5 Ws and How Model in Investing Townhouses in Queensland, Australia

This week, I will like to draw your attention to our next asset class for your collection, i.e. townhouses in Queensland, Australia. 

To recap what is ‘5 Ws and How’ Model, I have done an executive summary of applying the model to a case study of a new townhouses estate in the City of Ipswich – a local government area in Queensland for your perusal. 

Where 

The City of Ipswich is a local government area in Queensland, Australia, located in the southwest of the Brisbane metropolitan area. Why looking to invest into this Ipswich City? I will explain later in the ‘Location analysis’ sections. 

Where is the location of our case study of townhouses estate? This estate is called Palm Views and they are located at 85 Thornton Street, Raceview, Queensland 4305.

Location analysis #1

This area is one of Queensland’s oldest provincial cities. In other words, you are investing in a matured area where there are people living and working there, students going to primary and secondary schools and universities, infrastructure is there and well connected to Brisbane CBD and Gold Coast. 

Location analysis #2 

Business attraction and investment such as: 

A)     Ipswich CBD redevelopment 

[] $150m Ipswich Mall redevelopment project. 

[] A new Council administration building, a new library, an open space hosting major public events, markets, artisans and food experiences will revitalise the city’s heart. 

B)     Defence 

[] Royal Australian Air Force (RAAF Amberley) – Australia’s largest military base employs over 6,000 people and contributes over $300m annually to the Ipswich economy, a figure expected to grow to over half a billion dollars by 2020. 

C)     Services sector 

[] Health: $64m in private investment is funding the construction of new facilities at St Andrews Hospital in the Ipswich health precinct, which will in turn attract new specialists and new healthcare professionals to the city. 

[] Education: Ipswich has two campuses of a world-class university, quality private and public schools as well as a strong vocational education sector. Education is an export industry, but the city’s comparative advantage is a knowledge-intensive workforce focused on its key industries. 

D)     Citiswich Business Park 

[] A premium industrial estate located in the logistics hub of Brisbane’s south-western corridor. 

[] The 350ha estate is Queensland’s largest industrial development, providing affordable, well-connected industrial land catering for a wide range of industries including logistics, manufacturing, warehousing and distribution, construction and wholesale retail companies. 

Who 

Who are the possible types of tenants your property can attract to? I will personally say those who want to come to this beautiful place to live where you know your neighbours, the kids are outside riding bikes and your work life balance is perfect. 

According to Mayor Teresa Harding, “The City of Ipswich is the fastest-growing local government area in Queensland with around 24 people moving to our city every day. By 2041, this will mean more than 336,000 new residents will call Ipswich home.” (Darrell Giles, 9 Oct 2020) 

What 

Description of the townhouses in Palm Views estate 

182 Brand New Townhouses 

·          Spacious 4 bedroom, 2.5 bath and 2 car spaces

·          Tiled throughout the kitchen, living, dining, bathroom and powder room.

·          Contemporary kitchen design with floor tiles, stone benches all in a high quality finish.

·          Quality European stainless steel kitchen appliances including dishwasher

·          Fully Fenced and landscaped private courtyard

·          Gated and Monitored estate security system

·          1 x intercom to control security gate for your convenience

·          Pool and BBQ Facilities

·          Front door security and fly screens

·          Electric remote controlled garage door 

When 

Palm Views estate is selling the townhouses in stages. Stage 1 and 2 are almost sold out. Now, they are releasing new lots in stage 3. 

Why 

Look at the investment potential of the subject property located in the City of Ipswich, that is, development plans from that local government or council. This is critical as it will unlock your asset value when all the deliverables mapped out by the local government or council are been fulfilled. Imagine this, if MRT line is been completed near your home, what is the appreciation value your property will fetch. 

How 

How to get started to purchase and invest in freehold townhouses? Though it may look simple to some people, but, the whole process of soliciting, negotiating, signing sales contract, construction updates, settlement matters, inspection, finding tenants, collecting rent and managing tenants is not as easy as it seems, especially if the purchaser has a full time commitment or first time looking into investing in Australian properties. 

2 things you can ask – one, do you want to do-it-yourself in the whole process of investing in Australian real estate market, or two, let the many years’ experience marketing agent to hand held you for a while (without paying any commission) to learn as much as possible before you learn to do it by yourself. 

