QLD Redbank Plains - advice needed

Discussion in 'Where to Buy' started by mick0123, 19th Dec, 2016.

Join Australia's most dynamic and respected property investment community
  1. mick0123

    mick0123 Active Member

    Joined:
    13th Dec, 2016
    Posts:
    39
    Location:
    north sydney
    HI guys

    I have recently been looking at Redbank Plains as a place for an IP. It seems the area has some newer properties in the area however I have been looking at the older style so that I can do a reno.
    Yields seem ok.

    Does anyone have experience in the area?
    Thanks
     
    Tekoz likes this.
  2. KayTea

    KayTea Well-Known Member

    Joined:
    10th Aug, 2015
    Posts:
    1,204
    Location:
    Inside my head
    I've got one there. While the tenants aren't 'bad' (i.e.. the house is still standing), they are very apathetic about paying their rent/water etc on time - a real "we'll get around to it….someday….." type of attitude (I've heard it called 'Island time').

    I know every city/region can have it's good and bad suburbs/areas - just be mindful of the clientele that this area tends to be home to. While I'm considering how to deal with my current tenants, I'm also a little worried about what their replacements might be like……. There doesn't appear to be a huge rental demand in the area - I'd just like a family in there who understands the concept of paying their bills on time.
     
    Tekoz, TMNT and Marg4000 like this.
  3. MyPropertyPro

    MyPropertyPro REBAA Buyer's Agents Sutherland Shire & Surrounds Business Member

    Joined:
    1st Jul, 2015
    Posts:
    1,874
    Location:
    Australia
    @sham.v007 has purchased in Redbank Plains and may be able to provide some information on what he was looking for during the process.

    From a tenant point of view, KayTea is right with respect to the general demographic however this can be managed through a number of processes and depends upon the property manager you engage to do so. The vacancy rate is quite balanced at 2.8% so there shouldn't be too much difficulty finding tenants provided the letting process is conducted correctly of course.

    With respect to renovations, it obviously depends on the individual property however my usual MO is to not buy anything that requires significant renovations. As a general list, I will do all or any combination of (as required):

    1. Replace carpet
    2. Internal repaint
    3. Replace shower screens and vanities
    4. Paint bathroom tiles (far cheaper than full replacement and looks amazing)
    5. Replace taps
    6. Replace cupboard handles in kitchen
    7. New dishwasher/appliances
    8. Replace blinds

    Generally speaking, all of the above items are very cheap for the increased value (both capital and rental) you will get and can be done very quickly to prepare a property for letting if organised well.

    Hope that helps!

    Andrew
     
    Tekoz and KayTea like this.
  4. sham.v007

    sham.v007 Active Member

    Joined:
    21st Sep, 2016
    Posts:
    29
    Location:
    Schofields
    Hi there. I've purchased one last month in Redbank Plains. Andrew and Jodi are managing it and they are great - no second thoughts.
    The tenants have been quite pleasant to deal with. The house is in a good condition. No reno required. I guess if you find the right house at a reasonable price it will work out well. There are some houses over priced. So do your research with RP Data before putting an offer!

    My criteria for finding the IP was
    - max $330k
    - no reno required, good condition
    - if any critical repairs then add it as a condition in the contract so the owner fixes it
    - existing tenants (preferred) saves the hassle of finding new tenants
    -not more than 10 yrs old
    - land more than 500sqm
    - positive or neutral geared

    Its quite a developing suburb with new shopping centre and train line coming soon.

    Good luck!
     
    Tekoz and KayTea like this.
  5. 380

    380 Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    1,353
    Location:
    Australia

    Be aware of Black sand!

    Few older properties will have foundation problem.

    Also - consider higer council charges + insurance!
     
    [d4rk-fr3d], Tekoz and willair like this.
  6. KayTea

    KayTea Well-Known Member

    Joined:
    10th Aug, 2015
    Posts:
    1,204
    Location:
    Inside my head
    True, @BeDeveloper - I got a shock when I got my first council rates bill :eek:
     
    380 likes this.
  7. Rich2011

    Rich2011 Well-Known Member

    Joined:
    9th Aug, 2015
    Posts:
    1,315
    Location:
    Brisbane
    More than Logan or Moreton Bay ? :mad:
     
  8. KayTea

    KayTea Well-Known Member

    Joined:
    10th Aug, 2015
    Posts:
    1,204
    Location:
    Inside my head
    Not sure what Logan's or Moreton Bay's are. But my Brisbane City Council rates were $470 (from beg June - end Sept) for an (averaged) land value of $355K, and the Ipswich ones were $500 for the same time period, with land value of $131K.
     
  9. Angel

    Angel Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    5,813
    Location:
    Paradise, Brisbane
    The councils charge much higher general rates for an IP than an OO. The UMV of the land itself does not make much difference to the charges overall. I get charged 25% more for the rates on my ip in Moreton Bay than for my ppor, they are the same land size and same umv. All the add-ons like roads, garbage collection, environmental programs and State Govt fees collected are the same for both.
     
    KayTea likes this.
  10. KayTea

    KayTea Well-Known Member

    Joined:
    10th Aug, 2015
    Posts:
    1,204
    Location:
    Inside my head
    That's a bit rude, isn't it?! If you're getting the same services for each property, the fees applied should be the same.

    We could probably say the same for interest rates charged by the banks, too, right? Wishful thinking……..
     
    Tekoz, TMNT and Angel like this.
  11. TMNT

    TMNT Well-Known Member

    Joined:
    23rd Jul, 2015
    Posts:
    5,572
    Location:
    Melbourne
    agree, i hate it when busiensses cry poor and act like offering the same service costs more or is justified by some other BS excuse
     
  12. Tekoz

    Tekoz Well-Known Member

    Joined:
    23rd Jun, 2015
    Posts:
    1,374
    Location:
    Sydney
    @Be Developer that sounds like the place in Collingwood or Bellbird Park.
     
  13. Tom Rivera

    Tom Rivera Property Manager Business Member

    Joined:
    1st Jul, 2015
    Posts:
    2,719
    Location:
    South East Queensland
    Most of Ipswich has quite reactive ground, they call it "blacksoil" but it's usually the clay content that makes soils so reactive.

    It's causing serious problems in anything built slab on ground too- I've seen issues in houses that are only a year or so old.
     
    Tekoz likes this.
  14. eletronic_exp0430

    eletronic_exp0430 Well-Known Member

    Joined:
    26th May, 2017
    Posts:
    1,244
    Location:
    Sydney
    Shouldn't this be done and checked by the convergence or lawyer? I'm pretty sure when I bought my Redbank Plains there are particular searches that identify these issues especially if its known area to be affected?
     
    Tekoz likes this.
  15. Tom Rivera

    Tom Rivera Property Manager Business Member

    Joined:
    1st Jul, 2015
    Posts:
    2,719
    Location:
    South East Queensland
    Soil tests specific to the block are done by the builders before construction, usually paid for with your initial non-refundable deposit along with survey plans. Engineering identifies what grade and style of foundation is needed- L/M/H/P/P2, etc.

    I suspect the general practice is to get away with most marginal design possible, in some cases resulting in problems much sooner down the track than you might expect. You also get issues with other things like fences, lawns, drainage and plumbing that aren't specifically related to the foundations.
    Most people are so tight and short sighted in the absence of a proper understanding of the need for certain things, if a builder tried to do the right thing and explain why their house cost e.g. $20,000 more, people would ignore them and go to the competition.
     
    [d4rk-fr3d] and Angel like this.