QLD Brisbane Suburbs with Double Digit Growth

@Mat L
Fantastic stuff mate. I got two splitters in the works, 1 middle ring with views and one inner ring with city views. Internal sqm similar to yours. I have a good relationship with the builder who will do both plus I give him work from other developers so I will get a good price for the build.

How long did it take for your splitter build to be completed?

Anyway good job on yours. Would love to have a look if you don't mind sending a link. You can send me a pm if you want to keep it private.

Cheers

 

Where are you doing this?

 

Geelong....the land itself went up 100-130k since I bought dem.

Looking to do the same in Qld when it is prime....but you will never get these margins in older developments.

 

Do you need to pay GST?

 

Typically, this would be subject to GST. But in this case, it was not an enterprise:
1. Not registered for GST
2. Held in personal name
3. Lived in properties as PPoR and motive was not profit but to complete a home to live in.

With the margin scheme, GST liability would have added about $20k to costs on each property.

 

The subdivision has been approved awhile ago, just wrapping some stuff up in Sydney before I start the build. Yes its my full time gig plus some JVs and renos. Agree, usually it always takes longer than expected which can be frustrating at times.

 

Hats off to you guys who have the kahunas to spend $2m and try n sell high end spec homes.

Don’t u worry if the market shifts even 10% and you are either stuck on a v low profit and don’t want to rent out those homes. Plus a lot of fussy doctors, dentists, professionals buying those kind of homes, high advertising/staging/sales comm fees

I like sash approach. Low end or basic homes. Better if u get the land cheap and get the DA or do the subdivision yourself. can rent and hold and your yield is pretty good as it is calculated on wholesale build price, not the retail end valuation.

 

One of the ways to mitigate risk is not to build this type of stock in volume. A couple here and there will easily get absorbed by the market especially if you're building what the demographic wants. It's not an issue . Also the demographic which can afford these are less sensitive to market changes and are cashed up and wanting what they want.

These can be rented after built and will be positive cf if you didn't want to sell.

 

Here is my philosophy:

If the market shifts, it shifts for low end and high end. But I'd rather be 'stuck' with a new family home 5km from city, good schools etc. These properties are preferred by high income families and are much easier to sell in a down market.

Build costs are similar, but sale price is dictated by location/suburb.

Cheaper areas suffer because it is easy to overcapitalise. They are also cheap for a reason and it can be difficult to get out in a down market.

If you and Sash can find them, get on board, and honestly send them my way so I can too.

 

Average home nothing special on a 655sqm lot sold $1,250,000.

Some markets retracting in Syd and Melb but in Brisbane they are moving.

6 Lamette Street, Holland Park, Qld 4121 - Property Details

 

This will be a very interesting sale. 7 year old home, i'm guessing not freestanding due to the "7A". asking for over 1mil, no pool, 405sqm.

One to watch. I'd be amazed if it hits the 1.2m mark. But the higher the better.

72a Rita Street Holland Park Qld 4121 - House for Sale #129059878 - realestate.com.au

 

Another 2 interesting sales to watch.

76 High Street Mount Gravatt Qld 4122 - House for Sale #128899850 - realestate.com.au


54 Hawkwood Street Mount Gravatt East Qld 4122 - House for Sale #128820554 - realestate.com.au

 

And another 2 in Seven Hills:

163 Oateson Skyline Drive Seven Hills Qld 4170 - House for Sale #128987118 - realestate.com.au
161 Oateson Skyline Drive Seven Hills Qld 4170 - House for Sale #128987094 - realestate.com.au

 

$1.2-1.3 is my guess

 

I'd be super happy if they get close to 1.3m. I am doing a splitter build start early next year with city views in the area, better spec than those. So hoping they do well.

 

Busy-ish road, but nice area, seven hills is a good primary school. And the houses look good, probably perfect to get top profit for that location (wait did they have a pool? 1.2+ needs a pool).

Which street is your splitter?

 

Looks like 1 has a pool and 1 doesn't. First thing I noticed, no pool is a mistake.,

I'll PM you.

 

Many forget that BRI population is forecast to around 4M or > by 2046, so imagine having nice corner or large blocks say within 10Kms from CBD in well located areas...
Also I just extracted some information from an article which illustrates currently a rise in $1M > prices in BRI:

 

Great list. Just not sure of Rocklea though.