QLD Red Hill, Queensland 4059 (IP - house)

Discussion in 'Where to Buy' started by Sheldrick, 9th Sep, 2017.

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  1. Sheldrick

    Sheldrick Well-Known Member

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    Hello

    I would value your thoughts on an investment property (house) in Red Hill if you are familiar with that area. My budget probably restricts me to the 405 square properties in Red Hill.

    Any pockets of Red Hill that are particularly more desirable or less desirable? Is having a carpark essential?

    I drove up to Red Hill today around one of the quiet streets just off Waterworks St. I noticed that Waterworks Street is incredibly busy even on a Saturday.

    I also noticed that parking on a street is limited unless you have a residence permit.

    I did a search on the rental properties on realestate.com.au and noticed an abundance of properties for rent in Red Hill. I spotted maybe 3 properties (1 or two apartments and a 2 bedroom house) that provided 1 to 2 week free went. Does that suggest owners are having difficulty in renting their properties?

    Thanks

    Sheldrick
     
  2. willair

    willair Well-Known Member Premium Member

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    That whole area is inner blue-chip,i know people that bought into that area in the early 1980's and still live there for less then 60k-compared too today prices investment wise when it was a blue collar class working area ..imho..
     
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  3. Sheldrick

    Sheldrick Well-Known Member

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    In my first post I made a typo: "rent" not "went". Ie "I spotted maybe 3 properties (1 or two apartments and a 2 bedroom house) that provided 1 to 2 week free RENT. Does that suggest owners are having difficulty in renting their properties?"
     
  4. Tom Rivera

    Tom Rivera Property Manager Business Member

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    Smaller houses and units are definitely struggling to rent in that area, and surrounds.
     
  5. Sheldrick

    Sheldrick Well-Known Member

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  6. Tom Rivera

    Tom Rivera Property Manager Business Member

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    I apologize for the lack of detail. I don't operate extensively in the inner city area on a day-to-day basis so my knowledge is more 'market-wide' instead of on-the-ground for a suburb like Red Hill.

    Very high vacancy rate in the inner city and near city unit markets. New stock is also coming online faster than they can rent it at the moment.

    405m2 isn't too small for inner city, you shouldn't have a problem with a 3+ Bedroom property, it's a significantly different product to a Unit. That being said, there is always a flow on effect and I'd imagine there is some pressure on the lower end houses created by the affordability of Units.
     
  7. Inov8ive

    Inov8ive Well-Known Member

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  8. Angel

    Angel Well-Known Member

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    Due to parking restrictions, whenever an event is held at Suncorp Stadium, the place becomes very difficult for the residents. Add the steepness of the hills and the place isn't that desirable in a long hot Summer.
     
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  9. Sheldrick

    Sheldrick Well-Known Member

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    Where do you get your data for vacancy rates? I did a google search and this website is stating 3.89%: Investment Property Red Hill, Queensland, 4059

    What's considered to be a low vacancy rate?
     
  10. Sheldrick

    Sheldrick Well-Known Member

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    Appreciate your thoughts everyone!
     
  11. Inov8ive

    Inov8ive Well-Known Member

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    SQM Research is the website I used, it says its 5.4%. A low vacancy rate for capital cities IMO is under 2%, obviously under 1% is really low. An acceptable rate is between 2 and 2.5%. Over 3% is on the high side but some good investment locations with lots of apartments may still have over 3% vacancy rates in low season or if a lot of new stock comes on to the market quickly. Over 4% generally means there is going to be a lot of competition for tenants and thereby downward pressure on rents. Over 5% in this case will mean that you may well go for a month or so without finding a tenant if your property is not a stand out
     
  12. Sheldrick

    Sheldrick Well-Known Member

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    Thanks!