The Brisbane and Toowoomba markets are hot, and as a result it is easy for buyers to miss out on great deals or even worse, pay too much. Throughout all this Investigate Property have continued to do what it does best: find the right deals at the right price, we reduce the risk by carrying out extensive research, and we ensure the property has more going for it than the average deal. See below for a selection only of deals purchased and settled in 2015 on behalf of Investigate Property clients.
Simple but Effective Small Development
Nundah
Price: $400,000
Description: Small vacant block of land with the ability to construct 2 x freehold houses on it
Why we like it: Small development sites at the right price are a rare commodity at the moment. This block of land is only 359m2, however, it has numerous things going for it over any other small lots. For a start, it is zoned for townhouse development, but it then also has the added advantage of a 20m frontage. Most developers would glance over anything under 400m2 as it is rare you can do much with them, but we recommend people look at everything with an open mind. The seller had received council pre-lodgement advice confirming a duplex could be built on this site, however, to get our numbers working even better (20-23% equity gain) we saw an opportunity to create two freehold dwellings without a body corporate. These are worth an additional $40-50k more each over a dwelling within a body corporate. Simple, but effective.
| Are you in the market for a small development site? Maybe we can help. Visit our membership page for details. |
Big block with options
South Toowoomba
Price: $442,000
Description: 1500sqm of prime land that could be developed into 8 x 3 bed Townhouses or split into 3 blocks.
Why we like it: First of all it had plenty of development options. You could look at splitting the block into 3 for a handsome equity gain or look at developing townhouses on the site. The property had no price on it, which turned buyers away (had the old 'Price on Application' trick from the agent). That made us more interested, as interest from others waned initially. Similar properties sold in the area in the high 400’s and low 500’s that didn’t have the same development opportunities. With the potential of over a 23% equity gain or close to $600,000 it was a great development site, in a great area in a booming city.
| Looking for a development site on a limited budget? Then why not consider Toowoomba. Read more about our Toowoomba area specialist Mat Cosgrove. |
28+ Unit Site
Mount Gravatt East
Price: $1.47m
Description: 1290m2 (approx) MR site in a quiet street with the ability to construct 28+ units.
Why we like it: We purchased this 'on the rebound' after getting wind of another contract falling over. This gave us some clean air without the competition we had experienced in recent dealings in the area (2-3 other similar sites had already been fought over in the same street). We knew value based on other sales, however, this site was the pick of the bunch in terms of surroundings and pipes that were hindering the other sites. We also managed a reasonably lengthy settlement. As part of our due diligence we determined three possible outcomes in terms of unit numbers/mix, with worst case showing 27% equity gain, the most likely scenario 30.5% and if everything falls our way 33%. Since then other development applications nearby have confirmed the worst case scenario is now highly unlikely. It has also verified the accuracy of our due diligence.
| Are you in the market for a large development site? Maybe we can help. Visit our membership page for details. |
8% gross rent plus development options
Newtown
Price: $334,500
Description: High set house on 530sqm of land with 8% gross rent return that also has development opportunity at the rear for a duplex.
Why we like it: We loved it because the client was guaranteed an 8% return for 2 years (came with a signed lease for that length of time). A return that high in Toowoomba is very rare (in fact anywhere is rare), and that coupled with the potential development opportunities it was a winner in every way. It was located on a corner allotment, which meant it had 2 street access and allowed for a duplex style development for a further potential equity gain of $150,000. With a positive cash flow return and the development equity gains the property was really a great buy.
| Are you looking to buy for return? Whether it is a whole unit block or just a house, maybe we can help. Visit our membership page for details. |
Instant Portfolio
Nundah
Price: $910,000
Description: 4 x 1 bed units
Why we like it: With low interest rates and a hot market there are a lot of unit block buyers out there and we typically find whole blocks selling on a yield far lower than we are prepared to accept. It was great as a result to have an opportunity to have a chance at purchasing this block off market. It was being managed by an out of area agent at below market rent. Two of the units have been recently renovated, one partially renovated and the final one had a tenant who had been living there for 15 years in a unit requiring a complete overhaul. We purchases this block on only 5.7% gross return as a result of low rents, but within 12 months and some minor renovations we should see the return creep up to around 6.3% gross - very good for a block of 4 or less units (and in a slow rental market). By comparison, most similar property we see is selling on a market yield of around 5.8-5.9%.
