WHAT WE'RE REVIEWING

Food For
Thought
 
Here, we'll show you properties we have sourced, viewed and currently reviewing. These are properties we might proceed to the full due diligence with.

89 Lucan Avenue, Aspley

Walk Score

Land

Property

Opportunity

OO Appeal

Overall

The Numbers

 

3 - Bedroom

1 - Bathroom

1 - Car space

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Orientation

Front: North

Rear: South

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Size

Internal: 107m2

Land: 627m2

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Sale Method

Private Treaty

Asking Price

$575K

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Vendors Motivation to Sell

Eager to move it on

Current Offers

Offers made on COS, price withheld

Quick Appraisal

Logical: $570,000 - $590,000 Emotional: $590,000 - $595,000 Target: $575,000 - 591,751

Quick Rental Appraisal

$460 - $470/wk

Public Transport

Zillmere Station: 1.5km (19-minute walk | 3-minute drive)

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Renovation Allowance

Nil

Our Feedback

Location: The subject property is located in the desirable suburb of Aspley, albeit, the northern part that borders Zillmere. However, we have provided a walk score of 10, given the access this property has to both small and large shops, schools (both primary and secondary), busses and trains. All amenities are achievable on foot. The immediate area is nice with well equipped and renovated homes. For a dry time of year, it does feel very lush with mature trees and family-friendly gardens throughout. The property is located to the rear of Aspley East State School, with the school tennis courts adjacent to the rear fence. The street is a cul-de-sac and towards the end of the cul-de-sac. We have checked the flood maps and there is no concerns with flooding for the subject property.

Subject Property: Brick home on concrete piers finished with weatherboard cladding. It is a neat 3-bedroom home with 1 bathroom and laundry. The property has been updated and is in a condition that can be leased immediately without any concerns (subject to building & pest reports). The highlights are the polished timber floors, the oversized rear deck and garden area for families. The kitchen is appointed with gas cooking whilst reverse cycle AC is in three rooms (Living, Master and Bed 2). Curbside appeal is a 10 out of 10 and presents well appealing to young families who don't want to do anything further with the home. The front yard is also enclosed and this provides two spaces for pets and kids. To the left-hand side of the house is a separate driveway to a single lock-up garage. In the rear garden, there is an old shed, whilst useful, we would want to ensure it is safe when conducting building & pest reports. 

Opportunities: The home is on concrete piers that provide future opportunities to lift the current house and build in underneath with a minimum ceiling height downstairs of 2.4m (to be considered a habitable area). With this in mind, there is room to also extend out to the rear, however, you would need to ensure the deck sits above the sewer infrastructure that runs across the rear of the property and not the house extension. Where it currently runs would not affect an extension as it sits in the rear 3rd of the block. Internally there is also the opportunity to create an ensuite for either bedroom 2 or 3 utilising the current laundry. The laundry can either be repositioned downstairs underneath the house (common for properties of this style) or internally in the kitchen as a European laundry. A general cosmetic update internally could be useful in years to come too.

Risks: The sewer easement running through the rear yard (see map here). As per the opportunities above, by raising the home to create more floor space alleviates concerns for the easement, secondly, we believe if there was an opportunity to extend, there is ample room to push out to the current easement whilst going up. 

Summary: All in all, it ticks all the boxes for your requirements now, whilst leaving ample opportunities in the future to add value. Our team attended the first open where there was approx. 25 people through. The agent has advised that they have received an offer, potentially two on the COS. We will need to move quickly to secure the property.

Purchase Strategy:

We have completed the property valuation and as you can see above, we are sitting between $570,000 - $591,751. Buying in at the max purchase price of $591,751 sees your total purchase costs at $107,222 (with a 10% deposit). 

Given the above, we are comfortable to proceed by making a formal written offer as per the below:

  • First Offer: $575,000 (we'd be willing to negotiate up to $591,751)

  • Deposit: $1,437.50 (paid within 2-days of signing contract) then $27,312.50 (paid within 2-days of the DD clause expiry)

  • 14-day due diligence clause (not business days): The buyer will be entitled to a due diligence period to undertake their due diligence for a period of 14-days after the date of the contract. This special condition is for the benefit of the buyer only. If the buyer advises the seller that they are not satisfied with their due diligence, the buyer will be entitled to terminate the contract and will be entitled to a full refund of their deposit.

  • Settlement: 30-days

  • Additionally: We will request access to the property during the settlement period tenant viewings and access to the sales photography

Next Steps:

  • Jack & Tuna to review the numbers and recommendations

  • MC to supply our purchase advice, giving authority to negotiate up to our recommended max purchase price via DocuSign

  • MC to supply a blank copy of the COS for Jack & Tuna to sign via DocuSign

  • Jack & Tuna to complete both in DocuSign

  • MC commence negotiations with the agent keeping Jack & Tuna up to speed throughout the process.

