Gordon Park Brisbane | Property Case Study
6A Alva Terrace Gordon Park Brisbane Queensland 4031
To purchase an Investment property (up to $550K) within 10km of the Brisbane CBD that is likely to achieve strong capital growth, good rental returns, has minimal out-of-pocket expenses and no hassles!
Strategy: Buy and Hold.
Your Property Hound’s Solution
- A freehold 3 bedroom, 2 bathroom, townhouse in the inner-northern suburb of Gordon Park
- The property was purchased for $492K in October 2011, a massive 10% lower than its August 2007 sale price
- The property is currently rented at $500 per week
- The property’s low maintenance, near-new contruction, and high rental return has meant that this investor contributes only $25/week to the holding costs of this property (see following spreadsheet calculation).
|Purchase Costs (stamp duty, loan fees etc)||17,265|
|TOTAL INVESTMENT COSTS||$509,265|
|Interest Only Loan||5.8%|
|TOTAL LOAN PAYMENT (P.A)||$29,537|
|Property Income Expenses:
|Rental Income (2% Vacancy Rate) PA||25,480|
|Rental Expenses (Management fees, rates etc)||4,938|
|Net Rental Income (Rental Income – Expenses)||$20,542|
|Pre-Tax Cash Flow:|
|(Net Rental Income – Total Loan Payments)||-8,996|
|TOTAL TAX DEDUCTIONS||$46,137|
|Tax Credit Calculation:
|Tax Loss (deductions – rent)||20,822|
|Marginal Tax Rate||37%|
|Tax Credit (Marginal Rate x Tax Loss):||7,704|
| Annual After Tax Investment (pre-tax cash flow + tax credit):
|WEEKLY AFTER TAX INVESTMENT||$25|
Why Buy in Gordon Park, Brisbane?
- Gordon Park is a small, green leafy suburb located 5km north of the Brisbane CBD.
- Gordon Park is known for its beautifully renovated Queenslander homes making it popular with families and owner-occupiers.
- The recent completion of the Northern Busway and Airport Link tunnel have significantly improved public transport access to the city and car access to the city, Gold and Sunshine Coast.
- Gordon Park is bordered by Kedron Brook a popular parkland and bikeway.
|Medium Value (2012)||$598,500||$351,000|
|Average Growth Rate (last 10 yrs)||7.2%||7.5%|
|Current Rental Yield (Sept qtr)||4.6%||5.2%|
Suburb Statistics (Residex Nov 2010)
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