Ben Everingham’s 4th investment property is a 4-bedroom, 3-bathroom dual occupancy house that we built in Kallangur, Queensland.
- Land size – 300 sqm
- Dual occupancy (in this case a double story house that can be rented as two properties)
- 3 bedroom, 2 bath (down and upstairs)
- 1 bedroom, 1 bath (downstairs)
- 25km to Brisbane CBD
- Major infrastructure projects due to commence in next 3 years
- We have achieved a capital gain of 11% since commencing this project in early 2014
- We estimate we will achieve an additional capital gain of 8% in the 2014 – 2015 financial year
- We are currently achieving a rental yield of 7.39% in 2014
- 2014 – $560 a week
- 2014 – $465,000
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Why did we purchase this property?
- Immediate capital gains ($60,000+ on the completion of construction)
- Strong rental yield
- Strong demand for rental properties in this area
- Strong investment into local infrastructure (shopping centers and transport)
- Distance to Brisbane CBD (<30km)
- Passive income source at current interest rate
What did we learn from purchasing this property?
- Dual occupancy properties will always drive a higher rental yield, they may also sell for a premium
- Its possible to build new properties and make immediate capital gains
- Buy in areas with strong rental demand
- Think out side the square
- Build something slightly nicer than any similar new housing stock in the area
- Understand your market. In Kallangur and the wider Brisbane market there is an under supply of quality, affordable new housing.
- Build for your future tenants, not for yourself
- Build relationships with land developers, you may be surprised what they’ll do for you. We got a $20,000 saving on this block at the time of purchase
- Find a mortgage broker you can trust, you’ll be surprised how much money you can borrow with the right broker on your side
- Build a team of advisers (accountant, solicitor, mortgage broker, builder and quantity surveyor)
Want to learn more about Ben’s property portfolio?