QLD Would you pay $700k for this?

Discussion in 'Property Analysis' started by elbowz17, 26th Sep, 2019.

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  1. elbowz17

    elbowz17 Member

    Joined:
    7th Jun, 2019
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    Location:
    Acacia Gardens, NSW
    Hi all,

    Looking at dong another deal in Toowoomba.

    Link the property is here: 106 Taylor Street, Newtown, Qld 4350

    In summary the property is 2 duplexes (4 units all up) located in Newtown just outside of Toowoomba CBD.

    1400+sqm of land with $945 a week in rent and approx. $13.5k in annual expenses including council & water rates, agent fees, insurances, budget for repairs (if any), etc.

    No strata to pay and there's enough land to build another duplex in the rear of the block later on.

    It looks cheap when compared to what I can buy in Sydney, but for the area and the property, does this price make sense? Is it too expensive?

    I look at its location to the CBD, the incoming rent, the potential to add, etc and see heaps of value in the $700k asking price, but I just need some of your thoughts about the price, the area of Newtown, and whether there's any negatives I need to look out for.

    Cheers
    Elbowz
     
  2. thatbum

    thatbum Well-Known Member

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    Perth, WA
    If you compared everything to what you can buy in sydney, then pretty much the rest of australia is all going to be good value.

    You should be rigorously comparing it to similar properties in nearby locations, because that's what determines things like market value and growth potential at the end of the day.
     
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  3. wylie

    wylie Moderator Staff Member

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    Just be aware anyone reading this could jump in and buy this...
     
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  4. elbowz17

    elbowz17 Member

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    7th Jun, 2019
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    Location:
    Acacia Gardens, NSW
    I've looked at similar properties in the area, and while I can buy a similar sized property (land) with a house on it as well as the same zoning etc, it'll cost me a lot more to put another 3 income streams on it when I compare it to the asking price.

    There is another lot of 4 (1 br) units at neaby at Kearneys Spring listed for $665k, but they're on a strata plan and I can only ever have 4 income streams. So that alone makes me think this is a bargain being so close to the CBD.
     
  5. elbowz17

    elbowz17 Member

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    Thanks Wylie. Will note that going forward. It's been listed for a quite a few months, so any bargain hunters would have come across it by now. Hahahaha.
     
  6. Jamesaurus

    Jamesaurus Well-Known Member

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    Location:
    Canberra
    Im going to make the comment that there is a bit of supply of blocks of unit in the region:
    Blocks of units for Sale in Newtown, QLD 4350 - realestate.com.au

    From my local friends he tells me that part of Newtown not too bad but
    towards the creek in Rockville the demographics get a bit rougher...

    THW seem to say decent prices available at this time in the cycle at least..
     

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  7. Jamesaurus

    Jamesaurus Well-Known Member

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    So overall, cashflow pretty good but may compromise capital growth due to socioeconomic/demographic factors; and when thinking of them you want to think about the tenants taking care of your property and the neighbours/townies
     
  8. Player

    Player Well-Known Member

    Joined:
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    @elbowz17 I remember seeing this on market a couple of years ago, before they prettied it up a bit. It has been listed for ages with continuous price drops. Even on current listing and reported rent gross return is circa 7%. Don't get too excited though!

    Outgoings will be more than any capital city. Toowoomba council rates are expensive as with most regional areas. There are also a lot of units as @Jamesaurus has posted. Do your due diligence. I like Toowoomba, but numbers have to stack up. This one has gone stale due to an unrealistic vendor and possibly structural issues.

    From rpdata.......Sorry for the formatting. Bold numbers are days on market

    09 May 2019 24 Jul 2019 77 Mhifs
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    23 Dec 2017 24 May 2019 518 Realprivate.Com.Au - Hawthorn
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    23 Dec 2017 28 Feb 2019 433
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    05 Oct 2018 16 Nov 2018 43 First National Copas Newnham Property Service
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    17 Aug 2018 08 Nov 2018 84 First National Copas Newnham
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    12 Oct 2018 08 Nov 2018 28 First National Real Estate Copas Newnham Property Services
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    16 Aug 2018 19 Sep 2018 35 Copas Newnham First National Real Estate
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    05 Oct 2017 27 Dec 2017 84 Ray White - Toowoomba
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    23 Sep 2017 27 Nov 2017 66 Ray White Toowoomba
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    25 Sep 2016 05 May 2017 223 Realprivate.Com.Au - Hawthorn
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    20 Sep 2016 21 Sep 2016 2 Realprivate.Com.Au
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    13 Apr 2016 26 Aug 2016 136 Prd Nationwide Toowoomba
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    16 Apr 2016 14 May 2016 29 Prd Nationwide
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    Last edited: 5th Oct, 2019