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Newbie sydney investor requiring some training

Discussion in 'Introductions' started by michaelk, 26th Mar, 2016.

  1. michaelk

    michaelk New Member

    7th Feb, 2016

    Hi everybody,

    Just like to thank everyone for their posts and support in this forum , which has helped me in the last few months to get confident in diving into property investing.

    A little bit about myself, i am 27 recently married working full-time + weekends , own a PPOR in sydney with a big mortgage wanting to pay it off in the next 5 years , which is just not possible with tight saving habits.

    I have decided to extend it to 8 years and would want to use my next investment purchases to be minimally negative to positive geared to help with cashflow or perhaps balance a positive cash flow property with a negative cashflow but with higher cg potential property with the view of selling to further pay down the PPOR mortgage.

    My initial intentions as of so far is investing in logan and perhaps in the further northern brisbane areas such as Braken ridge and Zilmere in which i've been reading to have good potential for CG being close to chermside and the CBD

    With that in mind i want to train myself into two things
    -Become a better valuer, a better judge of property valuation , making sure i don't overpay for properties
    - better understanding of CG potential .

    For now i would like the community to help me be better at judging the value of property

    As thus i have attached a link to a property and how i would break down the investor (not as PPOR) value of it and would like further input on how other people break down whether it is overprice, set correctly, and whether its a bargain . Just a disclaimer, i have no intentions on purchasing this property so i am not trying to get other people to do the hardwork for me. i just want to see how other peoples perspectives vary and whether i can get better insight into that

    3 billiard st braken ridge

    3 Billiard Street Bracken Ridge Qld 4017 - House for Sale #122121790 -
    SQM Research - Weekly Asking Property Prices

    1. first i try to get an insight on the average price of the area

    i can see on , the average median for 3 bed is 425k in bracken ridge
    based on sqm research, we can see an average asking price of 469.8k for a 3bedder

    so this is priced above average, which is not a concern just something i have to consider why.

    2. Then i try to work out the previous value of that property using online estimate reports such as on the house Your Home for Property Research

    This confirms it was sold at 465k prior in 2010, and the zoning is residential and 564sqm which doesn't make this property stand out.

    3. work out the location within braken ridge and anything affecting it
    -flood maps
    Understand your flood risk | Brisbane City Council
    Its just off the flood zone which gives me ease that it be less likely to be affected, however i feel that surrounding ones in flood zone will pull down the average price of that street in particular that suburb.

    -There is people who believe in Fengshui ,however i am not, regardless this property is not in facing on a T junction as i will not worry about that aspect.

    -Looking at the local school area, bracken ridge catholic primary school it is ranked slightly above average, which i feel is neither good nor bad, unless it was in the top 50, i wouldn't rate it.
    St Joseph's Catholic Primary School, Bracken Ridge School Profile, Ranking, Reviews

    -The closeness of the bracken ridge reserve is what i feel as a positive to allow people to go have picnics and enjoy walks, once again this is subjective, its just how my mind going through the steps at the moment.

    - even though there isn't a train station there is a bus stop on barbour rd, which takes you to chermside and brisbane. i feel that is good enough although not ideal.

    4. Looking at the property
    -3 bedder , 2 toilets, double garage lock up, double storey which is a good house setup.

    -Renovated with the driveway showing no obvious cracks , Brick build i believe based on photos

    -There is slope on the road which could be some side water catching but being that the driveway is lower and i believe in the front should have the water coming away from the property, which may balance the issues with water collecting in property.
    -looking on google earth i can only see 1 tree present in the property and the lawn which i feel doesn’t require much maintenance of removing tree branches/ collective leaves . The lawn is there but i feel that it is a good quality in a house to have a bit of lawn for kids to play on. It may attract the younger family crowd, though that is an assumption.

    - Externally the colours are neutral and should not deter anyone,
    Internally, refined, good kitchen with stainless steel appliances, Can’t comment on bedroom sizes but 2 built ins is a plus. No aircons but fans instead, which is not ideal but tenants can survive. Polished wood floor, which works well except for the kitchen that may better be suited for tiling though so long as it is not laminate, not a problem. Bathroom looks modern, with tiling done quite high ventilation provide via a sliding window.
    -downstairs there is a rumpus and study room which I am not sure whether it can be converted to a 4th bedroom, If so that is a plus. An extra bathroom helps but not sure about the position of it in respect to the rest of the rooms and whether that is there for the purposes of dual living or not.
    - all in all a refined, renovated property which is a standout .