Which option do you prefer? 

Implication 

Buy at a fair value, sell it to what the locals will buy from you with high potential rentability – is the game plan. If the location is no good, who do you think which party will suffer? Property developer, will you agree? 

Apply Now 

ü  Leverage the price point that Palm Views (freehold townhouses) offers today to you as a first mover. 

ü  Leverage on the population growth where supply of dwellings much match to the demand of with around 24 people moving to the Ipswich city every day. 

ü  Leverage on what the local government of City of Ipswich has planned to boost jobs, growth and investment in Ipswich.   

Call Simon Yeo 8100 3386 now

Application of ‘5 Ws and How’ Model in Property Market Intelligence

I trust that you have spent 2 minutes of your precious time in reading the post dated on 9 Oct'20 (Title: ‘5 Ws and How in Information Gathering for Making a Decision in Investing Apartments’). Thank you for your time for reading it.

To apply what we have learned, I will have a case study for you to practice in gathering property market intelligence.
 
What will be the case study? Tip: Largest shopping mall in Perth.
 
Keep a lookout from my communication news as I will share with you more this coming week.
 
Thank you for your patience as you wait.
 
Stay tune and keep healthy.

Property Market Intelligence - 5Ws and How

5 Ws and How in Information Gathering for Making a Decision in Investing Apartments

 

Over my 9 years of marketing international properties to Singaporeans, they have asked me same set of questions in gathering information before they made a decision into property investment of freehold apartments. I am thankful for their many questions. With their input, I have managed to divide these questions into 5 Ws and How, and would like to share with you so that you too could use them for gathering information that you need in order to make an informed decision into real estate investment. 

Where

Needless to say, location is the key. Location will determine if your potential tenant wants to rent the property from you. 

Analyse the location – firstly, the surroundings (i.e. amenities). In my personal opinion, there is a correlation of rentable and amenities. Take a look of any lease listings, any subject property for rent tends to ask for a higher rate relative to those where amenities are far away. Or ask yourself this question, if you are the tenant, will you prefer to have amenities nearer to you or far far away. 

Analyse the location – secondly, any development plans from that local government or council to rejuvenate the area which your property is located. This information will give a clue of how well your asset value will be preserved in years to come. 

Who 

·        Find out the profile of the developer. Do they have a track record of developing properties?

·        Find out who are the possible types of tenants your property can attract to? For example, international students, empty nesters, or interstate employees that need accommodation.

What

Details of the subject property: 

·        How tall and how many units in the whole development?

·        What are the facilities?

·        Any car space or storage titled to the purchase?

·        Look through the floor plan and unit layout that you are only keen at.

·        What are the specifications given in the purchase of the unit?

Costs of acquisition:

·        Ask the marketing agent what are the costs of acquisition? Tip – generally there are 2 on this (negotiate it only when you are ready to purchase).

Recurring costs:

·        What is the annual fee of the body corporate?

·        What is the annual fee of the council and water rates?

·        What is the management fee payable to your property management company?

 

When

 

When is the completion date? This is important as it will prepare you for the cash flow management when it comes to settlement.

 

Why

 

Look at the investment potential of the subject property, that is, development plans from that local government or council. This is critical as it will unlock your asset value when all the deliverables mapped out by the local government or council are been fulfilled. Imagine this, if MRT line is been completed near your home, what is the appreciation value your property will fetch.

 

How

How to get started to purchase and invest in freehold apartments? Though it may look simple to some people, but, the whole process of soliciting, negotiating, signing sales contract, construction updates, settlement matters, inspection, finding tenants, collecting rent and managing tenants is not as easy as it seems, especially if the purchaser has a full time commitment or first time looking into investing in Australian properties.

2 things you can ask – one, do you want to do-it-yourself in the whole process of investing in Australian real estate market, or two, let the marketing agent to hand held you for a while (without paying any commission) to learn as much as possible before you learn to do it by yourself.

Which option do you prefer? 

Feel free to share your thoughts with us.  

Stay safe and keep healthy.

Your opportunity to be part of the Perth CBD Growth Phase

Transformative City deal to create 10,000 jobs and re-energise Perth CBD

 

Following is a news article from https://perth.wa.gov.au/news-and-updates/all-news/perth-city-deal (Sep, 2020):

"A new billion-dollar partnership between the City of Perth, Commonwealth Government and State Government has been finalised, unlocking numerous economic benefits and opportunities for the Perth CBD. 

