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 #5 – 27th July 2015

Area: Moreton Bay Region (50km north of Brisbane CBD)

Address: 3 Shirley St, Caboolture, QLD, 4510

Property Type: 3 Bedroom, 1 Bathroom, 2 Car House

Land Size: 808sqm

Listing: http://www.domain.com.au/for-sale/3-shirley-street-caboolture-qld-4510-2011967164

Estimated Market Value: $300,000 (sign up below to get the full valuation report)

Listed Price: $279,000

Rental Return: $320 per week (6% yield)

Affordability: Costs $2/wk to own (calculated for an investor with an income of $50k/yr)

The Verdict

This property is another “Triple-Whammy-Deal” – a property that represents high capital growth potential AND a discount below market value to create instant equity AND future renovation or development potential to add further value down the track. Whoa now we are thinking like a real property investor!

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.

Discount below market value

This property has been listed at $279,000 by a motivated Vendor. The estimated market value of the property is $300,000 (see the Valuation Estimate from Australian Property Monitors attached to the full report) which represents a discount or “instant equity” of $21,000. A skilled negotiator could almost certainly pay even less for this property; the greater the discount you can negotiate the more instant equity you secure for your portfolio.

Join below (free) to get the full 11 page Valuation Report.

Future development potential

In our industry this type of property deal is affectionately known as a “chunk deal” – in other words, it 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 Ipswich City Region as a growth area
  • Links to the resources we’ve used for our research