Quality Investment Homes
The quality investment homes and the building activity at North Harbour Estate impressed a radio interview listener on a recent visit to Brisbane and the Estate. They now appreciate what I say about demand exceeding supply.
They ask what is the best deal at North Harbour and when the build could start.
I have a fabulous 4-bed executive home for under $500,000 and we could start building in October this year.
We have to wait until October because demand so exceeds supply that road works etc. are not yet completed. It will also not be out of the titles office until late September this year.
Some think that it is unbelievable that we can offer quality investment homes in Brisbane for under $500,000. This is what we call turnkey – there is nothing extra to spend. Just turn the key and start living. Below are the details of inclusions.
Key features:
- 4 bedrooms, 2 car garage, Alfresco, 2 bathrooms, 2 separate living areas
- 2400 Ceiling height
- Fully Rendered
- COLORBOND roof
- Fully fenced
- Fully turfed with Palmetto turf & Watering package
- Full Termite protection to slab, penetrations, Frame & Trusses
- Driveway
- Letterbox
- Clothesline
- Garden Shed
- Stainless Steel look Ceiling fans
- Mirror sliders to all bedroom robes
- L.E.D Lighting to all internal down lights
- Melamine shelving to bedroom robes (excluding linen)
- 2 x Fujitsu Split System A/C’s
- Full floor coverings (tiles and carpet)
- Inclusion- Dishwasher, 900mm Freestanding Oven/Gas cooktop, glass canopy range hood
- Cold water tap to fridge
- Caesarstone bench tops throughout
- Fully insulated to roof
- Wall sarking to all walls
- W41 wind rating
- Roller Blinds
The cost to buy this quality investment home
Let’s take someone in the $80-180k tax bracket using 10% deposit. The full purchase price is $495,650. They would need a 10% deposit but allow $67,000 for lenders mortgage insurance, stamp duty and Legal’s etc. and a further $6,500 for interest whilst it is being built.
If we allow for 4.95% interest, on a Principal and Interest Loan and a rent of $460 per week, the tax refund would be $143 per week and the investor contributes only $120 per week.
For those in the $180k plus tax bracket
Rent $460 per week, tax refund $180 per week and the investor only $83 per week.
For those borrowing 100% plus Stamp Duty, Legal’s etc.
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In these figures, I have used a variable interest rate of 4.95% and that rate constantly changes. The best rate I have at the moment is 3.88% Principal and Interest locked for 2 years.
The client in $180k plus tax bracket borrowing 100% Principle and Interest was contributing $136 per week at 4.95% interest. At 3.88% interest, they would only contribute $119 per week.
To summarise, this client buys a half a million-dollar quality investment home, only outlays are an initial $5,000 and then only contributes $119 per week to pay off the loan, rates insurance etc.
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Why buy the land separately?
A separate land and build contract saves about $10,000 in Stamp Duty.
Need help to start your residential property investment portfolio the right way? Schedule a free, no-obligation consultation and let’s discuss your options.
Steve Taylor
If you prefer to listen here is my radio interview on Emerald 4HI:
At the helm of Steve Taylor & Partners, Steve has been delivering expert advice and product knowledge to clients for over 30 years. We provide individuals, couples and families with the right strategies to create wealth and change their lives with solid bricks and mortar.
DISCLAIMER
Steve Taylor & Partners blog is opinion and not advice. Readers should seek their own professional advice on the above subject. The figures stated in this article were accurate at the time of publication. For up to date figures, please contact our office.
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