What do you think about outer Brisbane northern suburbs such as Kallangur, Morayfield, Narangba, North Lakes and Murrumba Downs? Kevin Turner on 4BC quite often quotes a growth rate of about 10% per annum over the next few years. To anyone who owns a property in this area, what are your opinions? I've got a property in this area and am agonising whether to sell or keep.
Hi There,
– If you sell, do you have a better place/investment where to park your profit?
– Depending on your financial “position” you could use equity from this investment to buy another property.
How’s the cash flow from this property? Is it “cramping” your style or can you sleep at night no worries?
I don’t know Kevin Turner, however I do know that areas with all the fundamentals in place hold value better. The mythical 10% growth per year quoted by the gurus has hurt a lot of people. It AVERAGES 10%, over the long term, however it doesn’t grow 10% each year. Growth in Brisbane during 06 was around the 4%.
Take Sydney for example, the 10% “rule” is not applying… at least in most areas. This is a good thing though.
Just some thoughts
Happy Investing
I guess you have to examine the reason you want to sell,…
why is it that you want to sell, what is you will use the funds for,…
Would you include Petrie in that list of areas with good growth potential? Saw a good 4 bdrm place the other day there for $340K. I have heard all those suburbs are good all the way to Caboolture but I'm not sure either as I am looking for an IP, but still vascilating between house out that way or inner city apartment. Rental returns just don't seem to be as high on the north side compared to south. Anyone got any comments on that? Another thing though… don't forget NorthLakes is going to be a massive shopping precinct with DJ's etc going in there, which will service those suburbs on the other side of the Bruce Hwy.
perryjudd wrote:Would you include Petrie in that list of areas with good growth potential? Saw a good 4 bdrm place the other day there for $340K. I have heard all those suburbs are good all the way to Caboolture but I'm not sure either as I am looking for an IP, but still vascilating between house out that way or inner city apartment. Rental returns just don't seem to be as high on the north side compared to south. Anyone got any comments on that? Another thing though… don't forget NorthLakes is going to be a massive shopping precinct with DJ's etc going in there, which will service those suburbs on the other side of the Bruce Hwy.If you are after capital growth then i think a house in the northern suburbs will out perform any apartment in the city,….
I have properties in these area including petrie, I actually grew up in Kallangur and feel that all the factors are just right to ensure continued growth,…
Unless its a dog I would hold in nth brisbane transaction costs might make it impractical to sell and buy closer in.
JONCHU wrote:Hi There,
– If you sell, do you have a better place/investment where to park your profit?
– Depending on your financial “position” you could use equity from this investment to buy another property.
How’s the cash flow from this property? Is it “cramping” your style or can you sleep at night no worries?
I don’t know Kevin Turner, however I do know that areas with all the fundamentals in place hold value better. The mythical 10% growth per year quoted by the gurus has hurt a lot of people. It AVERAGES 10%, over the long term, however it doesn’t grow 10% each year. Growth in Brisbane during 06 was around the 4%.
Take Sydney for example, the 10% “rule” is not applying… at least in most areas. This is a good thing though.
Just some thoughts
Happy Investing
The prediction for outer northern suburbs is for 10% over the next few years – it is not the average over a long period. Kevin Turner is a highly respected commentator on 4BC. I listen to his program every Saturday between 10am & 12 noon; he knows what he is talking and seems very balanced. He uses a lot of different statistics to help in his predictions.
I'd like to hold onto my Kallangur property but may have to sell because of cash flow problems. I've exhausted my line of credit and have to decide whether to sell this property or others which are a lot closer to the CBD. If the outer areas are going to do well over the next few years I may be tempted to sell something else.
Yes, I can sleep most nights although I did stay up one night recently trying to work out my best options. To everyone who has replied, a big thanks.
Has anyone else got property in this area? What are your thoughts?
Petrie fits into the category of outer northern suburbs. Don't know much the suburb but feel that it is going to do well in the future.
just a small point, none of these places are in Brisbane. they are all either Pine Rivers or as in north Lakes, Redclliffe shire. I think Petrie will do less well than any place close to the Gateway. All those areas are predicted as growth areas.
I have been considering whether to invest in Murrumba downs or try to get something (probably dilapidated) in Brisbane. Brisbane has one thing that these other places do not ie land scarcity.I'm not one for units but the future holds a greater percentage of aged and single people. Also younger people and couples also want to be where the action is, so I think you can't go wrong with a unit in the CBD.
As someone else mentioned, keep the unit till you have the equity to buy in north lakes or murrumba downs or somewhere you like.
Milly wrote:just a small point, none of these places are in Brisbane. they are all either Pine Rivers or as in north Lakes, Redclliffe shire. I think Petrie will do less well than any place close to the Gateway. All those areas are predicted as growth areas.
I have been considering whether to invest in Murrumba downs or try to get something (probably dilapidated) in Brisbane. Brisbane has one thing that these other places do not ie land scarcity.I'm not one for units but the future holds a greater percentage of aged and single people. Also younger people and couples also want to be where the action is, so I think you can't go wrong with a unit in the CBD.
As someone else mentioned, keep the unit till you have the equity to buy in north lakes or murrumba downs or somewhere you like.You're right, Kallangur is strictly not part of the Brisbane City Council. However,I like many others, still think of it as part of the greater Brisbane area. It's not just inner Brisbane that there is a land scarcity at the moment. Try buying a block of land in "outer" Brisbane at the moment. In a Caboolture estate that I was interested in, there was only one block left for investors. The rest were for owner occupiers. I've also looked at Warner and North Lakes – same story. Come in closer to places like Carseldine – nothing much under $300,000, if you can get it. In Bracken Ridge, again, virtually no land available for investors.
