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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 #31- 8th Feb, 2016

Address: 5 Goolagong Court, Morayfield, QLD 4506

Area: Moreton Bay Region

Property Type: 4 Bedroom, 2 Bathroom, 2 Car House

Land Size: 1,029sqm

Listing: http://www.domain.com.au/5-goolagong-court-morayfield-qld-4506-2012530672

Estimated Market Value: $414,000 (sign up below to get the full valuation report)

Listed Price: $369,000

Rental Return: $370 – $390 per week according to agent  (5.2% yield)

Affordability: Technically it’s Cash-flow positive by $1/wk (calculated for an investor with an income of $50k/yr). But practically speaking, it’s a neutrally geared property.

The Verdict

This property is definitely for those who find subdividing and small developing projects attractive.

It’s a triple whammy with high capital growth potential AND a discount below market value AND future development potential to manufacture your own capital growth.

High capital growth potential

Terry Ryder, Australia’s leading property researcher and Director of Hotspotting.com.au, has his to say about the Moreton Bay Region:

With a new university and a new town plan in prospect (including the new suburb of Caboolture West) the Caboolture-Morayfield   area   is   destined   to   continue absorbing urban growth. This region has been identified by the State Government as a Principal Regional Activity Centre for major growth in the Brisbane area. The proposed Caboolture West Master Plan covers 6,500ha west of Caboolture and Morayfield.”

Discount ($45k)

This property has been listed at $369,000. The estimated market value of the property is $414,000 (sign up below to get the full valuation report) which potentially puts you $45,000 in front from day 1.

Affordability (+$1/wk)

With a rental yield of around 5.2% this property provides a decent return. Our cash-flow analysis estimates that this property will be cash-flow positive by around $1 per week. What this means is that the property pays for itself while you watch its value grow.

Future development potential

This is a good investment property “as-is” and can be rented out immediately. But it also provides potential to add value and manufacture your own growth in the future because it is situated on a large 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 Moreton Bay Region as a growth area
  • Links to the resources we’ve used for our research