Hi all
I have narrow down the suburb that I want to invest in and I am also have a few property in mind. Now I want to narrow it down to 1 suburb again.
and I am not sure which one would all experienced investor would go for. I am looking at Bellbird Park and Eagleby in QLD.
They all have about the same vacancy rate 2% -2.5%
For the roughly the same price, I can get a house on 616m block, 3 bedroom in Eagleby, but only a 2b unit in Bellbird park.
rental potential is $260-300 vs $240-260. ( i have to say the house is 20K more than the unit, however I expect )
I know it is not quite a apple to apple comparison. That is why I puu out other data .
I have a look the 2011 census ( Big thanks to other people's advice.) I have found that Bellbird park has less unemployment rate than Eagleby by 5%, the median household income is $ 500 per week more than Eagleby. However, The rental in Bellbird park was $20 per week lesser, and the population was 5k less than Eagleby.
I will have more chances to increase property value on the eagleby( simply it has land)
But based on the social economic fact from the sensus, which one would you guys prefer? or Neither of them are good areas in terms of growth and the people living in there?
I guess is all boils down to the amount you have to invest.
To me i personally wouldn't buy in either for my own portfolio or on behalf of a client but there aren't too many suburbs in Brisbane where you can get into a property for the sort of price you are talking about.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
I am limited to what I can spend around 200K. Can I be the pain to ask you why not those 2 areas? is it because they are in their top peak, not much grow in the future? or they are just not a good area to live in( people not likely to pay the rent, troublesome area in terms of crime, negative influence to drive poeple out)?
I am looking at them simply because theiy are in between Brisbane and Gold Coast, price is affordable to me and the rental income is ok.
Hi Shelby,
Back about 20 years ago, Eagleby is where people with little money were sent when they couldn't afford Woodridge. Prior to that, Woodridge was where they sent people with little money. So, Eagleby didn't start well, and, unlike Woodridge, it doesn't have the infrastructure that Woodridge has (train, huge shopping centres, bus services, etc.) I would have said Beenleigh would be a better bet, but then, you probably won't find much for $200k there.
It is one of those situations – you will get a better rental return because of the cheaper housing, but then other problems could go along with that. I visited Eagleby for the first time in many years just a few months back. It has grown from what I remembered, but I didn't see much growth in facilities to make up for the growth in population. One to be wary of, methinks.
Re Bellbird Park, I don't know it at all, but when a demographic says the average person makes $500 a week more, that is a huge difference, and would have me more comfortable re "ability to pay rent". And unemployment way lower too? But then, it is only a unit. Less chance of Capital Growth I would think, and then there would be more expense with Body Corp fees so the return won't be brilliant either.
I'd say keep looking. I spotted a house sold at auction in Kingston a few weeks back for early two's ($215k?) – with a flick of paint and little else, it would have been a $250k+ property, and able to be rented for $300+ per week. THAT is more the kind of property that would set you on your feet. I'd say keep looking…. Don't be in a rush to lock one in. There will be other bargains coming along if you are looking for them.
Benny
Benny wrote:I'd say keep looking. I spotted a house sold at auction in Kingston a few weeks back for early two's ($215k?) – with a flick of paint and little else, it would have been a $250k+ property, and able to be rented for $300+ per week. THAT is more the kind of property that would set you on your feet. I'd say keep looking…. Don't be in a rush to lock one in. There will be other bargains coming along if you are looking for them.
Benny
Benny's right. You have a Buy-Hold-Pray strategy. You need a Buy-Reno-Definite Growth strategy. When you have a small grub stake to get going with you have to leverage it up with something else to get growth going. The least complicated and most successful method is to reno.
Thank you so much!!! It seems like I am in the right track re: reading all the stats. Just need more research!
The house in Eagleby does need some reno, but this maybe why the price is a lot lower than the other area in the same suburb.
Benny wrote:Hi Shelby,Re Bellbird Park, I don't know it at all, but when a demographic says the average person makes $500 a week more, that is a huge difference, and would have me more comfortable re "ability to pay rent". And unemployment way lower too? But then, it is only a unit. Less chance of Capital Growth I would think, and then there would be more expense with Body Corp fees so the return won't be brilliant either.
