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 #6 – 3rd August 2015

Area: Ipswich City Region

Address: 19 Hallett Ave, Camira, QLD, 4300

Property Type: 3 Bedroom, 1 Bathroom, 2 Car Low-Set Brick House

Land Size: 4032sqm (an acre of future development potential!!)

Listing: http://www.domain.com.au/for-sale/19-hallett-avenue-camira-qld-4300-2011978246

Estimated Market Value: $449,000 (sign up below to get the full valuation report)

Listed Price: $449,000

Rental Return: $320 to $340 per week

Affordability: Costs $89/wk to own (calculated for an investor with an income of $50k/yr).

The Verdict

The strategy for this property is 100% focused around FUTURE DEVELOPMENT. It’s not going to win any awards for cash-flow or tax advantages, but with just under 1 acre (that’s just over 4,000sqm!!) of useable land, in a prime location, in an area primed for capital growth this little beauty will have the property developers among us very excited!

High capital growth potential

The Ipswich corridor is now well-known as a growth region. Prices rose strongly in the five years to 2009 (before tapering off), giving the suburbs of Ipswich City the strongest capital growth averages in the Greater Brisbane region.

Big infrastructure developments, including the $2.8 billion upgrade of the Ipswich Motorway and the $1.5 billion rail link to the Springfield master-planned community, have added to the area’s appeal, and we believe its evolution into a headline hotspot of national standing will continue well into the future. There remain many suburbs that are attractively affordable for first-home buyers and investors on a budget.

Future development potential

This property is situated on a large block that has the potential to be subdivided or developed later on (subject to council approval of course).

The lower rental yield means this place will cost around $89 per week to own. That’s less affordable than all of the other properties we’ve looked at so far, so investors looking for a cash-flow friendly (or cash-flow positive) property won’t find it here. But if you have the cash-flow and desire to develop, then I could see a subdivision or a townhouse development bringing an opportunity to bank $200k+ from a development in the next 18 months.

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