Regarding units, I do own one in Toowong and another in Kedron. It's a toss up as to whether to sell the Kallangur property or one of these units to ease my cash position. I've noticed that in some of the major capital cities that units close to the CBD are performing better than house and land in the outer areas. It's a hard call!!
hleung wrote:Milly wrote:just a small point, none of these places are in Brisbane. they are all either Pine Rivers or as in north Lakes, Redclliffe shire. I think Petrie will do less well than any place close to the Gateway. All those areas are predicted as growth areas.
I have been considering whether to invest in Murrumba downs or try to get something (probably dilapidated) in Brisbane. Brisbane has one thing that these other places do not ie land scarcity.I'm not one for units but the future holds a greater percentage of aged and single people. Also younger people and couples also want to be where the action is, so I think you can't go wrong with a unit in the CBD.
As someone else mentioned, keep the unit till you have the equity to buy in north lakes or murrumba downs or somewhere you like.You're right, Kallangur is strictly not part of the Brisbane City Council. However,I like many others, still think of it as part of the greater Brisbane area. It's not just inner Brisbane that there is a land scarcity at the moment. Try buying a block of land in "outer" Brisbane at the moment. In a Caboolture estate that I was interested in, there was only one block left for investors. The rest were for owner occupiers. I've also looked at Warner and North Lakes – same story. Come in closer to places like Carseldine – nothing much under $300,000, if you can get it. In Bracken Ridge, again, virtually no land available for investors.
Regarding units, I do own one in Toowong and another in Kedron. It's a toss up as to whether to sell the Kallangur property or one of these units to ease my cash position. I've noticed that in some of the major capital cities that units close to the CBD are performing better than house and land in the outer areas. It's a hard call!!
When was your last rent increase and by how much,….. you may find you have a nice surprise of untapped rental income,…
Rents have had big gains in Pine rivers over recent years,… I did a rental increase of nearly $100/Week on my property at murrumba downs,… It might be worth not renewing your tenants lease say because you want to do renovations,… give the place a quick spruce up and put a new tenant in at market rent,
Thanks for that. Yes, if the returns are high enough I might be able to just hold on to the property. Didn't realise that rentals are going up so fast.
I have found that when looking at potential yields in these areas, the numbers just don't stack up if you look at current rental prices. Eg 350K property will only get about $300 pw. However I believe that many places are due for large rent increases. It has to catch up eventually right? How do you accurately assess what a place SHOULD realisticly get rather than what it is currently rented for? If this can be factored in then it might be more affordable, but is risky because someone down the road might be happy to accept a lower rent for a similar property.
perryjudd wrote:I have found that when looking at potential yields in these areas, the numbers just don't stack up if you look at current rental prices. Eg 350K property will only get about $300 pw. However I believe that many places are due for large rent increases. It has to catch up eventually right? How do you accurately assess what a place SHOULD realisticly get rather than what it is currently rented for? If this can be factored in then it might be more affordable, but is risky because someone down the road might be happy to accept a lower rent for a similar property.you can get a RE to do an appraisel,… or just avertise it at a certain price and see if you get bites,…
I think that area is a cracker for a lot of reasons and would hold for sure. I have quie a few savvy investors as cleints who have bought in this area and are looking for more. Good time to hold an asset in SE QLD.
pete gwynne
[email protected]
0423 028 239pete g wrote:I think that area is a cracker for a lot of reasons and would hold for sure. I have quie a few savvy investors as cleints who have bought in this area and are looking for more. Good time to hold an asset in SE QLD.
pete gwynne
[email protected]
0423 028 239Thanks Peter G. I've just about made up mind that I won't sell.
I have recently bought 3 properties in Deception bay. 1 is a bare block of land on Esplanade Nth, the other is newish 3bdm house further up on the esplanade nth and the other has direct water views thru a park in sampson st. i am buying these as a long term hold and plan to build on the block in november 08. the yields are crap overall compared to what i paid but the equivalent waterfront in redcliffe, sandgate etc is double the price.
any thoughts?? does anyone else believe the waterfront growth in this suburb will outperform in 08/09??
i like the area and plan to move into one of the properties within the next 12 months and i believe that like wynnum, redcliffe and some other bayside suburbs, Deception Bay will shake off its negative image especially with continued development in the area and overall scarcity of waterfront 35 mins from the city.
have i made a sound decision??graeme garden wrote:I have recently bought 3 properties in Deception bay. 1 is a bare block of land on Esplanade Nth, the other is newish 3bdm house further up on the esplanade nth and the other has direct water views thru a park in sampson st. i am buying these as a long term hold and plan to build on the block in november 08. the yields are crap overall compared to what i paid but the equivalent waterfront in redcliffe, sandgate etc is double the price.
any thoughts?? does anyone else believe the waterfront growth in this suburb will outperform in 08/09??
i like the area and plan to move into one of the properties within the next 12 months and i believe that like wynnum, redcliffe and some other bayside suburbs, Deception Bay will shake off its negative image especially with continued development in the area and overall scarcity of waterfront 35 mins from the city.
have i made a sound decision??Residex has targetted this area as one of the growth suburbs next year. Yes, it still has a negative image but due to its closeness to water will do well in the future. I don't think that it has the same infrastructure as places like Kallangur where I have bought. My property is close to rail, a massive shopping centre and plenty of schools.
As you have already bought, I wouldn't be too worried – you'll do well in the long term. What makes you wealthy in the future is the capital gain, not the yields so if you have good reserves of cash you won't have any problems.
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