G’day people of propertychat, What are your opinions on this as an Investment and the price etc. ?19A Ella St, Redcliffe, Qld 4020
Fantastic location Block is pretty small but many are in that part of Redcliffe Need to get rental appraisal. You would want 450 a week. Are you paying overs for the renovation? Could you spend 40k renovating a cheaper property that needs work on a bigger block? Some things to consider.
This looks very good. But what makes you to buy at this time as investment. It seems generally market is not very promising at this time. If you don't mind I would like to know, why do you think you need to buy one now..
The market? There isn’t one market in Australia. There are 20,000 suburbs in Australia, so not sure what you mean by the market. I wouldnt buy into Melbourne or Sydney markets, especially inner suburbs, but the Brisbane markets have good potential. While Melb and Sydney have generally had 50% growth over the last few years, Brisbane markets have barely had any. Now people are priced out of Sydney and Melbourne, where do you think they will buy? Will they move to Brisbane? Maybe. Where will migrants live? Pay overs for Melb or Sydney, or go to Brisbane? Brisbane is the 3rd biggest city in Australia but has yet to have a boom. Lots of new infrastructure all over Brisbane. New train lines provide access to most of Brisbane. Brisbane is currently the size that Sydney was in 2000 with similar price values for houses. What do you think Brisbane will be like in 15 years? How can you not get excited by that?
It's a pity the bottom section is maybe not the legal height with all the work the title holders have done,plus the l/h side has no fence and by the looks on the r/h side that's been split and with another dwelling out the back just some of the items you would look into first if it was ppor and could you live there or just a milking shed renter,but I know nothing about that area once I go over the river I always get lost.. Just another market within a market within a market..
I’ll definitely consider these things. Thanks for your input. I’ll look to see the price difference between a similar property without a reno.
When we see high impact on Sydney and Mel, won't it have impact in Bris. Don't investors in Syd / Mel have investment already in Bris ? Doesn't they have direct impact over there. - one of my close friend is selling his investment from Bris as his finance is getting tough due to recent fluctuation in Sydney. - I was thinking about Bris in 2018. And noticing already prices started to flap there also. I am just telling what I am thinking.
I am getting basically free accommodation through work for the next 5 years and am looking to purchase an investment that will increase in value and provide some rental return over time. I may live it later but it may remain an investment, hard to see five years plus down the road. I’m also looking to buy now because I thought Brissy was looking positive for growth but yes the market propaganda does make me apprehensive (e.g. could I wait and get better value in a year or so)..
Most of this media propaganda on house prices crashing comes from the Sydney media. Prices in Sydney are falling/correcting so according to them it must be happening everywhere else in Australia. Ive recently purchased but will wait a year or so before I buy again. A 5% yield in a big city these days is t bad. I get a 2.9% on one of my Melb properties but cap growth has been 55% over the last 3 years
My first thoughts are: - already renovated so can't add value to it - small land - price > average suburb profile - average rent for the suburb is $370 so you may not get $450 and the property will likely be cashflow negative If you can find a similar property not renovated, you will be able to add value and get it cashflow positive and also get some equity out of it.
That make sense to buy. Do some due diligence work. It will be good. In Syd and Mel people are not getting positive cash flow. as in Brisbane its margin or positive then that make sense. and based on their value +/- 5% doesn't make big difference in investment. all the best mate.
Actual gain is when you sell and get back. And with current situation in Sydney, you will neither make positive cash flow nor capital gain. So its a blind game in Sydney.
Dear @Sunnycoast Try not to give too much credence to new young and inexperienced investors who live in Sydney and who think 400m2 is large. There are a few current threads on PC regarding Moreton Bay, Redcliffe and Northern Brisbane. Perhaps post your question in there and you will pick up some investors who have several years experience in these areas.
When you click on the ad for this property, scroll down towards the end and have a look at comparable properties nearby that recently sold. Now think for yourself - is this one a good investment and a good price?
With that property it has Urban Neighbourhood Zoning. Get a planning assessment done by a town planner. I used these guys for assessment of my two properties with this zoning: Brisbane Town Planners- Pro Town Planners It is zoned Urban Neighbourhood. With this zoning it may support two granny flats in the backyard. I note that it has a substantial backyard. Two additional 1 or 2-bedroom ( potentially 2-level ) dwellings could substantially improve cashflow. There would need to be enough parking for each dwelling in the front. Parking is a critical factor. General intent of this zoning is to increase residential densities. This just needs to be done within constraints of planning codes, hence pay a town planner for a quick assessment. https://www.moretonbay.qld.gov.au/uploadedFiles/common/forms/planning/Urban-Neighbourhoods.pdf After you’ve built the two dwellings at the back and generating cashflow from them, you could potentially knock down the house at the front and create two dwellings ... off-street parking is the governing factor but with clever design? Although existing dwelling has a recent Reno so not really needed. Underfloor of garage area could be fire-proofed. May then allow parking of vehicles for other dwellings if stairs are moved. I have a 455sqm site in Petrie where Urban Neighbourhood zoning allows 4 townhouses or 8 units ( although has a wider frontage so units practical there ). Concept plans have confirmed this potential but not ready to put this to a DA. Of course before embarking on such a venture ensure there is a market for renting the smaller dwellings. You’d build 1-2 bedders for around $100k to $150k, but cashflow from them perhaps $200 per week each ... ? Potential for a 7% - 10% ballpark yield on each of the additional dwellings. Rental on the existing house perhaps $330 per week.
Agree with others on the price for the property. However - may be other Urban Neighbourhood properties with similar characteristics of under-utilised backyard? Redcliffe is a nice area because of the proximity to the water.
I would want to consider what is behind this land off Timms Rd, I suspect it is an enormous townhouse complex. This may or may not be a downside. Another consideration is to find out how well the drainage was done downstairs which I dont think is possible. It may have potential storm water issues. Ask the building inspector to look for drains and report back to you.
