QLD Redbank QLD 4301

Hi All,

I am planning to buy my first investment property and someone suggested me a new house and land package in Redbank 4301. Please let me know your thoughts on the area?

 

No. No. No

To hl packacke

 

Please let me know why H and L is a bad idea in redbank?

 

Welcome Nad. Nothing wrong with Redbank, although the time to get in was possibly a few years back (isn't it always). Think TMNT possibly referring to developer premium, extra cost of new and shiny, smaller blocks, also plenty more land being developed. Also check who is selling you the package - some of these so called wealth creation companies can pocket commission of $20k or so.

 

Redbank has a huge oversupply of properties. Renting out is a nightmare. Rents are tanking down like titanic after the iceberg.

That said. This is not an advice. Please buy if you wish.

 

Thanks for your comments. Seller said normally bank valuation comes 10-15k below the selling price. That itself didn't give me much confidence.
H/L packages were price between 390k and 400k with 400-450m*2 blocks with 20 square houses. These are turn key packages.

I like HL packages as less hassle in the intial years. (Also more depreciation )

Any other area that I should look? My budeget is around 500k. I am open for any other state as well

 

Well summarised

 

I think there's good and bad and a blanket statement like no house and land packages is short sighted.

H&L package in a new greenfield development with another 10,000 blocks of land to be released and no infrastructure is very different to a boutique infill H&L package on 400sqm in a 10km ring suburb.

 

Yep. I've had issues with my IP out there, and am seriously considering selling.

CG has been minimal (I know it's only been a few years, but it's very stagnant out there compared to a lot of other areas), and no change in rent (plus was hard to rent out towards the end of last year) - combine this with the shift from an IO to a P&I loan, it's now costing me a lot more to hold the property than when I first bought it, and this ins't likely to change any time soon.

I may just have to bite the bullet and take the loss. I just need to decide whether to do it now, or after the EOFY.

 

Hi Noobieboy

Your quote and the agreement it received from others surprised me. I had a tenant advise they were moving on in Dec last year and had no problem finding someone to move in straight away at the same rent (agree it would have been nice to get an increase after 12 mths).

I just had a look and vacancy rates are 3.5% which isn’t terrible but I know what you mean about the extra supply coming on.

I would highly recommend my Property Manager in Ipswich if anyone is struggling with their current one you can PM and I will send you the details.

 

In my opinion with 400k you can do a lot better in Brisbane than a H&L package in Redbank. Usually you'll be paying a premium for a new house, once it's been rented the initial 'newness' will be gone and the property most likely will be worth less than you paid. For 400-500k you can buy something in Logan with good capital growth potential with good travel times to Brisbane CBD, Ipswich and the Gold Coast, much larger land content and much greater owner occupier appeal.

There are some quality issues with some of the new H&L properties being built in Redbank I have one client who purchased there (against my advice) and he has reported lots of issues with the property and the developer not helping to rectify some serious problems.

PM me for some idea's on Logan suburbs within your budget.

 

Logan....

Birkdale, Thorneside, wello point, ormiston

Owner occ suburbs, good median incomes, good schools, not too much riff raff

 

What do you think about Thornlands? I'd like a new house for more depreciation and less hassle in the initial years

 

Hello Nad
Great family area, nice homes. Roads not too bad and great acces to the bay / Stradbroke

 

What @The Y-man said. Tradespeople are under such pressure to get the new homes built as fast as possible, quality of work can be rather lacking. I've heard the plumbers and electricians comment numerous times that the bulk of their callouts are to maintenance at newbuilds.

 

Such a bad mindest to be buying properties for tax deductions.......

 

Agree

 

not when your paying almost 40k in tax !

 

I think you will struggle with a budget of $500k in Thornlands.

If you are keen on a new build my recommendation would be to find a block in an area where you want to invest and engage a builder yourself. That way you get the plan and finishes you want without the developers premium / margin. Sure it is a bit more work and you will have to organise landscaping, etc. but I have found it very worthwhile.