Property: Lot 20 New Road, "Bishampton Estate" Logan Reserve, Queensland, 4133 Package Price: $444,500
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Property: Lot 20 New Road, “Bishampton Estate”
Logan Reserve, Queensland, 4133
Package Price: $444,500
© Sold on Property Pty Ltd. All Rights Reserved. | Page 1 of 26
Table of Contents
Page 3 Introduction Page 13 Property to Essential Services
Page 3 Report Page 14 Property Location & Surrounding Map
Page 4 Property Summary Page 15 Queensland Housing Market
Page 5 Development Overview & Property Location Page 16 Queensland Housing Shortage
Page 6 Site Plan Page 17 Underlying Demand
Page 7 House Plan Page 18 – 19 Demographic Profile
Page 8 Elevation Plan Page 20 Purchase Costs
Page 9 Artist Impression & Colour Scheme Page 21 Ongoing costs
Page 10 Specifications & Schedule of Finishes Page 22 Property Management
Page 11 Rent Appraisal Page 23 - 25 Risk Mitigation & Other Pertaining Factors
Page 12 Area Profile, Capital Growth, Recent Median Land Prices Page 26 Depreciation and Capital Gains
Page 13 Geographic Profile, Area Description, Transport Page 26 Valuation Report & Conclusion
© Sold on Property Pty Ltd. All Rights Reserved. | Page 2 of 26
Introduction
The company Sold on Property Pty Ltd was established in 2008. The founding owners recognized the shift in the real estate market and identified the specific
requirements that an individual property investors needed to achieve optimum results. Sold on Property fully understood that investors require specifically
selected property that would meet specific criteria to achieve favourable results, they also realised that creating such an independent service with specially
selected property removed the time consumed dealing with real estate agents and individual research an investor would have to undertake.
Report
This Product Disclosure Report (PDR) has been prepared for the purpose of providing information that will assist investors to deliver them with as much
information as possible relating to certain property and locations. This information is generic and has not been prepared specifically for any particular individual
and therefore does not take into account of any particular individual’s circumstances either financial or otherwise.
Sold on Property have sought to provide reports in this format as the basic principles of investment are the same for both real property and financial products.
Each PDR, and the process by which it is delivered to clients, are based on six “Good Disclosure Principles”. These may be found in ASIC’s policy Statement 168.
They are:
⇒ Disclosure should be timely. Disclosure should promote comparison.
⇒ Disclosure should be relevant and complete. Disclosure should highlight important information.
⇒ Disclosure should promote product understanding. Disclosure should have regard to consumer’s needs.
© Sold on Property Pty Ltd. All Rights Reserved. | Page 3 of 26
Property Summary
Property Address: Proposed Lot 20 New Road, Logan Reserve, QLD 4133
Land Price: $218,000.00
House Price: $233,500.00
Package Price: $451,500.00
Initial Deposit: $1,000.00 to secure the property upon signing of Contract
Land Registered: Yes
Strata or Body Corporate: Not Applicable
Status of Development: Plan Number TBA
Zoning:
Note: Further details of permitted usage under this zoning and proof of zoning are included in the contract for sale and available on request.
Property Features: 4 Bedrooms – 2 Bathrooms, including ensuite – 2 x Split-system air conditioner - Gourmet kitchen - Family, Living and dining
rooms - Double lock-up garage - Fully landscaped with Slimline water tank
Property Dimensions:
Land Size: 426 sqm
House Area: 190.23 sqm
Estimated Income: This property has an estimated rental return of $430.00 - $460.00 per week for a 4 bedroom house and land package
© Sold on Property Pty Ltd. All Rights Reserved. | Page 4 of 26
Development Overview & Property Location
The Estate
LOT 20
© Sold on Property Pty Ltd. All Rights Reserved. | Page 5 of 26
Site Plan
© Sold on Property Pty Ltd. All Rights Reserved. | Page 6 of 26
House Plan
© Sold on Property Pty Ltd. All Rights Reserved. | Page 7 of 26
Elevation Plan
© Sold on Property Pty Ltd. All Rights Reserved. | Page 8 of 26
Artist Impression – Indicative only
Colour Scheme
© Sold on Property Pty Ltd. All Rights Reserved. | Page 9 of 26Specifications
Platinum Turnkey Inclusions
© Sold on Property Pty Ltd. All Rights Reserved. | Page 10 of 26Rent Appraisal
© Sold on Property Pty Ltd. All Rights Reserved. | Page 11 of 26Area Profile *Source: RP Data
The size of Waterford is approximately 8 square kilometres. It has 6 parks covering nearly 1% of total area. The population of Waterford in 2006 was 852 people.