I'd say keep looking. I spotted a house sold at auction in Kingston a few weeks back for early two's ($215k?) – with a flick of paint and little else, it would have been a $250k+ property, and able to be rented for $300+ per week. THAT is more the kind of property that would set you on your feet. I'd say keep looking…. Don't be in a rush to lock one in. There will be other bargains coming along if you are looking for them.
Benny
I have a friend build a house there, it seems a good neighborhood. But at the same time, other building projects are coming up, people with big land are splitting the lands( can't remember the name for it.) So this makes me think and think again.
Benny, would you say Kingston or Woodridge will be more likable than Eagleby?
I am more keen to buy in Logan with a potential to build granny flat to increase rental return.(although I am not relying on that, just a tick if comparing with other suburb)
Quote:Benny, would you say Kingston or Woodridge will be more likable than Eagleby?Two things – when we were looking (about 30 years ago) Woodridge had a "name", and Kingston is right next door, so wore a bit of the name too. Then the "toxic sludge" thing in Kingston (actually localised to less than one block, but the news made it sound like the whole suburb) sullied it further.
The prices in Woodridge and Kingston doubled, and Eagleby was "invented" as a low-cost offering. We never did follow up Eagleby – had no reason to at that time. But my wife was in RE at that time, and anyone with little money was sent off to Eagleby. OK, so that is the long past history. I have recent;y driven through Eagleby, and been surprised by how much it has grown. Seems nice enough to me, but it still (like Kingston and WOodridge) has that old history. i.e. homes were built "to a price", so nothing flash in these areas – but they are affordable to most.
Woodridge and Kingston have railway, busses, and huge shopping centres. I've heard that folk from neighbouring suburbs drive to Woodridge to shop. And why not. Logan Central (carved out of Woodridge) houses the Logan Super Council, so lots more jobs, and decisions made in this area for this area. A quick observation of Eagleby sees it as more of a backwater. It is a "cul-de-sac" suburb – i.e. you don't even drive through it to get anywhere else. The only way out is the way you came in. So, what are its saving graces? Well, the blocks seem to be reasonable sizes and the roads are relatively new and/or well sealed. And it is still cheap. Like Woodridge, maybe one day more money will be spent on it, and more people will buy "own homes" there. That usually lifts a suburb, but it is finding "what would you go there for in the first place?" That is the question, and I really don't have the answer, except that it remains affordable to most everyone.
For me, Woodridge, Kingston, Crestmead, Marsden, even Waterford West. Woodridge really does have a lot going for it when you boil it all down, but there are still a heap of 30 – 40 year-old "cheap homes" (commission homes) way out-numbering any newer, better ones. So, still cheapsville, but with great potential to my mind. Again though, there are areas within areas too, so softly softly.
Benny
Benny wrote:Quote:For me, Woodridge, Kingston, Crestmead, Marsden, even Waterford West. Woodridge really does have a lot going for it when you boil it all down, but there are still a heap of 30 – 40 year-old "cheap homes" (commission homes) way out-numbering any newer, better ones. So, still cheapsville, but with great potential to my mind. Again though, there are areas within areas too, so softly softly.
Benny – I have also been researching those areas particularly looking at anything that can be cashflow neutral to positive, and I'm finding that even with the cheaper properties in a non-flood affected street the quotes on landlord/building insurance are blowing my figures out of the water, like about $2000/year in some cases. Has that been your experience too?
Hi u36,
I've actually been inactive for a little while now. But I have noticed Insurances going up on my properties all around the place. Last year they all added to 20 – 25% – but none were anywhere near $2000 a year. That is scary-high. I don't hold any in those areas right now, so haven't noticed what you have.
My highest is about $1400 and that is on a huge property in a suburb close to the CBD – so there must be "something else" loading those others so high.
Benny
You must be logged in to reply to this topic. If you don't have an account, you can register here.
