Friday, August 7, 2009
North Brisbane bargains have me worried...
For a while now, I have kept a keen eye on the North-Western Brisbane corridor. You know the one, starting at The Gap, heading towards Ennogra, up towards Ferny Hills and Ferny Grove, and leading into the mountainous backdrop, what I like to call motorcycle heaven. But I'm not here to talk about bikes (although I would love to blog about my love affair with my Ducati, but that's for another time), I am here, sitting in a slight panic at seeing property such as this.
It;s listed for 399K, has had over 2000 views at realestate.com.au and is still not selling.
This is alarming. On a more personal note, it's very alarming for me. Yes, it has a very steep driveway, it needs updates here and there and it is weatherboard. But by now, in the current market, this should have been snapped up for around $380K-ish, someone should be ripping up the old steps at the front and making it into an excellent rental or PPOR. But no, this is not the case. In fact, there are numerous examples of absolute middle market bargains right now. Houses in this price range are taking a bit of a hit, and it's evident here.
I own a house in this corridor and it's valued more than this one, but the market stalemate means my equity is not growing. My hard earned cash is going to the bank for no other reason than to wait for the price or rental income to go up. So yeah, I'm slightly worried. Some of you may be thinking, just sell with that mentality, but I'm going to hang in there. It's the same feeling when I bought my first house in 2004. Flat prices after the boom in the Logan area. House prices were going nowhere for quite a while. BUT, I stuck it out then and will do it again here. The only way is up...or across. Hopefully up.