QLD Why I bought in Goodna - See Change

Discussion in 'Where to Buy' started by See Change, 20th Feb, 2016.

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  1. Tekoz

    Tekoz Well-Known Member

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    @sash here's the update for my property in Park Ridge: 25 Mount Barney Crescent Park Ridge Qld 4125 - House for Rent #418948634 - realestate.com.au

    Apologize for the confusion, the garage is just 1 not two so it is 4/2/1

    Yes, it is 250 sq meter and this is the floor plan:

    I'm open for any comments and critics if you have any, no hard feeling, this is the reason I'm posting in the forum.[​IMG]
     
  2. See Change

    See Change Well-Known Member

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    Tekoz

    and the properties in Goodna ??
     
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  3. Mick Butterfield

    Mick Butterfield Well-Known Member

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    Haha. He is a little excited I think.
     
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  4. Shawn

    Shawn Well-Known Member

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    Hi all,

    I am currently doing some starting research on Goodna. It was one of my areas to keep an eye on 6-8 months ago when I was buying my second IP and I'm back here now because I think the market still hasn't taken off.

    I bought my 2nd IP in Slacks Creek and it has served me well so far and now looking to my 3rd in the next 3-6 months. I see Goodna being great value with the following strategy :

    - Highset 3 bedroom places on > 600sqm of land
    - Outside of the flood zone
    - Renovated

    Purchase Price including Stamp Duty/other incidentals : <$295K
    Rental : $320p/w (6% yield minimum)

    Anyone have any comments that they'd like to add?
     
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  5. See Change

    See Change Well-Known Member

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    The ex houso's we were picking up at 215 - 235 are being advertised at around 255 so up around 10 % in last year . Rent around 280 .

    They're still below what they would have sold at last peak

    They're moving but market hasn't gone crazy yet .

    Still time to get in IMHO .

    Cliff
     
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  6. Luke T

    Luke T Well-Known Member

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    hi Shawn,
    It has still got room to move if you check the prices as compared to surrounding areas.I would say what you are looking for though, you could do for a bit less .
    -Be careful paying higher than the median price as you may be better going to surrounding suburbs that already have the higher median and just buy a deal -that way the market has already done the work .
    rents are great -we just leased one for $330 per week after a 17k reno -purchased at 290 p/w rents
     
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  7. See Change

    See Change Well-Known Member

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    Ours are fairly basic , neat clean and tidy .

    Unlike some places , unless they have termites , the ex housing commish properties are well constructed . The down side is that they are often near other current housing commission properties , but we have seen sales of renovated properties selling for a fair bit more in those same areas .

    Hasn't been a problem renting .

    Cliff
     
  8. +men

    +men Well-Known Member

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    $17k reno to pump up the rent by $40/wk, so in theory it takes 8 years of increased rent to cover the reno cost. I would rather leave it as is and take the $290/wk without doing any work.
     
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  9. See Change

    See Change Well-Known Member

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    Way I'd look at it $40 rent / week on a 17 k property gives you a return of 12.2 % .

    Not a bad return in my books .

    Cliff
     
  10. +men

    +men Well-Known Member

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    it is not a bad return if that $17k is leveraged
     
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  11. Chris Au

    Chris Au Well-Known Member

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    And hopefully gives you access to equity in the process to go again.
     
  12. See Change

    See Change Well-Known Member

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    Whether it's leveraged or not , it's still a 12 % return .I'd be curious about anywhere else you can get a low risk 12 % return now days .

    Cliff
     
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  13. BB5

    BB5 Well-Known Member

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    Yeah but how many years is that reno good for to secure the extra rent before having to Reno it again? Particularly in a low socioeconomic area.
     
  14. larrylarry

    larrylarry Well-Known Member

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  15. Chris Au

    Chris Au Well-Known Member

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    Are you referring to the statement '.....THIS home that is NOT AVAILABLE ON ANY OTHER HOME available for sale in Goodna...' or the vendor finance details advertised as part of the ad? (I didn't go into the photos). Certainly want to move it...
     
  16. larrylarry

    larrylarry Well-Known Member

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    The lay-by. It sounds as though vendor wants to get rid of the house quickly.
     
  17. Chris Au

    Chris Au Well-Known Member

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    Certainly sounds as though they are opening it up to all options. Hopefully they know the ins and outs of vendor finance.
     
  18. quop

    quop Well-Known Member

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    The layby is offered by/through the REA. From my quick skim of their brochure on the product, it seems like they're essentially allowing the purchaser to borrow the (equivalent amount of the) sales commission from the property. No details on the fees/interest rate applicable though.
     
  19. Luke T

    Luke T Well-Known Member

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    Maybe we bought it under valued for that product ?? It's a 4 bedroom property with option to become a 5 on 890 m2 approx
    Possibly the 17 k is just taking its value closer to what it was worth ???
    Another thing to consider is a Reno can attract a better tenant who will look after yr property better as well -long term -so less maintenance during holding the property ??!!
    less vacancy,less management fees , less vandalism ,
    More opportunity to redraw equity straight away ,
    More chance of selling and making a profit
     
  20. See Change

    See Change Well-Known Member

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    Luke

    I think you did the right thing . There will always be people who try to find reasons not to do things .

    Your logic about renovating and having a slightly nicer tenant is incredibly relevant in places like Goonda / Ipswich / Logan .

    When we bought in Logan we bought at pretty close to the bottom of the market and had tenant problems . When we bought in rocky we avoided those types of properties and had no problems . I remember going though one property on rocky and being told by the tenant that is was a beautiful property and they loved living there . It wasn't a beautiful property . It was a Sh..t hole for mid 60 k that you could see through the cracks in the floor boards into the foundations . It was bought by someone on somersoft and the tenant who loved it got a boyfriend who proceeded to punch holes in the walls etc . No end of problems .

    We did see a couple of Sh..t holes in goodna ,m it w ex saw a lot more when we bought in Logan . We've bought neat solid little houses which are in good condition and so far we've had no problem tenants , but I must admit when we were walking around the local shops I saw a couple of people who I wouldn't have wanted as tenants . Maybe they can't afford houses and rent in units or villa's in goodna .

    Cliff
     
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