QLD Thoughts on investing in Redbank Plains, Qld

Hi all,

I am a new member and new to property investment. I am considering to invest into my first investment property and seek guidance/recommendations from all the seasoned and new investors.

I have a budget of $400k-$415k. Given that I am having $30k currently and aim to save additional $50k in next 7-8 months the type of investment that suits my financial situation is a “House & Land package”. Unfortunately buying existing homes for me would mean that I’ll be short of the cash required for stamp duty that is payable, which in case of H&L is lesser (per the cost of land).

The preposition I am looking at currently is in south of Redbank Plains in Peet’s Eden Crossing estate. It is a 375m2 block, 12.5 frontage, 4/2/2 at turnkey cost of 413k through a company called “Mirum” who are a buyers agent per their website. Per the infrastructure that has been announced for/around Redbank Plains and what the area is due to receive the suburb is suggested by Mirum. But having said that, there are limitations from my end since I am not local and live in Melbourne.

I am keen to know/ recieve your thoughts/ inputs about Redbank Plains and Mirum (if heard/known of them) and also please suggest if you think there is an alternative approach that I should be considering.

Feel free to inform me of the details that I may have missed including so that it allows you to give your experience.

 

Hi @momentum26

Who pays "Mirum"? If the vendors, then they cannot be buyer's agents. I understand selling agents cannot be buyer's agents at the same time.

On property front:

• What is the supply like in the estate you are looking at?
• If there are a lot of cookie cutter houses being built - what does it mean from a future capital growth perspective?
• When the construction is complete and 100s of similar houses hit the market - what does it mean from a rental return and vacancy perspective?
• What does your research suggest about the area ie what makes it a good investment?

On the borrowing front:

• Is $30k cash savings or is it equity?
• Do you have an owner occupier property with a loan already?
• When do you sign up for this H&L, and when will it commence?
• What if your life circumstances change between now and then?

Based on your post, I feel you should hang around on PC, read up, and learn before making a final decision. Also, if you already have property and have equity in it, consider using that for your next IP, rather than cash savings. If you must, then talk to a broker so you can restructure finance to minimise non deductible debt and maximise tax deductible debt.

 

I think I know what your biggest dilemma is based on your language and tone

You want a good investment but with lower cash and lower extras such as stamp duty. That's why you're looking at off the plan

My question to you is
Would you prefer an investment that might require stamp. Duty. Lower yields but better capital growth.

The reality is house and lands are generally not good investments.

Anything that needs a middle man is also no good

 

Google “83 Benjamina Drive, Redbank Plains”. Would put in a link if I knew how!

4x2x2 and on 586sqm land, nearly twice as big. Asking price $339K.

Sounds so much better.

Saving a bit of stamp duty may be a very expensive decision in the long term.
Marg

 

@Marg4000.
Copy the link.
Then paste it in your response?

Anyway, I got this when I googled.
https://www.realestate.com.au/property/83-benjamina-dr-redbank-plains-qld-4301

83 Benjamina Drive Redbank Plains Qld 4301 - House for Sale #128211710 - realestate.com.au

 

..

Surely everyone knows how to use google.
Kids in kindergarten can.
Marg

 

Marg, I think your posts are always on the mark. And yes, while many kindergarteners can use Google, I just thought giving you (and others) advice on how to post a link could be helpful, for the next time you wanted to do it .

 

Thanks for that.

But when raising my kids, or 26 years working in schools, I never did anything for them that they were quite capable of doing for themselves.

But I will give your instructions a try.
Marg

 

I would be interested to know if this was due to location, valuation, a marketed property by a developer, high lvr or due to personal financial circumstances.

Although this suburb has performed pretty poorly I didn’t think it was anyway risky, valuations seem steady although the rental market is soft.

 

Wait 7-8 months, pay stamp duty and buy existing. Existing properties are better value and available for 300-350k or less with a bigger land component.

 

Thanks for the input. Any clue what bank was it?

 

Valuers smell marketers from a mile off and will reduce the valuation by the commission they know the marketers are receiving, if not more.
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$413,000 isn't a bad price for a 4/2/2 in RB Plains, I'd be concerned that the house is undersized and underspecced because Mirium is a marketer- they take big commissions, so they have to save money somewhere.

There's another PC thread HERE with some old discussion on them.

 

If it is PPOR then H&L in new estate is okay but for investment I dont see why you would want to go with new.
If you dont live in it why are you paying a premium for someone else's lifestyle.

 

Is that because of the new H&L package or due to the suburb name is Redbank

 

Currently I am in the market for an investment property . Considering Redbank plain because for mid 300k I can get 4 bedroom , good size lot. Has anyone analysed the negatives for the suburbs ?

 

Yes! Beware of recently constructed homes falling apart! Lots of new house and land packages with serious problems, check carefully anything built in the last 5 years or so...

Unless you are getting an exceptionally good deal you might want to look beyond this basic criteria?

Redbank Plains - advice needed [QLD]

 

Thanks Richard for the reply. I was unaware about the quality of house in Redbank plain. I will be careful and investigate further. You did mention about exception deals, below are some decent properties or should I look for something different.

195 Cedar Road, Redbank Plains, Qld 4301 195 Cedar Road, Redbank Plains, Qld 4301

8 Patsy Crescent, Redbank Plains, Qld 4301 8 Patsy Crescent, Redbank Plains, Qld 4301