QLD Non-Character home in a Character Home area

I'm pondering the pluses and minuses of buying a very low maintenance basic brick and tin with no real work needed in an area that has quite a lot of character homes. A number of pre-war Queenslander and Cottage/Miners type homes and also post war. The area is lower cost (within 2ish kms of Ipswich CBD).

I understand the appeal of the area is the character look and a number of nicer homes being renovated etc. However I also get that these older homes have greater holding costs and maintenance. As the 'area/location' is the biggest driver generally, I've wonder if a simple IP nested in such an area in a great location (close to CBD, cafe/shops etc) is a bad move?

If it's bought for the right price I figure holding costs will be lower than other options, rental income quite similar, yields a bit better due to a cheaper buy in. While at the same time I figure as the area picks up and improves/becomes more popular it will still drag such a property up with it. So you get the gains of the area without the greater ongoing costs. Obviously the gains wouldn't be as great as an old character house there, but they initial buy in and holding will be less.

Curious to get peoples thoughts on these sorts of properties in these areas?

 

I think your analysis seems about right.
One advantage is that you have the option to later on do what with it what you like because there will be no character control on the property. So if the area does really pick up and you were sitting amongst these beautifully renovated Queenslanders you can always build some kind of executive home with the level of class to match.
Also when we talking about Ipswich it's probably not so much of a big deal compared to say buying a brick house in a street of Queenslanders in Paddington.
I wouldnt over think this one too much. I think look at the house on its own merits and the location on its own merits and all other factors and if you like it and it stacks up numbers-wise then proceed.

 

Non-character houses in period style character areas are:
1. Detestable IMO
2. Slower than normal to sell & to rent
3. Generally sell for less and rent for less due to (lack of) demand
BUT as @Whitecat says, it is only Ipswich not Paddington.

 

Consider the points in any property cycle. We have friends who had a beautiful renovated Qlder in Booval, one street behind the shopping centre and really convenient. Most of the street were Qlders. They sold out around ten years ago because every second home was being demolished and turned into blocks of units, they suddenly hated living there. Their property wasn't worth much at the time either as SEQ can be stagnant for long periods.

 

That's true
Some areas have some very poor Heritage protection for example Moreton Bay Regional Council I don't think has much character control at all, only some heritage listed properties. whereas large amounts of Brisbane City Council have character overlay so no demolition. I don't know about out Ipswich way but it would be strategic if they put in place some strict controls on some key precincts. Its an asset for the town. You cannot recreate that.

 

MasterView 2.0 Person Master

This website provides a map search of zoning overlay and also specific street searches too. I found this useful when finding appropriate areas, as character zoning was essential.

Ipswich has a strong focus on heritage and character and specifics can be found here, including descriptions of zoning and overlays and what is permitted.

Heritage : Ipswich City Council

When buying and doing you DD in this area, these council websites should be taken apart. They have a lot of useful info that will help you reduce risk when purchasing in ipswich.

 

Out of interest the property being disucssed just sold for $232k. It was listed at $259k, RE.coms e-val come in at $269k. My RE friends report on it gave val window $250-260k window with a rental window 270-290/week.
2a Walsh Street, Newtown, Qld 4305 - Property Details

I'm not sure if this low price speaks more of the local market/area at the moment or the property itself. It At $232k it seems good value despite not being a 'character' home. Nothing to do to it and low maintenance.

I've got a contract on another property close by (East Ipswich) for $242k, it's got character but needs some attention (Kitchen etc), though sold listings like the one discussed has me questioning market sentiment there at the moment. Competition seems very low.

 

I think with Ipswich you want to get absolutely right in close to the CBD as in a Stone's Throw from the train etc

 

ditto

 

The greatest demand in these inner ipswich suburbs are on premier streets and o/o houses with the sweet spot being renovated qlders in the 350-450k price range. its the o/o type houses and streets that are finding the greatest demand and the best ones sold before they even hit the market. Ipswich isn't hot yet so you can still get good deals, i got a great deal on mine because i could move quick and the owners were going through a divorce settlement and wanted the lower price straight up rather than waiting for a premium from an o/o.

As others have mentioned if you can get a character house in a premier location, add value potential, walking distance to all amenities and on the door steps of the nice local cafes/restaurants/parks etc, you're ticking the right boxes for o/o that are moving to the area and who are willing to pay more and drive up price for this particular stock. I have seen growth and increasing interest in the areas/streets im interested in. but that's me and i have no idea what your strategy is.

I found a good description of the demand o/o streets/areas that i like and where i see most value and least risk when investing in these suburbs going forward.

Best streets/most demand in ipswich?

"Chelmsford Avenue and Outridge Street which lie on the ridge looking north from Denmark Hill are probably the premier streets in Ipswich. Many big, old houses and beautiful views.

Streets leading up to the ridge are also good, particularly the higher parts of Tiger, Clay, Waghorn, Ellenborough, Nicholas, Quarry, Park and Macalister Streets.

Heading east from Denmark Hill you have the Queens Park/Limestone Park precinct. The streets around the parks on all sides are good, particularly on the higher ground. Best streets include Quarry and Park Streets (which extend from Limestone Park up to Denmark Hill) along with parts of surrounding streets.

Salisbury Road directly to south of Limestone Park and heights of surrounding streets are good and have views to the south/south-west.

Chermside Road and streets directly to the east from Robertson Road in the south to Glebe Road in the north is the best part of Eastern Heights. If you keep going east there are some nice streets in Newtown and Silkstone but you are starting to get into more of the 1960's and 1970's development.

There are some nice spots around Ipswich Girls Grammar but heading north you start getting into flood territory.

The area around Ipswich Boys Grammar, St. Edmund's and St. Mary's is another illustrious part of Ipswich particularly along Woodend Road and streets nearby. This Woodend, Coalfalls area is located in a bend of the Bremer River so again, stick to the hills to avoid flooding.

On the north side of the river, North Ipswich and Brassall have some good spots too but nothing like the others I have mentioned.

The best parts of Ipswich are somewhat like West End and Highgate Hill in Brisbane (if you are familiar with them). The demographics are pretty broad even in the 'best' streets because as soon as you go off the top of the hill you get old houses converted into boarding houses and cheap rentals. Also any area in close proximity to the city and hospital gets a variety of pedestrians passing through... Things are definitely changing with more people doing up old places."

 

Thanks for you indepth analysis Dan.

 

And there I was 10 months ago, thinking I picked up a bargain...

 

Move on we all make boo boos just make sure if it bleeds you give it the flick don't hold lemons

 

Hmmm doesn't look. If this Ippy property I've got a contract on goes through, I'm more than happy to swap