Strong Growth in Brisbane

[Ant]

I have been looking to buy in brisbane over the last week and can't find anything to buy its all UNDER CONTRACT! (UNDER 300K BAYSIDE)

We just added to the list of properties 'Under Contract'. Low-mid $300k, so not quite under 300, but for a 3BR, 700m2, walk to station, close to everything (schools, shops, parks, etc) incluing the bay itself. Seems like a good deal to me. It is hard to find anything less than $400k though.

Until recently, I wondered why properties from Wynnum to Wellington Point were so cheap. That is now changing by the looks of it. It's just a shame that the cancer of 400m2 blocks have destroyed parts of Wynnum. Originally we were looking in Wynnum/Manly, but it's turned into a property developers/investors suburb and has had most of the potential profit squeezed out. (IMIANSHO - In my inexperienced and not so humble opinion).

We ended up focusing along the rail line from Thornlands to Wellington Point. (Love Wellington Point, best resturants in Brisbane and a great park at the point as well, huge block sizes available if you have the cash, not where we bought though, just where we rent)

 

[karina]

I have just put in an offer in on a bayside brisbane property. I'll keep the location "secret" until I have an outcome!

 

[urban cowboy]

hi Grego,

it all depends on what you are looking for in terms of investment. I work mainly Northside and while i do sell stuff over the creek I am not an expert by any stretch of the imagination. I will only comment here on northside stuff.

If you are looking to develop i'd suggest looking at Everton Park (there is another thread here somewhere on that - do a search), Enoggera, Zillmere, Chermside, Wavell Heights, Nundah and Stafford...I could write a book on each as to why and where so i won't go into further details at the moment for the sake of a shorter reply - i'll give you more info as you require...

if you are looking for long term growth then you can look at the likes of Gordon Park (has been huge last couple of years - is a personal favourite area), Wilston and the likes in inner north, they all seem to be doing nicely - further out, Bridgeman Downs is always good if you buy in the right pocket - its been doing some big numbers in the last few months. Growth is a bit of a tough call because even the "dodgy" suburbs have been growing lately and its all out of proportion to the traditional Brisbane models that say inside 10km is great - all else is for the also-rans...not any more!!!!

If you just want to build houses for long term hold you're probably best playing in Warner and Cashmere in the outer north - talk to Letiha on this one - she is doing a great job out there. I can sell this stuff any day of the week several times over, they get good PM returns too...we are PM's for a few in the area and they are getting some very sound rents.

this is only very brief and very glossed over as there is pockets in all the above that are exceptional and pockets that aren't...also affecting things in the closer in areas are the zoning, block size (small lot development and splitters) and proximity to certain sought after local hotspots.

hope this helps some, i can elaborate if needed...

cheers
UC.

 

[urban cowboy]

Hi WW...

Love to meet up...I've learnt a lot from your posts and would like to meet the face behind them!!...i like mine white and one PM me and we'll see what we can do.

I have done a fair bit of work through those areas and with my trusty sidekick (she'll kill me when she reads this) we have sold a lot through Nundah, Wavell, Kedron, Stafford, Gordon Park, Chermside, Zillmere, EP and the like - so yes, I know a lot about the area and who is building where and what. Most of my business has been t/house and unit developments and the land etc with some other housing as cream - moving more into top notch housing now with a change of agency but still play heavily in those markets. My colleague is the daughter of one of the local developers so we do have our finger on the pulse a fair bit and manage to sail under the radar of a lot of other local agents...much to their chargrin!!

re northlakes - my jury is still out...I concur that there has to be more growth especially with the commercial development going in etc - i've just thought it always a little overpriced compared to other areas. I am beginning to realise though that there are soooo many people buying in there that the values are stacking up - so be it.

To answer Letiha's criticisms, there will be other roads out in the future - there are some other plans in the pipeline - watch this space!! yes the highway will always be a problem - but what part of brisbane doesn't have peak hour congestion now anyway...yes there is no real public transport yet, but i hear that may be coming soon too. like all areas there is pros and cons - i'm starting to see the pro's.

 

[WinstonWolfe]

Letiha and UC, yes agree North Lakes has been overpriced and the layout could have been so much better. Rare these days for a developer to be able to master plan such a large community. I hear it was all inspired by UK town planners, trying to reproduce a local village feel. However, that might be nice when there's lots of employment in the village, rather then 90% of people having to travel from 30km out towards the city.

Nevertheless, my interest is purely in North Lakes' commercial hub. I hear Redcliffe, Caboolutre, and Pine Rivers are definitely doing a super shire, and the new facilities will be around North Lakes. I also hear the train is definitely going as far as Kinsellas Road East. Yeah I know, train has been coming for 35 years...

But pays to remember that SE Qld popn is projected to grow from 2.66m to 3.6m in the next 20 years. And with ave household shrinking from 2.7 to 2.3, that's over 500 new dwellings a week that have to be put somewhere.

don't know what we are going to do for water though.....maybe they'll have to cap the population until critical infrastructure is sorted........ and we all know what capping does for land prices

UC, will be in touch in a few weeks. Am booked out for the next 2 weekends. A flat white anywhere apart from Westfield Chermside would be good.

