QLD Redcliffe /Margate Investment

If you are scratching on budget, why not look at some research which have a better rental return with a much lower entry point?

Although it's good to have a block that have potential to sub divide, but if you don't have the cash to run such project it will take you many many years before you see the massive gain.

Brisbane is different from Syd, developers don't really offer you generous price to buy your land and develop like what happen alot in Sydney.

 

@Gockie, can you get King Doofus the contact for the guy who did your work? It was a similar type of job, walls and doorways, same sort of work involved.

 

But the problem is, mine was in Sydney.

 

Your house at Scarborough - didnt you get a door removed and the wall repaired, then a robe built in and another doorway altered? That was in 2016 rather than 2013, prices would be different in Qld vs Sydney too.

 

In the end the tradie... I dunno, got too busy! So I left everything as is.

 

1. Just holding a block that can be subdivided will most likely give a much greater gain in growth than a townhouse that has no potential to add value (This will likely be more than the 400k the OP spoke about for the townhouse)
2. Even having a house on 405m2 in Redcliffe or in that general area would be better than a townhouse I feel, at least you own the land.

Why not look in Logan? For 400k or less you can buy a decent house on around 600m2 with a great rental return if you know what to look for. I just purchased for a client a large 4 bed 2.5 bathroom house on just over 1200m2 (can be subdivided) for 350k which should rent for close to $500 a week.

 

You guys/gals are great, thanks for all your input!
Good idea about looking where it is cheaper - I had heard that places like Logan, Caboolture etc were best to avoid due to bad tenants - but I should be more optimistic!
Cheers!

 

Personally imo.... Caboolture is too far out.

 

Bad tenants aren't an issue with a good Property Manager

 

We did this in our Adelaide place (from 3br to 4br) last year. $3.5k incl lights, wall, power and converting french doors to a split window.

 

Hey @Greada not sure where you're at on your purchase but $500K could definitely get you into a decent 3br house in Redcliffe or Margate on 600sqm or less. However if, you're looking East of Oxley, you'l be able to find something in decent condition on a 405sqm for that price range. A standard 3,1,1 situated in a nice area will get you around $360-$390/week in rent too. I was just up there in the peninsula yesterday viewing a bunch of houses in Margate, Redcliffe and Kippa Ring.

My mate owns one of the big real estate agencies in Redcliffe. He told me yesterday that in Feb-May they were seeing around 25 groups on the first OFIs. Currently they said a good result at the first OFI is 2 to 6 groups coming through. I suspect lending restrictions would also have had some sway in this.

I was at two auctions yesterday, both got passed in.

11 Joseph got passed in. They've now listed it for offers over $390K which is a bit dear and still needs some minor work i.e. sheeting and sand/polish floors. Although a block of dirt sold on the same street two doors down for $305K ish on the same size lot.
11 Joseph Street Margate Qld 4019 - House for Sale #126576402 - realestate.com.au

41 Chatham also got passed in yesterday. Highest bid was $530K. They've now listed it for offers over $565K. It's about 300m west of oxley. It's a 809sqm. Most on this street have been split into 405sqm. Good solid timber home. Great long term potential to split, and it's currently achieving $440/week in rent so wouldn't be too detrimental to the hip pocket for the time being. Sounds as though the property is in a similar position to @Bris Jay - he would've done very good if he got it for under $500K only in May.
41 Chatham Street Margate Qld 4019 - House for Sale #126514854 - realestate.com.au

I bought a house in January this year in Scarborough for $300K which was bought at auction. Only 100m West of Oxley. There is money getting put in to this area, evident by some of the newer luxury builds in Scarborough and Newport. I love the area and can see the gentrification happening there on the ground as I'm up in the area quite a bit. I'm also a big fan of Kippa Ring, obviously not as close to the water, however good infrastructure there, decent schools, and the new train line which ends at Kippa-Ring makes it easy to get into the CBD too. Although already quite a bit of the residents work in Redcliffe and North Lakes.

 

Unfortunately I didn't get mine for under $500k. I was saying that you couldn't find any double blocks for under $500k for a few years. I bought mine at auction and there were three bidders.

Mine is already on two lots so 41 Chatham St would cost $30k more to split. I'd think that this one will sell for around $530k-$540k.

 

41 Chatham Street, Margate, Qld 4019 - Property Details
Sold for $540k.
It will be interesting to see if they hold it for a few years or knock it down and put tenants in there.

 

The Redcliffe peninsula is going from strength to strength....places like Margate, Woody Point, Clontarf and Redcliffe have moved about 100k in the last 2 years.....much more growth to come.

I have to disclose I have one Margate and Clontarf...bought for 250k and 325k...now they are worth 390k and 440k.

 

Nice Sash, Well done! I have a little 3 bedroom shack in Scarborough east of Oxley, we get mail every second week and the odd phone call telling us how well the area is doing and asking if we would consider selling. Hopefully this is just the start of things to come. I must say looks like an ideal location to me. I'd love to knock over the shack and build a two story home there myself.

 

Any recommendations for a buyers agent in Redcliffe/Margate area.

 

If that was the brief I would like to do it...
But...
I don't have a realestate licence though.

My guidelines.
* Stick to being East of Oxley. This will narrow down your choices.
*Then, are you ok with a 10m frontage or do you want something wider? (Something wider will cost more. Most blocks are only 10m wide on 405sqm of land).
**(The combination of the above 2 criteria can be rare (East of Oxley and a wider block) and it might take a while to lock in something that matches - there's a solid demand for it) Edit: I did a search on realestate.com.au for prices up to 600k (2 bed 1 bath 1 car minimum) and 3 properties came back. They still aren't large or particularly wide blocks though.

Other than that, contact all the agents in the area and tell them what you are looking for.

 

Thanks Gockie, I am new to this property investment game and being interstate thought it will be hard to get attention of real estate agents so I was thinking of getting a BA but honestly not really too comfortable in letting someone else make decision on my behalf so thought it will be helpful to get recommendations for some reliable and time tested names from people on this forum

 

Try looking for yourself for up to 6 weeks with the above criteria. I don't know your budget but have a look on domain or realestate.com.au so you get the feeling of prices. I do think stick East of Oxley and I would go for something bigger than 405sqm and 10m wide though. If your budget does not go this far then you might as well have a complete rethink or buy in Deception Bay.

My understanding is Kippa Ring hasn't gone up much - even though it has the trains, its just not close enough to the water. There are plenty of luxury properties in the 2mill range East of Oxley - you want the potential of your land to be able to command higher prices and East of Oxley gives the best opportunity to do this. The water and beach will remain popular.

 

I do not agree with Gockie's suggestion of remaining east of Oxley Avenue. As others have stated in this thread, there are some elevated blocks west of Oxley Avenue with water views. When you look in Scarborough, just about everything is within 700m to the water.

I wouldn't be too fussy with land size. If all you can afford is 405m2, then that will still allow you to build a new home in the future. Of course the bigger the better, it depends on your budget.