Buying units in Brisbane as IPs - how'd you go?

[grubar30]

Hi All,

I’m interesting in hearing from investors who have recently (last 6 months) purchased any 2 bedroom units (or 1bdr) in the Brisbane area.

What was your purchase price, what was the actual rent at the time and how did that yield sit with your investor philosophy and or goals?

Also, did you buy for long-term growth, for flick and trick purposes or for value adding to increase the yield? For the value adding, did the renovation increase equity and did you over-capitalise?

Reason behind the post – I’m trying to research and gauge the current unit market in Brisbane and what better way then to hear from those with a bit of recent exposure and experience.


George

 

[Rixter]

I purchased a 3 bedroom townhouse in Upper Mt Gravatt for $230k, renting for $235/w , settled 9 months back.

Yield was low at the time but I knew I could add value and up the rent once the lease expired 2 months ago. I installed a A/C and increased the rent to $280/w and the same tenant renewed her lease for another 12 months.

Last month a similar townhouse next to mine in the same complex went on the market.....The asking price was $50k more than I paid. It was under offer within 2 weeks and just settled for $270k.

Needless to say I am very happy

I have bought it as part of my CGA investment strategy.

Hope this helps

P.S. I plan to purchase another 2 properties in Brisbane again this year.

 

[grubar30]

Hi Rixter,

Thanks for laying out the figures. Got to say, nice foresight in seeing the potential in that property. I like you're CGA plan too - its well-structed and simple.

I assume the rent was maybe below average for the Mount Gravatt area, as a $50 increase from an air-con alone seems impressive?

 

[Rixter]

Hi Rixter,

Thanks for laying out the figures. Got to say, nice foresight in seeing the potential in that property. I like you're CGA plan too - its well-structed and simple.

I assume the rent was maybe below average for the Mount Gravatt area, as a $50 increase from an air-con alone seems impressive?

Yes, as I mentioned the rent was low at the time and the vendors I bought it from hadnt kept tabs on it - all the better for me

 

[emcdonald]

Thanks for the great post rixter!