I've come across this house up for a desperation auction which strikes me as a really a good dual income investment opportunity.
It didn't suit me because I'm looking for a PPOR, not a IP, there's a salt water pool instead of a garden, and it's close to a railway line and I don't like listening to trains.
But, for those of you who know this area, it's in a bit of a plum location - walking distance to train, walking distance to bus, walking distance to shops (Woolies, Coles, coffee, deli, fruit, pharmacy, restaurants, newsagent, bank, PO), walking distance to one of the best schools in the area, (Cannon Hill SS), walking distance to the Colmslie pub, petrol station, surrounded by parks, bowling clubs etc. Close to Wynnum Road and just a couple of k's from the Motorway.
The situation is that there has been a relationship breakdown and the bank is breathing down their necks. The house will be auctioned July 10 unless sold prior. She's had several offers but based on contingency sales and she can't wait that long. Even though she's extensively remodeled she knows that she's going to come a cropper and not get her money back on that.
Residex has it valued at about $456K based on 2 bed 1 bath. However, it's now 3 bed 1 bath upstairs and one very spacious apartment underneath, so that's an extra 1 bed 1 bath plus kitchen. Separate entrance to each place. She bought it for $385K a year ago and put a lot of money and hard work into the renovations. Both the upstairs and downstairs are very pleasant and have been done with skill and flair - it has great tenant appeal.
Median price for Morningside is $563,500 and capital growth in the last year has been 7%.
The auction reserve is going to be incredibly low - enough to cover the bank mortgage but there may be nothing left over to cover her reno's.
The downstairs is legal height but I'm not sure about the council certifications and nor is the owner. That part was all done prior to her reno's. It's possible that a new owner would have to get retro certificates before renting out - I'd certainly look into that if I was buying it.
Based on my observations of rents in Morningside at the moment, it would be conservative to say that the upstairs could rent for $400 and the downstairs probably $300. The owner has a letter from a PM stating more than this, but the market has flattened here in the last few months.
Here is the property;
http://www.domain.com.au/Property/ForSale/House/QLD/Morningside/?adid=2008381488
http://www.realestate.com.au/property-house-qld-morningside-106556818
Putting it on Somersoft because I think it could work out for someone, but do your own DD. I'm willing to answer any questions on things that I've seen with my own eyes.
It didn't suit me because I'm looking for a PPOR, not a IP, there's a salt water pool instead of a garden, and it's close to a railway line and I don't like listening to trains.
But, for those of you who know this area, it's in a bit of a plum location - walking distance to train, walking distance to bus, walking distance to shops (Woolies, Coles, coffee, deli, fruit, pharmacy, restaurants, newsagent, bank, PO), walking distance to one of the best schools in the area, (Cannon Hill SS), walking distance to the Colmslie pub, petrol station, surrounded by parks, bowling clubs etc. Close to Wynnum Road and just a couple of k's from the Motorway.
The situation is that there has been a relationship breakdown and the bank is breathing down their necks. The house will be auctioned July 10 unless sold prior. She's had several offers but based on contingency sales and she can't wait that long. Even though she's extensively remodeled she knows that she's going to come a cropper and not get her money back on that.
Residex has it valued at about $456K based on 2 bed 1 bath. However, it's now 3 bed 1 bath upstairs and one very spacious apartment underneath, so that's an extra 1 bed 1 bath plus kitchen. Separate entrance to each place. She bought it for $385K a year ago and put a lot of money and hard work into the renovations. Both the upstairs and downstairs are very pleasant and have been done with skill and flair - it has great tenant appeal.
Median price for Morningside is $563,500 and capital growth in the last year has been 7%.
The auction reserve is going to be incredibly low - enough to cover the bank mortgage but there may be nothing left over to cover her reno's.
The downstairs is legal height but I'm not sure about the council certifications and nor is the owner. That part was all done prior to her reno's. It's possible that a new owner would have to get retro certificates before renting out - I'd certainly look into that if I was buying it.
Based on my observations of rents in Morningside at the moment, it would be conservative to say that the upstairs could rent for $400 and the downstairs probably $300. The owner has a letter from a PM stating more than this, but the market has flattened here in the last few months.
Here is the property;
http://www.domain.com.au/Property/ForSale/House/QLD/Morningside/?adid=2008381488
http://www.realestate.com.au/property-house-qld-morningside-106556818
Putting it on Somersoft because I think it could work out for someone, but do your own DD. I'm willing to answer any questions on things that I've seen with my own eyes.