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 #43 – 26th April, 2016

Address: Lot 944 Big Sky, Finnegan Way, Coomera  QLD 4209

Area: Gold Coast City Region

Property Type: 4 Bedroom, 2 Bathroom, 2 Car House

Land Size: 340sqm

Listing: None Available (off-market opportunity)

Estimated Market Value: $475,900 (sign up below to get the full valuation report)

Listed Price: $475,900

Rental Return: $480 to $490 per week (5.3% yield)

Affordability: Positive cash-flow of $52/wk (calculated for an investor with an income of $50k/yr).

The Verdict

I would recommend this property for an investor with a long-term “Buy & Hold” Strategy in mind, but also an investor who wants to take advantage of the benefits of buying a Brand New Property.

High capital growth potential

Here’s what Terry Ryder (Australia’s leading property researcher and Director of Hotspotting.com.au) has to say – “For a long time, Hotspotting has avoided recommending the Gold Coast because of its poor track record on capital growth and its boom-bust history. But the Gold Coast cannot be ignored. It is the No.1 LGA in Australia for sales growth by a considerable margin, billions are being spent on infrastructure and major developments, and vacancy rates are low. There will be price growth, especially in the genuine residential suburbs.”

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 (Coomera) has a DSR Score of 51 – This means this market is in balance with respect to supply and demand. There is a healthy count of properties for sale compared to the number of interested buyers. There is a closely fought tug-o-war between buyers and sellers. Sellers may get away with a good price if they find a poorly researched buyer. Buyers may get a good price if they find a seller who wants a quick sale. Prices should grow in line with the national average.

But beware apartments!!

Although the Gold Coast is performing well, investors should avoid the highrise apartment market. Terry Ryder’s latest analysis says that “The Gold Coast has just finished absorbing the previous oversupply, which took five years, and another is looming, with multiple mega projects being built or planned”. Meaning further oversupply is inevitable, which is a killer for the growth of your investment.

Affordability (+$52/wk)

With a rental yield of around 5.3% this property provides a good return. What turns this into a strong cash-flow positive property is the generous tax benefits of buying a brand new property. Our cash-flow analysis estimates that this will be a positive cash-flow property, putting $52 per week into your pocket. Enter your email below to get the full cash-flow analysis emailed to you.

Benefits of buying brand new

The benefits gained from investing in a brand new property (house and land package) are what makes this a superior investment. These benefits include:

  • Hands off investment
  • Low maintenance costs (plus covered by a statutory builders warranty)
  • Superior tax advantages because you’re able to claim depreciation.
  • Reduction in stamp duty ($9,000 saving) because you only pay stamp duty on the land component.

Get the full details, analysis, and research

LAST DAYS: Enter your email address below to qualify for our members only offer (you can get my VIP service for free this week – worth $8,000).

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