Hi,
Was wondering what people thought about a deal that has come my way recently.
a little town 30 minutes away from a major city in QLD, 2 houses next to eachother, owned by the same person. Both are for sale and she is looking to get rid of the properties asap. one is a 5 bedder, the other a 3 bedder. From what I have seen in the pictures and what the RE has said, there is a bit of work to be done on the properties before they are tenant worthy. RE thinks about 3k between them.
90k for the both of them with rental estimates of 115(3 bed) & 120(5 bed) each.
Does anyone think I would be a fool to pass on this? Is the fact the propertioes are next to eachother a real bonus in anyones ideas? possibly because of further development etc…
Any responses would be greatly apreciated..
Waz11
Waz11.
Can you get out and have a look at them? I would never trust an agents figures when it comes to repair work.Are there tenants waiting to occupy once you do the work?
I always ask myself.
1.Why is it cheap?
2.Can I find tenants to fill these properties?
3.How much do I have to spend to get them tenantable?(Is there such a word?)
4.What are other properties fetching in the area.
5.Why are they selling?If something is really cheap there is usually a reason.But you need to get out there and have a look.
Russ.Hi Waz,
So many things to consder and so little information given.
Rezoning, council plans for the area, flood zones, towns prospects long medium and short term, schools, major roads, quality of construction, pest inspections, are the pictures the property, are the photo angles deliberately chosen to hide the abbatoir next door and what’s over the road etc.
Ultimately asking such a broad question on an internet forum is of little use to you – the best defence you have is your own research and investigation. i always come back to the fact that it is your money so it has to be your decision.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
I appreciate the advice. The main reason I was asking the question is to see whether most people would see 2 houses next to eachother at a cheap price was possibly a good idea because of possible future redevelopment etc. I appreciate the advice about the need to investigate further into the areas of zoning etc. That is definetly something i will have to look into.
There aren’t tenantes waiting to get in, however it seems that the area has a pretty high need for people renting so i dont think it would take too long to fill the places.
Thanks guys,
Waz11
sounds good waz specially if in Q’land. Bear in mind if the RE agent is admitting 3k or repairs it could be 30, if you know what i mean. Why not put a contract on them subject to satisfactory building and pest, and pay someone a couple of hundred bucks to give you a full report and an idea of cost.
$120 for a 5 bedroom house seems…incredibly cheap. Are you sure it’s not the shit-hole from hell?
be careful! Do more research.
but yeah I think two houses next to eachother is brilliant. What’s the total land size? In ten years you can rip down the houses and build units or whatever.
HI, I agree with minimogul as to this one. My thoughts are if its near any new growth, planned upgrades of roads etc, new schools, new businesses etc its worth a shot. Returns are good based on the figures so confirm with at least 2 other real estates that the local market needs rental places.
DD[buz2]
Originally posted by waz11:Hi,
a little town 30 minutes away from a major city in QLD,Waz11
Hi Waz,
I wouldn’t get too excited about the possibility of building units – 30 minutes away (as timed by the REA) could be up around 50kms in between houses and regional city.
I reckon you could fit lots of land in 50 kms.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
Thanks for the responses guys.
I actually made a mistake though, its not 30 minutes away its 30kms.
i will check with other RE about the rental possibilities for the area etc.
The total land size would be about 2000m2, ie 1000 per property.
Who would I contact about zoning etc?
Thanks,
Waz11
the local council, dont forget flood lines as I faced this recently. A property of mine in Ipswich is 1/4 acre narrow block with 2 street access. Initial response was ok to build second house, further search showed 100 year flood line didnt allow anything more than a big shed.
Good rent though.
DD[buz2]
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