QLD Finally purchased first property using BA

Hi All,

A while ago, I posted a thread asking forum members their views on a BA suggested location for my first property purchase in QLD.

My previous thread Should I purchase in Brisbane Chermside West based on my agents advice [QLD]

The Chermside property suggested earlier didn't go through.
But finally I've purchased my very first property (IP) last month in Stafford Heights with help from the same BA. This is an interstate purchase as I am based in VIC.

The property I purchased needed some repairs, internal painting, carpets on all bedrooms, some electricity work to get compliance certificate etc. BA said it will cost around 15-18K for the reno to which I agreed as delaying in the current market did not appear to be wise.

As this is my first purchase I'm not sure if I have taken a right decision and have not overpaid. Looking for your inputs on what you think for the below property:

https://www.realestate.com.au/sold/property-house-qld-stafford+heights-136589338
Purchase price: $761K
Renovations/repairs: $18K
BA fees: 19K

I have started tracking Stafford Heights now but not an expert to know what is the right value of property I purchased.

 

The type of property for long term seems right. Corner. Value add via reno. It seems the questions are only purchase price and BA cost.

Over the long haul u should be OK.

 

1st-ly congrats on your 1st IP purchase.
2ndly, the BA fees hummm I am sure he/she justified and provided you the reasons on why buy in this particular suburb and what is the value add using him/her?

I am familier with the concept where some property companies conduct research based on your budget and advise/assist in purchasing but you do mot pay them and seller pays them...I am still yet to find out the concept BA vs them !

PS- how much is potential weekly rent and PM fees?

 

Thanks boganfromlogan, is the suburb also ok?

I'm not from Brisbane so all my research are online only and it looked good suburb but I really don't know much. Do u know if this is the good suburb to start investment journey.

 

Thanks Never giveup, rental appraisal before renovations were $470 pw. Property manager will reassess rental after renovations but he said it will be around $500+ . Also he said current market is very competetive so property should rent quickly.

 

Fundamentals are fine. Suburb. Block. House ....... plus reno.

In a normal world this would be solid based on the fact u get some equity via Ur small reno.

Issues are cost of purchase and the price. Cos the market is weirdly hot it is hard to gauge. Everybody is overpaying. In 12 months u might feel good about it.

 

Congratulations on your first purchase. Enjoy the ride while you can.

 

Nerves are understandable, but take a deep breath and focus on the long term.

 

I think this was a good buy. As someone else said the price is hard to pick as everything is crazy but it’s a good suburb, good location, nice block and decent house with a ability to value add through renovation. Should do well! Congrats

 

Thanks @Firefly99 . Plan is to hold for long term, hoping it will do well in 5-7 years giving me equity to purchase next property.

 

Yup, looks good to me. Corner block, land value itself should be at least 600k already.

 

Good suburb relax

 

What was the asking price for this property? I have been curious to know whether the situation in Brisbane is similar to that in Sydney in that the price guide is really a “guide” only and people tend to offer substantially above asking price.

 

Congratulations. Looks like a good purchase for long term CG. The only question I have is rental yield.
Purchase price: $761K
Renovations/repairs: $18K
BA fees: 19K
Stamp duty and legals: $28.6k ?
Total: $826,000
Weekly Rent: $550 (?) after the renovations.
Gross yield - 3.46%

 

Thanks @Mulianto . I checked land values in Stafford Heights using realestate.com.au and can see only few lands sold recently like the below one which got sold for 550K for 466sqm in Kitchener road. Think your are right with land value to be at least 600K for the property I purchased.

In QLD gov land valuations site I see last land valuation done in 2019 at 465k but guess it is not reflecting recent boom.

https://www.realestate.com.au/sold/property-residential+land-qld-stafford+heights-202745234

 

Hi Kevbo, property was not advertised with any price guide which I think is standard in QLD.

My BA did initial assessment and said it will be in mid to high 700's and gave me a report + call to discuss what he thinks it will go for and what we should offer. There was open house inspection which he said was attended by 18-19 groups (if I remember correctly). My offer was accepted later.

 

@My House QLD : yes above numbers are correct. weekly rental will be around $500-$540 but waiting for reassessment after renovations.

 

Congrats! thats a good price with Stafford Heights doing very well.
Yield is good remember it is a growing market

 

Well done. Seems a little bit more on the expensive side for the BA but I wouldn't worry, when you look back in a few years you'll be laughing.

 

Sounds like there's also some buyers remorse/guilt here

After every purchase, I have felt immediate regret and fear and then spend the next few weeks wondering if I've made the worst mistake of my life. Including continually checking sales prices, etc. But these feelings eventually shift.

Just give it some time and take it easy on yourself. This is just the beginning of your journey