Im selling two of my houses. Interest?

[JYK]

Im new to this forum method of communication so while Ive been warned to expect a fine tooth comb and some 'upfront' replies, I welcome anything that comes my way if its constructive and it teaches me something worth knowing.

I am a humble IP investor and do not work in real estate in any capacity, other than buying the selling houses as an investor, if you can call that work.

I have two houses for sale and would like to know if anyone is interested. If I dont provide enough detail, post specific questions. I have pics for those people interested. If you are, post a reply indicating your interest with your email address so I can send them to you.

House #1
Location: Eagleby (Brisbane - Gold Coast corridor)
3 br, weatherboard exterior, freshly painted exterior and interior, single carport, one bathroom re-tiled and new shower, timber shutters on main windows, re-carpet throughout, flat block, gravel driveway. Near to Beeneligh CBD, 20 min on freeway to Brisbane CBD and Gold Coast. Went to a seminar by Co-Develop Pty Ltd a brisbane based developer where they bought 48 lots in Eagleby at $120K per lot cost. Rent (realistic and at short notice) $185-190 per week. Currently vacant but will be tenanted very soon. Average sale price for non-renovated houses (directly comparable) is $180K. This is as per RPdata from local realtor.

Asking price (direct sale) $190K

House #2
Location: Bethania (Southern Brisbane - adjacent Browns Plains and Beenleigh)
3+1 br, weatherboard, freshly painted exterior and interior, double carport, one bathroom, fresh curtains on main windows, re-carpet living and bedrooms and re-laminate kitchen floor, re-tile kitchen splash back, re-laminate laundary floor, cement driveway. Near to Beeneligh CBD, 20 min on freeway to Brisbane CBD and Gold Coast. Rent (realistic and at short notice) $185-190 per week. Currently vacant but will be tenanted very soon.

Asking (direct sale) $215K

key reasons to buy:

Brisbane - Gold Coast corridor know high growth zone with large internal population flows.

These are renovated homes in areas with a lot of old run down non-renovated homes (that need it). The old ones are achieving similar prices because of the land so you do the maths.

Rental demand is very high for good qualilty homes which these are now that I have renovated them.

Vey good chance of a reaonsable capital gain in the medium term because of location.

Rental estimates are sound as I have 3 other comparable houses in the area achieving these rents now.

Currently being marketed with local realtor so first in gets em..

Thanks.

 

[Mrs Bird]

Hi JYK,

Sounds very interesting.

I have a few Questions...

1. How big are the blocks that both houses are on.

2. Is there scope for a subdivision of the blocks?

3. When were the houses built?...I assume they are reasonably old as you have renovated them.

4. Is there any public transport close by...bus train etc

Thanks Mrs Bird

 

[JYK]

Land Area: 600 Sqm - Eagleby
Land Area: 729 Sqm - Bethania

Doubtfull on subdivision as I believe you need at least 1200sqm

About 10-15 years Id say from building report.

Beenleigh - Eagleby area has everything, train link to Gold Coast and Brisbane CBD, buses, schools etc...

To let you know the growth factor in this area, bought some units (very little land content) in Beenleigh 12 months ago for 50K a piece and sold for 115K. Check this out if you want, call the realtors in beenleigh Qld and ask if this is realistic. Have decided to keep my remaining units to see if this will happen again;-)

 

[Aceyducey]

JYK,

Both look like decent properties - why are you selling?

Cheers,

Aceyducey

 

[JYK]

Owned in partnership with someone that wants to sell. They put up most of the seed capital so only fair their wishes are respected.

 

[capitalist]

All the best with your sale of the Eagleby property JYK.

I remember looking at houses there with another forumite in July-August 2003, and the average price was about $110k - $120k unrenovated.

A local agent told me those same houses were selling for about $50k - $60k a year earlier!

We decided not to buy there because we thought [wrongly] that there wasn't much growth left in the area. Every open house we went to seemed full of investors who were paying [seemingly] crazy prices that seemed overinflated for the area.

Without sounding elitist, this area has a lot of people on welfare who cannot afford high rents so it seems the average yield for the area has more than halved in recent years. The only shopping centre we saw in Eagleby was deserted. From memory it was anchored by a Coles and had 3-4 op shops, a bakery and a newsagent in it. The other stores were for lease.

I don't blame you for cashing in at this point in the market.
Good luck again, and i hope you make a few bucks out of it.

 

[JYK]

Thanks for your reply. The shopping centre you would consider isnt the Eagleby one, your right it is a little light on. Its Beenleigh which is 5 minutes away. There you will find a major centre. You are right about rent yields, however if you are a growth investor, this isnt the primary motivator to buy. Having said that, a bit more gentirfication and who knows what will happen to yields. Stockland is doing a 1000 lot development nearby and this is to meet the demand for housing over the next 5-10 years. Ormeau is loosening up its rural zonings (very slowley) as the farmers cash in and this will open up land for subdivision. Coomera (nearby - 15 minutes down the freeway, is planning the mega of all mega shopping centres which will be akin to Pacific Fair meets Harbour town on the Gold Coast.

