Purchased investment property in QLD, any feedback or opinions?

[wylie]

Nice and close to Kneale Street, which is a prestige address, with a lot of money already spent, and plenty more going in. It looks good to me, but google maps seems to have taken pics from the bottom of the split street and I cannot get to the road right outside. I'm guessing this doesn't get high enough to capture the city views that Kneale Street has, and there is no mention of city views, but the house looks nice and very easy to rent.

Our block in Coorparoo on 24 perches with UCV $500K means rates of about $500 per quarter. Buying for land value is pretty much a big win.

 

[willair]

According to Price Finder, the primary land use is SINGLE UNIT DWELLING

Property Description
RPD: L1 RP131248AR YEERONGPILLY
Volume/Folio:
Pri Land Use: SINGLE UNIT DWELLING 2nd Land Use: NONE
Land Area: 943 m? Building Area:


Land Valuation History
Valuation Type: Valuation Date: Issue Date: Effective Date: Valuation Amount:
Site Value 01/10/2013 12/03/2014 30/06/2014 $630,000
Site Value 01/10/2012 20/03/2013 30/06/2013 $630,000
Site Value 01/10/2011 28/03/2012 30/06/2012 $630,000
Site Value 01/10/2010 03/05/2011 30/06/2011 $630,000
Unimproved 01/10/2009 22/03/2010 30/06/2010 $630,000
Unimproved 01/10/2007 17/03/2008 30/06/2008 $570,000
Unimproved 01/10/2006 26/02/2007 30/06/2007 $475,000
Unimproved 01/10/2004 29/03/2005 30/06/2005 $415,000
Unimproved 01/10/2000 $155,000
Unimproved 01/01/1995 $116,000
Unimproved 31/03/1989 $85,000

With the rateable land value at $630k could someone tell me what the rates per quarter would be on a block with that value.[/QUOTE]

Only my opinion but the rates would be in the mid 500 dollars,plus your Urban Utilities bill would be in the 400 dollars range maybe $900.00 plus each 12 weeks depending on the water usage,and if you have larger rubbish or green bins,,imho..

 

[wylie]

Just pulled out one IP rates notice, also Coorparoo, high up with view over suburb, city glimpses, UCV $530K (just gone up from $500K), 906 square metre block.

Rates are $595 per quarter and Urban Utilities last bill (landlord portion without usage added) was $191.

 

[sasjes]

I hope I'm not prying too much but when do you benefit from the CG? How much growth do you require? ie. What percentage increase in value is needed to offset the negative gearing that will have occurred up to that point?

Or did you only get a small loan?

Jeremy not sure what you mean by when do i benefit from CG but the sooner the better in my books

CG does not offset NG, cashflow from rental yeild does.

Loan is 95%.

Well done! I agree with Willair's comments. Nice house and views! It's a great location and good value. If you wanted to add value, I think if the car ports at the front were painted white it would look a lot nicer. -if you could be bothered!

Thanks mate. Ill probably get my handman up there to do that and a small cosmetic reno in the bathroom. I wanna attract a premium tenant and yeild.

I'm guessing this doesn't get high enough to capture the city views that Kneale Street has, and there is no mention of city views, but the house looks nice and very easy to rent.

Wylie I think it has views of Mt Gravatt but not sure about anything else. I am going up in a few weeks so ill have a good look. Fingers crossed!

 

[A Jeremy]

sasjes,

It's my understanding that you intend to hold this property and rent it out, paying all outgoings and holding costs, which will be offset by the rental income. Without doing the numbers I presume it will be negatively geared. Seeing as though you don't intend to develop it, is your strategy to hold onto it until the value rises enough for you to sell and make a profit?

If that is that case, what percentage of growth, relative to the purchase price, are you seeking, to you the profit you are chasing as well as compensating for the losses during period of negative gearing while you are holding it?

 

[sasjes]

Hi Jeremy,

Ok i understand what your asking now. I am not necessarily against developing it and if i can i most likely will at some point.

is your strategy to hold onto it until the value rises enough for you to sell and make a profit?

No wont sell. I never sell. When theres more equity just redraw together with other properties and use equity for development projects.

cheers

sasjes

 

[Beanie Girl]

Wolf-whistle! Sasjes, I was looking for any planning overlays on your property so I casually checked the BCC PDOnline Interactive Mapping tool.

Did you know that your property is on the northern cusp of the HUGE Mount Gravatt/Mount Gravatt East/Holland Park LMR corridor?

LMR : Light Medium Residential - properties in this zone will be able to build multiple units or townhouses on their site.

You are just a street and a few houses away from nearly the start of this large LMR corridor. The nearest streets to your property that are LMR is Iris and Miriam street, they run perpendicular to Pickthorne St.

Then just a further south, the south of Nursery Road is a whole swathe of LMR corridor.

Within this Mount Gravatt corridor somewhere towards the middle, I think are some small Medium-density residential areas where five storey apartments will be allowed to be built.

The Mount Gravatt corridor is similar to our Principal Activity and Major Activity Centres (PACs, MACs) in Melbourne where higher density will be focused in town centres where there's already amenity (e.g. shopping areas, transport, banking, services etc)

 

[A Jeremy]

Ok cool sasjes.

By the sounds of what Beanie Girl is saying, you've made a solid move there.

 

[sasjes]

Hey Beanie,

Thanks for your feedback and research!! Much appreciated. Im in the process of some other transactions and once they all settled and the dust hits the ground, i will be reviewing exactly what development opportunites exist in each of them. I will keep you updated with regards to the LMR and what council says about it all. Exciting times Goooooo Brisbane!!!



p.s Love that whistle!

 

[Holmes2012]

Good it's away from the crematorium, so less chance of being haunted, adding further to the feng shui angle!

Also good to see investors have confidence in 600k+ range properties as an IP.

LMR - trust your property will get that zoning too, else your standalone will be surrounded by sophisticated housos.

 

[Holmes2012]

LMR : Light Medium Residential - properties in this zone will be able to build multiple units or townhouses on their site.

)

I always thought LMR meant Low-Medium Residential. Means the same, just trolling! Sorry.

 

[RPI]

At $630k UCV and assuming you have bought in your own name then don't forget land tax. You would be up for $800/year if that is your only QLD property. If owned through a company or trust that owns no other property $6,210 per year. If you owned through 2 separate trusts it would be $0/year until you get another $70k in appreciation.