Evaluating Property Price - Woodridge

Hi Somersofters!

How much you offer for this sort of property if your strategy is having high rental yields properties to replace your income:

http://www.realestate.com.au/property-unit-qld-woodridge-116752995

Cheers
Eli

Hi Eli1, i am looking at Woodridge, Kingston and surrounds myself for the past month or so and personally i don't think the yields are that great after you factor in high council rates, body corporate and maintenace costs. So just make sure you find out what the nett returns are before you buy.

Eli1 said:

Hi Somersofters!

How much you offer for this sort of property if your strategy is having high rental yields properties to replace your income:

http://www.realestate.com.au/property-unit-qld-woodridge-116752995

Cheers
Eli

Click to expand...

You need to find out the rental income and the out goings before you can work out what's the most you are willing to pay for the property.

Have you seen that property? It has been on the market for quite some time. Usually properties at that price don't stay on the market for a long time unless their is something wrong with it. I could be wrong tho

Some sort of waterway behind it, will that rise in times of flood?

Check the flood maps on Logan council website to see what the risk is.

plus with 1bdrs the bodycorp is the same for 1 vs 3 bdrs

so your body corp forms a higher % of your rent,

Id assume rent is about $195-$200 per week

assume bodycorp $40 per week
thats $155pw on a $120k price is a 6.7% yield compared to houses,

its not a that high yield

Truly Exotic said:

plus with 1bdrs the bodycorp is the same for 1 vs 3 bdrs

so your body corp forms a higher % of your rent,

Id assume rent is about $195-$200 per week

assume bodycorp $40 per week
thats $155pw on a $120k price is a 6.7% yield compared to houses,

its not a that high yield

Click to expand...

And will have a higher proportion of bottom rung tenants to boot.

Truly Exotic said:

plus with 1bdrs the bodycorp is the same for 1 vs 3 bdrs

so your body corp forms a higher % of your rent,

Id assume rent is about $195-$200 per week

assume bodycorp $40 per week
thats $155pw on a $120k price is a 6.7% yield compared to houses,

its not a that high yield

Click to expand...

Yeah on this Purchase Price, if you add council rates, yield will further reduce to 4-5%.

blackenator said:

Have you seen that property? It has been on the market for quite some time. Usually properties at that price don't stay on the market for a long time unless their is something wrong with it. I could be wrong tho

Click to expand...

Not yet. I have my 1st IP a few blocks away from this one. I drove past this one many times but had not seen it from inside.

Eli1 said:

Hi Somersofters!

How much you offer for this sort of property if your strategy is having high rental yields properties to replace your income:

http://www.realestate.com.au/property-unit-qld-woodridge-116752995

Cheers
Eli

Click to expand...

That one seems a little high in price in that complex to the ones that have sold recently.

CJay said:

And will have a higher proportion of bottom rung tenants to boot.

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yes, you are right. However, those areas are cheaper partly because of this. The market has factored this in. It comes down to risk- some people are ok with taking on the risk of getting such tenants, given that the yields are high and buy in price is relatively cheap....whilst some others wont take this risk and instead opt for even a small unit in a blue chip area.

Jaguar Driver said:

yes, you are right. However, those areas are cheaper partly because of this. The market has factored this in. It comes down to risk- some people are ok with taking on the risk of getting such tenants, given that the yields are high and buy in price is relatively cheap....whilst some others wont take this risk and instead opt for even a small unit in a blue chip area.

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As a connoisseur of 'slum' purchases, I completely understand that. What point I'm trying to make is that in purchasing a 1 bedder in a low socio area, you are scraping the barrel of the B grade tenant pool. This starts pushing the tenant issues to a much higher scale than your traditional lower socio-economic tenants. When you couple this with a much smaller purchase price + rent, any issues can start adding up to a significant amount of the total invested amount.

Hey Corey, disregarding this 1-bed as a bad example, what are your thoughts more broadly on Woodridge 4114? Do you have an IP there? Would you buy something more relevant, in the woodridge suburb (I.e. 2 and 3 bed T/H's)?

Jaguar Driver said:

yes, you are right. However, those areas are cheaper partly because of this. The market has factored this in. It comes down to risk- some people are ok with taking on the risk of getting such tenants, given that the yields are high and buy in price is relatively cheap....whilst some others wont take this risk and instead opt for even a small unit in a blue chip area.

Click to expand...

We bought in Logan in 2003 -2004 - 7 properties . One in orionis and one in Snowden were bottom of the barrel . If you have bottom of the barrel properties in an area like Logan your tenants are ... well ..

The children of one of them were literally throwing s...it over the fence at the neighbour . Multiple problems . Having said that we doubled our money ( actually the banks as we borrowed everything )

When we bought in rocky we saw some similar properties which we passed on and bought a couple of rungs up the ladder and had no problems . One ss're bought one we passed on and a few months later was complaining about how the new boyfriend of the tenant had punched a hole series of holes and then the tenant had done a midnight flit ... Cost him a couple of thousand .

I wouldn't buy at the bottom of Logan . I'd be happy to buy in Logan again ,and it is an option at the moment , but I'm wondering if it's too late for us.

Cliff