Apr 20, 2022
Welcome to the Australian Property Podcast - Hosted by Jonathan Preston.
hi everyone thanks very much for tuning back into the show so in today's episode i want to discuss some of the opportunities that you might still see around um and basically please note as always everything discussed here is done so for entertainment purposes only i've not taken into account your personal circumstances nor your risk profile so you should seek professional advice before making any investment decisions so what i want to talk a bit about today are some of the opportunities that you might still see around in the market um i did make reference a couple of uh episodes back where i was saying there's a couple of opportunities i see first being regional second being you know buying at a good price um for your traditional sort of investor style properties and so um today i wanted to talk through some examples that i actually saw on nathan burch's facebook i want to firstly mention i'm not affiliated with nathan at all he's not paying me anything for this episode i've not personally used his services one of my friends did use him a couple of years back he bought a number of properties made profit sold them off um but i've personally never used to myself and he's unaware of me uh filming this episode or anything um basically i um you know sort of learnt a bit from him back in the day uh you know in the initial episodes i did discuss that he inspired part of my strategy so um even though there's you know no business relationship or anything here uh i'm happy to sort of share some of that wisdom he shared with me in my um you know early days of my journey so um basically you know i want to walk through a post that he actually made on his facebook going back a couple of years ago now on the 19th of april in 2020 and what he did was listed a number of property deals that he had going at the time and then basically um he posted i believe was yesterday two-year follow-up results of what actually the property was and how it played out and i thought this was quite interesting because you can see specific examples um you know of the actual properties so the first one was advertised as a sydney cbd region two bedroom unit with car space 547 000 with comparable sales 650 to 700 so that's what he advertised on his facebook um april 2020 um and so in the post it was unveiled that this was in botany and that it was apparently revalued at settlement apparently at 700k so i thought this is an interesting one because it is a highly dense area that most people you know would potentially shy away from um maybe i guess because of the density and the stigma around you know buying in these areas that have undergone massive redevelopment um however you know you could also make the argument that this would potentially rent out very well it may have depreciation and you know every asset does have a price that it's worth buying at so um you know these are all things to take into equation into the equation um so you know that was the first opportunity and i thought that was quite interesting because it's it's probably you know quite outside the box uh for the properties that you know you do your normal searches on in your day-to-day searching when you're thinking about investments the second one that he posted was saying sydney brand new jewel occupancy 320 clay 320 k plus gst agent fuel cells should be around 600k for 600 a week um so it turns out this property is actually in ropes crossing which is an area of new development not far from mount druitt and apparently it was actually revalued this week at 650 000. um so you know this one i think is quite interesting and i do wonder why this one sold um so cheap at the time you know if it was you know worth 600k why it was sold for 320 um i'm not sure if this maybe relates to like floods or this is something to do with the developer there i know the gst component um i'm only speculating around what the circumstances were but if you look at this i mean it seems like an astronomic you know bargain um there's probably more to the story but i think even if you add in the more to the story uh it probably ended up being a good buy so that's um another sort of interesting one um the next one advertised was a brisbane unit for 117.117
and rent of 220 a week so this turned out to be in woodridge which is in the logan region brisbane um and he notes now that nothing like that is selling for below 250 000 um so you know i would sort of um add for this that you know this is your sort of uh classic positive cash flow investor kind of property um and in my experience of owning somewhat similar properties um there are a lot of holding costs associated with owning a property like this so it won't cash flow quite as strongly as it looks on paper initially um the main challenges you're going to find is with the cost of maintenance you know replacing items um tenant issues and needing to you know get new tenants in and that sort of thing so um you know there are a number of costs that aren't sort of evident from day one but um that being said you know you can see there was still money made here um if it's worth 250 today and this is only two years ago i mean it's it's it's more than doubled uh and probably been cash flow positive still during that time as well uh second to last one he advertised was capital city eight kilometers to the cbd and ten thousand yes a hundred and ten thousand rent two twenty a week and previous sale two forty uh so apparently this is in perth and apparently these are now selling for about 240 so again more than doubled um and the yield on that i'm guessing is going to be uh probably it might have been gone up since then but either way i mean it's it's it's obviously a stellar yield 220 a week against a 110 purchase price and then the last one is listed is a sydney house region um 340 000 others in the street for sale 550. so it turns out this one is actually a house in campbelltown that was bought for 350 and it's now worth nine hundred thousand um now i don't know why it was so cheap but i suspect the property might have needed some work or that there may be in some other kind of issue um because you know if they were selling it for 340 when others were already in the region of 550 that is a bit unusual uh that being said you know even if there were something some cost that you had to incur um even if it took it all the way up to 550 you know getting into 900 now is astronomic but again i assume there's probably a bit more to the story um probably some you know maybe minor costs or something to tidy up the property or something might have been involved or something i'm not sure uh but you can see that you know potentially stepping in there um you know you you could have made a lot of money nearly triple in a short period of time um so that's you know an interesting one and so i guess you know with today's episode it's probably a bit unusual that i sort of sit down and go through a bunch of buyer's agents properties i know it probably sounds like a big ad for nathan but really the point of it was that i really liked how he shared these specific examples and i thought that you know these really fit into that category that a lot of investors look for and that they may be properties and areas that people might not be looking at currently and so i thought look this might be of interest to some people um you know if you want more info from from their group and you know what they do please contact them directly as i said i'm not affiliated with them um um and yes so i just think look it's an interesting set of examples here today i think that it shows that there is a bit of an edge in doing things that other people are potentially scared of doing um and you know that obviously note that you know when you do go to a buyer's agent you are going to have to factor in the cost um you know as part of your your equations as well um so um i hope this was of interest to some people please note as always everything discussed here is done so for entertainment purposes only i've not taken into account your personal circumstances nor your risk profile so please seek professional advice before making any investment decisions and and the suburbs name today i'm not suggesting any of those will boom or anything like that this was just discussed to go through some specific examples over the last couple of years i really appreciate you tuning in as always thank you so much