QLD Why I bought in Goodna - See Change

I have . Bought in morphett vale ( I said earlier in thread I'd bought in MV , which anyone familiar with Adelaide would recognise ) though when we were looking ten days ago , there weren't any of interest in Gooda , but now there are five ......


Maxed out at the moment so watching , chearing from the side lines . Go go goodna

If I was buying at the moment I'd be looking at these ..

9 Karina Street Gailes QLD 4300 | First National Westside

17 Bellevue Road Goodna QLD 4300 | First National Westside

152 Stuart Street Goodna QLD 4300 | First National Westside

7 Dowden Street Goodna QLD 4300 | First National Westside

20 Coutts Street Goodna QLD 4300 | First National Westside

Haven't done any DD on them , so need to check flood , mining influence and HV transmission lines to start with but would rent 280-290 .

Do your own DD .

Cliff

 

The houses you and your family purchased are bit better condition than the above examples?

Did I hear there's a bus load of sydney people this weekend destined to Goodna?

 

Flood map information - Planning & Development

 

No , similar , though our son bought a more modern 4 bed brick for not much more , but it is on a busier road .

If you take 152 Stuart as an example ( easy to see floors ) , the ones we bought either had polished floors or we had them polished floors ( cost to do that was around 2-2,500 ) .

Kitchens are functional . If there weren't BIR's we put them in two rooms . A couple had vanities which were on their last legs which we replaced .

Some are brick , some fibro / hardiplank . None wood ( though one in Ipswich is ) .

They are pretty typical of an entry level cheapie in places like Logan , goodna , Ipswich etc and similar to most of the properties we bought in the last cycle in Logan and elsewhere which all more than doubled in the last cycle .

They also pretty similar to the entry level properties in Mt Druitt.

Cliff

 

Good entry prices. 20km from Brisbane CBD. Train. Respectable yield. Winner.

 

Or MV?

 

Yah MV near the beach and bonus DT connection.

 

Stop hijacking
I prefer CB for 30-50k more

 

SC,

Picking your brain again. HTW puts Brisbane at 12 o clock. I understand your recent/current view is that Brisbane is certainly not over and has some years of growth. is this the same view you hold for the area you purchased?

I also recall your strategy is to sell the higher maintenance props ( cheapie in a not so high socio economic) and buy props in better suburbs for long term hold . What would be your target sell price if your entry was 250k for the area you bought?

Do you feel it will get to 500k in this cycle?

 

DT ... down .... You've already got how many Adelaide threads ? !

Cliff

 

He set me up

 

These are the median prices for goodna for the last few years.

First figure is number of sales . Peaked in 2008 , but there hasn't been a boom since 2007 , so around 9 years since last major move . Historically I'd expect to see movement in the short to medium term . I will be very surprised if there isn't a significant move in the next three years .

In terms of what the market feels like l to me it's similar to when we bought in Logan in 2002 .

Brisbane really took off as Sydney came to a stop last cycle . In the last six months we've seen prices move up around 5-10 % . The first places we bought were being advertised 215 - 230 now it's 230 up . Anything under that is going to be flood affected or a renovators special .

1999 56 $71,000
2000 61 $76,000
2001 113 $75,000
2002 206 $80,000
2003 319 $140,000
2004 235 $183,000
2005 149 $200,000
2006 193 $225,000
2007 225 $275,000
2008 146 $305,000
2009 167 $295,000
2010 114 $300,000
2011 90 $259,000
2012 79 $259,500
2013 99 $279,000
2014 121 $280,000
2015 138 $290,000

Most of the places in goodna are what I think will be relatively low maintenance . We have a combination of places . The main long term , nicer properties we have our in our super fund .

We did buy a couple of nicer properties in trusts in late 2013 which are going well , but in reality , to date we would have done better , cap growth wise and cash flow wise if we'd bought in Logan at the same time .....

I don't expect Goodna / Logan / Ipswich to get to 500 ( Mt Druitt didn't ) , in terms of the next 3 years , but if the up cycle drags on for a long period of time it might .

In the last cycle , Logan peaked at a higher level than Mt Druitt but that peak was around five years later , so the impact of inflation would have also been tacked on to any inherent growth in the cycle .

When we sell ( we may keep some ..... ) , we will probably be staggering the sales over a few years to cut down CGT .

Cliff

 

Hi SC,
Just wondering what your thoughts on a newer build 4x2x2 in the Goodna or surrounds would be?

A typical scenario would be PP around $330,000 rent for $360PW. Did you consider this? I am going up in a couple of week and just weighing through the options. My one is more of a buy and hold strategy.

Thanks for any advice.
Mick.

 

sea change, a few questions, will you do house inspection for those houses? will you choose those don't need any renovation? so for offer, for example 230K, maybe offer 240k?

for example,
7 Dowden Street Goodna Qld 4300 need renovation? How much and how long you reckon it will take?

 

We've inspected all of the ones we've bought .

So far the main things we've done have been painting , floor sanding / staining , installing built in robes and some ceiling fan lights . We put in a new vanity and a bath in one . No kitchens

Most have been done in 1-2 weeks . One blew out to a month due a combination of bad timing . Most we've spent is around 5 k , but most less than that

We haven't moved any ' upmarket ' . We have seen some of these types of properties nicely done up for sale around 270 -280 ( but might be more now ) . Opened up with kitchen / living area , air con , new kitchen / bathroom etc , but we weren't interested in doing that . Certainly not at this stage . Doesn't increase the rent much .

We might look at it if we to selling any , but we'd need to run the numbers at the time to see if it makes sense .

In terms of knowing what to do with 7 Dowsett . It needs the floor done . We chose to keep wooden floors , sanded and polished on the advise of our pm .
Hard to tell what else needs to be done without actually looking at it close up , but if everything was functional and the walls are clean , outside putting BIR's in two of the bedrooms and fan lights ( on advice of pm ) we haven't done anything else .

Our pm organised everything .

In terms of which ones ? The renovation needs didn't end up impacting our decision on which to buy. Usually once we started looking at the properties we found negatives on some and others would be in a quieter location , slightly bigger or better lay out or better looking neighbours . All the usual stuff .

BTW , YOU DO NEED TO DO YOUR OWN DUE DILIGENCE ....

Cliff

 

You're looking at the wrong clock .....

Feb 2016 , houses are at 9 pm = Rising market

Units are at 12 , but I've got to wonder whether they're lumping all units into the one barrel and forgetting there's life outside the CBD ......

Cliff

 

Indeed I have misread, it's 9 o clock for Brisbane houses.

 

[QUOTE=" painting , floor sanding / staining , installing built in robes and some ceiling fan lights . We put in a new vanity and a bath in one . No kitchens
Most have been done in 1-2 weeks . One blew out to a month due a combination of bad timing . Most we've spent is around 5 k , but most less than that
Our pm organised everything .
Cliff[/QUOTE]
Hi Cliff, so all those are organised by your PM or yourself did floor sanding/staining stuff?

 

SC got his PM to organise tradies. His time is better spent generating income elsewhere.

 

pm organised everything . No charge for organising all of that . No major works .

I don't mind doing that sort of thing as my job involves spending most of my time sitting on my backside talking to people , but so far I've restricted hands on stuff to our PPOR or our weekender . We just finished doing extensive landscaping on our weekender which we've done over the last three years . I calculated that I've spent about three months of time doing that . It been my major personal project over that period . I've found it very satisfying seeing it come all together.

Cliff