How to create equity by re-titling a Duplex property…

Dual income property is fast becoming the investment of choice for savvy property investors and it’s easy to see why.

As the name suggests dual income properties produce two sources of income – typically via two separate leasable homes under the one roof and on one single title.

The are a number of benefits with dual income property: they produce much higher rental yields; are cash flow positive from day one; have lower rental vacancies; and generate much higher depreciation allowances [tax deductions] – just to name a few.

Combined with the right location, dual income properties make an ideal investment, providing both positive cash flow and capital growth!

While dual income properties come in many shapes, sizes and configurations, it’s the larger style ‘Duplexes’ which are the most sought after by investors.

In simple terms a Duplex is composed of two similar sized homes connected by a central common wall – often with a symmetrical façade and configured in a way to make it feel as though there are two distinct homes.

What makes a Duplex special is that it can be ‘subdivided’ [as known as ‘re-titled’] into two separate properties. The end result is usually a sizeable increase in the value of the individually titled properties, in addition to being able to sell each home separately.

From a numbers perspective, you can usually buy a brand-new Duplex on one title for around $100k less than the value of the two separately titled homes. So after taking into account re-titling costs of approximately $15K, it’s possible to end up with an instant equity gain of around $85K, or even more in some cases.

There’s currently a lot of demand for good quality affordable Duplexes, particularly those located in the growing region of South-East Queensland. Fortunately we’ve been able to get a temporary hold on the below deal – a large 3 + 3 Duplex located in the highly sought after and rapidly growing North Lakes area.

3+3 DUPLEX PROPERTY:
Lot 1, Eden Brae, North Lakes, Moreton Bay QLD

Property Analysis

A fixed price turn-key dual income property located in the Eden Brae estate of North Lakes, Moreton Bay QLD.

This cash flow positive 3+3 Duplex [6br/4b/2c] comes on one title, and can be subdivided after settlement into two separately titled properties potentially giving you an instant equity uplift.

Here’s how the numbers look;

*based on borrowing 90% of purchase costs at a rate of 4.25% with tax credits calculated using an annual income of $80,000.

SUMMARY:

This property is cash flow positive $259/week [$13,468 pa] in the first year.

In total, including projected capital growth, there is a potential to make ~$104K – 184K after just one year.

To purchase this property, you will need approximately $110-180K in available equity or cash [depending on your loan size]

Area Analysis

South-East Queensland – showing the Northern Growth Corridor of Brisbane including North Lakes

North Lakes

North Lakes is situated within the Moreton Bay council in South-East Queensland [SEQ], ideally located between Brisbane and the Sunshine Coast.

North Lakes accommodates all three of the economic and research fundamentals that make a sustainable suburb – Population, Infrastructure and Employment.

The suburbs accessibility is about to be radically improved with the opening of the new $1.5 Billion Moreton Bay rail link which is anticipated to have a highly stimulatory effect on both dwelling demand and values.

North Lakes is also projected to record one of the highest rates of population growth in the Moreton Bay Region, with more than 13,700 new residents expected to call the area home over the next 10 years. It is estimated that a total of 6,600 new dwelling will be required to service the needs of this growing population

When completed the North Lakes area will employ over 13,000 people, thanks to major employers such as Costco, Bunnings and the recently completed $130 million Ikea store – the first in Australia to be integrated into a Westfield Shopping Centre.

Close to schools, sporting facilities, parklands, major shopping precincts and transport hubs, the Eden Brae estate is not one to miss.

Useful Links

Northern Corridor Outlook Report – click here

Eden Brae Website – click here

Ikea North Lakes News Article – click here

South-East Queensland

Property powerhouse John McGrath says there’s only one place in all of Australasia to be buying real estate right now – and that’s in South-East Queensland. To read why he and many other experts are so keen on SEQ click here

TAKING THE NEXT STEP…

We’ll provide you with all of the details you need to make an informed investment decision. This includes a detailed Property Investment Analysis [PIA] report, property brochure, site plan, inclusions list, a rental and sales appraisal from local real estate agents, area research reports and any other relevant supporting information.

To secure this property you will need to complete a simple Expression of Interest [EOI] form and pay a refundable holding deposit [usually $1,000]. Your offer is also subject to finance and is not binding should you not be able to get finance approval. 

>> If you would like to enquire about this property please call Sam on 0411 431 391

IMPORTANT:

Unlike other property groups out there we don’t develop and sell our own property, instead we go to great lengths to ensure the properties and areas we recommend have the greatest chance of out-performing the broader market. That’s why we avoid inner city apartments, projects where there are too many investors, and areas that are reliant upon one industry, such as mining towns.

Instead we’ve built up a strong network of developers and builders around Australia and work hard to find you the right type of property in carefully selected hotspots which display the core fundamentals of high employment, infrastructure spend and population growth.

We only work with reputable builders who get the job done, so build times are less than 180 days. The properties are also 100% turn-key and ready for tenants to immediately occupy – standard inclusions are; air-conditioning, blinds, security screens, full landscaping, fences, antennas and letterbox. All council fees and charges [soil test and engineering] are covered by the builder and you get a 12-month maintenance period [for any defects] and a 20-year structural guarantee. There’s no hidden costs, surprises or extras for you to organise. We can also help you find an excellent local property manager and arrange to have a full depreciation schedule completed at the end of the build.

Since the Sydney and Melbourne property markets have peaked, SEQ has been getting more attention in the media – so the word is getting out… What this means is overall there is less available stock and the uptake is fast, with many properties selling within a few weeks of being released. So if you are interested in any of the deals we send through please contact us immediately so we can put a temporary hold on them for you.

The above information and service is provided by Urbantech Property Pty Ltd [ABN: 65 127 477 490] trading as Real Investar. Real Investar is the provider of generalised property investment education and advice, not financial advice or credit advice.

