While we’re on this topic can I get some views on Morayfields as a future CG suburb. My research tell me it has good potential but there are some IP guru’s who think otherwise.

Can I pls get some feedback on this.

Dedfred [suave]

I Went…I Saw…help me Conquer!!!
OK, so I flew up and I’m back…and it was a great trip. I’ve locked my sights onto Morayfield’s and Springfield Lakes…I’d made a few appointments prior to flying up. My inspections included H/L pkgs (I know…I know, I had to see it for myself), younger properties (1 – 3 years old) and 10+ year old properties.

Well, after 2 day of getting lost a few times in my hired car and covering about 450Km in that time, I think we’ve been able to lock down just two that we like and I’d like to get some feedback from you guys.

I inspected 13 properties in Morayfield’s, and 4 in Springfield Lakes.

Properties we Like:

Morayfield: 4B+2T+2LUG.

1. 3 year old property located on a large block of land (700+ sqm) situated only 1.4 Km from Morayfield station and shops. It also has a local (small) shopping centre round the corner for day to day needs.
2. Local primary school is just around the block.
3. It has tenants in place who are keen to stay on for a long term.
4. The only issue that was brought to my attention is that there is a slight flooding issue in the backyard when there are heavy rains. This is apparently caused due to bad drainage that trickles on from the neighbour’s property.
5. The flooding does not affect the house itself and the tenants are extremely happy the way it is.
6. I’m not sure if the drainage issue can be addressed by the council or even if it’s a big issue at all.
7. Approx Gross Rent Return 4.64% (this is calculated on current advertised rate of the property which is negotiable).
8. I also spoke to a couple of the surrounding neighbours who had good things to say about the street and the locality in general.
9. I’m told the current owner is looking at liquidating this asset for personal reasons.

Springfield Lakes: 3B+2T+1LUG.

1. This property is currently owner occupied and is situated on a rather small block (300+).
2. The property is just over a year old and is well presented; I’m told by the agent that it can be very easily tenanted.
3. It has A/C, dishwasher and few other features that come with newer properties.
4. Its location is fairly good as far as I’m concerned as its located near a park, a new school and only a couple minutes drive to the new shopping centre and university.
5. There were no obvious issue that I could pick nor was any mentioned by the agent or current owner.
6. Based on forecasted rent this property would give me a gross rent return of 4.43% (again, this is calculated on current advertised rate of the property which is negotiable).

OK, now for my thoughts on these properties and locations and if you could pls respond if you agree/disagree, or think I’m wacko:

1. What I’ve come to understand that Morayfield’s has existing infrastructure and from what I can understand its a Blue Collar area with low – medium income earners with a big rental property demand. (Agree/Disagree)
2. Springfield Lakes has a fairly even mixture of White and Blue Collar. It has some fantastic infrastructure that is currently going into place and there obviously great potential. (Agree/Disagree)
3. Agents tell me that there is always a demand for rental properties and that it’s quiet possible to find a tenant prior to settlement – this was the trend for both suburbs.(Agree/Disagree)
4. Springfield Lakes seems to be a suburb with higher income earners than that of Morayfield’s…this was purely based on the people, cars, houses etc that I seen when driving around. (Agree/Disagree)

I personally prefer the Morayfield option because its safe (Yes I’m CHICKEN). Provided I can negotiate the right price, I’ve got a happy long term tenant in place and I know for a fact that the suburb is experiencing good CG and is predicted to continue with the steady +ive CG over the next 5 – 9 years.

But, but…but…but, there always has to be a BUT . Springfield Lakes, from what I’ve seen, the University, the Orion Shopping Centre, the TAFE college, the 5 or 6 schools etc…etc seem like a place set to experience a big leap in CG over the next few years. Although the land size is smaller, as long as I can get a tenant into the property I’ll be set. This is also the reason I’m anxious to choose it, as the thought of not being able to tenant it scars the living crap out of me (did I say I was CHICKEN).

Please, Please hit me with your thoughts and suggestions and if I haven’t said it already…I REALLY APPRECIATE YOU GUYS TAKING THE TIME TO RESPOND on this post. Your advice had been great.

Cheers

dedfred