 

The $1.5 billion City Deal will re-energise Perth, bringing government and private investment into the CBD, creating almost 10,000 jobs and encouraging more people back into the city. 

 

The Perth City Deal includes:

 

ü  $695 million investment by the Commonwealth Government, State Government and Edith Cowan University, to move its law and business schools, along with the world class Western Australian Academy of Performing Arts into the Perth CBD, creating the State’s first inner-city university campus. More than 9,200 students and staff are anticipated on campus from day one.

 

ü  $360 million investment from the State Government, Curtin University and Murdoch University to expand or establish new presences in the Perth CBD. Murdoch University will create a vertical campus and eSports Stadium linked with Singapore and East Asia, while Curtin University will build a CBD knowledge and innovation precinct. 

 

ü  $105 million has been allocated to the Perth Greater CBD Transport Plan to upgrade cycling and walking infrastructure, bus stop accessibility upgrades and enhance Roe Street. The centrepiece of this plan is the new Swan River Causeway Bridge. 

 

ü  A $20 million investment into the Perth Cultural Centre precinct will see immediate improvements in lighting, security, wayfinding and environment and the development of a longer-term vision for the space to become a place of destination for all visitors to the city.

 

ü  $42 million to develop the Perth Concert Hall into a premier world class music venue. 

 

ü  Up to $100 million to redevelop the WACA and transform it into a state of the art sporting facility including an inner city swimming pool

 

ü  $20 million for the East Perth Power Station to upgrade necessary infrastructure and improve connectivity to the site and surrounding areas while plans for redevelopment and preservation of the historic buildings and heritage progress.

 

ü  $36 million to provide facilities, safety improvements and services for homeless people in the city. 

 

ü  $18 million for the creation of an Australian Space Robotics, Automation, and AI Command Control Complex to encourage start-ups, small businesses, and researchers supporting the development and operation of robotic and remote asset management activities in space. 

 

ü  $10 million towards a WA Indigenous Business and Employment Hub in partnership with the Wirrpanda 

 

ü  $4 million of funding to undertake a pre-feasibility study for an Aboriginal Cultural Centre to be located in Perth on the traditional lands of the Whadjuk Noongar people.

 

Under this plan more than 25,000 students and staff will be brought into the city and the construction of the campuses will bring over $1 billion of investment to Perth’s CBD. It is estimated this will create more than 4,100 construction jobs and nearly 1000 ongoing direct jobs.

Prime Minister Scott Morrison said Perth would benefit for generations to come from the game-changing investment in education, culture, jobs and lifestyle.

 

“This is a JobMaker investment which will generate employment for thousands of hard-working West Australians, it will boost those businesses that are already in the CBD and it will drive new businesses to open,” the Prime Minister said. 

 

“WA, like the rest of Australia, needs a targeted economic stimulus which will provide a boost now and into the future, and this is what we’re delivering.”

 

Premier Mark McGowan said the Perth City Deal will see more than $1.5 billion worth of investment into the Perth CBD unlocking thousands of local jobs and creating flow on economic benefits for small businesses. 

“This City Deal has given us the unique opportunity to collaborate with the Commonwealth Government, universities and local businesses to help re-energise our capital city,” Mr McGowan said. 

“We have worked to establish up to three university campuses in our CBD which will create up to 5000 direct and indirect jobs while re-energising Perth.

“This will have positive flow on effects for small businesses including retail, restaurants and bars while returning vibrancy to our capital city.”  

Chair Commissioner Andrew Hammond said the City of Perth welcomes the announcement of the Perth City Deal as a transformative landmark deal between all three tiers of government. 

“The City’s commitment includes $25 million toward the redevelopment of the iconic WACA, specifically funding the addition of a community aquatic facility, and $10 million toward the CBD Transport Plan to upgrade Roe Street and facilitate regeneration of the area,” he said.

 

“We look forward to working in partnership with the Federal and State Government and the wider community to bring the Perth City Deal to fruition and secure the future prosperity and liveability of our great city.”

You can be part of the next growth phase in the Perth CBD."  

Stay safe and keep healthy.

 

Happy Mid-Autumn Festival! 中秋节快乐!

Yours sincerely,