Cheers,

Sam
Real Investar | Urbantech Group

PS. Why are we promoting property in SEQ? – we explain here

We hope you enjoyed our post: Two properties in one – why investors like dual income property…

Cash flow positive investment properties in highly sought-after Coomera…

If you’re in the market for an investment property that’s affordable, has a great yield and is located in one of Australia’s emerging hotspots then this house & land package in Coomera, QLD may be of interest to you.

Boasting a fantastic location between the Gold Coast and Brisbane, these architecturally designed Rivergum-built properties represent a rare opportunity to invest in the final stages of the award-winning AVJennings Big Sky estate.

With the eagerly anticipated billion-dollar Coomera Town Centre now in its first stages of development, prime residential land surrounding the new retail and entertainment super-hub is becoming extremely scarce.

Rivergum’s previous project [also 8 homes] sold out in weeks and at last check there were only 2 homes left out of 8 in this current one.

Named Outlook, this current project is a stylish new take on urban living, combining low-maintenance living with fresh open space on your doorstep – making for a clever investment.

Just 20 minutes drive to the Gold Coast, 35 minutes to Brisbane and 40 minutes to the beautiful Moreton Bay, residents at Outlook have it all – schools, sports, major retail, restaurants, entertainment and close access to the best beaches in the region.

3 BEDROOM PROPERTY: **SOLD OUT**
Lot 947, Big Sky, Coomera QLD

Property Analysis

A fixed price, turn-key, cash flow positive 3 bedroom property located in the Big Sky estate in Coomera, QLD.

Note, this property is being sold off-the-plan via a single contract [not a dual land and house contract] so it can be purchased in a SMSF.

Here’s how the numbers look;

*based on borrowing 90% of purchase costs at a rate of 4.25% with tax credits calculated using an annual income of $80,000.

SUMMARY:

This property is cash flow positive $105/week [$5,460 pa] in the first year.

In total, including capital growth, there is a potential to make ~$36K after just one year.

To purchase this property, you will need approximately $60-100K in available equity or cash [depending on your loan size]

Area Analysis

South-East Queensland ‘growth corridor’ showing the location of Coomera

Coomera

Coomera is a suburb of the Gold Coast in South-East Queensland [SEQ]. According to hotspotting.com.au Gold Coast is currently the number 1 growth market in Australia.

Strong infrastructure spending is the major catalyst for the recent revival in the Gold Coast market with the inland housing markets poised to achieve strong price growth this year and beyond – in particular, the northern growth corridor stretching towards Brisbane which includes the suburbs Coomera and Pimpama.

To download a copy of the Urbis Residential Market Regional Overview for Gold Coast North – click here

South-East Queensland

Property powerhouse John McGrath says there’s only one place in all of Australasia to be buying real estate right now – and that’s in South-East Queensland. To read why he and many other experts are so keen on SEQ click here

TAKING THE NEXT STEP…

We’ll provide you with all of the details you need to make an informed investment decision. This includes a detailed Property Investment Analysis [PIA] report, property brochure, site plan, inclusions list, a rental and sales appraisal from local real estate agents, area research reports and any other relevant supporting information.

To secure this property you will need to complete a simple Expression of Interest [EOI] form and pay a refundable holding deposit [usually $1,000]. Your offer is also subject to finance and is not binding should you not be able to get finance approval. 

>> If you would like to enquire about this property please call Sam on 0411 431 391

IMPORTANT:

Unlike other property groups out there we don’t develop and sell our own property, instead we go to great lengths to ensure the properties and areas we recommend have the greatest chance of out-performing the broader market. That’s why we avoid inner city apartments, projects where there are too many investors, and areas that are reliant upon one industry, such as mining towns!

Instead we’ve built up a strong network of developers and builders around Australia and work hard to find you the right type of property in carefully selected hotspots which display the core fundamentals of high employment, infrastructure spend and population growth.

We only work with reputable builders who get the job done, so build times are less than 180 days. The properties are also 100% turn-key and ready for tenants to immediately occupy – standard inclusions are; air-conditioning, blinds, security screens, full landscaping, fences, antennas and letterbox. All council fees and charges [soil test and engineering] are covered by the builder and you get a 12-month maintenance period [for any defects] and a 20-year structural guarantee. There’s no hidden costs, surprises or extras for you to organise. We can also help you find an excellent local property manager and arrange to have a full depreciation schedule completed at the end of the build.

Since the Sydney and Melbourne property markets have peaked, SEQ has been getting more attention in the media – so the word is getting out… What this means is overall there is less stock available and the uptake is fast with many properties selling within a few weeks of being released. So if you are interested in any of the deals we send through please contact us immediately so we can put a temporary hold on them for you.

The above information and service is provided by Urbantech Property Pty Ltd [ABN: 65 127 477 490] trading as Real Investar. Real Investar is the provider of generalised property investment education and advice, not financial advice or credit advice.

Cheers,

Sam
Real Investar | Urbantech Group

PS. Why are we promoting property in SEQ? – we explain here

We hope you enjoyed our post: Affordable investment properties in South-East QLD

Cash flow positive property + long term capital growth…

If you’re looking for positive cash flow and long term growth then you should probably check out Logan City.

Situated in the South East Queensland growth corridor and linking Brisbane City to Gold Coast City, Logan is driven by an array of affordable suburbs with good road and rail links, proximity to jobs nodes, abundance of schools, ample shopping options, and strong prospects for future growth.

For the past few years Logan City been the clear market leader in the Brisbane metropolitan area, having more suburbs with rising sales activity than any other LGA within Australia.

Below is a cash flow positive 4 bedroom home we’ve source in the excellent Bishampton Estate in Logan.

4 BEDROOM PROPERTY:
Lot 5 Bayes Rd, Bishampton Estate, Logan QLD

Property Analysis

A fixed price, turn-key, cash flow positive 4 bedroom property located in the Bishampton Estate in Logan, QLD.