I would like to thank Justin from Investigate Property for all his help in allowing me to find and purchase my first Brisbane investment property. His extremely professional and helpful attitude was invaluable in securing a great deal in a timely fashion. I would not hesitate to recommend his services to anyone looking for a high yielding property with a great CG or future development outlook in the Brisbane area. I will definitely be back for property #2. Chris B. July 2015.
East Toowoomba
Price: $424,500
Description: Duplex on a 708sqm block zoned for further development
Why we like it: Here we have a duplex returning roughly 5.4% about 500m away from the city centre. What was impressive about the property was the extra space it had and the zoning of the land to allow up to 2 more units/townhouses to be constructed on site for a great equity gain of about $200,000. So like the property in Newtown it was positively geared and will cost the clients next to nothing to hang onto while they look at constructing the new duplex on site. A great little buy.
| Are you in the market for a property with multiple options? Maybe we can help. Visit our membership page for details. |
It's a Renovator, a Splitter and a Development Site all Rolled Into one
Kedron
Price: $760,000
Description: Existing house on a corner block with the ability to subdivide into two, with the option of building on the vacant lot.
Why we like it: This was an interesting one as it got better and better the more we worked on it, plus two previous contracts fell over because of issues we were able to solve. We knew this property well before we placed it under contract and watched as people initially offered too much and the owner's expectations gradually came down. Initially our maximum price was $740,000 as a result of a combination of items, the major one being a change in interpretation from council with regards to infrastructure charges which meant a developer would need to pay $56,000 on this site as opposed to $28,000 just months earlier. We received word it had fallen over for a second time and started our negotiations down below $740k. During the course of negotiations council reversed their policy stance on infrastructure charges, an immediate $28k improvement in our numbers and allowed us to eventually agree to $760k contract price (both of the previous contracts were in excess of $780k). Prior to going unconditional we needed to confirm council's infrastructure policy, verify we could remove a tree on site (a previous buyer received incorrect advice from council that it was protected and the reason why the first contract fell through), and ensure we could do a simple sewer connection as opposed to a $60k sewer extension up the street (the reason the first contract fell over). By the time unconditional date rolled around our infrastructure charges were reduced, the tree could be removed and we'd received Government advice a simple sewer connection was possible. Our numbers indicate well in excess of $100k equity gain for a DIY reno and subdivision, with the option of building new still to come.
| Are you in the market for a splitter block or possibly an RDC - 'Reno, Develop Combo'? Maybe we can help. Visit our membership page for details. |
Kearnys Springs
Price: $375,000
Description: A house with DA and BA approval to retain existing dwelling and construct 3 more villas on site
Why we like it: This is as simple as you can get. A property with all the approvals completed. Most of the risk of the development had been removed through the previous owner obtaining the approvals. They also went to the trouble of completing some of the operational works as well. This for the next buyer saves time and money. This property only required someone to come in and finish the job for a handsome profit. That being a potential 20% equity gain. Now who would argue with that; all the initial risk and work done for you, all the client has to do is build the units and reap the rewards over the next 6 months. Making $200,000 in equity in 6 months appeals to us!
| Are you in the market for a mid sized development site? Maybe we can help. Visit our membership page for details. |
More Returns
Wooloowin
Price: $590,000
Description: 2 x 2 bed flats with approval to convert to 2 x 3 bedroom, 2 level townhouses
Why we like it: This property was being marketed primarily as a development site, having gained approval to convert the existing two x two bedroom flats into a more substantial pair of two level, 3 bedroom townhouses. The problem is this was never going to be a cheap or easy build, with rectification work to the existing structure as well as the additions likely to cost far more than if you could start from scratch. The dwelling, however, could not be demolished so we took a step back and reviewed what was existing. On offer were two flats, under rented (partially because the focus was on developing), in a popular suburb and walking distance to busway and train. With a small amount of renovations (circa $20k) we could increase the rent and attract a better quality tenant and achieve 6% gross rent return. Pretty good when the median rent for units in the suburb is 4.9%, for houses 4%, and at $590k purchase price we purchased a duplex pair for more than $120k below the median price for a house in the suburb.
| Investigate Property are buyers agents of Investment Properties servicing the Brisbane and Toowoomba regions. We aim to meet three criteria for every deal we source: 1) Buy Well - Not only buy at the right price but the right property in the right location 2) Reduce Risk - We do this through extensive research and using our development and town planning knowledge. 3) Buy a Property That Offers More - Finally, we want that little bit extra, the 'twist' so to speak. We are never satisfied with just a stock standard deal, we want something that can offer more for our clients. Can we help you? Visit our membership page for details. |
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