 

[Sunstone]

Dear guys,

Some information on "Co-Develop Pty Ltd"

Name CO-DEVELOP AUSTRALIA PTY LTD
ACN 106 594 101
ABN 91 106 594 101
Type Australian Proprietary Company, Limited By Shares
Registration
Date 08/10/2003
Next Review
Date 08/10/2004
Status Registered
Locality of Registered Office Brisbane QLD 4000
Jurisdiction Australian Securities & Investments Commission

These are the documents that ASIC has most recently received from, or sent to this organisation. Page numbers are shown if processing is complete and the document is available for purchase.
Date Number Pages Description
22/10/2003 018189900 2 370 Notification By Officeholder of Resignation or Retirement

22/10/2003 019250037 2 370 Notification By Officeholder of Resignation or Retirement

22/10/2003 018189983 5 484 Change to Company Details Changes to (Members) Share Holdings

484G Notification of Share Issue
20/10/2003 019797711 4 484N Change to Company Details Changes to (Members) Share Holdings

15/10/2003 019771411 11 484 Change to Company Details Appointment or Cessation of a Company Officeholder

484O Changes to Share Structure
484G Notification of Share Issue
484N Changes to (Members) Share Holdings
08/10/2003 0E9204876 3 201C Application For Registration as a Proprietary Company

They were formed on the 8th of October 2003. No other listing for "Co-Develop" except for the trading name "Co-Develop" in Victoria.

Five months trading since incorporation..............


Why is house number two currently vacant?
How long have they been on the market?

Cheers,

Sunstone.

 

[JYK]

First up, I am not associated in any form or way with Co-Develop. Just went to their public seminar and listened to what they had to say. Dont vouch for them or know if what they say is accurate. Assume it would be otherwise, pretty silly to talk it up in a public forum I'd suspect.

Vacant because I want to make it attractive to first home buyers too and because I was renovating them. Formerly been on the market 2-3 weeks.

 

[willair]

JYK.
Eagleby,if that area is now in that price range then do you think
capital growth will slow with the number of properties for sale
in that area,if anyone does purchase in Eagleby make sure you understand the Landlord and Tenant Legislation in Queensland,
20 mins to the gold coast,20 mins brisbane cbd,at what time of day??
good luck..
willair..

 

[JYK]

My educated guess (and thats all it is from experience and having lived here for 15 years) is that growth will contuinue as land dries up. There a lot of rural properties between GC and Brisbane (eg: cane farms) most of these farmers know that their land is worth a bob or a few and arent rushing to sell. So, available land to develop is being snapped up. Bris- GC corridor is one of the highest growing zones in the country. The weather, low cost of living etc.. its a pretty sure bet that there will be growth. Think about it, land becoming scare, place where tonnes of people want to live...Moreover, with more non-renovated houses for sale there will be more renovators looking and buying, this will mean gentrification and improvement in the area which means values increase (in my humble opinion). Ive always been one to subscribe if you buy in an area with great fundamentals (eg: location) but where the area is less than appealing to live in, how far down can you go? Only way is up and I know this from direct experience. Eagleby is not yet at the gentrified stage, developers are moving in to build retirement complexes and this is snapping up large blocks of land. More older people means more younger people wanting to live nearby which is good for me.

I drive up and down almost weekly as I have a number of houses there. So 20 minutes is what I do the drive in and no, I dont speed. The freeway is usually bottlenecked (hence delays) after springwood into and out of Bri during peak hour which is past Eagelby heading north so I dont encounter it.

 

[willair]

JKY,
Yes i have agree,and hope you sell your properties,
but for 225k you can purchase within 10 klms of the brisbanes
cbd on the southside,Eagleby may still have capital growth
left in that area over the next two years,and the way the inner city residential market is still holding,its is unfortunate that we can not be aware of when,precisley when the next real estate cycle will start again, and in what area.
good luck
willair..

 

[JYK]

What suburbs can you buy fully renovated houses for that money 10 klms from the city. I am interested to buy if that exists?

 

[willair]

JYK,
The inner brisbane southside 10 to 12 klms from the CBD
is not a large area ,it does not take much time to work out
which areas are still undervalued,so have problems,heavy traffic,
floods,and other things that i dont worry about..all of the properties i look at need work in one way or another.
good luck
willair..

 

[thefirstbruce]

jyk, did you sell your houses?

 

[knightm]

JYK -

How did you go selling those places in eagleby and bethania? I am interested as I have a unit in beenleigh and a house in bethania also. Considering my options...growth sure was nice last year

Cheers