Here at Investigate Property we source some cracking deals, both in Brisbane and Toowoomba. Each year we buy plenty of great investment properties for our clients, but every now and then we have a deal that we don't have a client for. This is always heartbreaking as we hate to see a good deal go begging or for someone other than our client to buy it! Here's a selection of missed opportunities from late 2015 until mid 2016.
Big Block - Toowoomba Area Alert
We get excited about big blocks that scream opportunity. Especially when those big blocks turn out to be cracker development sites. On offer is a 3 bedroom lowset QLDer style home on a 2000 m2 lot zoned Low Medium - Urban Residential. The existing house is out-dated and is in original condition, however can be retained depending on the strategy you choose. The most exciting thing about the property you ask? THE NUMBERS!! With most options it all works. This block will potentially suit up to 12 units, or splitting the house off and building 7 units to the rear. This site could also suit buy and hold investors as development blocks of this size are very rare. With a potential equity gain of around 479k or 25% for option 2 (or a potential 28% equity gain for option 1) we think the site has the power to rev up someone’s investment portfolio. Buyers around $420-430k.
We've found our Valentine - Brisbane Area Alert
Sold - we liked it so much that when we didn't have a client for it we bought it!
We were given the inside word on this splitter block and the numbers looked ok... it was the first signs of love. We inspected and suddenly we want to take this property out for Valentine's Day! On offer is a 3 bedroom highset QLDer style home on an 809m2 lot in one of the best positions in one of the best streets of the suburb. When we inspected we did not expect to find the inside to be so terrific, with beautiful floors, good paint, near new bathroom and a good kitchen. No work is required inside! We walked out the back and were shocked to find a beautifully landscaped near new pool. We didn't see it on the aerial photo because of the tropical oasis surrounding it! And the owner was smart... he put it to the side so it could be retained if the block was ever split. Yippee! The house will need to be shifted to create the vacant lot, but after all costs our numbers indicate approximately $120k equity gain is possible out fo this deal. Buyers around $650-660k.
Pefect Storm - Toowoomba Area Alert
With infrastructure spending coming online right at the doorstep of this site, the zoning of the land as a Major Centre Zone and the site already having been cleared and ready for development, the clouds have all gathered together to make a perfect storm for a unique development opportunity. The only ingredient left is your direction and strategy for the site. Our numbers and strategy (6 units) show a potential $430k or 28% equity return! This site is a large block (1012 sqm) that is located in a zone that council are encouraging major development for. Less then 100m away is a major shopping centre redevelopment with cinemas and shops being constructed. The location is being transformed into a retail and commercial hub and this site is quite rare, given its size, its zoning and that some of the hard work has been done.
Buyers around $370K to $385K.
Very Nice - Brisbane Area Alert
Sold in under 5 days
Got to be quick on this one as they already have offers! We have a 900m2 (approx) LMR2 site that contains 3 units with the potential to return 5.85% gross as is. Very rarely can you achieve a rent return like that out of a development site and it allows you to hold long term if you aren't interested in developing in the near future. Due to the property's surrounds and proximity to train, we believe you could achieve 3 storeys over the whole site, something that is quite difficult at the moment. We are yet to draw this one up (no time given they already have offers!) but anticipate potential for 10-12 units. Twelve units is close to working as an immediate development site, but we actually prefer the idea of keeping this up our sleeves whilst we hold longer term. Buyers around $930-940k.
An early Christmas gift - Toowoomba Area Alert
This site has options, but best of all, the house can be retained and units/villas can be constructed at the back for a potential 24% or $300,000+ equity return. The original contract has crashed and now there is an opportunity to capitalise on someone else's loss. It is located on a block of 1022sqm of low medium residential (urban consolidation) zoning, which will allow for up to 8 units on this site. The House consists of two 4 bed 2 bath 7 car. The location is in a good suburb and is within 1km of shops, restaurants and public transport. The site presents a few different development options that we like. The two we prefer are: 1) Remove the house and build up to 8 units potential of 24% or $500,000 equity return. 2) Retain the house and build 4 units behind the house for a pontential 24.5% or 300,000 equity return. Buyers around $335k.
Two x Two x More
This duplex pair offers you more than meets the eye. There's the units themselves, which are purpose built and lowset brick veneer. They also offer value add potential with the possibility of creating some extra bedrooms or a basic cosmetic renovation. Finally, beneath the units sits 607m2 of LMR2 land, offering an opportunity down the track. With a potential rent return as is of 5.5% gross and existing upside, this represents good buying around $540k.
In addition to the above properties, we regularly source deals that:
- aren't on the market yet
- are purchased under market value
- generally have a good holding income, even if it is a development site
- experience good growth as the result of intimate knowledge of the market, locations and town planning rules and changes
- are development sites purchased for the price of a non-development house site
- have the potential for very high yields
- can be quickly turned over for profit, such as strata-title projects
- potential to obtain a DA and on-sell without developing
- are good old fashioned cheapies!
- have renovation potential, often with the option of carrying these works out now or down the track
- are suitable for JV
- are suitable for inexperienced and experienced alike
If you are in the market for a property in Brisbane or Toowoomba, or any of the above deals sound suitable to you, then you should be one of our clients!
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