In Part 2 of our Brisbane Buyers Agent Case Study with Luke we clarify and document the buying criteria for this purchase.
If you haven’t read part 1 of this case study you can check it out here:
Brisbane Buyers Agent Case Study – Luke Part 1 – Introducing Luke
Establishing and being clear on buying criteria, whether you are purchasing for yourself or whether you are using a buyers agent, is a very important step in the process. It ensures that you have a clear and shared understanding of what you are looking for and it ensures that the actual searching and analysing you do is done so efficiently and effectively by making sure you’re not wasting time on properties that don’t stack up against your criteria!
Luke was buying this property in a self managed superannuation fund so he was looking for something that would be a close to cashflow neutral or even positive as possible but also somewhere that showed good growth potential.
- The budget for the purchase was up to $350k.
- Growth drivers – such as shops, transport, population growth
- Wide range of potential areas to start with including some suburbs in Brisbane, Moreton Bay/Redcliffe area, Toowoomba, Gladstone, Townsville, Mackay, Roma, Emerald and Rockhampton.
- Luke was keen to find a property that was new or near new (up to approximately 5 years old). He liked the idea of some depreciation benefits (though note the lower taxation rate in a SMSF) and also he liked the idea of less maintenance and upkeep worries.
- 3 bedrooms or more, family type home
- Neutral to positive cashflow – bearing in mind that Luke was buying at 70% in his SMSF.
We developed our ‘Project Brief’ document – which documents the key criteria for our search and then we determined our next step. Clearly, with such a wide range of potential location we would need to do a little work here to narrow down this list and so that is what we did!
In the next part of this case study we look at the location analysis we conducted to focus in on our target location.