QLD North Brisbane

I have a bit of a short list happening now. The highest yield I have found is just over 6.5% but it looks like an illegal granny flat conversion. My concern is insurance etc. in the event of a fire.

I also had a look at North Lakes and found a property with a 5.8% yield with current tenant but rent looks inflated to me. Comparable properties are renting for $70 to $130 less so not sure why that property is achieving such high rent.

You said prices are a bit inflated, do you know what sort of growth has the North Brisbane area already had?

 

I'm not sure that prices are actually inflated, but rather vendor's asking prices in the area are over what I think true market value is. Sold prices tend to reflect this, and listing prices a month or so ago were being reduced. I'm only talking about Strathpine, Bray Park and Lawton as that is where we have been looking mostly.

In terms of growth, current prices are slightly (10k or thereabouts) higher than the 2009/2010 peak as far as I can see. They all crashed in 2011 after the floods and have come back to 2009/10 levels. I'm inclined to see this growth more as a correction to pre-flood prices with the coming infrastructure hopefully to fuel a bit of future growth. I'm no expert though, it's important to do your own DD and come to your own conclusions!

 

I'm looking more for yield because serviceability is at it's limit. Just from the quick look I've had I think the yields are alright in North Brisbane, nothing spectacular however with the rail going in, Ikea, possible uni nearby it looks good for CG once the works completed.

 

Fair enough then. You may need to find a place with a tenant in it or a lease in place to prove rental income if you need it for serviceability. From my experience, rental valuations by the banks have come in lower than actual rental prices in the area.

All the best!

 

Sorry, is what south of Anzac Avenue?

 

The median rent in North Lakes is low because the majority of places available are tiny little houses on miniscule blocks of land, usually a long way from the main part of the town. The older places are generally larger houses, on larger blocks and much closer to the centre and the station. There seem to be fewer of these places in the rental pool than the newer tinier places.

 

The place I was looking at is in a newer estate on approx 400 sqm block near Costco and Bunnings (sorry not sure what the main part of town is)

 

The town centre is the first part, the commercial centre. The train station is on the southern side of Anzac Avenue, further away again. Costco and Ikea are at the far northern end.

 

Yeah it's miles away in the new section. I think the rent the property is getting is a bit of an anomaly for that area, I had to check twice to see if it was actual rent or just their rent appraisal.

 

The "what" was what area's still have to be complete in North Lakes as in land released..

 

Hi Coota. North Lakes is all north of Anzac Avenue. Halpine Estate (Mango Hill) where the station is located is on the southern side of Anzac Avenue behind Coles. Griffin is next south again and then the North Pine River (wetlands)

From my understanding, there is not much more housing to go in. On the western side, between the shopping strip and the motorway, is some vacant land set to become either commercial or light industrial. In the town centre there are Townhouses, apartments and retirement villas, a tavern, banking, gyms, cinema, Westfields, Masters, car yards, 2 schools, fast food, restaurants, council and government offices, the Library, police station, college buildings and pool, a medical precinct, day care centres, real estate agents and accountants. Budget Direct head office

Capestone is currently being advertised. It is a land estate on the southern side of Anzac Avenue closer to Rothwell. It might be closest to Kinsellas Rd station.
Lakeside living the way it should be - Capestone

 

2009/10 peak. I thought 2008 was the peak. Just before the gfc. Interesting if they went up in the year or so after that

 

The prices in all these suburbs have moved...particularly Kippa Ring.

 

Add some graphs... i'd love to see the magnitude with some graphs...

 

No graphs....just the regret that in 2014 Feb when I poo poo'ed Kippa Ring.....I could have got a house in less desirable street for about 270...even as low as 260k for a houso property...try getting that now..

 

I would think there is still decent growth in those areas given the railway line going in?

 

I'll say yes.

 

I was looking at the 12 month growth for Rothwell and Kallangur, both under 3%, the 12 months prior that though the growth looked to be around 12% (couldn't find the exact figure, just a graph)

 

No disrespect to Brissie locals but a friend said to me that locals in Brisbane are slow to move when new infrastructure is announced. They need to see it built and perhaps even functioning. Whereas as soon as something happened on Sydney's North West Rail link started, the North West Property prices shot up. People are much faster to act in Sydney.

 

Unless something spectacular comes up in Logan or within 10kms of Brissie I think the North will be where I buy, just tossing up between townhouse and house now. I probably need the higher yield of the townhouses to keep my serviceability up.