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API AUGUST 2014
AUGUST 2014 API
RENTAL YIELD: 6.4%
WEEKLY ASKING RENT: $330
MEDIAN PRICE: $269,000
DISTANCE FROM BRISBANE CBD: 21 KMS
Redbank lies in two sections to the north and south of Ipswich
Motorway. Its access to this motorway means it’s also easy to
get to the west, to Ipswich, and to the east, or Brisbane’s CBD.
Buyers’ agent Todd Hunter of wHeregroup says he bought
up big in the Redbank Plains area two years ago, based on its
affordability at the time.
“ It’s close to road transport and very nice in relation to Goodna
and the highways,” he says. “ T he train line is now open at
Springfield Lakes, which is five minutes away, and Orien
shopping centre is also close.”
A golden retirement nest egg
Phil Sattler and Cheryl Love like sticking to
what they know best. Their four properties
in Bracken Ridge, Bald Hills, Strathpine
and Carseldine in the north of Brisbane
are all within just 10 kilometres of one
another. It’s a strategy and philosophy the
pair are more than happy to stick to. After
all, why go elsewhere when you’ve already
The semi-retired couple bought their
Bracken Ridge investment about 10 years
ago for $320,000. They purchased a four-
bedroom brick house with a double garage
and estimate it’s worth $500,000 these
days. Although it’s a suburb known for its
strong rental yield, it’s also very popular
with families and attracts long-term
tenants, according to Phil.
“I’ve had a good tenant who has been
there for the majority of the time,” Phil
explains. “She moved in within two years
of me buying the property and has been
there ever since.”
Phil’s tenant pays a reasonable $420
per week. It’s well below what Phil
could probably achieve, but he’s happy
to increase the rent by just $5 or $10
each year, as he prefers the stability of
a long-term tenant who also looks after
the property. Although some parts of the
suburb can attract problematic tenants,
Phil bought in a nice residential section
and says location is crucial.
“I’ve always liked the area. I like the layout
of the suburb, it has good roads, it’s not far
from the main shops and has a childcare
centre up the road,” Phil explains.
“It’s a lot of little things really.”
In fact, Phil likes the area so much, he
continued buying there, purchasing a block
of land and building a property for himself
and Cheryl in the suburb of Carseldine.
They bought another house four years ago
in Bald Hills, forking out about $440,000.
It rents for $430 per week and again has
attracted long-term tenants.
“It’s had the same original tenant for
about three years,” Phil says.
“We try and pick a mid-range property for
a mid-range price that’s mid-range quality.
More people can afford the mid-range,
meaning it’s less likely to be unoccupied.”
Names: Phil Sattler and
Invest: Bracken Ridge,
Strathpine, Bald Hills
Strategy: Buy and hold
æAlthough it’s a
suburb known for its
strong rental yield, it’s
also very popular with
families and attracts
Their most recent purchase was just up
the road – a three-bedroom house in the
nearby suburb of Strathpine in 2011 for
$300,000. It rents for $300 per week and
would probably now be worth quite a bit
more, thanks to some renovation work
including a new fence, air conditioning
system, electrical and plumbing work.
Although the Brisbane market has been
flat over the past few years, Phil and
Cheryl are thrilled with their investments
and already enjoying semi-retirement.
They hope to live off the rent from their
three investment properties, or perhaps
sell one or two of them down the track
and pay down debt, then enjoy cash flow
from what remains.
“I like the north side of Brisbane, I know
where the shops are and where the
transport is,” Phil says.
“Am I glad I bought there? Absolutely.
Over the years, I’ve had some good and
not so good agents and tenants. But I
also consider it imperative to have a good
agent to manage rental properties and
not try and manage them yourself.”
The downside is that Redbank is considered a bit ‘in the
middle of nowhere’ . Some parts are also lower socio-economic
areas and attract bad tenants.
“ You need to vet your applications very thoroughly,” he says.
“ There’s also a whole community of NRAS out there. ”
Hunter believes investors won’t find the bargains they might
have two years ago and prices have increased about $20,000 or
$30,000 over the past couple of years.
“ If you’re looking for positive cash flow and want to earn $30
per week positive cash flow, then this investment is for you. If
you want strong capital growth prospects, in my opinion, there
are better locations to invest in. ” API
See our exclusive list on page 48 for all 90 suburbs with rental
yields of six per cent or more.
æIf you’re looking for positive cash flow and want to
earn $30 per week positive cash flow, then this
investment is for you.Æ Todd Hunter
COVER STORY // YIELDS OF GOLD
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