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. Whitecat

    Whitecat Well-Known Member

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    Maybe housing commission or rundown houses or caravan parks.

    If i was going to invest in goodna i would get walking distance to train only.
     
  2. JZ93

    JZ93 Well-Known Member

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    Hi @See Change
    On top of the mining, transmission lines and flood risk. We're properties on slanted blocks a big deterrent for you? As the ones are in the two you linked up a couple of months ago?
     
  3. See Change

    See Change Well-Known Member

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    All of the one's we bought were relatively flat . We saw a couple of slopes that had dysfunctional layouts re house / land which we passed on .

    I'd prefer flat over slope .

    Cliff
     
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  4. JZ93

    JZ93 Well-Known Member

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    Seems as though most of the sub 250s are that for a reason now...
     
  5. See Change

    See Change Well-Known Member

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    I think the entry level is 250-255 now .

    I'd expect flood , HV or a crappy place on a busy road under that , or all of the a vote .

    Cliff
     
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  6. JZ93

    JZ93 Well-Known Member

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    Would you expect a rent of around 300pw max with those kinds of purchases 3/1/1?

    Have rents matched what they were in the previous peak??

    Cheers
     
  7. See Change

    See Change Well-Known Member

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    Depends on individual property .

    I'd budget on 280 . If you get more great .

    Cliff
     
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  8. Taku Ekanayake

    Taku Ekanayake Well-Known Member

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    nice work @Luke T . how much was the purchase price of the property?
    Yes exactly. I see the extra rent increase as just a cherry on top.
    For me, when doing renos I see the ability to increase value and withdraw the equity straight away.
    If you bought well BMV then a light cosmetic reno can just be the reason to have the property revalued right after settlement with a decent equity increase.
     
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  9. Luke T

    Luke T Well-Known Member

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    Hi guys,
    Taku that one was $238,8000 (settled 30 june 2016)i paid on behalf of a client & good friend of mine.
    (as i negotiated $1200 off the purchase price after they left stuff at the property when we were about to settle -This is something that happens often )

    Their are not many comps for 4 bedders in riverview and surrounds as they are rarer but the couple accross the road from this one sold for $410k(reno'ed) same month as ours and the other across the street was on market for $350K from memory-but these both have bigger blocks to be fair)
    Yes equity increase -Yes this is the only type of property I buy pretty much now (for my familys portfolio)-It gives the best of both worlds
    Our list is to
    Buy;
    #In a reasonably well accessible area to major CBD
    #At Lower end of specific product (market housing costs)
    #Under market value
    #With Opportunity to add more value than it costs
    #With Opportunity to add sweat equity &/or use yr wisdom/experience to do only whats going to add value and rent rise(if yr that way inclined)-
    This for us is usually a minor reno (8-$15 k straight away to be able to add inital equity ,then in a perfect world a large block to be able to add granny later or dual occ or just a larger block to add value to later on (even if that means just an increased sale price for the property in the area due to more opportunity for the large block )
    #Cashflow positive to cover costs
    #Something that is rare /scarce but in demand(not many 4 bedders in the area but needed)
    #Bottom (or at least with still move to increase) of the current growth faze)
    #With ability to refi within a few months and go again
    and
    #Importantly (if you can) not go majorly negative cashflow once refi-ed

    In a perfect world-
    You cant always have every one of these steps covered fully but its the aim on every purchase
     
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  10. Taku Ekanayake

    Taku Ekanayake Well-Known Member

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    thanks for the breakdown @Luke T. great points made
     
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  11. See Change

    See Change Well-Known Member

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    After selling in manly in our SMSF , we had some spare cash looking for a home .
    Reviewed different options and decided at the price we were looking at goodna still offered the best option . Looked closely at Hobart , but the areas we were looking at have probably moved closer to 15 -20 % compared to goodna which has moved around 10 % .

    Ended up buying in Gailes , at close to 10 % above what we paid for our last one in Gailes . Gross return should be around 6 % .

    So 7 months after starting this thread I still think it's good value to buy there .

