Hi All, I'm thinking to buy another property under $460k in QLD this year, so I have found this area: SALISBURY, QLD 4107. As per this independent expert review: The Avenues at Salisbury - Matusik Letter of Support - 19 May 2016.pdf it is very good and looks promising. Valued by 4 independent property managers at rental levels that produce positive cash-flow (after all costs) of $54 a week for the average investor, even with a deposit of just 10% Already experiencing land growth of 10.8% (according to Qld Valuer General, see graphic box below) Just 11km from the Brisbane CBD In a lifestyle area with loads of funky cafes, restaurants and one-of-a-kind shops Easy walking distance to the train, buses, schools, universities, shops, sporting facilities and right next to a fully developed bike network Affordable for any investor priced from just $420k And predicted to continue to grow at 5-10% in the coming year (as stated by Michael Matusik): SALISBURY Number of residental properties 2,244 Current median $325,000 New median $360,000 Change: 10.80% (source: Qld Valuer General, comparing 2016 to 2015 Land value at Salisbury). What do you reckon for investing in the 2 or 3 bedroom townhouse in the area ? Any thought would be greatly appreciated. Thanks,
1. You stated median as $360K, however looking to spend $460K.. Why? 2. For that money I would rather a 3-4br house in say Rochdale South for example where there is good OO appeal.
@Greyghost I guess it's the old statistics data. The reason it is bit expensive because it is new property. (Off The Plan).
Free Suburb Profile report for Salisbury QLD (4107) Townhouses fall under units. Number of sales in last year: 11 That sample size is way too small to draw any conclusions from median prices. That 10.8% growth figure could just as well be -10%. Doesn't mean anything Yes to the location, no to the stock type...
I've been getting emails from property 'experts' for months trying to sell townhouses and homes at The Avenues Salisbury. Always along the lines of "be quick only 3 left" etc. I always get wary of these sorts of promotions as every middleman and his dog has their finger dipped into the pie. I recall they were priced at 390K originally in May/June.... Also if the suburb median is 360k, you could probably find your own product at the price or below...rather than paying 420k to them.
I am. Hence I'm creating this thread mate. Last year I already bought a house Park Ridge in Logan LGA, and now due to serviceability, I can only afford to buy in QLD again, not even in Sydney West (Greenacre, Granville & Bankstown).
It seems that almost all of the well known property investment commentators in the media say to stay away from anything off the plan when considering property investment for capital growth purposes. I'm not experienced enough to provide a useful view - I've been very tempted myself at OTP given how good they usually look and the impression that they are more likely to be hassle free renting (ie less likely for repairs etc). My person thoughts are: - if one is buying existing dwelling from another seller, then there are much fewer fingers in the pie - ie either the seller or the buyer is 'profiting' from the deal apart from agents / govt etc - if one is buying OTP, generally the developer has a profit margin in there, the builder has taken their profit margin, the promoters take their margin, more costs being paid to the govt (eg DA approval etc) that by the time one buys as a seller, it's generally fully valued (if not over valued) so you're solely reliant on an appreciating market as it's more difficult to (1) buy below market value or (2) create value. So the above is what's holding me back from OTP but then again a rising tide lifts all ships and one can still pay too much for existing dwellings. Just look at what has been reported in Sydney recently about OTP apartments being sold pre-settlement for significantly higher than their contract price. Keen to hear other people's thoughts on OTP purchases.
I purchased off the plan....Delay after delay with no compensation for the purchaser. The market can change in 3 months so you need to be careful. I wouldn't do it again.
Considering the median house price is $548.5k and $415k for units as per the 'yourinvestmentpropertymagazine' webpage, the quoted 'land value' of $360k would most likely be the UCV (which is less than market value) of an unknown sized vacant block of land which is not very relevant to an otp townhouse
I think the area stacks up, but not the property type (units / TH's). Look for houses on land in that 400's range, instead of this OTP stuff. Or, if you really want one, wait until it is finished. Then wait another year. Pick one up at a discount that will hopefully have eroded away all the costs (profits) you'd have had to pay all those sticky fingers who dipped into the pie.. The benefit here is that buying it 1yo means you are still in that prime Goldilocks zone for depreciation (years #2-#5 or #6).
@C-mac Hm.. that does make sense mate. I never thought that before. I was under the impression that finished property will always be priced higher than the initial OTP purchase price.
I've been looking at this surburb too (and nathan nearby) and found it hard finding anything under 500 not too run down. It's a popular surburbs with nice pockets with good turnouts to inspections. Be wary there is a lot of resi development happening in coopers plains which may affect rentals in the near future.