Here’s how the numbers look;

*based on borrowing 90% of purchase costs at a rate of 4.25% with tax credits calculated using an annual income of $80,000.

SUMMARY:

This property is cash flow positive $116/week [$6,032 pa] in the first year.

In total, including capital growth, there is a potential to make ~$39K after just one year.

To purchase this property, you will need approximately $65-105K in available equity or cash [depending on your loan size]

Area Analysis

South-East Queensland ‘growth corridor’ showing the location of Logan City

Logan City

Bishampton Estate is a brand new contemporary land development located in the heart of one of the fastest growing regions of South East Queensland. The Estate is just 25 minutes from the Brisbane CBD and 35 minutes from the Gold Coast and benefits from an address that is conveniently situated close to local shops, schools, transport and amenities.

Logan City, which borders the Gold Coast to the south and Brisbane City to the north, has led the revival of Greater Brisbane markets in recent times. Almost $400 million of new infrastructure is currently under construction, planned or recently completed within the Logan LGA which will be needed to support the strong population growth and almost 23,000 new jobs projected for the Logan LGA over the next 20 years.

The residential vacancy rate across Logan City are at 2 per cent indicating almost full occupancy, with rental yields for houses remaining solid at around 5 per cent over the last two years.

As confidence in the area increases, along with population growth and employment, it is expected that the median price within the Logan LGA will continue to increase for many years.

South-East Queensland

Property powerhouse John McGrath says there’s only one place in all of Australasia to be buying real estate right now – and that’s in South-East Queensland. To read why he and many other experts are so keen on SEQ click here

TAKING THE NEXT STEP…

We’ll provide you with all of the details you need to make an informed investment decision. This includes a detailed Property Investment Analysis [PIA] report, property brochure, site plan, inclusions list, a rental and sales appraisal from local real estate agents, area research reports and any other relevant supporting information.

To secure this property you will need to complete a simple Expression of Interest [EOI] form and pay a refundable holding deposit [usually $1,000]. Your offer is also subject to finance and is not binding should you not be able to get finance approval. 

>> If you would like to enquire about this property please call Sam on 0411 431 391

IMPORTANT:

Unlike other property groups out there we don’t develop and sell our own property, instead we go to great lengths to ensure the properties and areas we recommend have the greatest chance of out-performing the broader market. That’s why we avoid inner city apartments, projects where there are too many investors, and areas that are reliant upon one industry, such as mining towns!

Instead we’ve built up a strong network of developers and builders around Australia and work hard to find you the right type of property in carefully selected hotspots which display the core fundamentals of high employment, infrastructure spend and population growth.

We only work with reputable builders who get the job done, so build times are less than 180 days. The properties are also 100% turn-key and ready for tenants to immediately occupy – standard inclusions are; air-conditioning, blinds, security screens, full landscaping, fences, antennas and letterbox. All council fees and charges [soil test and engineering] are covered by the builder and you get a 12-month maintenance period [for any defects] and a 20-year structural guarantee. There’s no hidden costs, surprises or extras for you to organise. We can also help you find an excellent local property manager and arrange to have a full depreciation schedule completed at the end of the build.

Since the Sydney and Melbourne property markets have peaked, SEQ has been getting more attention in the media – so the word is getting out… What this means is overall there is less stock available and the uptake is fast with many properties selling within a few weeks of being released. So if you are interested in any of the deals we send through please contact us immediately so we can put a temporary hold on them for you.

The above information and service is provided by Urbantech Property Pty Ltd [ABN: 65 127 477 490] trading as Real Investar. Real Investar is the provider of generalised property investment education and advice, not financial advice or credit advice.

Cheers,

Sam
Real Investar | Urbantech Group

PS. Why are we promoting property in SEQ?? – we explain here

PPS. We recently highlighted some high yielding affordable property investment opportunities in the local Adelaide market – you can view them here

We hope you enjoyed our post: Invest in one of Australia’s best property hotspots

Investing in Adelaide Property…

While South-East Queensland continues to be the preferred hotspot for in-the-know long term buy & hold property investors the good news for SA property owners is the Adelaide market continues to perform solidly.

On a national level Adelaide often flies under the radar for investors – it’s perhaps the most under-rated of the capital cities, despite having delivered good growth rates in the past.

You could be forgiven for thinking that not much is going on with Adelaide property prices. According to one set of figures, house values are up 3.9 percent in annual terms and units 3.6 percent.

But Adelaide is busier and more vibrant than those numbers indicate, particularly when you look at sales activity.

Adelaide started 2017 in solid fashion and continues to be one of the strongest city markets in the nation in terms of sales activity.

Generally, Adelaide had a solid year in 2016. Each of the four quarters had sales activity on a par with, or higher than, the corresponding period a year earlier.

This continues a pattern of steadily rising sales over the past three years. In 2014 the SA market recorded between 7,000 and 7,500 dwelling sales per quarter. In 2015 sales rose above 8,000 per quarter and in 2016 every quarter was above 9,000 sales.

Our research indicates that the growth suburbs in Adelaide are primarily middle-market areas and outer-ring precincts, with a few top-end markets also standing out.

Another thing worth considering about Adelaide is the rental yields on offer – with the typical yield on a average priced house being around 5-6%, going up to as high as 6-7% for properties in many of the cheaper metro areas.

Adelaide is also the most affordable mainland capital city with a median price of just $420,000, and a huge range of properties available around the $500,000 mark.

We’re not without a few challenges however – SA has the highest unemployment rate of the states and continues to face headwinds in a number of industry sectors, namely steel and automotive. In addition, net interstate migration outflows also continue to rise.

On the positive side there’s a bit happening in metro Adelaide thanks to the State Government’s 30-Year Plan for Greater Adelaide.