BTW, there was a couple of 5-8 townhouse DA approved dual lot sites for sale late last year, and still on the market in Feb, in Zillmere. Ray Whites at Aspley told me 2 individual builders owned them, and wanted out. Do you know anything about those? Will dig out the addresses later. Was surprised they were liquidating the projects.

P.S.
This is an interesting read about SE Qld pop growth.
http://www.oum.qld.gov.au/?id=466

 

[brays]

Given the development that is planned for North Lakes (eg building of a call centre there was recently announced) I think either North Lakes or its surrounding suburbs would be a good place to invest. We are currently negotiating a contract for a block of land in an estate at Deception Bay. The estate backs onto North Lakes, so we figure once the arterial road goes in and the other end of North Lakes is linked up to Boundary Rd, the location will almost be as good as North Lakes, just without the suburb name and buy in price.

As far as the Super Council goes (I work in LG), no one is exactly sure what the merger will be, though you can be fairly certain there will be a merger (ie Pine & Redcliffe vs Caboolture & Kilcoy or all four together). North Lakes would be the logical location for the new Council headquarters being central and mutual ground, but given the infrastructure costs involved and the relatively new buildings at Pine & Caboolture I don't know if this would happen in the foreseeable future (don't think the State would come to the party with the funding, and the Council most probably won't have or be able to justify the expenditure to the ratepayers), but then with Government, anything is possible!.

 

[WinstonWolfe]

As far as the Super Council goes (I work in LG), no one is exactly sure what the merger will be, though you can be fairly certain there will be a merger (ie Pine & Redcliffe vs Caboolture & Kilcoy or all four together). North Lakes would be the logical location for the new Council headquarters being central and mutual ground, but given the infrastructure costs involved and the relatively new buildings at Pine & Caboolture I don't know if this would happen in the foreseeable future (don't think the State would come to the party with the funding, and the Council most probably won't have or be able to justify the expenditure to the ratepayers), but then with Government, anything is possible!.

Hi brays. You'd have to be linked to the Brays Rd Brays...

Latest I heard was the super council offices might go in at the old Tulip Town site, on the other side of the Hwy from Westfield North Lakes. And considering councils struggle to find qualified town planners, and the pressure from Beattie and Feds to speed up DAs, I think amalgamating councils is a cert. Though Redcliffe mustn't have much vacant land to develop. (all the more rate payers money for the foreshore)

Have also heard Qld Health, a private hospital, and several other govt depts are going in at North Lakes. Tony Winters is a commercial real estate guy with Stocklands at the lake office, who I have spoken with, and I respect what he says.

I didn't realize Boundary Road was going to link up to the northern residential end. Thought it was just an off ramp guiding traffic down to the commercial zone. But if you are in LGA, I'm all ears.

 

[brays]

No link to any of the Brays in the area, unfortunately...

 

[WinstonWolfe]

No link to any of the Brays in the area, unfortunately...

yes, their land holdings in the area were significant.
though I heard they just let the tomato farm go at the end of Brays Road.

 

[EstatePreneur]

You are correct - parts of the Brisbane market are booming.

The stats won't reflect it yet - but our Brisbane office has noticed a huge surge in demand for owner occupiers and investors and good properties are selling within days of being put on the market and receiving multiple offer.

Brisbane has definately shown good long term growth -in fact its been the best long-term performer in real estate among Australia’s capital cities.

Since 1970 (when you could buy a median price house for $8,500) it has averaged 11% growth each year.

This means over the past 35 years Brisbane prices have doubled every 6 years or so.

Of course the growth has not been even. There was a long period during the 90's when prices went nowhere despite strong populaltion growth.

But it has huge short term and long term growth potential. It's time to buy - but buy selectively

Hi Michael, I read the article from your recent e-newsletter about this property boom in the brisbane property market, it's very good to read. I wish I could have subscribed much earlier before and know when to take serious action in purchasing my first property. Too bad, I think I'm too late now, hmm.

Anyway, it seems everyone is talking mostly about Brisbane northside. Now how about Southside, suburbs like Mt.Gravatt, Sunnybank, Runcorn?
My heart's broken after finding out from the agent that the property in Sunnybank that I had been keeping my eye on was snatched up by someone just a few weeks ago. It's got 4 bedrooms, 1 garage (2 car ports), 1 bathroom, land size about 710m2, it was advertised on realestate.com.au for $330,000!!

If anyone knows if there's any property up for grab in the Sunnybank area for price range $300k to $350k (with 4 bedrooms), would you please kindly let me know? (A cry for help from a property newbie and 1st time home buyer here).

 

[WinstonWolfe]

Gee EstatePren, I can see you continuing to suffer a broken heart if you don't take the bull by the horns. As always, if you seriously like something, act immediately.

 

[willair]

Southside, suburbs like Mt.Gravatt, Sunnybank, Runcorn?
My heart's broken after finding out from the agent that the property in Sunnybank that I had been keeping my eye on was snatched up by someone just a few weeks ago. It's got 4 bedrooms, 1 garage (2 car ports), 1 bathroom, land size about 710m2, it was advertised on realestate.com.au for $330,000!!

