Buy & Hold Property Investment Opportunity

Cash flow +ve investment property in growing Richlands area…

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 hand-picked house & land package in Sienna Gove, Richlands, QLD may be of interest.

Sienna Grove is situated approximately 15km from the Brisbane CBD and occupies a prime position within South East Queensland’s western growth corridor.

Richlands falls within the boundaries of the City of Brisbane which continues to enjoy strong economic and population growth.

Available land for the development of new dwellings within Richlands is highly constrained which is likely to place upward pressure on median values as demand begins to outstrip supply.

Richlands is recognised as a leafy, green suburb offering residents a high quality of life with strong linkages to major employment, education, retail and recreational nodes.

 

4 BEDROOM PROPERTY:
Lot 2, Brentford Rd, Richlands, Brisbane QLD

 

Property Analysis

A fixed price, turn-key, cash flow positive 4 bedroom property located in the Sienna Grove estate in Richlands, QLD.

Here’s how the numbers look;

 Purchase Details
 House Price:  $225,000  [173 sqm]
 Land Price  $260,000  [305 sqm]
 TOTAL PRICE:  $485,000
 Rental Details
 Rent:  $490 pw  [5.25% yield]
 CASH FLOW:  +$140 pw*  [$7,280pa]
 Investment Return
 10 Yr IRR  44.19%  [pre-tax return on all money invested over 10 yrs]
 1 Yr RETURN  $41,230  [$7,280 rent + $33,950 capital growth?]

*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 $140/week [$7,280 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

South-East Queensland ‘Golden Triangle’ showing growth corridors, west to Ipswich and south via Logan to the Gold Coast

Richlands

By 2036 the population of Richlands is projected to more than double to 38,820 persons. Over the five-year period between 2016 and 2021 alone, the population is projected to increase by more than 4,400 persons to reach 22,830 translating into demand for 1,475 new dwellings. Over ten years, 9,940 new residents are projected to move into the area stimulating demand for more than 3,310 new dwellings. Based on current development approvals and applications there is insufficient supply in place to cater to this demand.

The suburb of Richlands is a popular location for young families and couples to call home. Census data shows that the median age of the resident population was 29 compared with 35 throughout Greater Brisbane. An analysis of household composition shows that 79% of all households were occupied by couples without children and family households.

Richlands has recorded a particularly strong rate of median house price growth. Since 2012 the suburb’s median house price has risen by an average of 6.8% per annum, significantly outperforming that recorded throughout greater Brisbane. In quantum terms, median house prices have jumped by 25% or an impressive $111,500 over this time frame. Despite this strong growth, the market remains affordable with the median house price for 2016 recorded at $450,000. Current rental market conditions throughout Richlands’ rental market are solid with the suburb recording a notable average gross rental yield of 4.9%. Coupled with this is a particularly tight vacancy rate of 1.8% which is well below the 2.9% average across Brisbane. To put this in perspective, a vacancy rate of 3.0% is considered the benchmark of where demand is running in line with supply. On this basis, it is fair to conclude that the rental market within Richlands is undersupplied.

Arguably one of the south-western corridors most accessible suburbs, Richlands is located at the cross over of the Ipswich Motorway M7, Centenary Motorway M5 and has direct access to the Logan Motorway, Brisbane Airport and the Port of Brisbane.

Travel time by private vehicle to the Brisbane CBD is 25 minutes, to the Airport 35 minutes, the Port of Brisbane 45 minutes and 18 minutes north to Ipswich.

The Queensland Government in conjunction with the Australian Government is currently upgrading the Ipswich Motorway from Rocklea to Darra. The $400 million upgrade will improve traffic flow, reduce travel time and enhance local connectivity for all road users, pedestrians and cyclists. The significant benefits stemming from the completion of this project are likely to have a positive effect on housing values within Richlands.

Property Investment Fundamentals Checklist

  • Desirable Location & Accessibility – YES
  • Infrastructure Spend – YES
  • Employment Growth – YES
  • Population Growth – YES
  • Strong Rental Yields, Low Vacancies – YES
  • Capital Growth – YES
  • Affordable Price – YES

> To download a copy of the Richlands Suburb Profile – 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 usually 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 fully refundable holding deposit of $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 me on 0411 431 391

 

Cheers,

Sam
Real Investar | Urbantech Group

 

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.




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Urbantech provides a complete service to build and protect your wealth; mortgage & finance broking, +plus a range of allied services. Simply put we'll make sure you get the best deal going. To get started today book in your FREE Finance & Wealth Evaluation or call us on 08 8451 1500

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