Renewal SA is initiating urban renewal developments, led by four major projects valued at over $2 billion. The largest project will see the population of the small inner suburb of Bowden grow from a few hundred residents to 3,500 over the next decade. This area is currently being revitalised with cafés, restaurants, shops, offices and parks.

The old AAMI Stadium at West Lakes is also being redeveloped. In 2014, the SANFL sold AAMI Stadium to developers Commercial and General for $71 million, who are developing site into a mix of residential, commercial and community land uses. The project is called West and an estimated 1,600 homes will eventually occupy the site.

Another Renewal SA project will see land adjacent to the Woodville Railway Station transformed with a mix of medium-density to high-rise dwellings.

In addition to these larger projects there’s a range of quality boutique projects in Adelaide offering excellent returns for the locally-focused investor. Below we’ve highlighted some of the current property investment opportunities we’ve sourced for our clients.

Update: Adelaide claims top residential growth market [Terry Ryder – PropertyObserver.com.au]

Adelaide Property Investment Opportunities

Updated: Tuesday, February 4th, 2020

Here is a list of some of our recommended turn-key fixed price investment opportunities in Adelaide;

TAKING THE NEXT STEP…

We’ll provide you with all of the details you need to make an informed investment decision. This includes a detailed Property Investment Analysis [PIA] report, property brochure, site plan, inclusions list, a rental and sales appraisal from local real estate agents, area research reports and any other relevant supporting information.

To secure a property you will need to complete a simple Expression of Interest [EOI] form and pay a refundable holding deposit [usually $1,000]. Your offer is also subject to finance and is not binding should you not be able to get finance approval. 

>> If you would like to enquire about any of the above properties please call Sam on 0411 431 391

IMPORTANT:

Unlike other property groups out there we don’t develop and on-sell our own property, instead we go to great lengths to ensure the properties and areas we recommend have the greatest chance of out-performing the broader market. That’s why we avoid inner city apartments, projects where there are too many investors, and areas that are reliant upon one industry, such as mining towns. We’ve built up a strong network of developers and builders around Australia and have worked hard to source these properties.

We only work with reputable builders who get the job done, so build times are less than 180 days. The properties are also 100% turn-key and ready for tenants to immediately occupy – standard inclusions are; air-conditioning, blinds, security screens, full landscaping, fences, antennas and letterbox. All council fees and charges [soil test and engineering] are covered by the builder and you get a 12-month maintenance period [for any defects] and a 20-year structural guarantee. There’s no hidden costs, surprises or extras for you to organise. We can also help you find an excellent local property manager and arrange to have a full depreciation schedule completed at the end of the build.

If you are interested in any of the deals we send through please contact us immediately so we can put a temporary hold on them for you.

The above information and service is provided by Urbantech Property Pty Ltd [ABN: 65 127 477 490] trading as Real Investar. Real Investar is the provider of generalised property investment education and advice, not financial advice or credit advice.

Cheers,

Sam
Real Investar | Urbantech Group

We hope you enjoyed our post: Property investment opportunities in Adelaide

Long term capital growth and solid cash flow…

To successfully build a property portfolio you need two things; capital growth + cash flow.

Below is a 4 bedroom home we’ve sourced in Mango Hill, an up-and-coming suburb in the northern growth corridor of Brisbane.

It provides both positive cash flow and long term capital growth.

This property is located in Villa Worlds’ Park Vista development, and is perfectly situated for easy access to a host of local amenities.

North Lakes and Moreton Bay are right in your backyard, while Westfield North Lakes, accessible by bus, is just over 3km away and there’s only 4km to the North Lakes Golf Club.

The area offers more than a dozen schools and colleges and by late 2016, access to inner Brisbane will be easier via the Moreton Bay rail link, which includes a train station just a short walk from Park Vista’s latest release.

For more details on the Park Vista development click here

4 BEDROOM PROPERTY: **SOLD**
Lot 2 Carnarvon Close, Mango Hill QLD

Property Analysis

A fixed price, turn-key, cash flow positive 4 bedroom property located in the suburb of Mango Hill in Moreton Bay QLD.

Here’s how the numbers look;

*based on borrowing 90% of purchase costs at a rate of 4.25% with tax credits calculated using an annual income of $80,000.

SUMMARY:

This property is cash flow positive $117/week [$6,084 pa] in the first year.

In total, including capital growth, there is a potential to make ~$41K after just one year.

To purchase this property, you will need approximately $70-110K in available equity or cash [depending on your loan size]

Area Analysis

South-East Queensland Region showing location of Moreton Bay

Mango Hill

Mango Hill is situated within the Moreton Bay regional council in South-East Queensland [SEQ] – one of the fastest growing regions in Australia.

The suburb is ideally located between Brisbane and the Sunshine Coast and only 20 mintutes by car to the booming Australia TradeCoast region.

The suburbs accessibility is about to be radically improved with the opening of the new $1.5 Billion Moreton Bay rail link which is anticipated to have a highly stimulatory effect on both dwelling demand and values.

The suburbs of Mango Hill and North Lakes are projected to record one of the highest rates of population growth in the Moreton Bay Region, with more than 13,700 new residents expected to call the area home over the next 10 years. It is estimated that a total of 6,600 new dwelling will be required to service the needs of this growing population.

For a more detailed profile of Mango Hill click here

South-East Queensland

Property powerhouse John McGrath says there’s only one place in all of Australasia to be buying real estate right now – and that’s in South-East Queensland. To read why he and many other experts are so keen on SEQ click here

TAKING THE NEXT STEP…

We’ll provide you with all of the details you need to make an informed investment decision. This includes a detailed Property Investment Analysis [PIA] report, property brochure, site plan, inclusions list, a rental and sales appraisal from local real estate agents, area research reports and any other relevant supporting information.

