Buying in Tanah Merah, QLD ..
- Thread starter moses
- Start date
Apart from the price what else does it have going for it?
inner city? nope
scarcity? nope
close to cafe strip? nope
no more land available? nope, tons of it.
rental demand? not really
good schools? all average, not bad, not outstanding,
quick moving stock with prices rising? not really
high yield? it better have, to make up for the above.
what do you think about the price now?
inner city? nope
scarcity? nope
close to cafe strip? nope
no more land available? nope, tons of it.
rental demand? not really
good schools? all average, not bad, not outstanding,
quick moving stock with prices rising? not really
high yield? it better have, to make up for the above.
what do you think about the price now?
thanks so much devank, very interesting data! did you do that yourself? salute, sir
in your opinion, southside or northside is a better option?
You made me look at last two years performance (house) for the suburbs I looked at.
My decision to go with Edens Landings (out of these 4) based on the data analysis alone wasn't that bad at all. I got the timing wrong though
Code:
Suburb Yield Median 12m Growth 24m Growth
Tanah Merah 5.73% $349,000 -8% -11%
Daisy Hill 5.51% $379,000 -2% -6%
Edens Landing 5.28% $330,000 n/a -3%
Waterford 6.15% $338,000 -7% -13%My decision to go with Edens Landings (out of these 4) based on the data analysis alone wasn't that bad at all. I got the timing wrong though
i feel ridiculous saying this, but i dont understand the figures
Yield = rent * 52/sale price
Median = Current median price (for houses in this case)
24m Growth = Median price movement in last 24 months. It is negative for all here.
Agree. Agree and Agree.
If you can afford it, stay within 10km from Brisbane CBD, get a house with good bones but nothing completely newly renovated. That's where the best CG is for this coming cycle IMO but I don't have a crystal ball. Not sure if its in your budget though.
i've got a unit in sydney.. and could poossibly buy a cheap unit in qld (greenslopes etc) that would be in my budget, but is there negatives to owning two units (other than 2 sets of strata)?
i've been considering some 2 bedroom units close to the city for 300+ but not sure this would be a smart move?
how did it get it's name - "tanah merah"? sounds so malaysian or indonesian.
Personally I think Brisbane is a house market (yes I know there are many markets) for best CG chances. Is there no way you can afford a house? If you can only afford a unit..i'm not sure I can give you advice on that as I never look at the unit markets in Brisbane as I know housing market is the way to go (if you can afford it).
In terms of units, some general (but important) things to stay away from IMO"
1. Do NOT buy OTP in Brisbane CBD (will be oversupply)
2. DO NOT buy in a major complex with hundreds of units.
3. DO NOT buy with a pool, lift, gym
4. Do NOT buy with a massive strata each quarter
5. Do NOT buy a brand newly renovated unit.
6. Do NOT buy a 1 bedroom apartment.
7. and Do NOT buy a unit in Tanah Merah.
That's my opinion, in order to avoid waiting a loooong time for capital growth.
Negative 3 is not done well. But other suburbs did worse. I'm in for a long haul so so it is ok.
Good list
Moses
I think you have it backwards.
you seem to be looking for cheap stock as if that automatically makes it a good buy.
YOu can make money on units over houses but you need to know what drives the individual micro markets and who you are targeting.
Inlaws bought a unit in Newfarm and the capital growth beat the surrounding houses, NewFarm is a funky inner-city hipster suburb with access to the coffee strips and pubs.
this socioeconomic group don't want a yard and a vege patch so units with a view of the river and a pool will be king.
?the capital gain was triple in 3 years but the yield was crap
...you can't have both usually...
we own a unit that is in a massive building with lifts and pools and gym.
Its a one bedroom apartment with a big strata.
? terrible?
the yield is >9% as its in the short letting pool and is available for executive rentals. pumped up rents to compensate for the turnover. Great river view and always booked. its a ripper of a unit! now the interest rates have dropped its even better.
First define your strategy.
you want growth?
Ok find the moving suburbs. the property mags update every month
then work out the demographics
then buy what they want, chat to rental agencies to double check.
then hold for the long term and see if you are right.
you want yield?
Ok find the high yield suburbs
work out the demographics
buy what they want
think about the risks that will destroy your yield
- strata fees, maintenance costs, type of tenants, land tax, council fees.cancellation of major population drivers (helloooo Gladstone and mining towns)
if the risks are too high then don't buy.
hold for the long term and see if you are right.
simple but not easy
I think you have it backwards.
you seem to be looking for cheap stock as if that automatically makes it a good buy.
YOu can make money on units over houses but you need to know what drives the individual micro markets and who you are targeting.
Inlaws bought a unit in Newfarm and the capital growth beat the surrounding houses, NewFarm is a funky inner-city hipster suburb with access to the coffee strips and pubs.
this socioeconomic group don't want a yard and a vege patch so units with a view of the river and a pool will be king.
?the capital gain was triple in 3 years but the yield was crap
...you can't have both usually...
we own a unit that is in a massive building with lifts and pools and gym.
Its a one bedroom apartment with a big strata.
? terrible?
the yield is >9% as its in the short letting pool and is available for executive rentals. pumped up rents to compensate for the turnover. Great river view and always booked. its a ripper of a unit! now the interest rates have dropped its even better.
First define your strategy.
you want growth?
Ok find the moving suburbs. the property mags update every month
then work out the demographics
then buy what they want, chat to rental agencies to double check.
then hold for the long term and see if you are right.
you want yield?
Ok find the high yield suburbs
work out the demographics
buy what they want
think about the risks that will destroy your yield
- strata fees, maintenance costs, type of tenants, land tax, council fees.cancellation of major population drivers (helloooo Gladstone and mining towns)
if the risks are too high then don't buy.
hold for the long term and see if you are right.
simple but not easy
If that's what your happy with then party on. I suspect for most people its going to be a major no no...
TBH I don't really know well enough.
Waterford was/is giving much better yield. Few people here bought in Waterford well. I didn't want any tenant trouble. That is why I went with Edens Landing.