Pick of the Month – 28 Acacia Crescent, Kallangur QLD 4503
This month we go back up to our sunshine state with another successful Kallangur property! Sourced off market by Simon Loo from House Finder for our mutual client for $400,000, this 4 bedroom, 2 bathroom, 2 garage house sitting on 401sqm block presents decent yield and good money for value:
- Location – within walking distance to Murrumba Downs station and in close proximity to North Lakes shopping centre and also upcoming University of Sunshine Cost Petrie precinct.
- Building – 10 years old brick veneer structure house with good depreciation and little maintenance required.
- Value Add Potential – potential to convert existing dining room into 5th bedroom and make current living into combined dining/living – potentially increase the rent and house value.
- Yield – currently rented for $435 per week with gross rental return of 5.6% from day 1.
- Downside – block of land is small only 401sqm.
A decent purchase balancing yield and long term growth leveraging the new upcoming uni around the area. It’s also worth noting that previous owner paid $408000 back in 2009, so proves to be a very good purchase given what our client paid today is even less than what seller has paid 10 years ago! With existing tenants already in place from day 1 and at 5.6% gross rental return client doesn’t need to worry about cashflow issue. A happy result for those investors who are looking at a hassle free, buy & hold strategy.
The only downside is small block of land however with newer builds around the area it’s always on a smaller block. If an older house then most likely to be on a standard 600sqm block or even bigger. So I guess every investor need to find that balance point.
Kallangur is a suburb in Moreton Bay region located about 24km north west of Brisbane CBD. Due to it’s lower entry price, Kallangur has been performed relatively well with about 16% capital growth for the last 3 years. Current vacancy rate for the suburb is only about 1.7% and trending downwards with main household income in the area between $78K to $130K. The biggest driver around the area will be the upcoming University of Sunshine Coast at Petrie in 2020 which expect to bring an additional 10000 students into the area and around 2500 new jobs in the next 5 years. We believe the government funded project will readily transform the area over the next 10 years so still presents opportunities to enter the market right now.
Contact us today if you need guidance to find similar investment properties!