Opportunity to Invest
The 'Affordable Residential Property' asset class in Southeast Queensland is seen as low-risk, with strong ongoing population growth and demand for housing.
'Dual-Occupancy' solutions directly address Australia's current housing crisis by increasing the supply of 'affordable' housing on existing land... by building a 2nd dwelling in the backyard.
The Investment Strategy
- The investment strategy is to buy 'affordable residential' properties with an existing house (that can be renovated to increase the value) and build a 2nd dwelling in the backyard
- The 2x 'detached' houses are separately titled and then can be either sold separately, or kept as additional rental income.
- Investment returns are 15%+ p.a. based on a conservative investment 'Cost-To-Value' ratio of less than 80% of the project end-value.
- There is a current and ongoing opportunity for investors to invest in these projects, with each project requiring approx $400,000 equity investment over a 15 month term... and this can be split between investors on each project with a minimum investment of $200,000.
Market Fundamentals
- The asset class of 'affordable residential' property in Southeast Brisbane is seen as low risk, with an ongoing structural imbalance in the market where supply is constrained relative to demand, and forecast to stay that way into the medium term (i.e. for the next 7 to 10 years, or more).
- This strategy increases supply of affordable housing on existing land and infrastructure.
- The scope of this opportunity is large and ongoing, as building more 'secondary dwellings' in existing backyards is seen as a key strategy to increase supply in the Australian property market, with councils expected to trend toward smaller lots with fewer planning constraints for secondary dwellings.
Project Example
- Set out below is a current live example of a property that was designed, building contract signed and planning approval certified all prior to settling the purchase of the property which had a 90-day settlement term, and
- Settlement has since gone through and construction has now commenced on the 'secondary dwelling'
Development Site Diagram
The existing carport roof over the driveway has been removed to allow access to the new home at the rear
Project Overview
New 'Secondary Dwelling' built on 410m2 rear lot...
- A new 200m2 4 bed, 2 bath, 2 car garage home will be built
- The home will have a north-east / east / southerly aspect over a rear park/creek offering a superior product to new development sites that are closely surrounded by other houses
- Open plan living / alfresco areas have been purposely positioned to enjoy the north-east / east / southerly aspect, site is located close to schools, shops, parks on a quiet street
Existing home on 410m2 front lot...
- Will be converted (from 3 bedrooms) to 192m2 4 bedroom, 2 bath, 2 car home... there are currently 3 living areas and the smallest living area will be converted to the 4th bedroom, also improving the functionality of the kitchen (which is currently a 'walk-through' and as such under-utilised).
- Renovation scope of works include... removing the existing carport roof, fully fenced yard, create 4th bedroom, re-spray kitchen, re-spray bathroom and ensuite, full interior + exterior paint, new flooring throughout, new light switches, new fans, new air-conditioner, new door/robe handles, all new tap-ware throughout, gardening and landscaping.
Secondary Dwelling House Plans
200m2, 4 bedroom, 2 bathroom, 2 car-garage, low-set brick and tile project home, construction price $325,853
Investment returns for these projects are consistently 15%+ p.a. based on a conservative investment 'Cost-To-Value' ratio of less than 80% of the project end-value.
To discuss investment opportunities in the 'low-risk, affordable residential' property sector in Southeast Brisbane please click on the link below to contact Darren direct...