By 2011 the population was 3,926 showing a population growth of 360% in the area during that time. The predominant age group in Waterford is 0-14 years.
Households in Waterford are primarily couples with children and are likely to be repaying between $1800 - $2400 per month on mortgage repayments.
In general, people in Waterford work in a non-specific occupation. In 2006, 39.2% of the homes in Waterford were owner-occupied compared with 60.2% in 2011.
Currently the median sales price of houses in the area is $330,000.
Capital Growth History
Past performance of area
The following table reflects capital growth in Median Prices (Houses) Recent Median Land Sales Prices
© Sold on Property Pty Ltd. All Rights Reserved. | Page 12 of 26Geographic Profile
Area Description
Waterford is ideally located half way between Brisbane and Gold Coast and it provides a rustic charm with idyllic natural surroundings. The developing estate
of Woodlands located in Waterford promotes a strong community atmosphere with hiking and bike trails, barbeque areas, multi-purpose courts and
community activities such as Pilates and boxercise. There are closely located schools, plus Logan TAFE and Griffith University are just 15minutes drive away.
The major Logan Hospital is situated only 10 minutes from Woodlands estate, as well as many other facilities such as supermarkets, cafes and restaurants all
within easy reach. There are major shopping centres close by such as the Logan Hyperdome, Grand Plaza and IKEA all only 15 minutes drive.
Transport
Waterford offers easy and regular transport with rail and bus services only minutes away. The Beenleigh rail station provides easy routes to Gold Coast and
Brisbane, and the Logan City Clarks bus service runs through Waterford regularly which provides connections to major destinations throughout Logan City and
Brisbane. There is quick and easy access to the Logan motorway and M1 which provides road access to Gold Coast, Brisbane and Ipswich.
Property to Essential Services
Brisbane, QLD 31km Canterbury College, QLD 1.9km
Logan City, QLD 8.4km Eden’s Landing Primary School, QLD 4.7km
Gold Coast, QLD 55km Waterford Primary School, QLD 4.7km
Sunshine Coast, QLD 143 km Holmview Shopping Centre, QLD 4.9km
Ipswich, QLD 45km Waterford Plaza, QLD 5.9km
Toowoomba, QLD 141km Logan Hospital, QLD 8.6km
Brisbane airport, QLD 39.5km Eden’s Landing Medical, QLD 4.3km
Coolangatta Airport, QLD 73.8km Beenleigh Police Station, QLD 6.6km
© Sold on Property Pty Ltd. All Rights Reserved. | Page 13 of 26Property Location Map
Surrounding Area Map
© Sold on Property Pty Ltd. All Rights Reserved. | Page 14 of 26Queensland Housing Market
Local Government Area
Australia’s growing housing shortage is typically measured at the national and state level. The Local Government Area (LGA) has been chosen as the regional
unit of analysis as local government is typically the planning region.
As a guide to housing demand and supply HIA developed a detailed database for LGA’s providing current and projected underlying demand and dwelling
completions and the resulting housing shortage/surplus. The following section details the major results for Queensland.
Queensland Regions
There are dwelling shortages in over half of Queensland Local Government Areas (LGA’s)
Shortages exist in just over a half of the 157 LGA’s across the state. The majority of the shortages can be found in the South East corner of Queensland,
although Mackay and Cairns, in the north and far northern regions of the State, are also in shortage. Not surprisingly, the housing shortage is most marked in
the Brisbane LGA with a huge shortfall of 6,474 dwellings. Beaudesert follows in a distant second place with a deficit of 2,227 dwellings for 2009.
Ipswich is in a substantial shortage of 1,913 dwellings, while Caboolture, Logan, and Maroochy are all in a deficit of just below 1,500 dwellings.
Table below shows that many of the LGA’s with the greatest housing shortage are also the same regions with the highest level of demand. Again, it’s the
growth areas within South East Queensland and Cairns where demand will be highest. Current construction levels in these areas are not sufficient to meet the
population growth needs.
The Gold Coast is expected to be the focal point of Queensland’s underlying demand by 2020. Based on current building trends, a shortfall of 10,777 dwellings
looks set to materialise in the rapidly growing metropolis. Demand is expected to also be substantial in Brisbane, however the current trend would suggest
that the present housing shortage there is set to shrink over the next decade. It is also interesting to note that in every one of the top ten areas where
demand for housing is set to be strongest in Queensland, current building trends indicate that a substantial shortfall will become apparent by 2020.