18 Coolibah Crescent, Ferny Hills

Walk Score

Land

Property

Opportunity

OO Appeal

Overall

The Numbers

 

5 - Bedroom (Granny flat 2 beds)

1 - Bathroom (Granny flat 1 bath)

2 - Car space

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Orientation

Front: South

Rear: North

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Size

Internal: TBC

Land: 635m2

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Sale Method

Private Treaty

Asking Price

$589K+

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Vendors Motivation to Sell

Very keen

Current Offers

One offer on COS, price withheld

Quick Appraisal

Logical: $595,000 - $605,000 Emotional: $605,000 - $615,000 Target: $595,000 - $605,000

Quick Rental Appraisal

One Lease:

Combined - $570 - $590/wk 

Two Leases:

Separate Main - $390 - $410/wk

Separate Granny Flat - $270 - $290/wk

Total = $660 - $680/wk

Public Transport

Bus Stop: 500m (7-minute walk)

Train Station: 1.2km (15-minute walk)

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Renovation Allowance

None if keeping as one residence, however, allowance required if separate access and a fence is required for the granny flat. Estimated at $15K.

Our Feedback

Location: The subject property is located centrally in Ferny Hills where the train station is 1.2km due south-west, and the Arana Hills shopping centre is 1.5km east. Both approximately a 15-20 minute walk, which is great from an investment property POV. The property is flanked by both primary and secondary schools and the street itself is quiet, well kept and very much family orientated.

Subject Property: Well presented home externally and internally. The obvious drawcard here is the granny flat to the rear. It is well-appointed and a great asset for a positively geared property. It can either be leased separately or as one inclusive of the granny (2 beds). The main residence is leasable in its current condition, however, it could do with some cosmetic love on the inside. It has been recently rendered externally, providing a more modern feel. The main residence has a double carport for two cars, therefore if the granny flat was leased separately, parking would be on-street for that particular tenant.

Main house:

Brick/cement render the house

Internal separate laundry

Separate toilet

Kitchen open plan to the dining area and deck

Hardwood polished floors

Solar Hot water

Good size bedrooms with robes

 

Granny Flat

2 bedrooms + A/C

The gas hot water system

Water/Electricity is not separate from the main house

Side gate for a separate entrance to Granny Flat

Opportunities: A cosmetic update internally to the main residence is a definite add-value opportunity, whilst separating the granny flat to the main residence with fencing would be the desirable play here. For the granny flat, in the kitchen adding a front loader washing machine  (where the dishwasher would go) would eradicate the need to use laundry in the main house.  

Risks: The granny flat, whilst a positive influence on your cash flows, it may also deter potential tenants who would prefer a larger backyard. So allowances should be made for longer vacancy periods when looking for tenants. The house across the road is a hoarder, again whilst not an impact on capital growth, it may deter prospective tenants, again, bigger allowances for vacancies are advised.

Summary: All in all, a great opportunity to underpin your portfolio with a positively geared house, that will also accumulate organically through capital growth. 

 

Purchase Strategy:

We have completed the property valuation and as you can see above, we are sitting between $595,000 - $605,000. Buying in at the max purchase price of $605,000 sees your total purchase costs at $109,189 (with a 10% deposit). 

Given the above, we are comfortable to proceed by making a formal written offer as per the below:

  • First Offer: $595,000 (we'd be willing to negotiate up to $605,000)

  • Deposit: $1,487.50 (paid within 2-days of signing contract) then $28,262.50 (paid within 2-days of the DD clause expiry)

  • 14-day due diligence clause (not business days): The buyer will be entitled to a due diligence period to undertake their due diligence for a period of 14-days after the date of the contract. This special condition is for the benefit of the buyer only. If the buyer advises the seller that they are not satisfied with their due diligence, the buyer will be entitled to terminate the contract and will be entitled to a full refund of their deposit.

  • Settlement: 30-days

  • Additionally: We will request access to the property during the settlement period tenant viewings and access to the sales photography

Next Steps:

  • Hold to see how the negotiations progress with the Aspley property before embarking on negotiations with this property

  • Jack & Tuna to review the numbers and recommendations

  • MC to supply our purchase advice, giving authority to negotiate up to our recommended max purchase price via DocuSign

  • MC to supply a blank copy of the COS for Jack & Tuna to sign via DocuSign

  • Jack & Tuna to complete both in DocuSign

  • MC commence negotiations with the agent keeping Jack & Tuna up to speed throughout the process.

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