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Deals and Don’ts – Redcliffe, Greenwood, Lynwood

Tuesday, 6th Feb 2018

Here we take a look at just some of the different properties on the market and explain why they’re either deals (that represent a good investment) or don’ts (that should be carefully avoided by investors).

Deals

Redcliffe

Purchase price: $530,000
Purchase date: November 2017
Block size: 885sqm corner block
Specification: 3 bedroom, 2 bathroom, double tandem carport, built in 1965, zoned R20 (proposed medium density rezoning via a City of Belmont structure plan).

Deal: This green title home represents a good deal due to the fully renovated internal fit out, coupled with a proposed increase in residential zoning which will ultimately increase development subject to approvals. Approximately 77% of the value is within the land however the house is in a good rentable condition. The proximity to the airport, CBD and the proposed Belmont Train Station will fuel demand in the years ahead.

Greenwood
Purchase price: $580,000
Purchase date: January 2018
Block size: 774sqm
Specification: 4 bedroom, 1 bathroom, single lock up garage, built in 1981, zoned R20/60

Deal: This property represents a deal due to its good suburb positioning, well presented internal fitout and future development prospects. The property is a well-placed corner block opposite a park and in walking distance to the Greenwood Train Station. Its R20/60 zoning means the land can be developed into multiple lots in the future.

Lynwood
Purchase price: $481,300
Purchase date: January 2018
Block size: 900sqm
Specification: 3 bedroom 1 bathroom house and accompanying 1 bedroom 1 bathroom ancillary dwelling, built in 1967, zoned R20

Deal: The dual income property will achieve a strong rental yield from the two dwellings as well as offering development potential to the R20 zoning subject to council approval. The house being a corner property is beneficial for future development, as well as its suburb positioning opposite a park.

Don’ts

Balga
For sale price: From $365,000
Lot size: 282sqm
Specification: 3 bedroom, 2 bathroom, double garage, built in 2010, villa in a group of 3

Don’t: This property doesn’t represent a good investment because of the amount of stock within the suburb. The blanket medium zoning of Balga has made development of villas very possible and has created a glut of that property type. The options buyers have with which villa they will choose will make sellers be more competitive through lowering prices and hindering capital growth.