Victoria Point Infill block is a very good example of the types of locations we look for and why. I our opinion we should be able to show you a property, block of land or lactation and explain why that particular option will perform well.
Anyone can produce reports that will make just about any property look great. Take the recent mining boom properties that had people scrambling to buy properties in regional mining towns with the promise of high returns. All the reports showed these properties were going to out perform anything in Australia. These reports were provided by the developers who had purchased big areas of land and invested great sums of money o these developments.
What these reports never covered was the future, what happen when the construction phase has completed and the workers return home or the mining boom comes to an end and the fly in fly out workers no longer need a rental property.
In Queensland, Toowoomba is the latest example of this type of marketing. The airport was going to drive the economy and create thousands of jobs and require vast amounts of housing. Let’s apply our simple test and view the amount of 3 or 4 bedroom rental properties on the market right now. 194 3 or 4 bedroom homes are available for rent right now in Toowoomba. This is a great simple test to do on any property you are being offered.
So why did we choose Victoria Point to locate a property. It does not quite fit our first rule of property investing, Distance from Capital City, but it does fit the second rule of distance to the water. Then there is the landscape, Victoria Point is a Peninsular that juts out from the mainland and into Moreton Bay. This creates a natural limitation on the amount of available land that is available and that creates local market pressure.
The next factor we looked last when selecting this property is the local sales in the area. There are 16 new estates further inland from the peninsular area ad most were all sold out with prices for 4 bedroom home around $500,000. I was very clear from these figures that people we moving to the area to be closer to the water. A lifestyle choice.
The next part of the evaluation was the 2 homes on either side of the land. One was valued in the mid $800,000 range and the other was valued at over 1 million. So any property we put in between these two expensive homes is going to have a effect on its value.
This is the type of information we provided to our client rather than statistical reports. Every bit of information and opinion we gave to the potential buyer could be verified by themselves. As such they chose to purchase the land and build an investment property on it.
The land was purchased for $289,000 mid 2016. It was a narrow 400 m2 block and we designed a suitable house to fit the land and appeal to a wide range of tenants and buyers for when the time comes to sell it. The total package was produced for $520,000 with a rental return of $520 per week. That gave the property a return of 5.2%
It is now established and has been rented consistently for above that amount with very little time vacant.
For me to buy land like this less than a kilometre away in what I consider a superior location will costs $449,000 and is still a very good purchase. This area is one of the last areas where you can still buy a home at a good price within 500 meters of Moreton Bay.
Making such big capital gains in such a short period of time is rare but by following our process and applying our Most Successful Property Investment Principles we have never had a client lose money on a property. They have all made good capital gains with a strong rental return and I am sure if you were looking to invest in a new investment property you would much rather have Investate provide you with a solution in one of our boutique estates or infill blocks rather than an investment property from someone more concerned about their income than the future performance of your new investment property.
If your ever being offered and investment property the do the simple Realestate.com test and see how many rental properties are on the market of which yours would be competing with for tenants.
If you would like to take a walk through this home please feel free to take a Virtual Tour.