To secure this property you will need to complete a simple Expression of Interest [EOI] form and pay a refundable holding deposit [usually $1,000]. Your offer is also subject to finance and is not binding should you not be able to get finance approval. 

>> If you would like to enquire about this property please call Sam on 0411 431 391

IMPORTANT:

Unlike other property groups out there we don’t develop and on-sell our own property, instead we go to great lengths to ensure the properties and areas we recommend have the greatest chance of out-performing the broader market. That’s why we avoid apartments, projects where there are too many investors, and areas that are reliant upon one industry, such as mining towns. We’ve built up a strong network of developers and builders around Australia and have worked hard to source these properties.

We only work with reputable builders who get the job done, so build times are less than 180 days. The properties are also 100% turn-key and ready for tenants to immediately occupy – standard inclusions are; air-conditioning, blinds, security screens, full landscaping, fences, antennas and letterbox. All council fees and charges [soil test and engineering] are covered by the builder and you get a 12-month maintenance period [for any defects] and a 20-year structural guarantee. There’s no hidden costs, surprises or extras for you to organise. We can also help you find an excellent local property manager and arrange to have a full depreciation schedule completed at the end of the build.

Since the Sydney and Melbourne property markets have peaked, SEQ has been getting more attention in the media – so the word is getting out… What this means is overall there is less stock available and the uptake is pretty fast – many properties sell within 1-2 weeks of being released. So if you are interested in any of the deals we send through please contact us immediately so we can put a temporary hold on them for you.

The above information and service is provided by Urbantech Property Pty Ltd [ABN: 65 127 477 490] trading as Real Investar. Real Investar is the provider of generalised property investment education and advice, not financial advice or credit advice.

Cheers,

Sam
Real Investar | Urbantech Group

PS. Why are we promoting property in SEQ?? – we explain here

PPS. We recently profiled a duplex property in the Ormeau, Gold Coast – you can view it here

We hope you enjoyed our post: Investing for ongoing growth and positive cash flow

Capital Growth + Positive Cash Flow + Instant Equity?

Investing is a numbers game, the aim being to achieve the highest possible return on your money, while effectively managing any risks.

Property investing is no different. If we forget for a moment about the obvious tangibility of property, it’s really just a bunch of numbers on a page.

To win in the game of buy & hold property investing you need only two things – capital growth and cash flow.

Thanks to the availability of cheap money and the accessibility of reputable research and rich data, it’s never been easier to stack the odds in your favour.

No one can consistently predict future price movements of property, however with the correct approach we can increase the likelihood of achieving better-than-average results.

BIS Shrapnel just released their 3 year property price predictions for all major property markets around Australia – you can read a nice summary of the results here

What’s clear is that you can no longer limit yourself to just one geographic location when investing in property.

Below is a dual income property we’ve sourced in Ormeau, an up-and-coming suburb in the northern growth corridor of the Gold Coast. This property provides positive cash flow, capital growth and a potential instant equity gain – some would call this a property investment trifecta!

3+3 DUPLEX PROPERTY: **SOLD**
Lot 586 Custodian Cres, Ormeau, Gold Coast QLD

Property Analysis

A fixed price, turn-key, dual income property located in the suburb of Ormeau in the Gold Coast.

This cash flow positive 3+3 Duplex [6br/4b/2c] comes on one title, and can be subdivided after settlement into two separately titled properties giving you an instant equity uplift.

Here’s how the numbers look;

*based on borrowing 90% of purchase costs at a rate of 4.25% with tax credits calculated using an annual income of $80,000.

SUMMARY:

This property is cash flow positive $275/week in the first year [$14,300 pa], plus you potentially get a huge $103-133K equity uplift after re-titling.

All up, including capital growth, you have the potential of making ~ $175K – $205K after just one year.

To purchase this property, you will need approximately $115-190K in available equity or cash [depending on your loan size]

Area Analysis

Ormeau

Ormeau is a suburb [adjacent to Pimpama] in the city of Gold Coast in South-East Queensland [SEQ].

The Gold Coast is known for its extensive golden sandy beaches, perfect surfing spots and the ever popular theme parks including Dream World, Movie World and Sea World. Along with an incredible lifestyle the Gold Coast has low median prices, falling vacancy rates, high population growth and strong employment. In fact, the Gold Coast is also one of Australia’s fastest growing regions, with population growth of 2.3% pa forecast, compared to just 1.6% across Australia.

In recent times there has been a notable shift within the residential market towards the northern corridor of the Gold Coast with its proximity to Logan and Brisbane. Low supply and increasing demand coupled with the recent announcements of several large infrastructure and development projects ahead of the 2018 Commonwealth Games has helped to elevate Ormeau into one of the major growth areas of the Gold Coast LGA.

South-East Queensland

Property powerhouse John McGrath says there’s only one place in all of Australasia to be buying real estate right now – and that’s in South-East Queensland. To read why he and many other experts are so keen on SEQ click here

TAKING THE NEXT STEP…

We’ll provide you with all of the details you need to make an informed investment decision. This includes a detailed Property Investment Analysis [PIA] report, property brochure, site plan, inclusions list, a rental and sales appraisal from local real estate agents, area research reports and any other relevant supporting information.

To secure this property you will need to complete a simple Expression of Interest [EOI] form and pay a refundable holding deposit [usually $1,000]. Your offer is also subject to finance and is not binding should you not be able to get finance approval. 

>> If you would like to enquire about this property please call Sam on 0411 431 391

IMPORTANT:

Unlike other property groups out there we don’t develop and on-sell our own property, instead we go to great lengths to ensure the properties and areas we recommend have the greatest chance of out-performing the broader market. That’s why we avoid apartments, projects where there are too many investors, and areas that are reliant upon one industry, such as mining towns. We’ve built up a strong network of developers and builders around Australia and have worked hard to source these properties.

