Opinions on this Annerley Brisbane Property?

[Corbin]

Hi,
Not sure on the forum etiquette for this type of question, so sorry if I've posted this in the wrong place.

But would like opinions on this property as an investment: http://www.realestate.com.au/property-house-qld-annerley-114905743

and also http://www.realestate.com.au/property-house-qld-east+brisbane-116523295

regards,
Corbin

 

[Francesco]

Hi,
Not sure on the forum etiquette for this type of question, so sorry if I've posted this in the wrong place.

But would like opinions on this property as an investment: http://www.realestate.com.au/property-house-qld-annerley-114905743

and also http://www.realestate.com.au/property-house-qld-east+brisbane-116523295

regards,
Corbin

Someone, who shall remain nameless, values it in the range of $555k-$601k. Vendor is expecting above $699k. Any tactic you will be using to negotiate it down?

Second one is valued in the range of $636k-$674k.

On this basis, second one is reasonable.

Prices in Brisbane are biased to be up as many commentators have supporting it. All the best in your search.

 

[D_One]

Someone, who shall remain nameless, values it in the range of $555k-$601k. Vendor is expecting above $699k. Any tactic you will be using to negotiate it down?

Second one is valued in the range of $636k-$674k.

On this basis, second one is reasonable.

Prices in Brisbane are biased to be up as many commentators have supporting it. All the best in your search.

Are you using desktop valuations on Pricefinder/rpdata/onthehouse. I find these valuation methods to be totally unreliable.

OP, what are everything else around the street/area selling for?

 

[Waldo]

Someone, who shall remain nameless, values it in the range of $555k-$601k. Vendor is expecting above $699k. Any tactic you will be using to negotiate it down?

Second one is valued in the range of $636k-$674k.

On this basis, second one is reasonable.

Prices in Brisbane are biased to be up as many commentators have supporting it. All the best in your search.

I would be surprised if the Annerley one goes for less than 600k. Obviously difficult to value as it is so specialised (it is very obviously set up for room by room tenanting). I would expect it to go for 650-700k perhaps. I'll echo what D_One has said - if the val for this place is based on a autmated desktop val, I wouldnt rely on it (considering how it is set up) - it wouldnt really be comparable to other standard residential houses nearby.

You would want to check what the maximum number of un-related tenants is allowed for the area (I have a suspicion that it is 5) - if it is less than 5 does the current owner have it registered? It would pay to check with a broker and confirm what LVR's banks would lend for a place like that - if they have special restrictions, it may limit future growth.

I couldnt comment on the East Brisbane one, as it is not one of the areas that I follow closely.

 

[Corbin]

Someone, who shall remain nameless, values it in the range of $555k-$601k. Vendor is expecting above $699k. Any tactic you will be using to negotiate it down?

Second one is valued in the range of $636k-$674k.

On this basis, second one is reasonable.

Prices in Brisbane are biased to be up as many commentators have supporting it. All the best in your search.

Interesting valuation on the Annerley place, the other online valuations I looked at are much higher.

Negotiations for a lower price didn't go far, and I've ended up not buying at the 700k plus price.

 

[Corbin]

Are you using desktop valuations on Pricefinder/rpdata/onthehouse. I find these valuation methods to be totally unreliable.

OP, what are everything else around the street/area selling for?

Yes, those valuation methods have proven to be way out on some places, which is why I asked here.

Closest recent sale I see is 735k for a 6 bed/2bath http://www.realestate.com.au/property-house-qld-annerley-115597479

 

[Corbin]

I would be surprised if the Annerley one goes for less than 600k. Obviously difficult to value as it is so specialised (it is very obviously set up for room by room tenanting). I would expect it to go for 650-700k perhaps. I'll echo what D_One has said - if the val for this place is based on a autmated desktop val, I wouldnt rely on it (considering how it is set up) - it wouldnt really be comparable to other standard residential houses nearby.

You would want to check what the maximum number of un-related tenants is allowed for the area (I have a suspicion that it is 5) - if it is less than 5 does the current owner have it registered? It would pay to check with a broker and confirm what LVR's banks would lend for a place like that - if they have special restrictions, it may limit future growth.

I couldnt comment on the East Brisbane one, as it is not one of the areas that I follow closely.

I think at around 700k would be the market value, but it is hard to say. A 3 bed house on the same size block would be 550-600k.

 

[willair]

I have within a 1 klm,s from one of those adds,lot of redevelopment going on in between Moorooka and Dutton Park so I would guess long term,but just look into students rentals or any high volume tenants it's not as easy as some think..imho..

 

[Tim86]

I have within a 1 klm,s from one of those adds,lot of redevelopment going on in between Moorooka and Dutton Park so I would guess long term,but just look into students rentals or any high volume tenants it's not as easy as some think..imho..

Renting to students is easy.... Why do you say it's not?

 

[Waldo]

Yes, those valuation methods have proven to be way out on some places, which is why I asked here.

Closest recent sale I see is 735k for a 6 bed/2bath http://www.realestate.com.au/property-house-qld-annerley-115597479

I saw that one - again a slightly different property in that it is dual occupancy, rather than individual rooms.

I'd agree with your other statement - if it was a 3x1 in reasonable condition it would be 550-600k.