All Topics / Help Needed! / Is Kallangur in QLD a nice place to buy an IP

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  • Profile photo of tonjutonju
    Member
    @tonju
    Join Date: 2010
    Post Count: 6

    I am considering buying an Investment property in Kallanger (QLD) does this surburb have any potential growth in the future. Plan to keep it for the next 10 years. The property is in the new estate (Bridgeway)

    Profile photo of traolcoladistraolcoladis
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    @traolcoladis
    Join Date: 2010
    Post Count: 19

    see my comments in

    https://www.propertyinvesting.com/forums/property-investing/help-needed/4335673

    Essentially paraphrase to suit your location.

    "My advise would be to proceed with caution.

    Find out if there are any body corp fees.
    How close was Redbank to the flooding that occurred recently.
    Was the area damaged by cyclone weather recently in the last 4 years.
    What is the rental return (Balance this against what your mortgage commitment will be.)
    Make it subject to being able to find a tenant for the property.
    My understanding  is that there is a high vacancy rate in QLD

    Find out what the property prices have been doing in this area in the last 6, 12 to 24 months.

    Despite common hype property prices to drop. I know of this happening two separate people. One bought an IP in QLD and the other in WA."

    Hope this helps

    Profile photo of tonjutonju
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    @tonju
    Join Date: 2010
    Post Count: 6

    Thanks Andrew,

    Kallangur is 24 Km north of Brisbane & was not effected with the floods, the house & land packages are selling for $428,000 (Bridgeway Estate) and $410.00/wk rent is expected. I think  the house is overpriced by about $20,000. As I am going to be a passive investor & because of the oversupply of housing within the suburbs around & do not thing there will be immediate growth But hope with the new rail line going through in 2016 (Petrrie-Kippa-Ring) I am hoping the house will do very well in the years ahead. Can any confirm my thoughts ?

    Profile photo of Richard TaylorRichard Taylor
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    @qlds007
    Join Date: 2003
    Post Count: 12,024

    At that price i agree i think they are overpriced.

    Give Lee Doyle a ring at LJ Hooker Narangba and he will give you a honest opinion of the area.

    Sells a lot of property and is a good young fellow to boot.

    Cheers

    Yours in Finance

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me

    0-40 Properties in a decade with an unencumbered value of over $35M. Email for a copy of my API article

    Profile photo of allycatallycat
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    @allycat
    Join Date: 2009
    Post Count: 19

    Hi Tonju,Have lived in the area for 22.years.Had one IP in kallangur .It was a cosmetic reno and had good income ,but fairly low cap growth.Kallangur is an older suburb originally part of pine rivers shire,now moreton.Median price $350K;1/4growth -.4 12months 0.Three yr 3.9 Five yr 7% Ten yr 12.2%.Med rent $330/wk.Bridgeway is the newest premium estate,most of its competition comes from North Lakes which is the fastest growing satellite mini city around.Donot count on the rail,its been coming for the last 100yrs and locals are expecting it to be axed to pay for the floods/cyclone.The biggest driver for Kallangur is its 5min proximity to North Lakes,with Westfield,Myer etc and still close to rail ie Petrie,close to highway,and industrial estates.Have IP'S in D/bay and Kippa-ring which are nearby suburbs both are providing good income and reasonable growth,though we are still in a declining market here.Do your due diligence and research good luck.Al

    Profile photo of tonjutonju
    Member
    @tonju
    Join Date: 2010
    Post Count: 6

    Thank you Al & Richard for the information. I will have to research this futher.

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Tonju drop me an email if you want a Residex report ran off on any particular property and I will shoot it up to you.

    Cheers

    Yours in Finance

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me

    0-40 Properties in a decade with an unencumbered value of over $35M. Email for a copy of my API article

    Profile photo of Andrew_AAndrew_A
    Participant
    @andrew_a
    Join Date: 2003
    Post Count: 392
    tonju wrote:
    Thanks Andrew,

    Kallangur is 24 Km north of Brisbane & was not effected with the floods, the house & land packages are selling for $428,000 (Bridgeway Estate) and $410.00/wk rent is expected. I think  the house is overpriced by about $20,000. As I am going to be a passive investor & because of the oversupply of housing within the suburbs around & do not thing there will be immediate growth But hope with the new rail line going through in 2016 (Petrrie-Kippa-Ring) I am hoping the house will do very well in the years ahead. Can any confirm my thoughts ?

    Hi Tonju, Just saw this thread but have already answered to your post on Somersoft.

    Even with 20k discount I'm not interested for adding to my own porftolio :) Heading in the right direction though.

    If I wanted to spend 428k my bias would be to buy something in Brisbane! eg.. Brisbane city council. say <10k CBD, nice brick lowset in good condition yielding higher than this new house is offering, established house and no shiny depreciation tis true.. but small trade off to pay in my opinion. Or when buying around Kallangur/Northlakes/Mango Hill/Rothwell would be looking in the mid 3's price band, so you aren't so far above the median with truck loads of cheaper housing around. Can get (and have bought) significantly larger blocks of land with higher yield and very good condition 4BR houses in better locations.

    This is not advice, just my own personal opinion and experience, your individual position will change matters, there is a risk with investing and not investing in property, we all have our bias, vested interest etc. Good luck!

    A few possibly unrelated matters

    1) Moreton are having significant fun when it comes to charging property owners, factor in higher costs here compared to Brisbane.
    2) There is a lot of activity around Mango Hill/Northlakes, a lot of new builds and fun and games with property marketing companies. Get your shark repellent ready when swimming in these waters.

    Can go on.. but I've said plenty already!

    Profile photo of tonjutonju
    Member
    @tonju
    Join Date: 2010
    Post Count: 6

    The message is loud & clear that a house in Kallangur for $428,000 is too expensive. I am going back to the drawing board. Thank once again all my on-line buddies

    Profile photo of Andrew_AAndrew_A
    Participant
    @andrew_a
    Join Date: 2003
    Post Count: 392

    Tonju, there's a lot of property in Brisbane (and Kallangur!), also a lot of new property, you have access to the whole market when you decided to do your own research, when you have a menu of products that are being sold to you then you will only have the smallest fraction of the whole market to choose from.

    428k isn't too expensive or too cheap to get a good deal almost anywhere, a lot will depend on the local market and specifics down to a street and individual property level.

    Simple and robust answers or rules to most questions are very hard to find concerning investment, and are always out there ready to be knocked off by exceptions to your rule.

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