As a leading Brisbane buyers agent, we regularly review Brisbane properties that are smart buys. This property, 17 km south of the CBD, has the ability to create value. Sub-divide for a second dwelling. This is a post-war home with some money to spend on initial repairs. It’s located on a quiet street comprised predominately of post-war timber homes. This is a well-kept home for investors or buyers on a limited budget.
As a leading Brisbane buyers agent, we classify this as a smart buy because of its:
- Approximate distance to:
Brisbane CBD 17 km Train station 4 km Major shopping Ctr (Westfield) 9 km Second tiered shopping/cafes 3km Hospitals 6 km Homeowner: Investor ratio 57:43
Construction and fit out:
- Low set post-war home with 3 bedrooms, 1 bathroom, 4 car accommodation, overall in fair-good condition
- Polished timber floors and paint both internal and external in fair condition. However, would benefit from internal paint.
- Semi-modern kitchen and bathroom
- Built-in Cupboards
- Insect screens/security screens
- Air conditioning to bedroom
- Solar panels 1.5Kw system
- Predominately fiber cement linings internally (i.e. asbestos)
- Concrete stumps, copper plumbing and modern cabling (no long-term need to replace).
|Ease of renovating / construction / cost effective||Moderate|
|Storage||Excellent – storage located under home for tenants to settle in long-term|
|Future development opportunity||Excellent sub-divided|
|Modern-day utility compliant||N/A|
The following foreseeable items require consideration. A ballpark estimate of repairs has been included where applicable. The estimate is an approximate guide only:
- Internal painting – $3,500
|Elevated / Outlook/views||No|
|Shape of parcel||regular|
|Other town planning consideration||nil|
|Family compatible rating||good|
|Flood/overland flow affected||nil|
|Risk of negative local development||Nil|
Growth Potential / Value-adding Opportunities:
There is an opportunity to add value to this property by:
- Demolish and sub-divide the land to construct 2 new dwellings.
|Rental return (gross)||$20,800 pa|
|Rates (approximate)||$1,200 pa|
|Property Management (10%)||$2,080|
|Immediate capital cost (internal painting)||$3,500|
|Expenses to expected income ratio||20 %|
|Growth in the immediate location for unrenovated post-war homes:|
|No. of sales 2017||135|
|No. of sales 2016||136|
|No. of sales 2015||141|
|Similar properties currently on the market||5|
|Tax depreciation full year claim||$800 pa|
|Suggested offer price||-$ 420,000|
|Stamp duty, other fees + legals||-$ 17,500|
|Construction cost dwelling 1||-$ 190,000||Refer attached builders cost for suitable 4bedroom, 2 bath, 2 car dwelling|
|Construction cost dwelling 2||-$ 190,000||Refer attached builders cost for suitable 4bedroom, 2 bath, 2 car dwelling|
|Sub divisional costs||-$ 60,000||BCC fees|
|Extra costs of building associated with BCC utilities||$ –||Bridge over council utilities|
|Capitalise construction interest||-$ 15,000|
|Contingency allowance||-$ 10,000|
|APPROXIMATE TOTAL COST||-$ 922,500|
|Value Block A||$ 485,000||Refer attached sales data|
|Value Block B||$ 485,000||Refer attached sales data|
|APPROXIMATE TOTAL VALUE||$ 970,000|
|APPROXIMATE EQUITY / unrealised PROFIT||$ 47,500|
|1.) Cost values utilized for calculations are an approximation only and are for a standard level of|
|amenity. Values contained herewith may vary outside the ranges indicated.|
|2.) While all reasonable care and attention has been taken in the compilation of this document, the|
|report provided is intended to be used only as a guide. It has been prepared from unverified information,|
|incomplete data and estimates and provides only a broad range of figures which are intended to be|
|indicative and not precise. Brisbane Buyers Agency makes no representations or warranties about|
|the document’s accuracy, reliability, completeness or suitability for any particular purpose and disclaim all|
|responsibility and liability (including without limitation liability in negligence) for all claims, expenses,|
|losses, damages, and costs which you may incur as a result of the data being inaccurate or incomplete in any way.|
Value for money:
- A subdividable parcel of land
PROPOSED OFFER PRICE
Please find attached a copy of the comparative market analysis (CMA). Attached you will find some important information which I can explore further with you. I can also provide you with personal access to CoreLogic’s RP Data so that you can also conduct your own real-time research should you choose.
Please note we use recent sales and other factors to develop an offer we believe is appropriate for the home we are analyzing. The appraisal range is based on current market conditions as at March 2018, being the preparation date.
Providing a range is part of our buying strategy. The upper limit of the range provided is the most I would recommend spending on this home.
OTHER DATA AND COMMENTARY
Attached to my email is:
- Location of underground services
- BCC zoning details for the immediate location
I would appreciate your feedback on this property so that we can refine our search for you even further. Please call me on 0409 499 034 at your earliest convenience.
- Property investors
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