QLD Thoughts about Redbank Plains

Hi all,

I'm considering to buy a house and land package in Redbank plains.

It is a new area in Redbank plains the project called Eden Crossing.

I'm really new with this area but I do a bit worried about soils

I was using the pricefinder to see rental price around the for new areas but not much data.

Elder predicted rent is around $ 380-420.

I'm not sure that it is a good buy or nit because the old areas rental price is 350-380 and house are selling around mid 300K but house and land package is around 400k

Please any comments are welcome.

 

Never buy h and l far from the city.
You can do your own research on that but there are some massive reasons as to why generally it's not a good investment route.
Ring up some people who bought some house and land packages about 8 years ago far from the city and ask them about their capital gains.
Even in a booming market you still don't get the same sort of return as you would if you had bought an existing property.

What's your budget?

 

Have a look on realestate.com.au, plenty of stock in the 330,000-360,000 bracket. They rent for 300-340 per week. The newer stock might rent for more but those figures sound a little optimistic IMO.

 

@<JC>

What are your reasons for going for H&L?

What is the supply / demand like in the area?

Lastly, and most importantly, what is your goal with this property, what would it do for you long term?

 

Yes generally although not always. Not if it is on a tiny block. Many renters prefer established suburbs with proper side access and back yards etc.

 

I had a client buy there a few years back and it hasn't done well but as always do your research and decide for yourself.

Look at how many lots will be rolled out with the new development remembering it is done in stages. If there is ample then an oversupply may be on the cards which will effect prices.

I think there may be better options out there for you. Talk to a BA (buyers agent) if you are not 100% comfortable with what you are contemplating.

 

400K as max.

This is the first time, I'm considering H&L. That's why I am so unsure.

 

If you invest in Redbank Plains, you will probably get a far better deal on on existing house rather than paying a premium for a H and L package.

Choose close to schools and shops. If not keen on older houses, look for one in the 2-5 year old range.
Marg

 

1.

1. I like the area which there is a lot of parks and 2-5 mins away from WWS by walk. It's a corner block with 500MM. But I am not sure weather it is a good buy as I research the second house is around mid 300K but H &L is 406K.

2. By researching not enough supply but there is demend

3. I am looking for long term goal for Captial but in the same time I need to have enough rent to cover the holding costs.

 

Is there Government and private spending happening there?

With your price bracket - what is stopping you buying in Brisbane, and so further out?

 

Yeah, Both. Gov build new roads which only 5mins drive to Springfield Lakes and new schools, new train station.
Private- hospitals, new shopping malls.

Due to those points make me wanting to buy a house over there also low entry.

I have 2 IP in Brisbane already. Just trying to spread IPs in different areas.

 

Sounds like you have made up your mind.

 

Not extactly yet like 50/50.

Still looking at others due to old houses can save up to 50K. That's why still considering. Hard to decide and that's why asking everyone's thoughts.

Thank you for your help.

 

I doubt this. Don't believe the hype from marketing agents. Look for an established property. That's the consensus

 

Agree with Whitecat.

They are only trying to sell you something.

If you go house and land, do it in a city that's really growing (and will continue to attract migrants), and don't buy the house and land package. Buy the land, and engage your own builder.
My thought is, Brisbane already has plenty of supply for the amount of demand, so if you buy there, make it a very well located purchase. I think marginally located purchases won't perform over the long term. Ps. To increase demand, you need jobs.

There are too many better alternatives in Brisnane that people will look at before buying something that isn't well located with no potential. You want to appeal to people with money... if yours is in the middle of nowhere, with no building potential, it won't attract those buyers.
At least if it's a purchase of an existing house on a developable block, it will increase in value because it can be redeveloped. Something where someone has developed it already means you don't have that value add ability.

I used to live in North Epping (middle ring Sydney), that suburb has a lot of weatherboard 1960's homes and at sale time, they are just as in demand as the big new build homes, as long as the blocks are level they will attract big dollars.

Why? People like the area, it's located within highly regarded school catchments which brings families from elsewhere into the area, it has good rail nearby and it's simply a pleasant quiet area. Its a tightly held suburb, people rarely sell or move away from. When an older house comes onto the market, new owners would knock the existing homes down and build something new. It's the land and location that people crave here in Sydney. I'm astonished people will pay 1.4m+ for a liveable house on good land and proceed to knock the houses down and build. But people will absolutely do that. Low supply and good location, good schools means that people think its a good thing to do. It gives them control as to what house they have built on their land. In the meantime, land values stay on the increase, people want to buy here because its near a transport hub, but also it's green, leafy, peaceful, quiet and the schools are a driver.

Back to Brisbane. For desirability, I bought near the bay in Brisbane. Two large blocks. I like the idea that being near the water, the climate won't feel any of the extremes plus water views are nice. People will pay a bit extra to have amenity like that. There's also a scarcity factor too, you don't find waterfront everywhere. One of the two blocks (the one in Moreton Bay Shire) is in Next Gen zone and I could possibly build up to 12 metres on it. So apart from being located near a beach and all the nice stuff that comes with that, it really has future potential too. I can't see your block having that. So... really think about what and where you buy. Think long term, why would someone want to buy what you have bought?

 

what demand?

 

I bought a new home in redbank Plains about 2 years ago after being attracted to the area by the amount of infrastructure spend and the low entry price.

The house I bought was from a builder trying to liquidate stock. It was originally on the market for 389k but I bought it for 330k.

The rent appraisal was $370 but with little demand I had to drop to $340 to get a tenant. They've been in ever since.

With all the new houses being built and mostly for investors I can't see rent increasing.

Capital growth has also been slow.

Not a great purchase in hindsight, but I'll hold for now and see what happens.

 

Thank you. After, seeing all the posts, I am not going to buy one over there now. Just going to wait for a while now

 

So how did you know if the next train lines will be build in Redbank Plains ?
I'm interested to buy in Ipswich and Redbank Plains for next year.