QLD Petrie - University / The Mill Priority Development Area

Discussion in 'Where to Buy' started by wombat777, 12th Apr, 2017.

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  1. boganfromlogan

    boganfromlogan Well-Known Member

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    I used to drive a flash car and live in a green leafy place inhabited by same by the well to do. Now I just pick my nose, scratch my balls and watch TV (Hollywood movies usually), and never been happier. My local drug lord keeps the streets quiet (violence is bad for business) and the best bit is ...... I am surrounded by diverse and happy people.

    Embrace your inner bogan!!
     
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  2. hash_investor

    hash_investor Well-Known Member

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    Preliminary site works will include relocation of sewer rising mains, gas main relocation, controlled vegetation removal and bulk earthworks.

    “These civil works will enable USC to start construction on their foundation buildings which is expected to begin mid next year.”

    USC Moreton Bay is expected to cater for up to 10,000 university students in its first 10 years and offer a full complement of associate degrees, bachelor degrees, diploma qualifications and postgraduate study.
     
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  3. propertylad

    propertylad Well-Known Member

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    Certainly wouldn't drive a 'property boom' however it does provide some solid micro-economic fundamentals to drive demand. The obvious one being rental demand. If you look at most suburbs surrounding large Universities you can generally charge by the room if you don't mind dealing with student accommodation. But even standard tenants will end up paying a premium knowing that the investor could potentially double their income by switching to student acc. The less obvious is the aspirational families living close to universities for their children. This tends to be more from the cashed up immigrant families which is great for the local economy. Over time these families now have doctors, lawyers, engineers living in the area. Demographics improve. Retail benefits from increased traffic etc etc.

    It's never a given that a Uni leads to property price increases or a mystical 'property boom' but a uni of this scale is a great piece of infrastructure to base a solid foundation on. The trick is buying before the demand is visible but not too early you have to wait for it! Let me know when you find that sweet spot!
     
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  4. eletronic_exp0430

    eletronic_exp0430 Well-Known Member

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    My Petrie property settles in a few days. I think I got in a bit later than I wanted to but I think still in a rising market to take advantage of the growth it will see soon. Cant wait to see how the suburb changes once the uni finishes and provides the foundation for economic growth in the area.

    Good time to buy around there atm imho.
     
  5. Luca

    Luca Well-Known Member

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    @eletronic_exp0430 good one, how much did you pay roughly? Did you spend much researching or used a BA?
     
  6. nth brisbanite

    nth brisbanite Well-Known Member

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    Apart from the new university, why did you choose Petrie?
     
  7. eletronic_exp0430

    eletronic_exp0430 Well-Known Member

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    Plenty of reasons.

    1) Obviously the university
    2) Population growth of Moreton Bay council suburbs. Over 12,000 increase in population growth between 2016 and 2021. That is significant increase.
    3) Change in unemployment from 2011 to 2016 there has been significant employment increase close to 15,000.
    4) Moreton Bay one of the fastest growing regions in Brisbane at 2.8% which is significantly higher than other areas.
    5) Current population in 2016 for Moreton Bay is around 440,000 ppl. By 2036 its expected to reach over 620,000 people. These numbers don't take into consideration the growth going to be caused by the uni.
    6) Regional GDP is close to 14 billion. Good healthy number. Signs the local economy is strong.
    7) I've seen significant growth in Bald Hills, Bracken Ridge and other northern suburbs. Petrie is not that far from these areas.
    8) Labor force increase of over 10% between 2011 and 2016.
    9) I personally have seen growth in the suburb as I've been eyeing it for over 1 year before I bought something.
    10) Opportunity. If you can see opportunity cost in an area and can get in before the boom well everyone will be a pro investor.

    I can list probably another 30 reasons - I always research and research and research some more before I invest in anything but when I'm ready I dont muck around.
     
    Last edited: 13th Dec, 2017
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  8. eletronic_exp0430

    eletronic_exp0430 Well-Known Member

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    I never use a BA. I will research, do my due diligence and personally go there myself rather than pay a BA.

    I've bought so many houses I'm fairly good at negotiations now and honestly agents like my style of buying. If I want it I'll buy it now, sign it now and lay the deposit down now obviously subject to my checks.

