Hi everyone,
Do you know the area around Sandstone lakes well (20 minutes drive from Caboolture in QLD, opposite to Bibir Island)? What do you think about the rental and future capital gain in that area?
There are some new house and land package for sale in the market now. One agent is trying so hard to sell them here to people in Sydney. My mum and my uncle are considering it and asking for my opinion.
They are asking 400k for a brand new 4 bedroom house on 700sqm land with waterview. and they promise '5years rent guarantee', if you can't rent it out at market rate, they (not sure the agent or the developer) will 'guarantee' you minimum 4.5% net yield. And they lied that it is 30 minutes driving from Brisband CBD, where it is really 1 hour 20 minutes on googlemap!
I think it's a scam, because I don't believe in any form of 'rent guarantee'. If it is such a desirable area, why do they have to try so hard to sell them to people in NSW? I am not a big fan of buying off the plan in the first place and apparently Sandstone Lakes is not even a suburb yet. I think the whole area is called Ningi now.
Does anyone live around that area? What do you think about the deal? Maybe I am wrong and it's a good deal, just wanna know what others think. Any feedback is welcomed!
cheers.
Vivian
Hi Vivian,
We have just finished building an IP in Upper Caboolture and went there last week to have a look around. We drove out to Bribie Island, its a lovely area with quite a holiday destination appeal. Personally I wouldn’t recommend investing there. Caboolture is going ballistic with building, house and land packages, and there’s rentals everywhere!
We got our IP thru an investing company who also offered the rental guarantee, and as we knew very little back then we thought it was great! The rent they said we would get I now know was $20-$30 over priced.
Since then I have read everything I could get my hands on and boy do I wish I knew then what I know now (which for the record isn’t heaps but enough to know we got ripped off!) We over paid to the tune of $30k I’m guessing, but what we paid for was advice and contacts. It gave us the confidence to begin investing and a reason to start learning! So I’m not bitter about it but wouldn’t recommend it!
You would do a lot better to get a buyers agent, and although they will cost upfront you will make it back very quickly. Or take some time to educate yourself so you can buy with confidence!
Hope this helps,Heather
hi Heather,
Thanks a lot for the information! it's great to hear from someone who has been there and done deals around that area to verify what I found in the research.
So did you still purchase the land and house package that's overpriced for 30k? Did they keep their promise about the rental guarantee? Also ,do you know who is actually guaranteeing the rental? is it the developer? and is the local agent managing the house for you?Thanks a lot!
Vivian
Hi Heather
Couldn’t agree with you more. We are finding a lot of our clients are taking us up on our buyer’s agents service for exactly that reason. We typically do it for investors, but offer a basic version of a buyers agent service to home buyers too at the House and Land Package Centre.
Rental guarantee is also a interesting one. The reason companies can provide it is often due to the $30k markup you spoke about…
If you want any further information, check it out at http://www.houseandlandpackagecentre.com.au
Regards
Dwayne from House and Land Package Centre
Heather could you please name the investment company you purchased thru so other forum members can see whether they want to pay $30K over the odds for the service and rent guarantee.
Richard Taylor | Australia's leading private lender
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