QLD Who said you can't find 7.5% yield in Logan anymore

Hi PCers,
Just wanted to share my latest purchase, as it's all done and dusted with settlement and lease:
Suburb: Crestmead
Purchase price: $315K
Renovation cost: $17K
Rent: $480/week
Highset 3/2/2
Resulting in 7.5% gross yield

I basically aimed at rental yield for this purchase to help hold the next purchase with 1000+ sqm in VIC, which I will be sharing once that's done and dusted at the end of this month. Hopefully, the growth will come as a bonus.

A big shoutout and thanks to @Michael_X for keep on telling me the deals are still out there in Logan, while I sort of gave up finding one in Logan in just two weeks after I came back to the market.

People on this forum are so helpful, as I closely follow @RetireRich101 , @Simon L for their insightful posts and @Taku Ekanayake for my inspiration.

 

Wow that's an amazing buy! Congrats! How did you find that deal?

 

Just by closely watching the market everyday on realestate.com.au. I did miss out on a couple of other nice deals though.

 

Is it built-in downstairs also how do you know the rent is $480 per week that seems like an insane ran for Crestmead you could rent a house in Chermside for that.

Great deal anyway

 

That renovation cost of $17K was spent to build living areas downstairs to fit large families. Large families need large homes. The rooms are good to be used as teenager's retreat or multi-purpose room. Tenants are moving into the property next week.

 

How many rooms did you get out of the downstairs?

 

2 really large rooms. I should have planned a bit more and made 3 average-sized rooms. This was my first largest reno, so I made newbie mistake.

 

Are you sure the downstairs is legal height.
A lot of Brisbane homes tend not to be legal height downstairs (2.4m), so legally downstairs can only he used as "utility" rooms, not as living areas. Catches a lot of interstate buyers out, where 2 extra bedrooms have been added downstair turning a 3br into a 5br, but legally its only 3br. Insurance would be void if people live downstairs. Hence business to raise Brisbane houses to legal height.

 

It's not legal height. That's why they are supposed to be used as teenager's retreat or utility rooms as advertised. There are no built-in robes in those rooms. So they shouldn't be called/advertised as bedrooms.

 

I've been wondering if this sort of play is a effective option to gain yields. $480 is an impressive score in Crestmead, which indicates to me that this should work in other suburbs too.

One thing to consider is perhaps the percentage of Islanders/Kiwi's etc in an area. They often tend to have large families or live with extended family. This would improve chances of occupancy?

 

well done @cherubym it would be even harder to find those yields chasing the "bread and butter" IP's that investors chase. out side the box play has worked very well with local insights. most interstate investors are liley to miss this
Even though it's not "legal height" tenants can use it as they like and a good PM will find those tenants and get good $
Is there a bathroom downstairs?

 

Yes, there is one downstairs.

 

perfect

will you go down the kicthen route? or leave as is? im happy with bathroom only in mine which isi similar

 

There already is one small kitchenette.

 

Winner! well done
will you split it or just go for the larger families?

 

Nicely done cherubym.

I could only achieve less than 6% with my recent purchase. but town planner advise I could build one detached dual occ plus another detached 3 bed dwelling while keeping the existing house..all on it's own title..

 

a new estate in the backyard.... "Richville"

 

Congratulations, sounds like an awesome deal. I can't believe that sort of rent is achievable. You have a property which must appeal to a niche market.

 

Thanks, @RetireRich101

Which suburb? It must be more than 1000sqm to be able to have them on their own title.

 

it's a trade secret.. i have to kill you if i told you