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 #23 – 30th Nov 2015

Address: 5 Mitchell Street, Caboolture, QLD 4510

Area: Moreton Bay Region

Property Type: 4 Bedroom, 1 Bathroom, 1 Car House

Land Size: 807sqm

Listing: http://www.domain.com.au/5-mitchell-street-caboolture-qld-4510-2012437774

Estimated Market Value: $294,000 (sign up below to get the full valuation report)

Listed Price: $279,000

Rental Return: $300 – $320 per week according to agent  (5.6% yield)

Affordability: Negatively geared by $1/wk (calculated for an investor with an income of $50k/yr). In real terms the house is neutrally geared – i.e. the income will roughly be equal to the costs, allowing you to hold the property for no net cost.

The Verdict

Affordable ($279k), Growth Area, Discount, great zoning, and $1 per week to hold. This property ticks so many boxes I HAD to share it!

High capital growth potential

Here’s what Australia’s leading property researcher and Director of Hotspotting.com.au, Terry Ryder, says about the Moreton Bay Region…

“The Regional Council says the Moreton Bay Region is one of the fastest growing urban areas in Australia, with residential land sales outpacing the rest of South East Queensland, and a population set to exceed 500,000 by 2031.

Sales activity increased in some suburbs from late 2014 to early 2015; for example, Caboolture, Morayfield, Burpengary and Narangba collectively had 1,292 sales for the 12 months to May 2015, up from 1,158 in May 2014 and 879 in May 2013.

Increased sales are usually a prelude to an increase in prices and this is evidenced in Caboolture South and Deception Bay which show 9% and 8% growth respectively in the last 12 months.

The appeal of this precinct is affordability – houses at prices below $350,000 are readily available and, in the case of Caboolture South, there are many homes available below $300,000.”

Discount

This property has been listed at $279,000. The estimated market value of the property is $294,000 (sign up below to get the full valuation report) which potentially puts you $15,000 in front from day 1.

Future Development Potential

This is a good investment property “as-is” and can be rented out immediately, but there is also potential to add value and manufacture your own growth in the future because it’s on a large block that has the potential to be subdivided or developed (subject to Council approval of course).

The “cherry on top” with this particular deal is the fact that this property is located in a Residential “B” Zoned area of Caboolture which potentially makes this 807sqm block very valuable indeed. Get the report below for more details.

Affordability

The rental income and tax rebates for this property offset all of the expenses, so it’s neutrally geared and will cost you virtually nothing to own and hold ($1/wk).

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