QLD Redcliffe /Margate Investment

Scarborough's a bit different though to Margate and Redcliffe... it bends the rules (for East of Oxley) as it's up the top of the peninsula! It doesn't get heavy traffic going by either (which the south side of the peninsula gets exposed to). Anyway, gorgeous spot!

 

Budget is around 400000, and strategy is to keep for long term growth as long as property is around cash-flow neutral or not overly negative.Is it even worth looking at this area with that sort of budget or should I be looking at Deception bay or Logan.

 

The chances of getting into Redcliff and Margate for under 400k is very limited now.

Do not worry about East of Oxley....this is now largely irrelevant.

For 400k you will get something which needs a reno....by next year you are unlikely to see much under 400k.

 

Thanks Sash, Been looking at real estate websites for a month or so and you are correct that 400000 is not buying much in Redcliffe and Margate. Out of Deception bay and Logan which one would you choose to invest your 400000 for a house.

 

The great unwashed are going to be very happy...but I would pick Dbay any day...you can't manufacture land near water...finite.

As for Logan it is okay but avoid the lower socio areas targeted by Syd/Melb investors.

People laughed at me when I bought in Margate and then again in Clontarf....

 

I see. Well, for 400k you'd probably be limited to a 405sqm block on the peninsula. I would still try to stay close to the water. And also consider Deception Bay for that money.

 

@sash Do you have any predictions for small townhouses/low-rises along the coastline? Our agent tells me there is no oversupply, what have you heard. When we purchased as IP noobs, he tried to get us to buy a small house on 405m2 that required reno. They were over our budget at the time, so we bought a TH as per Rixter's experiences. iirc The % increase in values is about the same.

 

Well...if your bought a T/H in a place like Kallangur for 360k plus you are stuffed.

By if you bought a T/H say in Redcliffe, Margate, Clontarf or Kippa Ring (near station)..for say 240-260k they are under replacement value. The houses will go up first...but once houses hit say 500-600k....the T/H have to go up....they will need to hit 60-65% value of a house.

If you were to build these it would cost 280k plus land (say 120k). so replacement in a 3x2x2 T/H would be about 400k. So it should hit mid 3s post next cycle. They are quite cheap.....as a lot of marketeers sold then at inflated prices 6-7 years ago for 330k...so they should go up to that at least.

By the way this is exactly what my partner did ..she regrets now...but time will heal all....

 

Mine is already mid-high 3s. It is in a tiny complex of five, and was built back in the 80s. It is 200 mts from the beach at Scarborough, none of this new huge complex garbage in Kallangur or Kippa Ring. I said it is on the coast.

 

Then you should do well over the longer term...patience gunga din....

 

Ah, thank you. It's going to be a good Christmas, methinks.

 

Ba humbug to you.....from green tall man with a funny nose (grinch which stole Xmas)....I do luv the lush (red nose is a give away) in red suit and white beard though...