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Any thought about investing in Beenleigh, Brisbane? If i can buy a 3/4 bed property below 300K with 10% deposit, how much rental income should i expect? Is it going to be beneficial in terms of capital gain in the long run?
My latest purchase:
House in Beenleigh - 3 bedroom, 1 bath, 1 car
Rent $330 pw
only thing wrong with it is a loose cupboard hinge
Purchase Price $228,000
Rental Yield - 7.5%
Last owner paid $290,000 in 2011
Value - didn't bother doing pre-val...conservative guess based on comparables $270-$280K?
Not a super duper deal by any means but definitely a good buy for the area particularly in the better part of Beenleigh and excellent prospect to reuse capital for next purchase.
Hi guys,
Thanks again for all the outstanding content on the site - even though I probably haven't contributed as much as I would've liked, I've spent countless hours reading and researching based on the contributions of the members here (so thank you).
Just thought I'd pop my head in and share a deal I've just gone unconditional on. As you're aware, I'm a young investor who purchased his first property mid 2013: http://somersoft.com/forums/showthread.php?p=1048574#post1048574. This deal is number 2:
The Property:
* 2 bedroom, double story brick veneer townhouse in the Logan Central district (Waterford West, QLD), 1 bathroom, and 1 car port parking within a complex of 10
* Sold for $210,000 in July 2009
* Built in 1990
* Floor size of 71 m2.
The Numbers:
* Purchase price: $165,000
* Currently untenanted but tenant lined up at $280pw post settlement (day one yield of 8.82%). There are also two in the same block tenanted for $280pw.
* 97% LVR inc LMI capitalised - total loan: $161,106.52 from Bankwest at 4.88% = $655.17 per month repayments or $151.19 pw. Interest only loan with 100% offset account
* Approx other expenses: Council/Water/Enviro rates (approx $2960pa = $56.92pw), strata fees (approx $1332pa = $25.62pw), Landlord insurance (approx $310pa = $5.96pw, property management (approx $1200.00pa = $23.08pw). Depreciation report to be sorted asap.
Total cash flow pre-tax:
Income: $280.00pw
Expenses at approx levels: $262.77pw
= + $17.23 per week
The property needs some minor cosmetic work prior to the tenant moving in: putting silicone on small leak under kitchen sink, remove OR strengthen IKEA cabinet in kitchen, replace cracked shower screen, replace fly-screen on back door due to old pet holes, and carpet on ground floor needs to be steam cleaned or replaced. Structurally, B&P came back very good from fire safety and structural perspective.
RP Data reports the property is worth approx $190,000 - and there is another property in the same block on sale for $195,000 through Re/Max Community. I think it positions me well for #3 and #4 later in the year, and keeps the cash-flow within the portfolio strong. I know seeing young investors like Nathan posts his deals inspired me to push harder, so I hope I can one day help others from my own experiences.
Pictures to follow during the week when I get my camera back from my gf
Happy investing,
Nixba
I would pay a buyers agent fee if you can find a house like thatIn the Beenleigh / Logan area, you can get the 7 - 8% rental yield for the right property. So if was buying a $300k property, I would not consider rent below $420 per week.
Some people can stand stationary for a long time... especially a kid is standing in one leg!The people there walk a little weirdly.
http://www.youtube.com/watch?v=O8FLqrL-hus
Thanks for the reply.But I am bit doubtful about getting 420/week rent. I checked in the realestate and rent is 320-350 highest for 3/1/1. for 4/1/1 400/week in highest.
Lone Pine Koala Sanctuary were suppose to be relocating there. I'm not sure if the idea got scrapped or delayed. I guess all the money being pumped into new town center will make a difference eventually.INVSTR - lol they do walk funny out that way - that certainly isn't the run down, povvo, crappy Beenleigh I remember.
I wonder what the long term prospects for capital growth are in the area. It's find to have a positively geared property but in 10 years if it hasn't gone up in price much, what's the point?
Lots of land out that way, so if the area takes off I'd be worried developers will come in and create new boxy little estates for the people and investors in the area will be competing for rent and sales with brand new boxes.
