Ben Everingham – Birtinya QLD – 2014
Ben Everingham’s 5th investment property is a 4-bedroom, 2-bathroom house that we built in Birtinya Island, Queensland.
- Land size – 350 sqm
- 4 bedrooms
- 2 bathrooms
- 1km to new private hospital
- 1km to largest public teaching hospital in the Southern Hemisphere
- 2km to local schools
- 1.5 km to ocean
- We have achieved a capital gain of 12% since commencing this project in early 2014
- We estimate we will achieve an additional capital gain of 4% in the 2014 – 2015 financial year
- We are currently living in this property as our principle place of residence
Rental return (estimate – based on current market values)
- 2014 – $550 a week
- 2014 – $525,000
Why did we purchase this property?
- To provide a beautiful new home for my family
- Immediate capital gains ($68,000+ on the completion of construction)
- Strong demand for new housing in this area
- Strong demand for rental properties in this area
- Strong investment into local infrastructure (shopping centers and transport)
What did we learn from purchasing this property?
- Its possible to build new properties and make immediate capital gains
- Buy in areas with strong demand
- Buy in areas with strong infrastructure investment
- Understand your market
- Just because an area has not been labeled the next hot spot does not mean there isn’t the opportunity to manufacture growth
- Capital gains can be made in a flat market
- Build for your future tenants, not for yourself
- Build relationships with land developers, you may be surprised what they’ll do for you
- 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)
- Don’t let any body tell you you cant make it happen. If the banks say no, ask why, if your mortgage broker says no, find another one, if you need to make more money, find a way to make more money. This property has taught me there is always a way to get a deal over the line.
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