If anyone knows if there's any property up for grab in the Sunnybank area for price range $300k to $350k (with 4 bedrooms), would you please kindly let me know? (A cry for help from a property newbie and 1st time home buyer here).

EP,I Look at this site once a week ,sometime's
http://www.pt.qld.gov.au/auctions/houses.htm
properties come up in the area's you are looking in.
It's the only honest auction that i know in Brisbane.
good luck willair

 

[gad]

Banyo

G'day urban cowboy

I'm trying to get into stage 2 of a development in Banyo, should know in a week or two. How do you think new homes will go in that area?

Thanks

 

[urban cowboy]

Hi Gad...

disclaimer first - obviously i can only provide opinions based on what i am seeing, and like everyone else have no idea about the future per se - if only i had a crystal ball...

Banyo I think is one of the great future growth suburbs...close to nundah, the Gateway mwy, transport, schools, industry etc it has all the basics... the suburb has a bit of a stigma of being a low income, industrial and housing commission area (and that's why i like it for the future) and has a lot of larger blocks with 60's fibro boxes on them. what i have noticed that will help answer your question is that the clever developers have started buying up in there as it hasn't taken off yet like Zillmere and the other developable suburbs...further, nearby areas like virginia and Northgate are starting to be chopped up now - more for splitter material than straight dev sites but I think that's where the growth will be anyway.

due to the age of the area and the low socio-economic issues, i think it may be a little while before the numbers really grow, but if you can hold on - it will be worth it in the long run...

what I will say to everyone following this thread is that the north side of the river seems to be undergoing a transformation that hasn't been seen before in Brissy...part of that is probably due to the creation of a mini CBD in Chermside and the Nundah redevelopments...but there is sooooo much development going on and things seem to be going so well that i believe its creating its own little micro-economic climate - that is, investors are competing with all the developers they are even starting to share tradies and information about land etc and that is creating an upwards surge in land prices and construction costs due to the increased competition. Many developers i deal with are complaining about having to buy up sites two years in advance or more and paying top dollar to secure them - then they have issues about having to use a 2nd year apprentice carpenter as their primary labour 'cos full ticket blokes are so hard to find.

Because of all this, there are only a few suburbs left that have not gone through the roof with pricing...Banyo is one, Stafford another...zillmere is on its way but still ok at the moment if you're clever.

The flip side is that even the suburbs that have gone up already are still experiencing some good numbers in growth hence smart investors can do well just about anywhere. I still like the more affluent areas for the future but you need big $$$$ to play at that level.

after all that - short answer - yes, i think you'll do well long term in Banyo. but of course make sure that you due your DD etc etc blah blah!!

cheers
UC

 

[urban cowboy]

my apologies to those who like the southside... I dont know much about it over there - just what i am learning from you lot and when doing some homework for developers...

good luck to you southside players!!!!!!!!!!!!!!!!!!!!!

 

[EstatePreneur]

Gee EstatePren, I can see you continuing to suffer a broken heart if you don't take the bull by the horns. As always, if you seriously like something, act immediately.

Yes, this is indeed a crucial lesson for a first timer/newbie like me. Now I get the feel of how urgent I have to act when opportunity comes.

EP,I Look at this site once a week ,sometime's
http://www.pt.qld.gov.au/auctions/houses.htm
properties come up in the area's you are looking in.
It's the only honest auction that i know in Brisbane.
good luck willair

Willair, thank you very much for that website. I'll keep an eye on it.

I was wondering how many people here make use of the realestate.com.au website to search for property? Should I also be driving around the area where I'm interested to buy my first property, and not just depend on the realestate.com.au website?

 

[urban cowboy]

I was wondering how many people here make use of the realestate.com.au website to search for property? Should I also be driving around the area where I'm interested to buy my first property, and not just depend on the realestate.com.au website?

learn as much as you can from as many sources as you can...

driving around can give you the feel for the area, see where the shops are, the transport, the schools and how well the neighbours keep their yards...i.e. if there is rusting car wrecks in every yard and graffitti everywhere its going to create a different impression on you than the area with the manicured lawns and french poodles - the examples are a bit extreme but you get the point. keep your eye on the council and state govt. websites for announcements on development and planning and watch other investors and get as much info as you can from them - places like this forum and the investor groups are an awesome start.

what you can learn from RE.com is what is on the market and how quickly they are selling by how soon the under contract notice goes up on the listing...be aware though that some agents play games there so its not always accurate

hope this helps

 

[gad]

Thanks urban cowboy

Very much appreciate your opinion.

 

[outbackjack]

UC,

What games does agents play on RE???

Cheers

 

[urban cowboy]

UC,

What games does agents play on RE???

Cheers

me personally?? none - I think it stinks!!

but there are some (who will here remain nameless) who do things like listing the property multiple times on RE.com with different pics and prices so that it get more hits - but most people don't twig. They put false listings up to get profiles - i.e. they put dodgy pic up with dodgy info so it looks fair dink...they put under contract on properties when they may not be...they leave listings on the net for months after they've sold (very commonplace)...there is a whole heap of them!!!

the msg is just don't believe everything you see/read...

cheers
UC