can anyone in queensland tell me about investing in springfield lakes, what are thepitfalls, if any??
DAB
Pitfalls, there are only pitfalls, no upside. Here’s why;
-you’d be getting in at the absolute peak of a dead and drastically overpriced market,
-if you’re into the ‘sardine syndrome, suburban holocaust, scorched earth policy’ location to invest then go ahead,
-You’d be getting a 5% gross yield, with no room for capital growth for years yet plenty of room for capital decline though. Unless you’re after an investment where you want to lose money you can do better,
-There’s no exclusivity, they’re just gonna keep building the damn area, it’s gonna be bigger than TasmaniaThere are others, but why go on. Why don’t you invest somewhere desirable, like Iraq?
Seriously though, if you’re on the highest tax bracket and are just looking for somewhere to park money then do it (good depreciation available). But if you’re after making informed and profitable investment decisions then I think with a bit of research you can do a lot better with your hard-earned.
Good Luck…G7
Singer,
I have a slightly more balanced view than G7, but those pitfalls are all worth taking careful note of.
Assuming all goes according to plan and the railway arrives in 10 years’ time etc., there may be some growth. However, right now the prices are certainly high.
Bellbird Park may be quite interesting (I just bought in there). There’s a mob (Investa) building 1600 houses in the bush along Jones Rd (From Augusta Parkway) in a Springfield-style estate (check out the new sales office on the corner of those roads).
Thing is, I paid $215k for a new 4br house on 760m2 – the Investa land alone will be $160k for a smaller block.
I reckon my $215k house can only increase (it has amazing views of the bush behind Springfield/Brookwater) but some of these $320k+ houses on tiny blocks may come unstuck soon.
There’s just a bit of a ceiling that a project home on a 450m2 block will fetch. There may be some possibilities but I suspect the best strategy is to get into one of the fringe areas around there that is soon to be developed.
Mick
Ah hah, new I had heard that name somewhere other than with Homer Simpson – you need to read September issue of Australian Property Investor – Page 100 has a spread on just the suburb you are asking about or have you already read it?
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