Very well presented 3 bedroom 2 bathroom home with good sized double lock up garage and second living area. Condition is excellent. Location is strong, the property is located on cul de sac. Park about 100 meters away. Air Conditioning to all rooms and main living area. Security Screens to all windows and doors. Tinted windows and roll down external shutters.
This is a very well kept and maintained home that will appeal to a wide range of potential tenants. There is only one other similar property to rent in the suburb which is advertised at $410 per week.
History / Background Information
The property is not listed or available to the public. The agent did not want to advertise it till he had sold 10 Lyrebird Close Doolandella. The property was last sold in 2016 for $431,000 to the current owner. It is the current owner that has fully renovated the property with the security screens etc. From my understanding, if he sells at $459,000, he will lose money on what he has invested in the property.
The property is worth between $450,000 – $460,000
The problem we have is that the current owner has invested a lot more into the property and will be trying to get the highest amount he can for it. Hence the reason for the agent delaying the sale of the property till they had sole Lyrebird.
If you paid $459,000 for the property and kept it for 5 years, you would not lose any money, and you would be hard-pressed to find a home of this quality on the market, As there is limited stock on the market right now, there will be high demand for the property and the asking price of $459,000 is easily justified.
I would have explained my strategy of purchasing in suburbs that are not hot right now but have the potential too in the near future, 5 to 10 years. There are many new home estates just a bit further out than Doolandella and most of the properties are being built on land that is around 300m2 is a suburb called Pallara that is further out than Doolandella. Right now CoreLogic, the company that determines property values, only records the value of the land as the properties value. This keeps the values down right now but when the market matures and people start selling the homes they built, then CoreLogic will record the completed values and not just the land value. When that happens, which will be within the next 5 years, the medium house price will increase yet the properties will be on smaller blocks of land, further out from the Brisbane CBD.
In theory property prices increase from the CBD of any major city and outwards in a radiating circle. If property prices increase in suburbs like Pallara then the property prices of Doolandella have to increase as well and being bigger blocks closer to the Brisbane CBD we can accurately predict that Dollandella will have a significant increase in property values in the next 5 years,
To purchase a similar new house and land package in Pallara will cost you in excess of $460,000 on land around 300M2. Below is an example of a current property.
Here is a Map of Pallara, the red dot is the current property we are looking at right now.
This is another example of a brand new house and land package in Doolandella.
Potential Property Improvements
Usually, I can give you a list of improvements that can be made to a property but in this particular case, everything has been done. The only addition you could make which would increase it’s rentability even further is to install a small 1.5kw solar power system.
I value this property at between $450,000 and $460,000 based on the properties history, recent sales in the immediate area and land prices. But this value does not take into consideration the extensive improvements to the property the current owner has made. If I factor in the property improvements then it is easily valued at $460,000.
The property manager has viewed the property and the virtual tour and has given an estimate of between $400 and $420 per week.
If you financed 100% of the property value ($459,000) at 3.5% Interest Only, then your repayments would be $308 per week.
Initial Offer $450.000 – with very appealing terms to the offer. 7 days building and pest inspection, 14 days for finance approval and 30 days for settlement.
Try to take advantage of saving on advertising costs and the inconvenience of having his property opened to the public to walk through and disturb. That has value.
The other valuable part of our proposition is that we are known to the agent and we have a history with him and his group of never losing a deal that we have purchased from him.
Obtaining finance is not that easy right now, but so many people are applying because they have pulled out their super and have the new start allowance and now they think they can buy a home. We are seeing a significant rise in loan applications with a very significant rise in loan declines. The agent today was sharing with me how many deals were falling over.
The strategy is to present a strong fair offer with good conditions. The agent is under the belief that you are a very strong buyer and will not have any financial issues. The agent will coach the seller as to the chance that if he waits for a higher offer, the deal might not proceed, whereas we are a known outcome.
It comes down to the agent showing the seller that even though our offer is lower than his asking price, he will save money by not having to invest in advertising and the price we are offering is fair.
If you guys like the property and it is one of the best in this price range then be prepared to pay the $459,000.
If we paid $459,000 for it, we would still be doing all right. In 5 to 10 years time the extra $9000 would not make any difference at all. It’s a tough market out there right now with not a lot of good stock which increases pressure on the local housing market which leads to increased values.
We need to consider that the seller is Chinese and they can be hard to deal with when it comes down to negotiating, He may have a price fixed that he wants and nothing will budge him from it. Keep in mind if he sells for $459,000 he will be taking a loss from the renovation work he has done to the property.
I like this property very much. It is located in a Cul De Sac and is very quiet. With the features, this property has it will easily rent out as it has so much appeal. A very nice family home.
The list of properties in Doolandella were not target properties, they were examples of what is available right now. This property is superior to all those.
If you want the property be prepared to pay the $459,000 for it. But we must push for $450,000 and save us some money.