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Smart Buyers Buy of the Week (3)

Brisbane Buyers Agency – Investment Property Buy of the Week – Great Splitter Block

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If you’re looking for Brisbane’s next property hotspot – check out this week’s featured “Investment Property Buy of the Week.”

This week’s featured property is a “splitter block” that will immediately make a return on investment. It is approximately 5.5 km from the city in a sought after and popular suburb which features a mix of character residential homes, post-war homes and large contemporary family dwellings. It was purchased for $1,090,000. This was a great buying opportunity as double blocks like these appreciate in value as they present attractive sub-division opportunities for professional developers. The shrinking supply of this style of allotments will further enhance capital growth in time. The property was already subdivided into 2 parcels of 405m2 each – equating to a purchase price of $545,000 per parcel. All of the hard work was done for this happy buyer.

Brisbane Buyers’ Agency Feature Property of the Week

This property is a smart buy because of its:

Location:

  • Located approximately 5.5 km from Brisbane CBD
  • Close proximity to major shopping district, schools, cafes and parks.
  • Elevated position
  • Land area – 810m2

Value for money:

  • This home was purchased for $1,090,000. It is a great property investment opportunity in a blue chip suburb.
  • The home is already surveyed into 2 allotments saving the expense and town planning involved to split the block into 2 parcels. That equates to a potential saving of approximately $60,000.
  • The most recent sales of post-war homes suitable and most likely to be demolished in the immediate area include:
    • 405 m2 sold April 2016 3 bedroom, 1 bathroom home in poor to fair condition, (comparable improvements, superior position) – $700,000
    • 405 m2 sold April 2016 3 bedroom, 1 bathroom home in poor condition, (slightly superior position) – $667,000
    • 450 m2 sold April 2016 2 bedroom, 1 bathroom home in good condition, (inferior improvements, slightly inferior position) – $650,000
    • 407 m2 sold July 2016 3 bedroom, 1 bathroom home in poor to fair condition, (inferior improvements, superior position, city views) – $720,000
    • 414 m2 sold February 2016 – vacant land – $692,000
  • Subject home purchase equates to $545,000 per parcel of land. That is $110,000 discount in comparison to the above-mentioned sales.

Construction and fit out:

  • High set post-war home with 3 bedrooms, 1 bathroom
  • North easterly aspect
  • Semi modern kitchen and bathroom
  • Polished timber floors and painting in fair condition.

Growth potential:

  • Demolish existing improvements to construct 2 contemporary dwellings in a premier inner city location
  • Hold long term as development stock in this location should strengthen in demand as supply shrinks

Fundamental figures:

  • Rental return in the order of $350 per week
  • Local authority rates approximately $2000 per annum
  • No maintenance or renovation costs – nothing extra to be spent internally or externally in the short to medium term.
  • Tax depreciation benefit first year – $1000
  • Tax depreciation benefit (10 year accumulative) – $4,000
  • The immediate location for homes on land with 810m2 has seen 65% growth in the last 3 years. Equivalent homes 3 years ago were selling for approximately $647,000 – 675,000.

Suitable for:

  • Property investors (long term hold or demolish existing dwelling and sell both vacant land parcels)
  • Developer
  • Buyers wishing to build a contemporary family home (sell the spare parcel for potentially $650,000 (refer sales above) to reduce your land acquisition cost to $440,000)

How do we know this is a smart buy?

We put this property through our proprietary property analytics tool, our Smart Buyers Index and it’s a great deal. Our Smart Buyers Index gives our clients the inside running on smart buys in Brisbane. We’ve developed it from our more than 20 years in the property industry working as a registered valuer, quantity surveyor and in sales. When you work with us that means you can tap straight into our experience and save yourself loads of time, money and frustration.

Would you like help with your next investment property purchase?

As a property buyers agent based in Brisbane we are totally committed to helping you make a smart buying decision on your next property purchase. We act independently and only select homes that meet our strict ‘smart buying’ criteria.

Our clients’ regularly tell us they engaged us because they were frustrated, and at the end of their tether, looking for a property in Brisbane that suited them. They were sick of wasting their time at weekend open homes and in the evenings – time that could be better spent with their loved ones.

We’d love to help you make your next Brisbane property investment or home purchase.

How do we work with you?

At Brisbane Buyers Agency, we help our clients make smart property decisions as easily as possible.  We have a proven process and are highly experienced negotiators who regularly save our clients money, time and frustration. Our proprietary property analytics tool, the Brisbane Buyers Agency Smart Buyers Index, gives our clients the inside running on the true Brisbane property hotspots. We work on a flat fee arrangement, we do not work on commission, so you know exactly what your costs will be.

FREE session: “Brisbane Property Buyers Strategy Session”

Imagine being crystal clear on what’s most important to you, so you buy the property that sets you up best financially and lifestyle-wise. Book a free strategy session with us where you will clarify your Buying Brief and get some insight into property opportunities available in Brisbane right now.

You will leave this session knowing exactly the type of property you need to help you grow a strong financial future and property portfolio.

To book your “Brisbane Property Buyers Strategy Session” register at the form to the right of this blog, call 0409 499 034 or email paul@brisbanebuyersagency.com.au