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. Sign up to the club to get the full report each week.

Property of the Week #51 – 27th June, 2016

Address: Lot 13 Parkside, Bethania, QLD 4205

Area: Logan City Region

Property Type: Brand New 5 Bedroom, 3 Bathroom, 2 Car – Dual Occupancy House & Land Package

Listing: Off-market. Contact us if you interested in adding this property to your portfolio (07) 3510 2122 (Andrew)

Estimated Market Value: $534,200 (sign up below to get the full valuation report)

Listed Price: $534,200

Rental Return: $650-690 per week (6.3% yield) – Dual occupancy (= dual income)

Affordability: Positive cash-flow of $101/wk (calculated for an investor with an income of $50k/yr).

The Verdict

This property is a Dual Occupancy property – so I would definitely recommend this property for an investor with a Positive Cash Flow Strategy in mind, but also an investor who wants to take advantage of all the benefits that are associated with buying a Brand New Property too.

The benefits of dual occupancy

  • Greater Income – With two tenants paying rent, you receive a much greater income from your property.
  • Minimal Outgoings – You have two dwellings but only have one rates bill and no body corporate fees.
  • Tax Benefits – The tax deductions on a Dual Occupancy home are greater, meaning more money back from the tax man.
  • Positive Cash Flow – Higher income, larger tax benefits and a lower purchase price, means your Dual Occupancy Home may be Cash Flow Positive.
  • Reduced Risk – With two potential rental sources, if one is vacant the other property is still working for you.
  • Affordable Purchase Price – With only one block of land, the total price of owning two income producing properties is reduced.

The benefits of buying a brand new property

  • Hands off investment
  • Superior tax advantages
  • Low maintenance costs
  • Higher quality tenants and lower vacancy rates
  • More energy efficient and environmentally friendly

Plus house and land packages like this one come with a big reduction in stamp duty (saving $11,000 on this particular property).

High capital growth potential

Here’s what Terry Ryder (Australia’s leading property researcher and Director of Hotspotting.com.au) has to say – “Already one of the fastest growing municipalities in Australia, Logan is about to expand further as work on the Yarrabilba Priority Development Area, 20km south of Logan Central, gets under way. The master planned community is being developed by Lendlease. Costing $4 billion and located on the Waterford Tamborine Road, Yarrabilba, the development will result in 17,000 dwellings to accommodate 45,000.

Logan City attracts investors because of the affordable prices, steady long-term growth and above- average rental returns. It attracts home-buyers because it offers affordability, good transport links and proximity to major jobs nodes.”

For suburb analysis I turn to successful property investor and self-confessed “property data nutcase” Jeremy Shepherd. Jeremy has pioneered the use of the Demand to Supply Ratio Score (DSR). This score allows an investor to measure the supply vs demand of houses or units in a suburb. This week’s suburb (Bethania) has a DSR Score of 62 – This means demand only just outweighs supply in this market. This is a healthy market for investors wanting to apply some value adding strategy. Buyers are sometimes able to get away with low-ball offers. Sellers are getting the prices they ask for more often than not. Expect growth to marginally exceed the national average.

Affordability (+$101/wk)

With a rental yield of around 6.3% this property provides a great return. Our cash-flow analysis estimates that this will be a positive cash-flow property, putting $101/wk into your pocket after all expenses.

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