Strong Growth in Brisbane

[Andrew_A]

Existing runway traffic has not held back prices in Bulimba or Balmoral or Ascot on the other side of the river. We thought it would have a big impact and sold from that area as we were under the flight path, and the planes were pretty low as we were on the hill. However, prices have gone gangbusters, so I think if the other things in a suburb are right, the flightpath won't make much difference.

The parallel runway has yet to be built, but nobody seems to be worried in those areas.

Wylie

I don't think it's an issue.

Of more importance is where the shopping centres are going in, infrastructure and development dollars are going.

I visited Nundah village today and the new Woolies, really gives the whole area a boost I think. I see the gentrification/renovation wave spreading outwards presently.. Or could just be my imagination and wishful thinking

 

[Andrew_A]

More feedback from the Brisbane market.

House purchased in north Brisbane January 2007:

260k purchase price
13k renovation costs
273k total cost
310k bank revaluation July 07

13.6% growth in 6 months.

 

[ledd]

Hi Andrew,

Great result!

I'm going to invest in the same area. I was wondering what kind of yield you're getting. I suspect it would be quite reasonable. Is this the case?

Cheers,

Mark

 

[Andrew_A]

Hi Andrew,

Great result!

I'm going to invest in the same area. I was wondering what kind of yield you're getting. I suspect it would be quite reasonable. Is this the case?

Cheers,

Mark

Hi Mark,

Yields are roughly 5% gross at the moment in my area.

So expect a $260/wk rent on a 260k house and so on.

Cheers,
AA

 

[Kevin Hockey]

Hi Mark,

Yields are roughly 5% gross at the moment in my area.

So expect a $260/wk rent on a 260k house and so on.

Cheers,
AA

Problem is getting a 260k house

Kev
www.gogecko.com.au

 

[Andrew_A]

Problem is getting a 260k house

Kev
www.gogecko.com.au

It's a challenge, also I note the onset of higher density living in my area. 2br units on their way starting from 270k off the plan, just a very good sign for my future CG I predict.

 

[Andrew_A]

Just had another valuation:

Purchase: 260 Early 07
Valuation: 280 July 07

House looking worse than when I bought it as I was preparing for the reno when the valuer came through.

7.69% growth in 6 months.

I estimate that the 10% growth in 6 months figure is a fair representation of the general area.

I'm smiling

 

[eggnog]

hi andrew, what suburb are you quoting here. I didn't think there were any houses in brisbane under 300k

 

[letiha]

just spoke to the sales guy who sold us our blocks in carseldine, one of the blocks we orginally wanted which was bought for $225k end of April was just resold today for $290k. Our blocks are on the same street and identical in dimensions.

The next stage which is due out soon will be starting in the high 200's so can't wait to start buidling the way the figures are looking at the moment we are going to exceed our expectations.

 

[Andrew_A]

hi andrew, what suburb are you quoting here. I didn't think there were any houses in brisbane under 300k

I'm looking at 4014 mainly.

 

[Kevin Hockey]

I'm looking at 4014 mainly.

I live in 4014. Bought in Oct 2000 for 130k and just had a bank valuation at 480k. The market is going absolutely nuts here and no sign of slowing.

Kev
www.gogecko.com.au

 

[Andrew_A]

I live in 4014. Bought in Oct 2000 for 130k and just had a bank valuation at 480k. The market is going absolutely nuts here and no sign of slowing...

Kevin, that CAR of 20.52% is Warren Buffet like

What was the price history before you bought?

My research says 10-11% for the growth of the dirt over a longer time frame, we are borrowing from the future or the past, can't work out which one quite yet.. Mind you 20.52% (before adding yield!) would be nice if it lasted forever.

 

[Kevin Hockey]

I bought in Oct 2000, just as the boom was beginning to show signs. Until then the market had been stagnant for many years. I had a specific street I wanted to buy in, cul-de-sac backing onto a park, and what I was looking for became available. Paid 140k but found white ant damage and had the price reduced to 130k. The previous owner had paid 125k back in 1992. The price I paid was a fair price, at the time I thought it may have been a bit much.

As an investment I believe the 1960's style highset chamfer homes are the best. They are hardwood, have great brushbox floors, character with cornices etc, perfect for a timber deck and don't require the ongoing maintenance of a Queenslander home. I remember thinking my house must have been worth 170k and figured it would max out at around that

Certainly happy with it, been an excellent investment for us. Like everyone, I now wish I had bought 10 of them at the time, but I had only just opened my first office and I was pouring every dollar into that.

Kev
www.gogecko.com.au

Kev
www.gogecko.com.au

 

[harrywyborn]

shouldnt of sold darn!!

Just recently sold my IP in deception bay. I hadnt been keeping an eye on the market and was very surprised when it sold for more that 45k that i thought it would acheive. Was happy but now im starting to see that maybe i shouldnt of sold, but it has freed up some $$ to look else where now.

 

[Andrew_A]

Residex house price data for Brisbane

Last 12 months of data for Brisbane houses from Residex trading data, looks like the stats are beginning to reflect what we all knew.

31/08/2006 H Brisbane 9.42137 0.47%
30/09/2006 H Brisbane 9.52855 1.14%
31/10/2006 H Brisbane 9.55512 0.28%
30/11/2006 H Brisbane 9.63815 0.87%
31/12/2006 H Brisbane 9.72428 0.89%
31/01/2007 H Brisbane 9.73522 0.11%
28/02/2007 H Brisbane 9.78018 0.46%
31/03/2007 H Brisbane 9.91202 1.35%
30/04/2007 H Brisbane 10.2146 3.05%
31/05/2007 H Brisbane 10.2276 0.13%
30-Jun-07 H Brisbane 10.5122 2.78%
31-Jul-07 H Brisbane 10.7711 2.46%

 

[Andrew_A]

Any more feedback on Brisbane over the last few months?

 

[harrywyborn]

YEAH wish i had bought about 10 properties hahahaha

 

[Mr. Fabulous]

YEAH wish i had bought about 10 properties hahahaha

Yeah, bloody oath. Brisbane has gone insane the last six months. Seriously, I wish I'd had the funds to buy something six months ago, cause prices right now everywhere I look are just ridiculous. The market is seriously overheated, it is nigh on impossible to find anything decent with a decent yield.

I recently went and had a look at a handful of places in the inner north that would fairly rent for $240 - $250 and they were on the books for between 270K - 290K. Now about two weeks later, similar properties are asking 300+ min.

Like I said, ridiculous. Basically, I'm just sitting on my hands at the moment trying to determine the best course of action.

Mark

 

[HandyAndy888]

Basically, I'm just sitting on my hands at the moment trying to determine the best course of action.

Mark

Now, thats risky....

I just bought a house for 390K, am happy with price, but it is really really going nuts on the northside at least...and my dump in kingston is probably around 300K atm...which is just weird...

 

[soyabean]

I bought a block of strat units 1.7ishM inner city a few months ago (gross income 100K+ ) and had major buyer remorse afterwards but now just 2 months later agents contacted me if I wanted to sell for more. So i think the heat is still there.