QLD Why I bought in Goodna - See Change

Interest, Rates, insurance and mgmt fees consume about 2/3's of rent, rest goes off principal on min payment reducing balance. Minimal repairs. Never unoccupied.

It was slightly negative year one by a couple of $k. This is my standard purchase criteria, slightly negative for a year or two then neutral to positive following that. If i cant achieve that with the house, I don't buy it.

 

If you get no issues, vacancy, or nil repairs I can see how it can work if calcs on 80% borrow, I calc every cent used to buy & never made it work even on 7, but I allow at least 2k for repairs as it seems that is the norm.

 

Certainly better than a place returning 2% whith CG stalled or in reverse, like in Syd !

 

had a chat too a few agents last week .

They're no longer getting 30-50 at first open with 15 offers . They're getting up to 12 with 3-4 offers . Everything I've been watching ( unless there's something weird with the house or vendor ) is under offer within a week of hitting market .

Lots of interest from FHB and couple of agents have " connections " with BA who have ongoing interest and are happy to buy at market prices off the market , ie not low balling. They BA's just want to get to the head of the Queue .

Asked one to give us a drive by valuation on a couple we bought at 210 & 225 . Price around 400 at the moment . I wonder whether that was maybe 20 -30 to high to try and " buy " the listing .But by all accounts , at the moment the market is still strong and all the agents bar one reported ongoing stock shortage .

We've contemplated selling some , but have decided there's more to go , especially when you look at prices in Logan ( closer to 500 ) and in the last cycle , prices seemed to reach a similar level in both places .

Cliff

 

Rents had been pretty flat for around 4-5 years but in the last year they've jumped. Sadly just after we renewed some ...

280-300 is now 340-350.

We've got one tenant who offered to go to 340 for two years which we've never had happen . Politely declined as we're thinking of going though and doing some renovating in the next 1-2 years and that one's one we might keep long term .

Cliff

 

Gee you will be seen as the anti christ saying that anywhere would be similar to Logan !

The Logan fanbois think there is a never ending pot of gold there.

I am not so sure on where markets will go in that vicinity in QLD, but I am exiting.

 

getting $340 on my 3/1/1tenant just renewed

 

This sale should be interesting, tenants in place for over 30 years! Good block for a granny flat
https://www.realestate.com.au/property-house-qld-gailes-140738831

 

OMG! The green all over that house hurts my eyes. And tenant is only paying $250pw rent.....

 

Hey @See Change

Did you end up listing any of yours for sale? Or do you think there is still more to go in Goodna?

Our property in Goodna is currently undergoing renovations and we're looking to list it within the next month or so, just before people break for xmas. Hoping we haven't left it too late and missed the boat!

Would love to hear your thoughts and insight!

Cheers
B

 

We haven’t sold any up there at this stage . My observation is that Ukraine when I felt it had more to go.

We decided to sell our weekender instead ( which had
gone up 250 % ) . We had planned on holding it but we have had it for 10 years and come to realise that using
It on a very regular basis meant we weren’t doing othe things , so we sold it and have paid down a whole pile of debt and I’ve cut down my working hours .

rents are going up in Goodna / ipswich , last one from under 300 to 390 .

We’re looking at selling one in Tassie which has doubled and that will clear the debt on several in G/ I .

Our retirement is otherwise paid for so those one are now “ spare cash “.

The market there has certainly stopped but ( so far ) hasn’t pulled back the way others have . A few commentators are pointing to signs the slump is slowing and given you can buy a place there for under 400 which returns 5 % I still think there’s a reasonable possibility of entry level prices getting over 400 and maybe even closer to 500 . No guarantee on that ,
but if it does , gives us options that we don’t have if we sold now . And selling now won’t make a a major difference to what we can do now .

That’s all due to our circumstances and what we want to do so as always everyone’s circumstances …

In terms of entry / exit costs it makes sense for us to hold . If we didn’t already own there , now , I’d be looking at Perth . Haven’t looked there since we bought there last year . I’d want a close look before I bought .

cliff

 

Good to hear from you Cliff! Sounds like you're in a great position!

Thank you for your thoughts

 

You don’t get many “new” builds in Gailes. I was expecting around 600k, but I’m not up to date with current building costs
11 Nagel St, Gailes, Qld 4300
https://www.realestate.com.au/sold/property-house-qld-gailes-140364979

 

I have a place in Silkstone - put the rent up from $300 to $360.

 

My Eastern Heights one just went from $310 to $400.

 

Those familiar with Goodna, are there any streets that are better than any others, areas that flood? DS is looking for his first home and this is one of the areas he's looking at.

 

Oh yeah, parts of Goodna flood pretty badly. Other parts are fine though.

A quick google for flood maps perhaps?

 

Ipswich council has an interactive flood map .

If you want to check another way , get an online quote for insurance we looked at one that was adjacent to a flood zone . Insurance ? 6 k.

Used to be around 1 k , now around 1400 .

I haven’t been in buying mode for several years up there so not up to date with best sites to check on local features .

Cliff

 

Will be tracking goodna and ipswich surrounds.

Prices have moved signifacantly in these areas the past 2 years. But holding up relatively well due to there medians and affordable price points i suspect.

Things i like:

• Afordability
• Proximity to Brissy (20kms) / Ipswich CBD
• Tight vacancies -> Ability to find a tenant and cashflow immediately
• Room for rental growth -> Ability to service and borrow $ moving fowards
• Gentrification -> Some pockets, even just driving around. Alot of areas, look very house proud, upkeep looks good. Renos / KDR on the up? Better feel and look of the area

Despite the price movements, these areas still value to buy @ the 400 - 600k pricepoint?

Some growth to follow if it can withstand these IR rises and be resilient in the current property market?

DD in the way of b & p to reveal potential reactive soil issues. Making sure not in floodzone etc.

Have the insurance preiums been increased in a big way since the floods earlier this year?

 

None of our have had a big jump in insurance due to any floods . Insurances have crept up since we bought , but I don't think there more than any where else .

We did get a quote on one place we were assured had never flooded . Maybe it hadn't , but if we'd bought it we would have been up for 6 k / year ...

I know in the past some people have been able to find cheaper insurance for some borderline properties , but one decent flood and the risk might get reevaluated ...

Cliff