Waterfront Investment For Sale

Hi everyone,

I am expecting to list an absolute waterfront property today in Sandgate. If, as I expect, I do, I wanted to offer any investors in the forum an opportunity because the chance at this is very rare. I expect the property will sell very quickly.

It has clear, unobstructed views of Moreton Bay and Redcliffe, truly sensational. The house is a 3 bedroom colonial cottage Queenslander and new kitchen. The dining is off the kitchen and you can eat and cook and watch the boats sail past. Land size is 511m2.

This opportunity was too good not to let you know about. As I have said it hasn't been listed yet but I wanted to try and provide you with a little extra time to consider it. Once the property is on the market I will have my Property Manager try to asses its rental value. I am expecting it to be 300-350 pw

If anyone is interested please email me your details at kevinhockey@nundahfirstnational.com.au

Kev

www.nundahrealestate.com.au
 

Sim

Administrator
Kevin, to fit in with the forum guidelines, I have moved this to Caveat Emptor - and we're going to need a bit more information if we're going to allow it to stay.

Please read the guidelines here to familiarise yourself with what is acceptable: http://www.somersoft.com/forums/showthread.php?postid=399#post399

In particular we are going to need more specifics about things like price. The idea is that we can analyse the deal and see whether we think it is good or not.

We do not accept advertisements - which this post is at the moment.
 
Thanks Sim, I wasn't sure what protocol was with regard to this and I have never meant to use the forum for advertising, however I thought many people may be interested. If I step outside guidelines anytime please let me know.

Ta

Kev
 
Ok I've read the rules and I'll try and elaborate.

The property has now been listed, although no price has been set on it. The sale of a property further down the street recently for $550,000 suggests this should sell above $600,000 and probably below $650,000. As I mentioned earlier I expect it would rent for around 300-350pw. I will confirm that further for you. There is a property close by currently listed for offers over 1.2mill. Capital growth is definately the key here.

Sandgate is an old suburb about 15km north of CBD. It looks straight out over Moreton Bay. Sandgate has undergone major changes in recent years with bikeways, gardens, cafes etc. Every weekend it is packed with people walking their dogs, having lunch etc and playing with the kids.

Exact statistics I am not sure of, but the area has seen enormous growth in recent years. Traditionally it has been an area dominated by elderly people however that trend has changed significantly and is now very popular with the "Dinks" and "Yuppies".

This site may provide some info on the area, www.sandgate.net

I hope this helps, I will provide more info as I can. I apologise for the "commercial" however this is an extremely rare opportunity and I wanted to provide you with the chance of at least being aware of it. If I have used the forum out of context please let me know, I won't be offended and I will know next time.

Kev

www.nundahrealestate.com.au
 
Dear guys,

A little bit more statistical info on Sandgate.

Capital Growth in:
March 2002 quarter: 10%
June 2002 quarter: -4%
Sept 2002 quarter: 6.77%

Median price Sept 2002 $244,505

Average rental for 4017 postcode (Includes Bracken Ridge/Brighton/Deagon/Sandgate)(December 2002 RTA figures)
: $200/week.


Gross yield for the suburb 4.25%

About 32 minutes on the train to central station.

Cheers,

Sunstone.
 

Sim

Administrator
Originally posted by Kevin Hockey
Ok I've read the rules and I'll try and elaborate.
Thanks for the extra info Kevin.

Are yields typically that low in the region ? I know you say it's a capital growth play - but those yields are almost Sydney levels !

I will confess to knowing very little about Brisbane real estate - particularly coastal properties. So I'm just curious to know whether it really is that bad for yields there when yields elsewhere in Brisbane are much higher than comparable properties in Sydney ?
 
Good point, Sim',


Let's take the BEST price $600k and the BEST rent $350k / week and we end up with 3% - which (imho) is NOT normal for Brisbane. Maybe it's normal for Brisbane with views of the harbour? Kev??

Regards,
 
Something like this must be more of a lifestyle decision than an investment decision.
Capital growth is definately the key here
Probably. But Sunstone's figures suggest mixed growth figures.

Though I guess it doesn't take into account the water views and whatever.

Probably a bit too much into the gamble territory for many in here?
 
I do agree totally with you guys, there is definately some lifestyle about the decision also. I posted it for someone who's major consideration is capital growth. It is one of Brisbane's fastest growing regions at the moment.

Return will be low, although as I have said the rental is my prediction I still have to check that one out. I tried to play with the figures myself to make it work for me. I considered renting it out by the room, thought I could get around $420pw. There are a few big hospitals in the region and I thought I may be able to attract some nurses to it. However I have a large investment in my business and need a better return for me to make it work also.

I really tried to come up with an avenue because my prediction is it will be worth $1 mil within 5 years max. If you need return, like myself, you will have to go and kick the cat unfortunately. (figuritely speaking to all you cat lovers) :D

Bottom line is it's genuine waterfront property of Moreton Bay. That alone will see someone pay some extraordinary amount for it.

As much as I thank Sunstone's for the stats you can't in any way compare areas such as Bracken Ridge to Sandgate even though they have the same postcode. They are "worlds" apart.

Kev

www.nundahrealestate.com.au
 

Sim

Administrator
Is it "absolute" water frontage ? ie - you walk out your front door down onto the sand or into the water ? Or is there a road to cross ? Not that it makes much differece - just curious.

Water view properties are difficult to come by - absolute water frontage is even more difficult. So if you are looking for scarcity factor, and it seems like it may have good facilities in the area (not too many nurses I know can afford water front properties - but their spouses may work in IT :D ) - and if you can afford the servicability then it may work well.
 