    Cliff
     
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  12. Bran

    Bran Well-Known Member

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    Ditto
    My brother has bought 2.
    I feel it's time it to come
     
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  13. Vk8975

    Vk8975 Well-Known Member

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    I've got one in Gailes.

    Tossing up where to buy my 3rd IP next year...depending on how prices are next year may buy one in either Gailes or in the southern Moreton bay region.

    Ive been tracking Riverview, Goodna and Gailes....all three have gone up in value this year but would definitely buy another at the current prices.
     
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  14. sharon

    sharon Well-Known Member

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  15. See Change

    See Change Well-Known Member

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    Saw that one and was a definite possibility . We had another as our preferred and got that one , but if we'd missed out on that I would have been happy to make an offer on this one . I'd even wonder if you contact the agent it might have sold ....

    Land's not flat . Slopes up from street . Flood map should out of flood

    Solid garage , fencing was ok . Possibly some drainage from back yard going under house . Not sure if it's an issue .

    Little old ladies house , empty for six months . Seemed quite solid , though was wooden .

    Third bedroom was set up as a sitting room with a door going into kitchen as well as corridor , which we would have wanted to close up .

    Standard entry level offering .

    Kitchen , IMHO , was solid though obviously dated . Rust in bath so probably needed a new bathroom , kitchen etc . A/C in lounge but agent wasn't game to turn it on to see if it worked .

    You'd need fans , a/c , smoke alarms ( looked really old )

    60- 70 'kitchen solid , functional - dated. Lino floor
    Good sized laundry
    3 beds - good size , no bir
    Carpet , relatively clean

    Also B&P .......

    Cliff
     
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  16. JZ93

    JZ93 Well-Known Member

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    I also noticed this one. Guessing it hasn't sold due to the power pole in the front yard??
     
  17. Elives

    Elives Well-Known Member

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    It went under contact few weeks ago
    Looked ok for the block size
     
  18. See Change

    See Change Well-Known Member

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    Not a high voltage transmission line so IMHO it's not issue . Every second house on that side of the street has one .....:rolleyes:

    Rang agent and it's under contract , though not unconditional . Never know when things can come back on the market .

    Cliff
     
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  19. See Change

    See Change Well-Known Member

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    6 pascoe st in gailes is also worth a look .

    House is in good condition , though B&P necessary .

    Issues are the slope , BIG gum tree in back yard , there is some noise across the valley from the freeway . Many won't find this an issue but as a pseudo muso I'm not keen on things with any element of noise .

    Flood near the bottom of the street but the house is well above that so not an issue .

    Houso at the bottom of the street and private up the top . Had a chat with the neighbour who was relieved the house was being sold as previous tenants had been problematic .....

    Cliff
     
  20. See Change

    See Change Well-Known Member

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    Figures from REA investor section .

    2016 Median , 2015 Median , Median at previous Peak , Median at trough since last peak , Yield

    Goodna 309 , 298 , 298 , 208 , 5.2 %
    Sunny Bank Hills 658 , 630 , 500 , 480 , 3.6 %
    Wavell heights 649 , 630 , 480 , 500, 3.6 %
    Moorooka 600 , 571, 455 , 500 , 3.7 %

    So from my perspective , as an investment , goodna is out performing the others in every stat I consider relevant .

    It has the highest return , so I can hold more property , so the more I hold , the more money I make . The holding cost between 5.2 ( we've actually bought at returns of around 6 % ) and 3.6 % is significant .

    It has gone up the most in the last year 6.5 % , SBH - 4.4 % , M - 5 % , WH - 3.0 %

    Price above previous peak G 3.7 % , WH - 20% , M - 23 % SMH 32 % . Given that most suburbs tend to double each cycle , ( I'm working on the premise that Goodna has a greater percentage to go in the current cycle and this is my observation in previous cycles )

    I could also point out that if you had bought at the bottom of the market ( which I didn't ) you'd be sitting on a 48 % increase , which is higher than all the others and also higher than logan which has had around a 36 % increase so far ( I actually would have expected higher )

    Conclusion ....So far I'm happy with my decision to decide to buy in Goodna .

    I thought this info was worth a separate thread

    Cliff
     
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