QLD Wynnum - What should I look out for?

1. Based on what I can see on Realestate.com at the moment, there are 18 properties under off out of 78 listed.

2.East of the Railway; Assuming East also includes properties to the East of Wynnum Nth Rd (ie at the point where the railway curves towards the west, there are 32 properties listed for sale (with a listed price). When you ranking the 32 properties from lowest to highest price, the 16th property is listed at $850,000, which is the median based on that data set.

3. Ranking the last 11 sold price properties, East of the Railway line, the median sale price is $728,000.

 

We're getting 5.6% yield on the Manly West IP. I'm still waiting on last week's valuation to come through but I wouldn't be surprised if the growth would bring the yield down below 5% if we were starting out again today.

 

The yields I calculated are based on the purchase price.

 

What are other peoples thoughts on the price growth predictions for this area compared to the Brisbane average?

 

I purchased a 3br townhouse on Bride St (East of train line 2 mins from station) in Jan of this year. Currently gets 5.59% yield. Complex is 5 yrs old with relatively low strata (5 in the block).
No real complaints thus far. Spent a day on the weekend there before I bought and the esplanade was a very vibrant busy place to be. Many locals were out having BBQ's and running marathons. Theres a wading pool for the kids and a few restaurants. Spoke to a few locals whom were originally from Sydney and their view of Wynnum was that it was a 'dead-end suburb'. Their definition of this term was that most people in Wynnum are locals as its not somewhere u 'pass by'.
Met another member on the forum who lived there a few months for work and he had generally good things to say about it.
Not much to do in terms of nightlife but seems like a great place to raise a family.
Bay Terrace is the main rd with shops and has an old country town feel about it. Hopefully that gets a facelist sometime in the near future.
I did see some new residential blocks under construction which should complete soon (not sure how this will affect rental market).
Transport to Brisbane City is in theory 20 mins drive but I've been told it can be double that during peak periods. The ride into town on the train is about 45 mins.
Overall I'm satisfied with the purchase but if I could do it again, I probably would've bought something else (house for cheaper price in another suburb). In saying that, its not the worst buy either. It has alot of characteristics (ok yield, low strata, near water and transport) which make it a nice, safe buy that I wont be complaining about in the future. If I had 10 similar properties, I'd be pretty stoked 10 years from now.

I agree with most everyone else on this thread: If possible, definitely buy a house and stay eastfon train line. You wont go far wrong if do that

Goodluck with the purchase!

 

What to watch out for;

• The Jerry Springer Guest type locals( I used this analogy from SS)
• The locals who protest about any new development
• The locals who just want a movie cinema
• The stabbings near the local primary school
• The dogs that no one seem capable of keeping in their yard
• The lack of shops open on a Sunday
• The Centrelink
• The parole board building

Before moving up here a mate of mine described the gap toothed curtain, Wynnum is definitely on the southern side of it.it probably finished at Morningside

In saying that there is some action happening in the suburb, new Woolworths, plenty of units which will feed the local cafes and shops. A new wine bar cedar and pine has proved people in the suburb are looking for something to do. My GC prediction is it will gentrify, just not this boom. It will also keep pace with Brisbane this property cycle but may outperform the next.

On Facebook follow the wynnum herald and wynnum what to get a feel for what the locals thinks or are like, then remember then are bias and probably don't realise how feral brisbane people can be compared to sydney siders. At present it is like Campbelltown was 10 years ago, where there haves and have nots, most haves are east of rail particularly bordering on Manly on the Terraces.

 

I would be looking for 600sqm or 900 sqm plus blocks within 200m of the 6 walk zone- 2000sqm commercial blocks as listed in the BCC city plan for best CG

 

Awkie.....what is the rent on the place like this?

Why did you buy there....what the are the growth drivers...or did you buy to develop down the track?

Out of curiousity how much are your renos costing you...I am doing 2 at the moment in Brissie...

 

What you've just described is the St Kilda of yesteryear! There were plenty of drugs, stabbings and prostitution back then, now look at the area!

 

I just love the feel of the area plus it has a train, the one I bought is a walk to the station, its a very peaceful area. Its a walk to the bay, plus i've got 810sqm of land, almost flat and up on high land and only a couple of (fruit) trees in the back corner. The bay views from the house sealed it for me. I figure I can do something with the 810sqm - my current thinking is to move the current house to the back of the block and put a nice 2 storey house on the front sometime down the track to make the most of the views. I love the area though and could easily move up there myself. Neighbours say once you move to the bay you wont want to live anywhere else - and I believe that.

The reno was 13k including complete internal painting, floors sanded and polished, electrical work, purchase and install of kitchen, new window blinds, new vinyl installed and a couple of other small jobs.
Still replacement of two broken windows to do (I must follow up progress on that)

 

OK ta....what will get in rent?

You did a pretty job with the reno ...are you doing it yourself mostly?

 

Its getting 390 a week in rent. Yep, not awesome. It only has 2 bedrooms which is why. I tried to figure how I could put a 3rd bedroom in within the current space but it wouldnt work with the layout and positioning of the windows as they are so I left it as is.

Anyway, I figure the Darlington property being Airbnb'ed is smashing it for cashflow so I can be ok if this one doesn't quite have brilliant yields for the time being.

For the reno I did pretty minimal work myself to be honest. I was going to paint it myself but a colleague said why? And then when I got a decent quote from someone to do it...
Ditto good quote for the kitchen install. It just took longer than anticipated to complete.

I put a few cabinets together, chose the kitchen layout, chose the flooring and paint colour (and I reckon I should have gone a darker colour). But anyway, the original flooring and walls were pretty original so it really needed the freshen up.

 

Noice Awkie...kudos.

That is very good price for a reno.

My budget for my reno is about 10.5k ...for my unit:

1. Replacement of kitchen (includes kitchen, appliances, cabinets, plumbing, electricals)
2. New floor coverings (carpet/vinyl)
3. Painting of entire unit
4. New curtains/ curtain rods
5. Gyprock of the servery
6. Other odds and sods
7. Re-grout of bathroom

 

I've learnt a lot since I had my first kitchen installed in an IP. I was very green and paid 13k for that (late 2010?) and it was nothing special. This is the third kitchen I've had installed in an IP and I've become better at choosing quotes... interestingly I've never had a new kitchen installed in my PPORs though!

I guess I'm ok living with whats there already and its not being treated as a piggy bank.
I figure the kitchen is good enough for me to live with, no need to change.

 

Hey Gockie, if its a rectangular 810sqm chances are you would make the most of it shifting the old house sideways (if it fits) and putting a boundary down the centre and returning it to 2 x 405sqm.
I know a few have been done like that in the area and nice profits have been made!

 

Its rectangular but slightly different proportions (ballpark 16m x 50m) so while I agree and think a side by side is usually ideal, it might not be the case for this one, hence the shift the house down to the back idea.

 

Valuation came back 10% above purchase price, in line with the suburb growth stats. Gross rental yield if buying today, just under 5.1%.

 

Anyone got any thoughts on Capalaba (houses). They look to be decent value versus wider BNE market, very low vacancy and ok 5%+ yield. Some are newer as well so good depreciation.

 

Sure. But why not consider going closer to the bay?

 

Just out of interest, who do you guys use for kitchen quotes? I was thinking cheapo from Ikea or bunnings. We are about to undergo renovations in Underwood. It's my first one and living in Sydney I don't really know where to start... Need to do kitchen, paint, floors maybe, and possibly add a bathroom downstairs. Any advice is much appreciated