We only work with reputable builders who get the job done, so build times are usually 180 days or less. The properties are also 100% turn-key and ready for tenants to immediately occupy – standard inclusions are; air-conditioning, blinds, security screens, full landscaping, fences, antennas and letterbox. All council fees and charges [soil test and engineering] are covered by the builder and you get a 12-month maintenance period [for any defects] and a 20-year structural guarantee. There’s no hidden costs, surprises or extras for you to organise. We can also help you find an excellent local property manager and arrange to have a full depreciation schedule completed at the end of the build.

Since the Sydney and Melbourne property markets have peaked, SEQ has been getting more attention in the media – so the word is getting out… What this means is overall there is less stock available and the uptake is pretty fast – many properties sell within 1-2 weeks of being released. So if you are interested in any of the deals we send through please contact us immediately so we can put a temporary hold on them for you.

The above information and service is provided by Urbantech Property Pty Ltd [ABN: 65 127 477 490] trading as Real Investar. Real Investar is the provider of generalised property investment education and advice, not financial advice or credit advice.

Cheers,

Sam
Real Investar | Urbantech Group

PS. Why are we promoting property in SEQ?? – we explain here. Want to know why we are recommending brand new ‘turn-key’ dual income house & land packages? – read our article here

PPS. We recently profiled a duplex property in the Ipswich suburb of Brassall – you can view it here

We hope you enjoyed our post: One property, two incomes, plus built-in equity…

Purchasing a property with a friend or loved one can be a great way to enter to the property market, but taking on such a large financial responsibility with someone else does come with risks.

These are some of the pros and cons to consider before you both sign your names on the contract.

PRO: Entering the property market earlier – or at all

Rising house prices, the need to save for a deposit and the risk of fluctuating interest rates can all make getting your foot in the home-ownership door very difficult.

It may seem an impossible task at times, and for some it can take years before you’re in a serious position to purchase. Buying property with a friend or family member means the dream of home ownership can be realised much sooner.

PRO: Buying where you want versus where you can afford

Sharing loan repayments with another person can be easier in terms of servicing the loan and may allow you to borrow more.

It might mean the difference between buying in your dream suburb and settling for a suburb you’ve never heard of. By pooling purchasing power you can find your ideal home or investment, which otherwise might have been beyond your budget.

PRO: A burden shared is a burden halved

Buying a property with a friend or family member not only means costs are shared upfront, but also across the life of the loan.

The proportion of costs taken on by each person in the arrangement will vary depending on individual circumstances, but as an example, each person might pay half the deposit, half the legal fees, half the monthly repayments, half the rates, half the utilities, and half the insurance.

CON: All care and all responsibility

Although you’ll only need to pay an agreed percentage or amount of the monthly repayments while things are tracking as planned, the entire repayment may become your sole responsibility if your property partner suddenly can’t make their monthly contribution. You are both liable to ensure the full loan repayment amount is paid when it falls due, for the term of the loan.

It’s important to plan for the worst-case scenario: could you make the full monthly repayments if you had to? If your partner loses the ability to make their share of the repayments and you can’t cover the full monthly amount, you may need to discuss your repayment arrangements with your lender.

CON: Restricted capacity to invest in more property

You may only be paying your part of the repayments each month, but if you wanted to apply for another loan you could be seen by the lender to be carrying the full risk of your joint loan.

So if you decide you want to expand your property portfolio or take out a loan for a car, you might find you can’t borrow as much as you thought.

CON: Life happens

While home ownership might be a great idea for you and your potential property partner right now, it’s important to talk about what your goals are, both personally and for the property.

Do you both plan to live in the property? What happens if your partner wants to move out and rent out their room? What happens if they want to sell before you do?

Will you be in a position to buy them out, and could you afford the costs of refinancing and possibly paying sizable loan fees and/or government fees and charges all over again?

These are important questions to ask of each other, and yourself, as you consider making a joint investment.

It’s wise to have things written down in a formal agreement before you actually buy a property; a property lawyer will be able to advise you on the best way to do this.

Buying a property with another person can reap great financial rewards, but it’s important to have your eyes wide open and be as thorough as you can to ensure you’re prepared for any scenario.

If you need some help we can advise you of the conversations you need to have with your property partner before you take the plunge.

For any other details please don’t hesitate to contact us any time.

Cheers

Sam & Matt
Urbantech Group
Adelaide Mortgage Broker +plus more…

PS. We’ve condensed all of our best finance and property investment tips, tricks and strategies into a 7-part article series – all links here.  We’ve also created a property investment program to help you eliminate your bad debts and build a passive income of at least $83,200 by buying only 4 average-priced investment properties. For all details and to get started click here

We hope you enjoyed our post: Should you buy a property with a friend?

If you own an investment property [or a few] we’d like to help.

The truth is most investors can’t really tell you how well their investment property/portfolio is performing at any given time…

…at least with any real degree of precision.

Sure, you’ll probably remember what you originally paid for your investment property, how much rent you’re getting, approximately what your loan repayments are each month and perhaps that you’ve built up some equity in the property over time, but that’s usually about as far as it goes.

