QLD Rental Demand South Brisbane

Discussion in 'Property Management' started by Scott, 13th Oct, 2018.

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

    Scott Active Member

    Joined:
    20th May, 2016
    Posts:
    25
    Location:
    Northern NSW
    Hi All,

    I am looking to buy a house on the Brisbane South side. Probably Moorooka, Salisbury or perhaps Mt Gravatt. Looking to spend around 550-600K.

    I don't live in Brisbane so don't know what it is like on the ground.

    I was wondering what the rental demand is currently like for houses in the area. From a quick look on realestate.com.au it seems the houses listed are not on for much and was wondering if the demand is low?

    Any help or advice is much appreciated.
     
  2. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

    Joined:
    14th Jun, 2015
    Posts:
    7,832
    Location:
    Gold Coast
    some properties in those areas may be development sites or may become so in the future, which is maybe why some have what looks like a low return

    when you say low, how low is low compared to the value ?

    ta

    rolf
     
    Tom Rivera likes this.
  3. Pumpkin

    Pumpkin Well-Known Member

    Joined:
    26th Jun, 2015
    Posts:
    1,088
    Location:
    Brisbane
    Welcome to Brisbane, good choice.:)
    Firstly, "South Brisbane" is a suburb here. From what you described, your subject-line should be "Southside of Brisbane", or "Brisbane Southside".
    Going out now, will write more later.
     
    Michael Mitchell likes this.
  4. wylie

    wylie Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    11,007
    Location:
    Brisbane
    I've been looking for our area, Coorparoo and surrounding suburbs because we will have to find tenants very soon. Prices seem to be low to me. I don't really know why but it could be because of Coorparoo Square pushing hundreds of units into the rental pool.
     
    Pumpkin likes this.
  5. Scott

    Scott Active Member

    Joined:
    20th May, 2016
    Posts:
    25
    Location:
    Northern NSW
    Thanks Pumpkin - you are correct. Should have written Brisbane Southside.

    I live on the Southern GC. It just seems low compared to down here. We have much less building work going on down this way I guess.

    I have a unit in Coolangatta and I ask the question as my PM seems to be able to get me at least $50-100 more than what most properties are advertised for down here.

    I was wondering if Brisbane is the same?

    I noticed a 3br house sold Salisbury recently for 515k and is now advertised for 385pw rent. That seems kinda low to me.

    To any PMs out there; how many people show up for open homes? Does it take long to find decent Tenants?
     
  6. Pumpkin

    Pumpkin Well-Known Member

    Joined:
    26th Jun, 2015
    Posts:
    1,088
    Location:
    Brisbane
    Cooparoo and Greenslopes - our favourite, cant explain why. Just feel a good vide there.
    The price hasnt gone up ridiculously like the others, and it's pretty enclosed.
    Depending on what you are looking for: longterm or short, rental yield or capital gain, negative or positive gearing......
    Cooparoo Square is trying... saw some movie deals which we went but some shops were closed, didnt get our supper. Will have to visit more to get a feel of the place.
     
  7. Pumpkin

    Pumpkin Well-Known Member

    Joined:
    26th Jun, 2015
    Posts:
    1,088
    Location:
    Brisbane
    Yes there are a lot of construction going on in Brisbane, especially Units and Apartments. I am rather surprised to see how Australians have embraced the idea of living in these buildings, instead of a traditional houses. I hope and believe that they have settled somewhat.

    Demand and Supply?

    The rental yield for Units/Apartments is always seem higher than houses. But do remember to compare apples to apples: did they include all the costs: Council rates, gardening, water, insurance etc etc.

    To any PMs out there; how many people show up for open homes? Does it take long to find decent Tenants?[/QUOTE]
    How long is a piece of string? Our record was 7 GOOD applications for a 2-bed unit in Greenslopes about 1.5 years ago, to which I cant exactly explain why. Another property under Ipswich Council had a lot of interest, but Owners rejects all applications, and I cant blame them....
     
    Tom Rivera likes this.
  8. jazzsidana

    jazzsidana Well-Known Member

    Joined:
    27th Jan, 2018
    Posts:
    459
    Location:
    Melbourne
    Speak to as many property managers as you can in the area to get the true picture..

    Returns generally are little lower on sites with development potential or bigger block with small size home or oldish house bla bla..

    Good property managers will easily be able to provide you all the relevant facts and they worth every cent when hired to manage properties!!..

    Cheers,
     
    Tom Rivera likes this.
  9. Scott

    Scott Active Member

    Joined:
    20th May, 2016
    Posts:
    25
    Location:
    Northern NSW
    Thanks Guys. Appreciate the input.

    Yes I will ring a few property managers and see what they have to say.
     
  10. Tom Rivera

    Tom Rivera Property Manager Business Member

    Joined:
    1st Jul, 2015
    Posts:
    2,237
    Location:
    South East Queensland
    Yields are definitely better in the regionals, but capital growth prospects are stronger as you approach the city. Those areas have had reasonable growth in value lately but rents tend to lag a little- especially on development blocks.

    What are you hoping to achieve with the investment? Is it potentially a future development site or do you want something nice to maintain long-term, etc.?
     
  11. Scott

    Scott Active Member

    Joined:
    20th May, 2016
    Posts:
    25
    Location:
    Northern NSW
    Thanks Tom,
    This purchase is a long term hold and I am willing to sacrifice some yield for CG.
    I guess you are correct some CG has occurred and it will take a while for the rent to catch up. Looks like I should have bought earlier (I think every investor thinks this ;)
     
  12. craigc

    craigc Well-Known Member

    Joined:
    25th Jun, 2016
    Posts:
    1,114
    Location:
    Melbourne
    What is the rental demand on the ground for granny flat or duplex/dual key options on the ground in Logan / Ipswich areas? Cheers
     
  13. Tom Rivera

    Tom Rivera Property Manager Business Member

    Joined:
    1st Jul, 2015
    Posts:
    2,237
    Location:
    South East Queensland
    Surprisingly good. The modern factor really attracts people and I still can't believe the rents people pay for these places...!
     
  14. craigc

    craigc Well-Known Member

    Joined:
    25th Jun, 2016
    Posts:
    1,114
    Location:
    Melbourne
    Thanks Tom, you seem to be right on the ground in that area and appreciate your response. It’s a slightly longer term yield play for me, but a friend has recently bought 2 x duplex in Springfield. A quick look shows the usual overestimation of rental yield to be achieved but a possible property with the addition of a granny flat is certainly something I’d look at. Cheers
     
    Tom Rivera likes this.