Just thinking out loud.
Thanks for the reply.But I am bit doubtful about getting 420/week rent. I checked in the realestate and rent is 320-350 highest for 3/1/1. for 4/1/1 400/week in highest.
Cashflow is only gravy. Its purpose is to keep your head above water and make you look good to banks so you can buy more.
Real money is made when you buy below market value.
I wouldn't pay anything over 250 in any logan suburb for a house...(with exceptions like dual occ, acreage etc)
So not even in better Logan suburbs on the other side of the Pacific Motorway like Rochedale or Daisy Hill? You're absolutely kidding yourself if you think 4114 is the only postcode that makes up Logan.
Nope wouldn't even bother looking at those suburbs in Logan LGA as they are not suburbs fit for my investment strategy...not sure why anyone would bother with them at all actually considering the prices are matching those of much nicer suburbs in Brisbane...each to their own I guess.
Rochedale is in Brisbane city, Rochedale South is in Logan - I think Logan rates and water are more expensive?
INVSTR - lol they do walk funny out that way - that certainly isn't the run down, povvo, crappy Beenleigh I remember.
I wonder what the long term prospects for capital growth are in the area. It's find to have a positively geared property but in 10 years if it hasn't gone up in price much, what's the point?
Lots of land out that way, so if the area takes off I'd be worried developers will come in and create new boxy little estates for the people and investors in the area will be competing for rent and sales with brand new boxes.
Just thinking out loud.
These are my concerns too, plus rental demand. If I bought 3 - 5 km from the cbd I would never have to worry about rental vacancies. CG is pretty much assured as there is always huge demand so close to Brisbane.
I've heard that the Brisbanes plan going forward to cater for the population growth is building up medium density housing in the inner/middle ring <10 km to CBd as 70 % of the population growth will be living near the CBD. To me investing <6 km to cbd you can't go wrong (with the right property of course)
I still do find it tempting to invest out Logan way for the yields, it just feels riskier to me.
Hi All,
so for homes with dual occupancy. your saying higher rent if rented out seperately right?
thats not allowed so are we not taking a much higher risk. from insurance etc perspective.
or your saying larger family, one tenant group would pay higher for these houses.
somerhut
Hi Somerhut, in answer to your question, yes, a tenant group comprising of family/relations or friends/relations will in general, pay a higher price to live in a fairly large house with dual living capacity (e.g. 3 beds up, 2/1 bed down, 2 living rooms, 2 kitchen/kitchenette).
Large properties for rent in Logan 4114 and Slacks Creek are scarce, it's mostly the 3/1 advertised for rent.
Speak to the REA, they will tell you what the property will rent for in the current market.
As for renting out separately, the Logan draft plan is positive towards dual occupancy (dual key) atm. It will be permissible to rent out the same house separately to different parties as long as the property is on one title, share a common wall and common driveway.
Granny flats, Dual Occupancy (2 houses on one title e.g. separate or duplex/semi) is also regarded in a positive light.
This will be the strategy Logan will adopt to accommodate future population growth. There will be some townhouse precincts but the majority of 4114 will be low density residential suburban that will allow dual occupancy (dual key), dual occupancy and granny flats
The high rise office and residential buildings are planned to be in Springwood which will be like a CBD.
Link to Draft Logan Planning Scheme - target is to finalise by July 2014
http://www.logan.qld.gov.au/planning...lanning-scheme
link to 'Search my property interactive mapping'. Search on any property for the zoning under the Draft Logan Scheme
http://www.loganinteractivemapping.com.au/
link to low density residential zone fact sheet
http://www.logan.qld.gov.au/__data/a...ntial-zone.pdf
link to low to medium and medium density residential zone.
http://www.logan.qld.gov.au/__data/a...ntial-zone.pdf
link to where dual occupancy, dual occupancy (dual key), and secondary
dwelling types of developments is allowed (stipulates what is allowed where, minimum lot size, size restriction for the subordinate dwelling, requirements for dwellings to attached (if any) )
http://www.logan.qld.gov.au/__data/a...-dwellings.pdf