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 #13 – 21st Sept 2015

Address: 7 Cormorant Court, Aroona, QLD, 4551

Area: Caloundra, Sunshine Coast

Property Type: 5 Bedroom, 2 Bathroom, 2 Car House

Land Size: 945sqm

Listing: http://www.homely.com.au/aroona-caloundra-sunshine-coast-queensland/listingdetails/1310194

Estimated Market Value: $517,000 (sign up below to get the full valuation report)

Listed Price: $449,000 (reduced) !!!

Rental Return: $500 – $550 per week (according to agent)

Affordability: Positive cash-flow by $6/wk to own (calculated for an investor with an income of $50k/yr). Calculated from a rental return of $500/wk. Any higher rent will further improve the cash-flow for this property.

The Verdict

This property is selling for a possible $68,000 discount! Add capital growth, positive cash-flow, AND future development potential, and you’ve got a great opportunity.

High capital growth potential

The Sunshine Coast market is returning to growth for the first time in six years. Nothing supports property price growth like major new infrastructure, which generates jobs, economic activity and improved amenities 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.

The combination of medical and education facilities is always powerful in driving real estate demand. A significant upturn in the number of home sales in 2013/2014 points to solid price growth in 2015, as does the tight rental market throughout the coastal strip.

Discount!

This property has been listed at $449,000 by a motivated Vendor. The estimated market value of the property is $517,000 (sign up below to get the full valuation report) which potentially puts you $68,000 in front from day 1. A skilled negotiator will probably pay even less.

Positive Cash-Flow

The Cash-flow analysis (see full report) estimates that this property will be cash-flow positive by $6 per week. So it will cost nothing to own and put $6 in your pocket each week after all expenses. A lack of cash-flow in your household will keep you from investing in some properties, but not this one!

Future renovation or development potential

This is a good investment property as is, and can be rented out immediately. But it also provides potential to add value in the future because it is situated on a large block (945sqm) that has the potential to be subdivided or developed later on.

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 as a growth area
  • Links to the resources we’ve used for our research