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 #10 – 31st August 2015

Address: 64 School St, Kallangur, QLD, 4503

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

Land Size: 962sqm

Listing: http://www.randw.com.au/residential-for-sale/0000265317.html

Estimated Market Value: $329,000 (sign up below to get the full valuation report)

Listed Price: $329,000

Rental Return: $345 per week

Affordability: Costs $12/wk to own (calculated for an investor with an income of $50k/yr).

The Verdict

This strategy for this property centres on capital growth and future development potential…

High capital growth potential

The Moreton Bay Region has been identified by the State Government as a Principal Regional Activity Centre for major growth, with $980 million spent on infrastructure over the last six years.

A quick glance at the sales volumes in the suburbs of the Moreton Bay Region shows how important affordability is in residential real estate. Four of the core suburbs of this region have each sold over 340 houses in the past 12 months. Three of the four have median house prices below $330,000.

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 that has the potential to be subdivided or developed later on.

What, no discount?

It’s always nice to snare a “bargain” property (i.e. get it below market value), but keep in mind that most wealth generated by property comes from the rise in value of the property over time. These gains in the hundreds of thousands over the next decade will far outweigh any $10k or $20k discount, so it’s more important to get a solid high-growth property than to choose one just because it’s “on special”.

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