    5. Comparables
    14 Billiard Street Bracken Ridge QLD 4017
    - larger block
    -similar internally, not as nice externally
    -offered for 535k and above, it is under offer so I presume someone made a deal close to that figure. I would say its comparable and a balance between whether someone wants a slightly larger block or a slightly more refined house

    7 Snooker Street Bracken Ridge Qld 4017
    - comparable block size
    -similar externally though I prefer 3 billiard more.
    -internally not as refined, but still modern, Tiling not done as much in the bathroom,
    -slope not as bad from the side but from the front, water collects in.
    -4 bedroom, bathrooms in good positions with respect to the bedrooms, separate toilet to the bathroom a plus. Downstairs similar with a rumpus plus study maybe somebody can give insight on why these properties are done that way. Is it dual living?
    -all in all i say it’s similar maybe for the fact there is an extra bedroom, superior.
    - but the house does face a T-junction which some may argue not as favourable in the fengshui

    I could list more comparables but I think I have went long enough

    All in all I believe the price maybe a little overpriced , based on snooker street.
    a 490k figure will do it for me.

    What is everyone’s opinions?
    Michael_X likes this.
  2. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

    19th Jun, 2015
    A couple of things:
    1. Google earth is sometimes a few years out of date.
    2. You might not care about feng shui but the buyer you ultimately want to sell to may.

    Inspect some properties IRL and keep learning. You're off to a good start.
    Whitecat likes this.
  3. jchan86

    jchan86 Well-Known Member

    18th Jun, 2015
    Brisbane and Remote WA
    Hi Michael,

    In response to your above - a quick reply however work calls. A thorough, extensive question set so will quickly mow through what I can:

    1) Congratulations on your success to date and on your wedding! Great to hear about another young go-getter interested in furthering knowledge about the property game

    2) It's worthwhile to conduct similar due diligence of adjacent suburbs so you can compare suburb to suburb and look at the differences between pricing (and what has potential for further capital gains)

    3) I'd recommend looking at and looking at the sold properties and sort by date and just continue to scroll back to review how price/marketplace has changed over time - this is useful when comparing inferior; comparable; and superior properties over time. These are actual sold prices and not listing/asking prices (i.e., what the market paid). As you'll view in Bracken Ridge, especially over the last 18-months, there is what appears to be a good sustainable growth trend when you compare to the ceiling of nearby suburbs typically seen as superior (e.g., Carseldine, Aspley, Sandgate)

    4) Re: flooding, google news "Bracken Ridge floods" and see what comes up. I was house sitting in Bracken Ridge in 2011 and it was largely untouched. I'd recommend if possible, physically viewing Bracken Ridge. It is on a "ridge" so to speak, so water will flow away. Those that live nearby or have viewed the suburb will certainly understand what I mean. If you can speak to the neighbours, even better

    5) Suburb facilities - it has a couple of schools in the suburb - St. Joseph's primary school has a great reputation especially in comparison to nearby suburbs so I wouldn't dismiss this completely especially for this geographic catchment area; other helpful facilities includes 2 shopping centres (anchored by a Coles and Woolworths respectively - excludes the small set of shops near Gawain Rd); a refurbished library; a new Aquatic Centre (Emily Seebhom Aquatic Centre); 4 petrol stations; good sporting facilities and parks; good access to the main roads; the 330/331 (express) bus route direct to Bracken Ridge - great for quick access to Chermside; Royal Brisbane Woman's Hospital; CBD; and only a 5-10min drive away from three train stations (Bald Hills; Carseldine; Zillmere train stations); and home to several child care centres. It also has a Tafe there too which does tend to attract a bit of a tradie crowd too which I think is fantastic for the suburb (in conjunction with nearby Brendale/Carseldine) as it appears tradies who've done their time and gone out on their own for a few years, have actually moved back into the area and are exploring good opportunities nearby re: renovation of the HC type homes as initial Projects. Also easy access to the highways; Gympie Rd; Sandgate Rd respectively and hence to the airport.

    Bracken Ridge is not really a place for units; it's typically seen as family friendly and attracts the owner-occupier market... this market is the demographic which typically pushes prices up as they are often willing to spend more. That's it for now, will get back to this post further. Definitely worthwhile doing your suburb due diligence!