Last week we’ve looked into the suburb of Zillmere, QLD from a demographic, housing and facilities perspective. In this post we will present two case studies of properties we’ve purchased recently in the area.
If you missed the first part of this Suburb Review, you can read it here:
The Case Studies
We have recently purchased two properties in Zillmere that are indicative of the types of opportunities you may see in this area and although the houses are very similar (right down to the exact same floorplan!) they contrast two different approaches. Our first property is a straight buy and hold property which has already been renovated and the second is a ‘renovator’s delight’!
Case Study 1: Buy and hold, already renovated
This property is a 3 bedroom, 1 bathroom, 1 car garage on 749m2, purchased earlier this year. The house had just been renovated and had a fantastic new kitchen, polished boards and was fully repainted internally. The buyers spent a little money on putting built in robes, ceiling fans and a new side fence on the property. The property was purchased for $412,000, approximately $7,000 was spent on the improvements and the property rented at $400 per week.
Case Study 2: Buy, renovate and hold
This property is a 3 bedroom, 1 bathroom, 1 carport on 635m2. In contrast to our first case study, this property was definitely a renovator’s delight in need of quite a bit of cosmetic work internally. The property was purchased for $360,000. The buyers allocated $40,000 for cosmetic renovations to be conducted by a licensed building company as they were located interstate. This project is currently underway and estimated rental at the end of the project is $400-$410 per week.
Here are the cashflow scenarios for these two case study properties:
Zillmere is a bit of a ‘rough diamond’. An older suburb with a housing commission background, it’s found itself in a perfect position in the present property climate in Brisbane. It’s relatively close to the Brisbane CBD at 14km. It’s well supported by transport including train and bus. It has major shopping facilities, hospital facilities and industry close by. Most of all, it has affordable housing on good sized blocks ripe for renovation and suits first home buyers and investors. At the time of writing, it is possible to buy at under $400k here – but for how much longer will this be the case?