Advice on first Investment Property

W

Whishy

Hi guys,

Im not sure if this is the right spot, but hoping to get some expert guidance as to an opportunity I have for my first I.P.

Location: Allenstown 4700
Flood Zone?: NO
Property Size: 912m2 on 2 Lots (Both with only 10m frontage each)
House: 3, 1, 1
Listed Price: 235k
Negotiated Contract Price: 205k
Current Tennants Rental: $290 per week

Rental Vacancy Allenstown: 2.1%
onthehouse price estimate: $231-$261k
Pricefinder price estimate: $258 - $311
Last Sale Price (Feb 2012) - $250k

Median Price for Properties between 700m2 & 1100m2: $306,000

Why look here?

Well, the Yeppen Bridge Project (Fed and State GOVT Funded) will bring in approx 2 years of construction work and is only 2km away. This will be set to be awarded in a couple of months, and will commence in 4-5 months from now.

The current Gladstone market is declining pretty fiercely, so there is a possibility that buyers may seek a less volatile market?

Basically I have done as much research as I can think of to try and find a negative to this deal/area. Is there any other data I should be looking at?

Thank you
 
If you can, purchase a recent sales report you can find it on rea.com the link is in the suburb data page, have a look at comparable sales so if you decide to buy it may help you so you don't overpay
 
Thanks.

Pricefinder has the recent sales and also has recent rents. It then shows a map and you can compare each property so it gives you a value based on comparitive sales and also a rent appraisal based on comparative rents.

It all looks good in theory.
 
Trying to find what the general rate is and what my yearly expenses would be. The council website doesnt clarify.

Does anyone know what Rocky's rates are after the hike? May ring the council today.
 
Close to Allenstown Square and Allenstown State School by any chance? Good spot around there but anything close to Gladstone Road is flood prone.
 
By the way, to go from $250k down to $205k is pretty impressive. What was the vendor's situation?

Those larger blocks in Allenstown can be developed as well.
 
norwoodman said:
By the way, to go from $250k down to $205k is pretty impressive. What was the vendor's situation?

Those larger blocks in Allenstown can be developed as well.
Click to expand...

I believe it to be a separation. So they are desperate to sell.

I originally just went in with a low low low offer and thats what they came back with.

Sign the dotted line tonight.

I checked out the street and the surrounding houses all look well maintained, and a lot of the people in the street have been living there for many years.

Very close to shops
 
This one looks good, I'd say you've picked a good one! When I was looking around Rocky all I could find around the $200k mark were run down, tiny blocks and/or flood prone properties in Allenstown and Berserker! Went up a bit price wise into the mid 200s for an eventual purchase, but the yields for houses at the higher prices tend to be in the high 6%'s at best rather than low to mid 7%s - that's what I'd expect for duplexes and units in Rocky, not houses!
 
Thanks Norwoodman.

I see you are too in Gladstone, Im thinking of commuting from Rocky for a couple of months whilst I do some additions to the house. Should keep me occupied.
 
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