Dear Kev,

Agree that postcode is not always accurate for suburb. That's why I feel much more comfortable with the REIQ/DNR/ABR figures based on actual suburb rather than the residex postcode with just example suburb in API. (Yes we all know Residex can produce figures by suburb as well as postcode but these are the figures that they are publically producing so do have an impact on public opinion.)

Median prices on other suburbs in postcode then for a further comparison:

Bracken Ridge
-Sept '02 Median Price: $179,000

Capital Growth in:
March 2002 quarter: -10%
June 2002 quarter: 10%
Sept 2002 quarter: 6.87%


Brighton
-Sept '02 Median Price: $194,000

Capital Growth in:
March 2002 quarter: 8%
June 2002 quarter: 11%
Sept 2002 quarter: 11.62%


Deagon
-Sept '02 Median Price: $165,000

Capital Growth in:
March 2002 quarter: 0%
June 2002 quarter: 3%
Sept 2002 quarter: 10%


What type of zoning for the property Kev?


Sim/guys,

Agree with Les' comment that 3% yield is VERY low for Brisbane. Based on the four from a purely statistical basis Brighton has had more reliable growth with maybe Deagon having a little bit more growth left in the tank.

A high capital growth place with very low yield does have a higher element of risk. If the location is great then it is going to appeal to A) A home owner purchasing on an emotional rather than rational figure basis or B) To a developer who is able to relocate this house and build a medium rise set of units to capitalise on the views. However it then comes down to zoning.

Maybe instead if the house was sound it could be converted. Hypothetically if you converted it into 3 or 4 two bedroom units (Is it a highset Kev?) then maybe a ballpark rent of $250/unit would make the yield more attractive. ?60K/unit conversion could get the total rental for the four up to $1,000 week ($250 x 4) for total outlay of $840,000. Would mean the gross yield would increase to 6.2%. Much better than the 3% but still on the low side considering the higher level of risk.

Sim I thought about asking whether we should get Kevin to post a link to the property so that we can have a more visual look to get some ideas. In thinking about this however I am in two minds. It would be useful to look at it (yes a picture is worth a thousand words) but at the same time this sets a precedent for future examples. Could this be a bad thing?

Look forward to further comments guys.

Cheers,

Sunstone.
 
I think posting a link w/ pics would be benefical when its listed....

i dont think spammers will get away w/ anything around here... everyone jumps on them pretty quick

plus our mighty mod can just delete it anyhow if its not appropriate.

just my thoughts...
 

Sim

Administrator
Personally, I feel that following the "more information is better" thought - posting pictures or links to information on the web is a good thing.

If they were posted on their own then not... but in addition to all the information posted in the thread, I think it's okay.

But I will have to defer to Les on this one... Les ! What do you think ?

PS. I think this is one of the better Caveat Emptor threads we've had in a while !
 
A link would be OK- however, Kev did say that it was not yet listed- so I guess he wouldn't have a link just yet.
 
G'day Sim',

You said "If they were posted on their own then not... but in addition to all the information posted in the thread, I think it's okay."

I agree that a link on its own is NOT acceptable. But if it supplements info that is provided, and that info fits the "rules", then I can't see why this can't be done.


Regards,
 
Dear guys,

Sounds good then.

Well in that case I think we would welcome Kev to post a link with the property in question. In the case that it hadn't been listed then I think he's resourceful enough to take digital pictures to have a public link listed. (Worst case have a talk with Sim to ask for more help.)

Pictures. General pictures inside and outside but blocking letterbox number to protect yourself I think would be practical for further analysis.

You got us started on this one Kev. Looking forward to the next installment.

Cheers,

Sunstone.
 
The waterfront at Sandgate doesn't have sand, and for years it was just a wall to hold back the tides. Yes you do have to cross the road to get to the waterfront. There has been a heap of improvments done over the last ten or so years and it is a very nice area now.
Up the Sandgate end there are parks and BBQ areas availiable and then a short walk further around there is the Shorncliffe pier which has became quite popular in recent times.
A bikeway runs along the full length of the front from the bridge to Redcliffe up and around to the pier. Very sort after now, Sandgate has also been going thru an upgrade(see BCC plans) so to speak and is becoming very nice little town. The hospital is really only for the elderly I believe, part of Eventide which is like an old peoples home but pretty big!
Originally most of the houses along the front were just your normal run of the mill colonials with a few exceptional old places there(some ex-flats that have been done up etc). But over the last ten years they have either been done up to the nines or knocked down to make way for some really quite exceptional houses. It is a very nice place to be now!

Kev, if I could afford to pay the difference between the rent and the interest and expences you would have already had a sold sign up, but alas (DAMN DAMN). Good luck with selling it I don't think you'll have to many difficulties disposing of it!
 
Hi Guys,

In post number 4 I did mention it had been listed. Photos have been taken but I doubt it is on the web yet...just a min, I'll go check....I'm back, sorry I took so long:D. No not up yet.

Thanks Suggo for the info. My phone hasn't stopped ringing and although I don't normally work on Sundays I have already had 2 inspections today and 1 offer so far. The offer is from an investor.
The property is semi-highset, around 1 metre (3 foot) off the ground. Yes you have to cross the road. While I was there today I watched container ships heading into port, people swimming, walking their dogs and a calvalcade of good looking ladies passing by (I wasn't looking darl I promise, trust me I'm a real estate agent:D)

As soon as I have a link I will post it.

Thanks for your support, I didn't mean to create any issues, just provide a possible opportunity. I have had some emails expressing interest.

Kev

www.nundahrealestate.com.au
 
Originally posted by Sim

PS. I think this is one of the better Caveat Emptor threads we've had in a while !
I agree with Sim here!......it's great to see all the due diligence going on, even though I have no idea of where you are talking about.

Can't wait to see the pictures Kev :D

Ruby
 
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