© Sold on Property Pty Ltd. All Rights Reserved. | Page 15 of 26Queensland Housing Shortage
Housing Shortage 2009 QLD Housing Demand and Supply 2011-2020 LGA's
Rank LGA 2009 Housing Shortage Rank LGA Demand Current Trend Shortfall
1 Brisbane (C) 6,474 1 Gold Coast (C) 76,500 65,723 10,777
2 Beaudesert (S) 2,227 2 Brisbane (C) 70,549 67,613 2,936
3 Ipswich (C) 1,913 3 Ipswich (C) 40,564 22,286 18,278
4 Caboolture (S) 1,485 4 Maroochy (S) 24,092 15,118 8,975
5 Logan (C) 1,414 5 Caboolture (S) 20,577 16,733 3,844
6 Maroochy (S) 1,304 6 Pine Rivers (S) 20,264 19,229 1,034
7 Hervey Bay (C) 1,187 7 Cairns (C) 18,608 17,732 876
8 Mackay (C) 1,083 8 Caloundra (C) 17,051 13,446 3,605
9 Redland (S) 947 9 Beaudesert (S) 15,141 3,265 11,876
10 Cairns (C) 641 10 Redland (S) 13,150 9,129 4,021
*Subtraction symbol denotes a surplus in that particular region. *Source HIA
Queensland’s Housing Shortage
Based on current trends, Queensland’s housing shortage would hit 154,000 dwellings by 2020.
Since the 2006 Census, Queensland’s lack of new home building has turned the state from a housing ‘surplus’ to a housing ‘shortage’. HIA estimates that
as of 2009 the shortage was 8,216 dwellings and rising rapidly.
The massive, recent deterioration in new home building activity is bad news for the state. On current housing trends, HIA expects Queensland’s housing
shortage to reach 88,000 by 2015 and 154,000 by 2020.
© Sold on Property Pty Ltd. All Rights Reserved. | Page 16 of 26These estimates relate only to projections based on current trends. If the market was allowed to operate freely and land shortages did not exist then it
should be expected that completions would grow rapidly over the coming years and mitigate the problem. The reality in Queensland is that affordable,
well located land is not abundant.
In the absence of an appropriate supply response the accumulation of a housing shortage will see continued pressure on housing affordability over the
next decade. The lack of affordable and appropriately located rental properties will only worsen, while pressures on house prices to continue to outstrip
incomes growth will remain.
Underlying demand
Queensland needs to build around 45,000 dwellings per year
Underlying demand is a notional measure of the level of demand required to satisfy a growing population. The calculated number is not intended as a
forecast of actual demand. It is an estimate of the long term housing requirements for a given region. Actual demand is determined by a whole range of
factors which can vary greatly from month to month according to, inter alia, house prices, interest rates, investor confidence, and employment
opportunities. Underlying demand abstracts from these factors and focuses purely on demographic factors, which tend to be more predictable in the
short term as well as slower to change. The major demographic changes include population change and household size/formation rates.
Future underlying demand and housing requirements
Queensland needs to build 471,000 new dwellings over the coming 10 years, which is 120,000 more than were built over the last 10 years
The current strength of population growth in Queensland means that underlying demand figures are currently at record high levels. HIA bases the future
population growth estimates on current ABS projections, which are lower than current levels of population growth. The estimates for at least the short-term,
should be viewed as conservative. The latest ABS population numbers have hitherto suggested no sign of any slowdown in growth.
The estimated underlying demand requirements over the coming 10 years also fall short of past building levels. Queensland requires 471,000 new dwellings
over the next 10 years, compared with a build over the past decade of 351,000.
© Sold on Property Pty Ltd. All Rights Reserved. | Page 17 of 26Demographic Profile
State Queensland
Chambers Flat
Logan Reserve
Localities in this postcode
Waterford
Waterford West
Local Government Areas Demographics Beaudesert - Gold Coast
Demographic* Target Region Comparison Region
Population Size 4133 Brisbane
All people 10,592 1,837,414
Country of Origin 4133 Brisbane
Australian born 72% 72%
Born Overseas - Top 5 4133 Brisbane
United Kingdom 6% 5%
New Zealand 5% 4%
Fiji 0% 0%
Germany 0% 0%
Netherlands 0% 0%
Age Statistics 4133 Brisbane
20 to 39 28% 29%
40 to 59 27% 26%
5 to 19 23% 20%
60+ 13% 15%
0 to 4 7% 6%
Family Statistics - Top 5 4133 Brisbane
Married 47% 48%
Never Married 33% 34%
Divorced 10% 8%
Separated 4% 3%
© Sold on Property Pty Ltd. All Rights Reserved. | Page 18 of 26Widowed 4% 5%
Religion - Top 5 4133 Brisbane
Anglican 21% 18%
No Religion 20% 18%
Catholic 20% 24%
Other 11% 11%
Uniting Church 5% 6%
Occupation - Top 5 4133 Brisbane
Manufacturing 15% 11%
Construction 12% 8%
Retail trade 11% 11%
Health care & social assistance 8% 10%
Transport\ postal & warehousing 6% 5%
Education - Top 5 4133 Brisbane
Not Attending (Working) 60% 60%
© Sold on Property Pty Ltd. All Rights Reserved. | Page 19 of 26Purchase Costs
This table shows fees that you may be charged for the purchase of this property.
