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 #48 – 6th June, 2016

Address: Unit 30 / 24 Westacott Street, Nundah, Qld 4012

Area: Brisbane Northside Region

Property Type: 2 Bedroom, 2 Bathroom, 2 Car Unit

Listing: http://www.realestate.com.au/property-unit-qld-nundah-122434290

Estimated Market Value: $436,000 (sign up below to get the full valuation report)

Listed Price: $399,000

Rental Return: $485 – $495 per week – currently tenanted (6.3% yield)

Affordability: Positive cash-flow of $44/wk (calculated for an investor with an income of $50k/yr).

The Verdict

I would recommend this property for an investor with a either a long-term “Buy & Hold” Strategy, OR a Subdivision and Small Development Strategy in mind.

High capital growth potential

Here’s what Terry Ryder (Australia’s leading property researcher and Director of Hotspotting.com.au) has to say – “Over the past two years, sales activity has risen across in this precinct. Many suburbs recorded double-digit growth in median house prices in FY2015, including Alderley, Carseldine, Chermside, Clayfield, Everton Park, Ferny Grove, Gordon Park, Lutwyche and Taigum. Others had growth in the 7% to 9% range. According to sqmresearch.com.au, vacancy rates across the region are stable and have rarely exceeded 4% in the past five years. Most are currently under 2.5%. Affordable prices, low vacancies and good rental yields present an attractive package for investors.”

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 (Nundah) has a DSR Score of 56 – 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.

Discount ($37k)

This property has been listed at $399,000. The estimated market value of the property is $436,000 (sign up below to get the full valuation report) which potentially puts you $37,000 in front from day 1.

Affordability (+44/wk)

With a rental yield of around 6.3% this property provides an excellent return. Our cash-flow analysis estimates that this will be a positive cash-flow property, costing nothing to own and putting $44 per week in your pocket. Remember the profit comes from the growth in value of the property, and this positive cash-flow is a nice bonus.

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 Brisbane Northside as a growth area.
  • Links to the resources we’ve used for our research.