will be in control of your own destiny.

 

While I don't have a long real estate history like commentators here, I have always appreciated the saying "The deal of a lifetime comes around once a week"

 

How did you go @Dane Clarke? What did you decide to do?