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Latest Alerts

Problem Solver


It is a difficult market in which to buy, and one issue is the straightforward sites are often selling for well over what is justifiable to us. On the flipside, our clients are more experienced and together we have access to an experienced team so we can tackle the sites that may be slightly problematic. That spells opportunity, which brings me to today’s alert. This property is 1012m2 of CR1 zoned land with a 24m frontage in a good location that we’d like to subdivide into two lots. There are three issues to solve, all which I believe we have a good chance at solving, and it starts with demolition of the existing pre-war house. The result is just under $1.9m in costs to produce land worth around $2.1m total, on which houses could be built that are worth circa $2.3m. Buyers at about $1.55m.

Bonus Building


This is an interesting proposition. We have 5 units generating just over $77k in annual income, located in a premium position and sitting on land that can developed into upmarket townhouses or subdivided into two lots. All of that is interesting, but not the interesting thing I was eluding to... the land underneath, once converted to two blocks, will be worth about the same as the proposed purchase price for this whole block of units! Ok, so obviously after all costs we can’t go subdividing immediately, but you are in essence getting a bonus building at no cost. Further, the numbers for 4 townhouses isn’t as far off as one might think, despite paying over $500k per townhouse in site value. In today’s market each townhouse would probably fetch about $1.175m to $1.2m. To work we need to achieve about $1.275m per townhouse, which is only 6-8.5% growth that is required to hit the go button, and that isn’t unrealistic in this market or location. Being 5 units the return is reasonable for the location and will help you to hold for the medium to long term, and trust us, this is a location where you will be forever glad you’ve owned property! Buyers at about $2.025m.

Quite the Puzzle


There’s quite a bit to this one, so you’ll have to bear with us, however, we sniff an opportunity! The short story is we have a commercial shopfront, a semi-modern house (we believe built around 2004) and a 2 bedroom unit (possibly illegal) all sitting on one corner lot in a quality suburb but fronting a super busy road. The attraction here is the potential return (possibly around 8% gross, but read on!) and the potential to subdivide the house off from the commercial for profit (but again, read on!). Buyers around $1.45m.

Handy


This property may front a busy road, but outside of that you have to love the position! Virtually everything you want is within walking distance including buses, trains, Coles, shops, cafes, pub, RSL, schools, public pool and parkland. Wow! This might explain why this 730m2 (approx) block has an MR zoning. That said, due to a number of factors we believe the best bath to head down with this one would be to develop 5 townhouses. Of course we can explore units more thoroughly during a conditional period, but our research suggests townhouses for a possible 24% equity gain is the way to go. Buyers at $700k with relatively clean terms (max 14 days) for this off market opportunity should contact Justin on 0410511535.

 

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