    I dont muck around when I buy houses. I hate going back and forth as well increasing a little here and there. I'm just like here is my offer take it or leave it and if we have a deal send me the contract and I'll have it reviewed by my lawyer and returned in a few hours. Deposit paid on the day. Also I ALWAYS have my finances arranged prior to me offering anything.
     
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  9. nth brisbanite

    nth brisbanite Well-Known Member

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    Great reply. How do you finance your properties at a time when banks seem to be cracking down on investor loans? Do you use interest only or P & I?
     
  10. eletronic_exp0430

    eletronic_exp0430 Well-Known Member

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    Hahahaha - good question. I have a very good broker (I have 2 excellent connections now that have never failed me). Also my entire portfolio is pretty much positive geared so i literally dont put a single cent into holding any of my houses. Across my entire portfolio (Brisbane/Syd) they all all positive.

    My loans are a mixture of P&I and Interest only. Even if they move to P&I there is no pressure on me. I've already catered for 7%+ interest rates which will be very very far away and hopefully I'm already sold up and retired before then.

    It also helps if you make good coin. :)
     
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  11. Pab23q

    Pab23q Member

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    Hey Buddy,

    I am shopping around for a new broker. Could you PM me details of yours if you don't mind??
     
  12. 11160

    11160 Member

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    Let's all come together and pool our funds and built some multistorey apartments and live off the rental return :)
     
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  13. Kevvy7

    Kevvy7 Well-Known Member

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    I'll provide the site
     
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  14. 11160

    11160 Member

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    @Kevvy7 Happy to provide an accurate/detailed estimate and build the units.
     
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  15. JS-C0nfus3d18

    JS-C0nfus3d18 Active Member

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    Can anybody suggest the "dirty" pockets to avoid in Kallangur/Dakabin and North Lakes?
     
  16. hash_investor

    hash_investor Well-Known Member

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    There are no pockets that you should 'avoid' as such. Depends what you are looking for ... Generally speaking closer to train station will be dirty as its the old city. Away from station is newer much nicer.
     
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  17. Ross36

    Ross36 Well-Known Member

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    I don't want to be alarmist - and have no evidence that the petrie campus will be the target - but USC will have to cut tens of millions from their budget each year moving forward and soft capping student numbers was a key focus of the changes made by the government. I wouldn't underestimate the massive impact those uni cuts will have as of right now on regional unis that are trying to grow. It's been well established that the regionals will be hardest hit, and opening a new campus is VERY expensive.

    Worst case scenario is you end up with no petrie campus or a shell of one surrounded by new apartments and townhouses that everyone's trying to rent out at once. Petrie is kind of the middle of nowhere too so without the uni the demand can't be that high relative to closer to cbd, beaches etc. Make sure you have a buffer to account for that.

    Again - that may not happen but factor that case into your thinking if you're contemplating buying or developing there. If I had to bet on an outcome I'd think it will be a ghost campus of very few courses and students at least until the mid 2020's. Just my 2 cents though and I hope I'm wrong.
     
  18. Drizzt Do'urden

    Drizzt Do'urden Well-Known Member

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    Ha ha you pessimist you. But I have to agree with you in so far as waiting to see what the actual campus delivers. It would be a shame if after all this investment and anticipation it fails to deliver. Time will tell.
     
  19. nth brisbanite

    nth brisbanite Well-Known Member

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    I think that you are painting the worst case scenario. Funding has been cut but the rate of growth has still increased overall for the university sector. The problem with the budget is that university places were uncapped resulting in wastage, lower standards and students going into courses that they were not suited for.

    The university won’t open until 2020 so anything may happen by then.
     
  20. eletronic_exp0430

    eletronic_exp0430 Well-Known Member

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    This is the risk of ANY investment. Doesn't matter if its houses, shares or bitcoin there is ALWAYS a risk.

    With property it is a calculated risk and with immediate returns from rental/tax offsets. A lot less riskier than many forms of investment and you can be 99% sure if you hold long enough you will eventually make money.

    If you are someone that is willing to take zero risk dont invest in anything and just work 9-5 for 70+ years of your life.
     
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