“Dodgy” old apartment investments but with attractive yields under $500,000 available close to Brisbane CBD: HTW
There are attractive investment options for Brisbane property investors with a $500,000 budget including “dodgy” but well-tenanted apartments close to the CBD, say valuers Herron Todd White.
“Second-hand units have a lot going for them,” says the valuation firm as part of its July market report on investment options below the half million dollar mark.
“Large floor areas, renovation potential and well established locations with good amenities are common for these properties.
“If you’re OK with staying at the cheaper end of things, you can most certainly pick up something dodgy within five kilometres of the CBD that will never be without a resident.
“It might be pre-1975, but the fundamentals will be good.
“Try any near city, walkable suburb that has a café strip and a lot of appeal.
“It’s even better if the tenant base is obvious – universities, hospitals and nearby places of employment.
"Shop around, be ready to jump and you will be sitting pretty.”
For investors looking for something a bit more modern, HTW says the “1980s have been back in fashion for some time now”.
“A two-bedroom, one-bathroom unit circa the era of bubble skirts and shoulder pads will be a goer.
“Try areas such as Stafford, Nundah and Kedron.
An example of an older style apartment well below $500,000 is this two-bedroom unit on Little Jenner Street in Nundah, about 8 kilometres north east of the CBD, asking $329,000 and being sold by Renee Rennie of Go Gecko - Inner North.
"This renovated corner location North facing apartment on Little Jenner Street is a leisurely stroll to the cafes, restaurants and all that Nundah Village has to offer," says the listing.
Herron Todd White highlights the importance of the new Eastern Busway to Coorparoo of which two stages have been completed, to the overall appeal of these markets.
“We do bang on about the busway here but it is further evidence of how these locations are being very well serviced," says HTW.
“If you’re looking south, then Greenslopes or Coorparoo should have something.
“For $30,000 to $40,000, you can turn drab into fab and have the tenants begging to be let in.
“The sale price for one of these is anywhere from $300,000 to $400,000. The good thing is this – rental yield is now around 5% to 5.5% gross.
“The second best thing is that these returns feel sustainable. We wouldn’t expect to see much fall below 4.5% because all of these locations provide plenty of infrastructural support."