banyo prop No 104409680

[WBG Redcliffe]

Hi all

Have just gone to contract on a prop at banyo RE.com 104409680. would like your opinion of price.

was passed in at auction on wkend at 385k and they knowked back an offer at 430k yesterday

3br house + registered 1br flat in the rear yard

would like your opinions on price.

thanks

 

[Matt 72]

Looks like an excellent purchase to me with a great rental return on a good sized block of 607m/2. I would suggest a price no higher than $340K would represent very good value.

I have recently purchased a new home at the Villa World estate in Banyo and believe this area has a lot to offer. Congratulations on the purchase you seem to have done well.

Matt

 

[aaarghhh]

It looks good. Does it come with current tenants n leases?

There's a good rental pool of students from the university.

Nice neighbourhood there. Close to the highway / airport. Good train access and shops.

Is the granny flat approved dwelling?

 

[WinstonWolfe]

Hi all

Have just gone to contract on a prop at banyo RE.com 104409680. would like your opinion of price.

was passed in at auction on wkend at 385k and they knowked back an offer at 430k yesterday

3br house + registered 1br flat in the rear yard

would like your opinions on price.

thanks

There's been a few brand new 3/2/2s on 405s near the shops that have got 400-410k in the last few months.

A 405m2 lot in a quiet street would be worth 215-225...so I'd value a 600m2 at 260+. Your construction would have to be worth $180k at least....(well, I am getting a 3/1/2 house with 2/1/1 flat built for 160k....So my valuation for your buy is reasonable at 430k and 440k wouldn't be silly......

If targeting students, you likely rent the flat for $160+, and the house $120 a room = $520pw if targeting ACU students......

However, keep in mind students can come and go.....so better to rent the house out to a a group who all have their names on the lease, rather then rent rooms out individually....as it will be hard to get another student in mid semester, and you will wear the risk of lost rent.....

But you also want to allow for a couple of extra weeks of vacancy each year. say 4.....

So your gross yield on my valuation would be 25000/440000 = 5.68%
Not bad.....and considering the dwelling and flat are in good nick, seems you'll do ok if you hold more than 5Years.

Nevertheless, don't forget to keep comparing values in Banyo with more upmarket areas and homes in traditional blue chip burbs of Brissy.

 

[Kevin Hockey]

430k is too much......

Based on the info at hand I'd suggest 350-380k.

I've sold a few properties there lately. Be careful of how much value you place on the converted garage.

Kev
www.gogecko.com.au

 

[WinstonWolfe]

what price do you put on the land Kevin?

 

[Kevin Hockey]

what price do you put on the land Kevin?

I don't!!

It's not relevant what the land is worth when there is a property on it. You can't buy the land vacant so it's value is not necessarily the same, or as I said, relevant.

A buyer buys a vacant block with the emotion of building their dream home, this emotion isn't applicable in this situation

The question is what are buyers paying for similar properties in the area. I just sold 8 Mellifont and 23 Walton St. Mellifont is a highset brick with inground pool, good condition except tenants presented it poorly for sale which effected the sale price. Eventually sold for $400,500. Should have sold closer to $420,000 but the tenants made inspections difficult and it was always untidy and cluttered. The owners understood, especially when they saw it after tenants vacated.

With info available I can't see 400k, unless someone over values the "flat".

Kev
www.gogecko.com.au

 

[WinstonWolfe]

The question is what are buyers paying for similar properties in the area.

Kev
www.gogecko.com.au

I suppose the other consideration apart from what buyers have paid for similar properties, is supply.

A buyer buys a vacant block with the emotion of building their dream home, this emotion isn't applicable in this situation

40% of new loan $ are taken out by investors Kevin.

 

[WBG Redcliffe]

From the info I have gathered the house should rent for about 325p/w and the flat 210p/w. Yes the flat is registered. My bld and pest came back and there is termite damage to some of the bearers and joists. Quote to fix is about 12k also needs pest treatment 1k and there is old water damage to a small part of the ceiling in the front rooms. Ceiling is fribro and repairs im guessing around 2k

I have gone to contract at 460k. contract is not unconditional yet. We are still negietating the repairs.

Thanks for your replies they really do help

 

[WinstonWolfe]

Hi Wayne....hope it all goes well for you.....a strategic purchase in a great location...

I can believe you'll get $200 for the flat if you get someone who doesn't mind the close proximity to the house. 1 bed granny flats certainly get $200+ further out.

 

[BenQld]

In terms of rental, I have a 3 bedroom house, airconditioned, 2 storey, renno'd Bathroom & kitchen on Froude St, and I just got new tennants at $340/wk, and this is a 30yr old house !

that house looks alot nicer, and I would expect at least $420+/wk for that given what people are paying in the area !

Ben