As a property investor ‘knowing the numbers’ is very important, especially if you want to maximise your returns and continue growing your wealth – that’s why it’s important you’re able to answer questions like these ones;

• How much does your property cost you each week/month to hold, both before and after all cash deductions and depreciation has been taken into account?
• What is your gross and net rental yield and is it higher or lower than the area average for similar sized property?
• Is your property positively geared? If so, what level of income are you generating each week and how are you using those funds to your advantage?
• Is your property growing in value faster or slower than other similar sized properties in your surrounding area?
• Taking into account rent and capital growth what is the overall rate of return you are currently achieving with your property?
• What overall return have you made on all the money you have invested to date in your property?
• Is your property a good investment? Would you be better off to sell your investment property and buy something else in a different location?
• What is the current value of your property and how much [available] equity do you have?
• Do you have the capacity to buy another investment property? Should you buy another property?
• What interest rate are you paying on your investment loan/s? Could you get a better deal? If so, how much could you save in loan interest?
• Are you charging enough rent for your investment property? Could you get more? If, so how much more?
• Are you paying too much in property management fees? Could you get a better deal? If so, how much could you save?
• Have you had a proper depreciation schedule prepared for your property?
• Have you fully maximised every possible deduction for your investment property?
• What else could you do to improve the overall return on your investment property?
• How would a change [higher or lower] in your current rental income, loan interest rate, property management fees and/or capital growth effect your overall property investment returns?

Free Property Investment Performance Review

If you currently own an investment property, then we can help you answer all the above questions and more.

Using our property investment analysis [PIA] software, we can perform in-depth analytics on your investment property to let you know exactly how it is performing.

We’ll analyse the capital growth, cash flows, and ongoing tax implications of your investment property and provide instant feedback on the projected after-tax cost [or profit] and the overall rate of return.

Our software will also compute cash flow projections for up to 40 years and has facilities for changing more than 100 variables including; property price, rent, capital growth, inflation, rental expenses, interest rates, loan type, personal income and more. The internal rate of return [IRR] and the cost-per-week are recalculated automatically whenever a change is made which lets us perform sensitivity analysis and explore a range of ‘what if’ scenarios.

You’ll also receive a personalised 12-page property investment analysis report detailing every single financial aspect of your investment property. This report includes: analysis & graphs showing property costs, rent, rental expenses, total tax deductions, tax rebates, real per week cost to own, and return on investment.

As part of the performance review process we’ll also review your home & investment loans to ensure you’re not paying too much. Banks often offer new customers better rates so at the very least we’ll see if we can negotiate a better deal for you with your current lender.

And we can even arrange to have your properties revalued for free to see if they’ve increased in value and to determine how much equity you have available for further investment.

>> To arrange a free property investment performance review please contact Sam – sam@urbantechgroup.com.au or 0411 431 391

Don’t own an investment property?

Join our Real Investar Coaching Program and we’ll help you get started.

As part of the program we help you build a personalised investment plan based on the amount of passive income you want to achieve from your property portfolio.

Then it’s our job to help you execute your plan. We do this by assisting you to build a portfolio of cash flow positive property located in high growth areas.

If you need any other details or just want to chat further, please don’t hesitate to contact us any time.

Cheers

Sam & Matt
Urbantech Group
Adelaide Mortgage Broker +plus more…

PS. We’ve condensed all of our best finance and property investment tips, tricks and strategies into a 7-part article series – all links here.  We’ve also created a property investment program to help you eliminate your bad debts and build a passive income of at least $83,200 by buying only 4 average-priced investment properties. For all details and to get started click here

Note: All property investment education and advice is provided by Urbantech Property Pty Ltd [ABN: 65 127 477 490] trading as Real Investar. Real Investar does not provide financial advice or credit advice.

We hope you enjoyed our post: How well is your investment property performing?

High yielding property with long term capital growth?…

Yes it’s possible, as long as you buy the right property in the right area.

Below is one of those properties – this hand-picked dual income house & land package is located in Ipswich, which is part of the exciting south-east Queensland region.

It provides positive cash flow, capital growth and the potential for an instant equity uplift…

3+3 DUPLEX PROPERTY: **SOLD**
Lot 357, Savannah Woods, Brassall, Ipswich QLD

Property Analysis

A fixed price turn-key dual income property located in the suburb of Ipswich in the greater Brisbane area.

This cash flow positive 3+3 Duplex [6br/4b/2c] comes on one title, and can be subdivided after settlement into two separately titled properties giving you an instant equity uplift.

Here’s how the numbers look;

*based on borrowing 100% of purchase costs at a rate of 4.25% with tax credits calculated using an annual income of $75,000.

SUMMARY:

This property is cash flow positive $262/week in the first year, plus you get a $33-73K equity uplift after re-titling.

To purchase this property, you will need approximately $88-147K in available equity or cash [depending on your loan size]

Area Analysis

Ipswich

Ipswich is located in the south-west of the Brisbane metropolitan area in South-East Queensland [SEQ]. It is one of Australia’s fastest growing cities with population growth of 4.6% per annum. It’s also the cheapest precinct in the greater Brisbane area.

Strong market fundamentals including ongoing job creation and high infrastructure spend coupled with excellent affordability and an undersupply of new land underpins the future capital growth of this area.

South-East Queensland

Property powerhouse John McGrath says there’s only one place in all of Australasia to be buying real estate right now – and that’s in South-East Queensland. To read why he and many other experts are so keen on SEQ click here

TAKING THE NEXT STEP…

We’ll provide you with all of the details you need to make an informed investment decision. This includes a detailed Property Investment Analysis [PIA] report, property brochure, site plan, inclusions list, a rental and sales appraisal from local real estate agents, area research reports and any other relevant supporting information.

To secure this property you will need to complete a simple Expression of Interest [EOI] form and pay a refundable holding deposit [usually $1,000]. Your offer is also subject to finance and is not binding should you not be able to get finance approval. 

>> If you would like to enquire about this property please call Sam on 0411 431 391

IMPORTANT:

Unlike other property groups out there we don’t develop and on-sell our own property, instead we go to great lengths to ensure the properties and areas we recommend have the greatest chance of out-performing the broader market. That’s why we avoid apartments, projects where there are too many investors, and areas that are reliant upon one industry, such as mining towns. We’ve built up a strong network of developers and builders around Australia and have worked hard to source these properties.

