QLD Pretty good buy just popped up, Runcorn QLD

Came up yesterday, it's in a very interesting pocket of Runcorn, one you probably didn't even know existed. I just bought on this street myself.

http://tinylink.net/QJ2

In Runcorn you have the north part under Eight Mile Plains (arguably the most sought after), and then the south part. This however is in a weird pocket that is literally across the road from Sunnybank Hills, Stretton, and Calamvale - three very highly sought after suburbs. As a friend said - "it's basically not even Runcorn!". Even after living near by for nearly 15 years, I never even paid attention to this street until it just appeared one day while I was searching.

Sub-500k for such a big piece of land, in a really unique street...I think it's worth a look, especially given how good condition the house is in. It's 200m to the local IGA, 800m to the huge Sunnybank Hills Shoppingtown, and 300m from the 150 bus stop (popular bus, goes to Garden City and CBD).

One big caveat is that the three houses next to it are housing commission (17a, 19, 21). But having spent the last 3 weekends in Brisbane renovating my new place, I can tell you they are very well behaved - no loud parties, no trouble, no random items strewn around their properties. I went to the property a few times on the weekend between about 11pm and 1am and it was all very quiet and serene. Also another turn off is that it's backing onto Compton Rd. That being said, I've seen properties backing onto even busier roads sell for a lot of money (saw one backing onto Algester Rd sell for nearly $1m recently).

Another positive is the pool is above ground, so it should be easy to demolish.

I can't say this is a crazy good buy (compared to that other thread you might all remember me by), but if you're looking to buy in Brisbane sub-500k, IMO you should check this out. My prediction is this will go in the low-5's. Maybe 515-530k. If you can get this for the advertised price, I think you have done well. It's being sold by a westerner and not one of the local gun asian agents with a crazy web of contacts (I know most of them!), so you may have a shot. Good luck!

 

The 28,30,32,44, 29 and also the one next to 17A are also HC properties.

there are 70 Listing of HC of the total 5253 Runcorn registered titles. This is 1.33%

Your street seems a bit high with approx 20%+

 

Awesome thanks for that info. Where did you look it up?

 

maybe you can knock on their door to confirm my source?

but agree with you it's a good buy in Runcorn. there are increasing asian surnames ownership in the area... must be the overflow from SB SBH

 

That's exactly it. People who can't afford SBH go to Runcorn. Then when that gets too expensive Algester is next.

 

Just wondering...with a property at this price what do people do in order to swing it back from negative gear to neutrally gear?

Say the purchase price is 500K (for simplicity) but I suspect this property can only rent for about 400ish per week. That's about 4% gross yield and certainly not justifiable for holding long term when interest rate goes up...

Given the amount of land that it has - what would people do? A granny flat would help boost the yield straight away, but you cannot rent it to separate tenants...well not legally anyway

Cheers,
D

 

Having a quick look on REA at rentals, your going to have to add another bedroom to get a higher yield. Cosmetic reno might increase it somewhat but it'll need to be a really savvy reno and get maximum bang for buck.

 

In other words, pour in more funds to add another room and increase yield
How much does it usually cost to add another bedroom extension? Apologies for being ignorant, still a newbie on this!

 

Hi LeMU,

I wasn't meaning cosmetic reno to add a room. Just talking about cosmetic reno to the home may be possible to increase the yield. more DD on that would be necessary to see if its worth it. Re adding a room, I haven't looked at the floor plans so I don't know. However being marginally NG should be acceptable to an investor who is focused on CG though. If the focus is looking for yield I would think this place isn't a prime candidate anyway, imo.

 

Chop the backyard off and sell it to pay off some of the debt? Not sure what the rules are with the main road and adding a crossover, but the measurements seem OK for a split. It would also follow the rules for being within 200m walking distance of a centre zone if I'm not mistaken.

 

Dad went by today, said there were about 30 people, cars lined the whole street. Almost all Asian apparently. The last part is what should worry anyone that's interested in this one.

 

Must be the ugly duckling effect of nearby SB/SBH.

 

That's what the whole of Runcorn is basically.

 

Thanks for your replies @Leo2413 and @psylink in relation to my question about innovative techniques.

As per jaybean above, I do think Runcorn has good potential given it's surrounded by the sough after suburbs and have access to transport such as train station and express buses. However would you guys consider buying townhouse in this area? There are masses and masses of them in Runcorn which some are still reasonably priced and with decent yield, just unsure of the CG in long term.

Cheers,
D

 

No. There are too many as you said. If you want a townhouse look in the neighboring areas like Eight Mile Plains, Sunnybank, Sunnybank Hills etc.

 

Anyone know what the end selling price went? I went and check out Thursday and though at the end the number don't really stack up for a quick flipper.

 

In my OP I guessed 515-530k, but there are a lot of people buying their PPOR in this area so they may be willing to pay more. With 11 bids, it's hard to predict.

 

Was this property on auction? I thought it was for sale wasn't it?

 

Sale. I meant to say offers not bids.

 

Even for something next to the busy Compton Rd?