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QLD Toowong or Nundah, Brisbane?

Discussion in 'Where to Buy' started by erlina03, 13th Jan, 2016.

  1. erlina03

    erlina03 Member

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    Hey guys,

    Newbie on the forum here :)

    Based in Sydney, I've got a budget around $400-500k and am thinking of purchasing my first investment property in Brisbane.

    What do you guys think about buying an OTP apartment; 1 bedder 68sqm for $425k in Toowong?

    I researched around and I think it's good for the below reasons:
    - good balance between owner occupier & investors (around 50/50) meaning locals like to live there
    - 5km from CBD
    - transport hub
    - not in danger of being built out
    - lots of family who wants to downsize but still keeping the convenience
    - highway just finished construction

    Would love to know your thoughts on the area and buying OTP apartment in Brisbane in general, thanks in advance!
     
  2. gman65

    gman65 Well-Known Member

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    Big new complex going up on Coronation Drive soon - Grace On Coronation — Sunland Group

    Lots of smaller developments going up / nearing completion. Lots of older stock in area meaning lots of existing supply. Will be competing against lots of developments in other areas close to the river.

    Consider carefully..
     
  3. Bran

    Bran Well-Known Member

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    Search 'otp' or 'off the plan' in this or the somersoft forums. It would be one of the most frequently discussed topic.

    In short? 1 bed? OTP? Inner ring Brisbane? No.

    PS. What families are going to move to a 1 bedder to downsize??????
     
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  4. hammer

    hammer Well-Known Member

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    Don't do it. Look at what is happening in Melbourne right now.
     
  5. Leo2413

    Leo2413 Well-Known Member Premium Member

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    I echo what @Bran said. Waaaaay more downside than upside.
     
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  6. CosmicTrevor

    CosmicTrevor Well-Known Member

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    I'm from Sydney, but I know Toowong as I have an IP in an adjacent suburb. It is a growing hub, but there is a fair amount of supply coming.

    There is a risk that Toowong will be overshadowed by Indooroopilly (My IP is not in Indro), I think locals would generally prefer to shop there, but I may be wrong on that.

    OTP is riskier than established, but there are some advantages. It is unlikely these advantages will make an OTP deal better on average. OTP might make sense if;
    • you get in very early when the developer is hungry to get momentum and they are more likely to negotiate.
    • you can select a property with some unique qualities
    The list of reasons not to would be ten times longer. My favourite is the 14 day settlement period you will be expected to accept.
     
  7. Ember

    Ember Well-Known Member

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    I know Toowong very well, it is very well located and desirable suburb. Lots of renters but lots of supply so vacancies can be an issue if out of season. At that price what rent are you hoping for?
     
  8. erlina03

    erlina03 Member

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    Thanks for the replies everyone! :) I'm actually flying to Brisbane next weekend so hopefully I can go and check out some suburbs.

    @Ember I'm hoping somewhere between $410 to $440 per week unfurnished. Yes that's what I'm worried about too...
     
  9. JDP1

    JDP1 Well-Known Member

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    I question the cg potential of small 1 bedder otp.
    Deamnd- limited to certain demographics due to 1 bed and size.
    Supply- lots in the pipeline.
    Price - otp has permuims built in and there is risk for the potential buyer as well.
    I would seek an older 2 bed a bit further out with lower bc fees than an otp will have. Next to public transport and amenities is important - especially the further out from cbd you get.
     
  10. Ember

    Ember Well-Known Member

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    I am not as familiar with rental prices for new luxury apartments. With body corp and management fees would be negatively geared I imagine at the rent you are hoping for. I am happy to give my opinion on any places you are interested in, in the Toowong area.
     
  11. erlina03

    erlina03 Member

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    Just throwing this out there, what do you guys think of Nundah? 2 bedder around $470k-$500k to be precise.

    I've read a lot in this forum that it's in danger of being oversupplied but looking at Development Map | Brisbane Development there's not that many units being planned, compared to their projected annual growth rate of 2.6%?

    Close to CBD & airport, great transport, there's the M7 Airport Link too.

    Please correct me if I'm wrong though, I'm still learning :)
     
  12. Coota9

    Coota9 Well-Known Member Premium Member

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    Quick search of Domain shows 96 2 bedders for sale.

    In Brisbane that's a lot for a unit IMO
     
  13. JDP1

    JDP1 Well-Known Member

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    Yes it is..however It all needs to be balanced by demand. i would think the demand to supply is more for 2 bedders than 1 bedders.
     
  14. Gockie

    Gockie I'm an ISTP-A female, so I might be a bit quirky! Premium Member

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    I'd do almost anything except buy OTP apartment. You have no control. If prices boom they may catch you with the sunset clause (delay completion thus not have to sell to you). If you really want a unit, why not buy one that's been previously owned?

    Anyway, personally I'd look for a house or townhouse with that budget. You can still get fairly good yields on Brisbane houses plus I believe they would be more likely to have CG in my eyes due to the land content. You may get a developer who wants to buy your land or do a development on it yourself down the track if you buy right...

    @erlina03 ... anyway... welcome. Did you know there's Skater's Wentworthville Leagues meetup next Wednesday? Look in the networking/meetups section of the forum. Come along...
     
    Last edited: 15th Jan, 2016
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  15. Leo2413

    Leo2413 Well-Known Member Premium Member

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    +1
     
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  16. Richard Williams

    Richard Williams Buyers Agent - Southeast QLD Business Member

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    Yesterday's Fairfax story...

    Good news for Brisbane tenants - not so much for investors

    Have you done the full numbers on the unit?

    Strata fee's (I wouldn't work on anything less than $800 per Q even for a new basic building MIN)
    Rates and Water
    Agents letting commission (typically 8%+ plus GST in Brisbane)
    Landlord insurance/repairs and maintenance

    How many units in the building and what facilities will be offered?

    How much is the asking price?

    Have you put all the numbers into a cash flow calculator?
     
  17. Azazel

    Azazel Well-Known Member

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    You could get a house for a bit more - the median for a 2 bedroom is about $540k according to realestate.com.au.
    I don't think you'll find anyone here who will recommend OTP, especially with the predicted oversupply in Brisbane.
     
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  18. radson

    radson Well-Known Member

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    We bought a 3bdr townhouse in newmarket last year for a touch over 500k and the tenant is paying $500/week rent
     
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  19. Azazel

    Azazel Well-Known Member

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    I would prefer Newmarket over Nundah for sure.
     
  20. JDP1

    JDP1 Well-Known Member

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    this will be a winner for you with the location, utility, and price paid.