The Russell Island land scam - a lesson for property investors

albert lucre May 30, 2023

im looking at moveing there im over sydney is there casual work there ?? im in automotive trade, im 63 in 20min from sydney now its 2hrs , what would 300.000-400.000 buy

James Redgrave May 30, 2023

Afternoon John.
When is that day? I invested my military super 34 years ago and Russell still waiting

wesley russell November 13, 2022

Probably time to update this article.

Michael Yardney November 14, 2022

Good point

Andy April 29, 2022

Just updating my earlier comment from September last year… since then prices and rents on Russell Island have jumped. We recently sold one of our properties on Russell Island for $120k more than we paid for it two years ago and rents have gone up by about 25% AND they’re still WAY lower than prices and rents on the mainland, just a short a pleasant ferry ride away. We’re very happy with our decision to invest on the Island and I think the stigma of the 70’s may bed finally wearing off as high prices on the mainland force buyers to look for hidden opportunities.

Michael Yardney April 29, 2022

Thanks for the update Andy

Helen Edwards February 17, 2023

Unfortunately prices are on the decline again but rents remain good

Andy September 19, 2021

Michael, thanks for the article about Russell Island. I have been keeping a close eye on RI for a few years now and, you’re quite right, the stigma of the land scams has kept prices depressed for a long, long time. And yes, it is not what you define as an investment grade location. However, you are also correct that it is a “tranquil and relaxing” place to be and, having spent some time there, I can tell you it has the feel of a small country town, surrounded by beautiful waterways and with easy access to the mainland and Brisbane. Also, it’s not just holiday cottages and love shacks, there are getting to be more and more permanent residents now that the island has all of the basic services available right there. Not doubt you’re aware that Redlands City Council has given approval for a major redevelopment of the area around the ferry wharf at Redland Bay including a large shopping centre. So in the next five to ten years, Russell Island will become much more desirable as residents will be able to take a lovely, 15minute ferry ride, land at Redland Bay, walk across the street and straight into a shopping centre. Still not the type of location within 5-10km of Brisbane CBD that you would prefer but I think it has a lot more potential than you are giving it credit for. And the prices are unbeatable… although I have noticed that this has started to change to.

Michael Yardney September 19, 2021

Thanks for the update on Russell Island Andy

Alicia Pallos August 25, 2020

Any thoughts on investments on Maclaey Island ?

3 replies Reply

Michael Yardney August 25, 2020

Alicia- that’s not really an investment grade location is it? Holiday locations have never have performed averages, and especially islands – steer clear

jason bulman November 1, 2021

I disagree you need to have another look into what a good investment is. I bought a 3bedroom home 6mnths ago and if to resell tomorrow would clean up an easy $50,000.00 on top

Michael Yardney November 1, 2021

well done 🙂

Blanca Bellomo April 30, 2020

We bought 1 lot in December 1973 just 1 month after arriving to Australia. My husband and a friend were taken to from Sydney by plane, lunch provided and then via a small plane to the island. Yes, they showed a block of land and we paid $3,000 – $950 deposit and the rest at $50 per month with what ever the balance was, to be paid after 2 years (can’t remember exactly). The balance we paid including interests was $1344.31.
We were also paying the rates to Redland Shire. We tried to get the title of the block of land but after attempts to get information from REdland Shire and with our lack of English and kowledge about the law in Australia we stopped paying the rates in 1983. We visited Redland Shire Council in 1992 when we were told that our block of land was sold. That it didn’t have anything to do with them. Apparently the scammers who sold it to us presented bankruptcy and the whole island was bought by another developers who eventually sold the land to someone else.
We considered that a bad experience. I am 71 now and going through a paperwork from so many years ago, I found all the papers related to that purchase. Our friend bought 2 blocks of land at the same time – he lost both.
Thanks for listening.
regards
Blanca

Michael Yardney April 30, 2020

WOW!

Kelly Slater October 9, 2023

Hi Blanca
Would love to get in contact with you and here more about your experience.

Peter July 26, 2019

Can you please look at this island a bit more objectively. I have a portfolio of 13 homes on Russell Island and yields are between 7 and 13 percent on low risk properties. I feel if you dug just a little bit deeper, and came over and saw for yourself the opportunity this place is for investors you would chnage your tune

3 replies Reply

Michael Yardney July 27, 2019

Peter – i’m glad it’s worked well for you – investing there is noton my radar

Nadia May 23, 2022

Thank you for the article John Lindeman. I would love for some to point me in the right direction. How do I know if the land I am interested in could be built on or not? I am looking at investing on the RI

Michael Yardney May 23, 2022

Nadia – if you’re looking at investing – avoid Russell Island – it’s not an investment grade location

Leigh July 25, 2019

Russell Island came to my attention when looking for my first property investment about 3 to 4 years ago . I bought a 1 bedroom home with carport still under the builders warranty. I paid $105,000 for this. It has been rented out since then at $200 to now $220. Over $30,000 in rent not bad for my 1st rental. Since bought a couple of blocks to build on in the future. R.I is half way between Brisbane CBD and the Gold Coast thank you for the land scam.

3 replies Reply

jason bulman November 1, 2021

Such an awesome little paradise of tranquility