Russell Island, Qld

Hi everyone

Back here after a while !

We've bought and made some coin in the Werribee / Hoppers / Geelong areas and now looking at cheapies in Brisbane. Anyway, have been hearing some really good things about Russell Island, can get some pretty decent 3 bed homes @ par $200k mark and a 7% rental yield and the island possibly offers a better lifestyle (except for its proximity to Sydney) to Mount Druitt which offered similar prices in 2008.

A check on the forum didn't say much but I've spoken to a few agents on both Russell and Macleay Islands who've said that they are quite inundated with queries and calls, mostly from interstate investors. A fortnight ago, an agent mentioned that a Sydney developer was up there to buy 10 blocks (yes, you can still a 500 sq m block for under $20k).

Any locals from the islands on this forum who might care to shed some light on what's actually happening on the ground there ?

Thanks

 

Why do you think a block of land is wortrh a mere $20K?

How do the rental pages on the Net read for these locations?

 

No one wants to live there..

 

Also, a LOT available to buy (ie oversupply), and not much demand. Depending on what stats you look at, average days on market exceeds 300 days, and vacancy for rentals rate higher than norm. Limited growth potential.

Just because it's on an island doesn't equate to better lifestyle. It is only connected by ferry, limited employment on the island, and only has a primary school with kids travelling to mainland for school.

I remember watching an old episode of Selling Houses Australia about a house on Macleay Island, a lot of interstate investors are initially drawn to these islands because of the price, but don't end up buying. Even some of the 'cheap' houses are still overpriced given the market because are are comparing it to mainland conditions.

 

Queries and calls do not equal sales when push comes to shove.

While buying on an island seems romantic, I'd want it connected to the mainland before living there. For jobs, it's just not practical. And while owning a holiday home sounds nice, you still have to maintain the home and pay council rates. Why not own a home on the mainland, and have a tinny and travel to the islands on your boat? The mainland home will be in demand, you get convenience, you still get a holiday feel. Win-win?

Ps. Bribie Island is connected to the mainland and it has a lot of homes, many fairly new. Gotta say though, it only has one road in and out and trying to visit there on Australia day was a nightmare. Huge traffic queues. So actually, I wouldn't buy there either. Not convenient.

 

@Gockie, Bribie is perfetly convenient. Most of the people who live there are retired, or tradies who work between Brisbane and the Sunny Coast. There is minimal employment on the islands but Bribie it is half an hour to North Lakes, Caboolture and Morayfield Centres with their local employment hubs.

I bet the traffic to Bribie on Australia Day was no different from the day we went to Noosa/Caloundra and that was just a regular Sunday.

 

The fact that it's interstate investors looking at those islands says something. A lot of people who live up there won't touch them. If I was an agent selling blocks there, I would put ads in Melbourne newspapers in winter and write stuff like, 'Buy your own piece of an island paradise'. And I would take photos at high tide perhaps with people in them drinking from glasses with little umbrellas in them.
Scott

 

There's a reason properties there are so cheap. The lack of infrastructure and connection to the main land means there's a very limited number of people that want to live there. This significantly reduces your tenant pool and capital growth prospects.

 

When agents tell me there's lots of Sydney or Melb interest, I think these buyers are so equitied up I'm sure they're overpaying everywhere. Its hardly an endorsement of a good investment

The sand and blue water around the moreton bay islands is far prettier than the Brisbane side mangroves and would have great a boating lifestyle. You would want to buy quality, eg waterfront

 

Maybr eventually when the infrastructure goes in. It will be a million dollar paradise

 

Decent 3 bed homes for around 200k? Why not buy in Logan for similar money? From early 2's you can buy houses close to great transport and motorways, infrastructure and jobs all within about 30 mins to Brisbane CBD and Gold Coast. Surely a safer bet for capital growth.

 

Wasn't the bridge promised by the developers in the 1980's?

 

Well, our slab went down on Bribie today, we are going to partially commute. Let Y'all know how that goes

 

Congratulations! However at first glance I thought you were commenting on celebrating something that is served very cold with seafood or BBQ.

 

It’s not the lack of connection to the mainland that is the mainproblem. Just compare prices on South Stradbroke, you will be lucky to get anything much under $600K. No bridge, but many million dollar properties.

Russell and the other small bay islands are a very different story with large areas of mosquito infested swamps and mangroves. And, as you say, poor infrastructure.
Marg

 

A massive proportion of the tenants on Russell Island are welfare dependent due to the low prices and poor access. Unfortunately this does cap rents and limit supply of quality tenants.

 

Think it would be paradise as a holiday destination like for a long weekend... but living permanently... the lack of access would drive me nuts.

 

You must be joking!

Most of Russell Island is a mosquito infested mangrove swamp.
Marg

 

There must be something good about living there, surely?