Every day I search the Brisbane property market for good investment properties for my clients.

Every Monday I send one out for free to give you an insight into how an investor finds and assesses properties.

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Property of the Week #20 – 9th Nov 2015

Address: 4 Applegum Drive, Little Mountain QLD 4551

Area: Sunshine Coast Region

Property Type: 3 Bedroom, 1 Bathroom, 1 Car House

Land Size: 835sqm

Listing: http://www.domain.com.au/4-applegum-drive-little-mountain-qld-4551-2012265272

Estimated Market Value: $395,000 (sign up below to get the full valuation report)

Listed Price: Reduced from $399,000 to $385,000

Rental Return: $420 – $440 per week according to agent  (5.7% yield)

Affordability: $7/wk positive cash-flow. That is, it costs you nothing to own and puts $7/wk back into your pocket after all expenses (calculated for an investor with an income of $50k/yr).

Keep in mind though that the positive cash-flow (in this case $7/wk) is NOT what makes you wealthy. The growth in value of the property does.

The Verdict

This property represents what I call a “Triple-Whammy-Deal” – a property that represents high capital growth potential AND a discount below market value to create instant equity AND future development potential to add value and manufacture your own capital growth down the track.

High capital growth potential

Australia’s leading property researcher and Director of Hotspotting.com.au, Terry Ryder, has included the Sunshine Coast in his list of “Top 10 Brisbane & QLD Hotspots 2015”, and believes the huge amount of infrastructure being built in the area is one of the key reasons the Sunshine Coast is set to soar. He says…

“Nothing supports property price growth like major new infrastructure, which generates jobs, economic activity and improved amenity for residents. The big-ticket item is the $2 billion Sunshine Coast University Hospital, now under construction. There is also the $150 million private hospital built in association with it, as well as the Oceanside Kawana Health Hub. The Sunshine Coast University continues to expand, with a $37 million engineering learning hub the latest project to be announced.”

Discount

This property has been reduced to $385,000. The estimated market value of the property is $395,000 (sign up below to get the full valuation report) which potentially puts you $10,000 in front from day 1.

Renovation or development potential

In our industry this type of property deal is affectionately known as a “chunk deal” – in other words, it is a good investment property “as-is” and can be rented out immediately. But it’s also situated on a large 835sqm block that has the potential to be subdivided or developed (subject to Council approval of course).

Get the full details, analysis, and research…

Join the Property of the Week Club to get the full report on this property. It includes:

  • The valuation report
  • The rental appraisal
  • Cost calculations for an investor earning $50k p.a.
  • Profile of the Sunshine Coast Region as a growth area
  • Links to the resources we’ve used for our research