We only work with reputable builders who get the job done, so build times are usually 180 days or less. The properties are also 100% turn-key and ready for tenants to immediately occupy – standard inclusions are; air-conditioning, blinds, security screens, full landscaping, fences, antennas and letterbox. All council fees and charges [soil test and engineering] are covered by the builder and you get a 12-month maintenance period [for any defects] and a 20-year structural guarantee. There’s no hidden costs, surprises or extras for you to organise. We can also help you find an excellent local property manager and arrange to have a full depreciation schedule completed at the end of the build.

Since the Sydney and Melbourne property markets have peaked, SEQ has been getting more attention in the media – so the word is getting out… What this means is overall there is less stock available and the uptake is pretty fast – many properties sell within 1-2 weeks of being released. So if you are interested in any of the deals we send through please contact us immediately so we can put a temporary hold on them for you.

The above information and service is provided by Urbantech Property Pty Ltd [ABN: 65 127 477 490] trading as Real Investar. Real Investar is the provider of generalised property investment education and advice, not financial advice or credit advice.

Cheers,

Sam
Real Investar | Urbantech Group

PS. We recently wrote a detailed article on why we [and many others] are big fans of SEQ – you can read it here. Also you’ll notice the majority of properties we source are brand new ‘turn-key’ dual income house & land packages – there’s a very good reason for this which we explain here. In short, it just comes down to numbers – when purchased in the right areas these high-yielding properties give you outstanding returns; both in terms of cash flow and capital growth.

PPS. We recently profiled a similar duplex property in the Gold Coast suburb of Coomera in SEQ – you can view it here

We hope you enjoyed our post: Positive cash flow, capital growth and instant equity

Where and what to buy…

In order to be a successful property investor you need to know how to buy the right property in the right area.

By that we mean high-yielding property in a location with excellent long-term capital growth potential.

For us that location is South-East Queensland [SEQ] – in particular the growth corridor between Brisbane and the Gold Coast.

We recently wrote a detailed article on why we [and many others] are big fans of SEQ – you can read all the details here

In terms of what to buy, we can help too – starting today we’ll be bringing you what we believe are some of the best investment opportunities in the exciting SEQ region.

You’ll notice the majority of properties we source are brand new ‘turn-key’ dual income house & land packages – there’s a very good reason for this which we explain in this article.

In short, it just comes down to numbers – when purchased in the right areas these high-yielding properties can give you outstanding returns; both in terms of cash flow and capital growth.

Below is a hand-picked dual income property located in Coomera [SEQ] for your consideration;

Note: We’re not the only ones with access to these deals, and since the Sydney and Melbourne property markets have peaked, SEQ has been getting more attention in the media – so the word is getting out… What this means is overall there is less stock available and the uptake is pretty fast – many properties sell within 1-2 weeks of being released. So if you are interested in any of the deals we send through please contact us immediately so we can put a temporary hold on them for you.

3+3 DUPLEX PROPERTY: **SOLD**
Lot 367, Velox Circuit, Coomera, Gold Coast QLD

Property Analysis

A fixed price turn-key dual income property located in the suburb of Coomera in the Gold Coast.

This cash flow positive 3+3 Duplex [6br/4b/2c] comes on one title, and can be subdivided after settlement into two separately titled properties giving you an instant equity uplift.

Here’s how the numbers look;

SUMMARY:

This property is cash flow positive $168/week in the first year, plus you get a $23-63K equity uplift after re-titling.

To purchase this property, you will need approximately $110-180K in available equity or cash [depending on your loan size]

Area Analysis

Coomera

Coomera is a suburb of the Gold Coast in South-East Queensland [SEQ]. According to hotspotting.com.au Gold Coast is currently the number 1 growth market in Australia.

Strong infrastructure spending is the major catalyst for the recent revival in the Gold Coast market with the inland housing markets poised to achieve strong price growth this year and beyond. In particular, the northern growth corridor stretching towards Brisbane which includes the suburbs Coomera and Pimpama.

South-East Queensland

Property powerhouse John McGrath says there’s only one place in all of Australasia to be buying real estate right now – and that’s in South-East Queensland. To read why he and many other experts are so keen on SEQ click here

TAKING THE NEXT STEP…

We’ll provide you with all of the details you need to make an informed investment decision. This includes a detailed Property Investment Analysis [PIA] report, property brochure, site plan, inclusions list, a rental and sales appraisal from local real estate agents, area research reports and any other relevant supporting information.

To secure this property you will need to complete a simple Expression of Interest [EOI] form and pay a refundable holding deposit [usually $1,000]. Your offer is also subject to finance so it is not binding should you not be able to get your finance pre-approved. 

>> If you would like to enquire about this property please call Sam on 0411 431 391

IMPORTANT:

Unlike other property groups out there we don’t develop and on-sell our own property, instead we go to great lengths to ensure the properties and areas we recommend have the greatest chance of out-performing the broader market. That’s why we avoid apartments, projects where there are too many investors, and areas that are reliant upon one industry, such as mining towns. We’ve built up a strong network of developers and builders around Australia and have worked hard to source these properties.

We only work with reputable builders who get the job done, so build times are usually 180 days or less. The properties are also 100% turn-key and ready for tenants to immediately occupy – standard inclusions are; air-conditioning, blinds, security screens, full landscaping, fences, antennas and a letterbox. All council fees and charges [soil test and engineering] are covered by the builder and you get a 12-month maintenance period [for any defects] and a 20-year structural guarantee. There’s no hidden costs, surprises or extras for you to organise. We can also help you find an excellent local property manager and arrange to have a full depreciation schedule completed at the end of the build.

The above information and service is provided by Urbantech Property Pty Ltd [ABN: 65 127 477 490] trading as Real Investar. Real Investar is the provider of generalised property investment education and advice, not financial advice or credit advice.

Cheers,

Sam
Real Investar | Urbantech Group

We hope you enjoyed our post: How to buy dual income property in high growth areas…