Purchasing Stamp Duty Conveyancing Costs Depreciation Schedule Cost Borrowing Costs
Costs
This is a tax levied by State These are the costs for the This is the cost of a schedule If borrowing to purchase the property, the
Governments on Real Estate professionals to arrange for prepared by a quantity surveyor to following costs and fees may be applicable:
transactions for the transfer the transfer of title on the enable depreciation claims to be Establishment fees, mortgage stamp duty,
of title. property. made against taxable income brokerage fees, mortgage insurance,
according to Australian Tax Office valuation fees, interest charges, and other
guidelines. bank fees.
Amount Calculated from Purchase From $600 to $2,000 Approx $385
Price
How and Usually on or before Conveyancing costs vary Payment is generally required upon Borrowing costs and fees can vary
When Paid settlement. Refer to your according to the level of ordering report after settlement of significantly from lender to lender and state
Conveyancer for further service and are usually paid the property. to state. Refer to your lender or Finance
details at settlement. Refer to your Broker for advice. Borrowing costs are
Conveyancer. generally paid at settlement, although a
lender may require the valuation fee
(approx $300) upfront
© Sold on Property Pty Ltd. All Rights Reserved. | Page 20 of 26Ongoing Costs
This table contains a breakdown of the ongoing costs involved in holding an investment property.
These fees are additional to those involved in purchasing the property.
Ongoing Fees Strata / Body Corporate Fees Property Management Water Rates Council Rates Land Tax
Fees
These are fees charged by the These are charges These are tax charges These are taxes
Body Corporate of properties These are fees charged by related to water usage variously set by local generally set by the
held under Strata or real estate property on the property. councils. They are State Government.
Community Title. Owners are managers to managed Sometimes collected by generally related to the They are related to the
obliged to pay them. Such tenanting and rent local councils, they are value of the property. value of the property
fees are set by a Body collection. Such fees are generally related to and may differ from
Corporate elected by the negotiated between the water usage. state to state. Please
owners of the units in the owner and real estate seek advice.
development. management services
(excluding GST)
Amount Only applicable if property is Average Industry Cost paid by tenant if Estimated cost Thresholds and
under a common title Range 7-9% noted on tenancy $600 per year conditions vary
agreement between States
How and When These are disclosed in the Generally deducted from Service and Usage Yearly to State Yearly to State
Paid Disclosure Statement for the rental payments. charges differ from Government Government
development and are Dependent on your state to state.
generally paid quarterly in property manager.
advance.
© Sold on Property Pty Ltd. All Rights Reserved. | Page 21 of 26Property Management
The value of an investment property can be improved through professional management in the following ways:-
⇒ By keeping vacancies to a minimum
⇒ By maximising rental income
⇒ By ensuring that the property is maintained in good condition
Securing a good tenant is vital to ensuring that these aims are met. A properly qualified property manager will ensure that all prospective tenants are carefully
vetted through the use of a comprehensive application process which includes the checking of tenancy default databases. Good property managers are well
informed with regard to market conditions and should ensure that the maximum rental is achieved whilst keeping vacancy rates to a minimum. Regular
inspections should also be carried out by the property manager with a full report provided to the owner regarding the condition of the property.
Preventative maintenance should be carried out to ensure that minor issues do not lead to major expenditure through neglect. Good property managers will
arrange for maintenance to be carried out by qualified and licensed tradespeople.
The government has imposed strict legislation to govern the rights of tenants, property owners and property managers through the Residential Tenancies Act.
Strict penalties can apply for breaches of the Act. A good property manager should be fully trained and licensed and will ensure compliance with Act at all times
in order to protect the interests of the property owner.
© Sold on Property Pty Ltd. All Rights Reserved. | Page 22 of 26Risk Mitigation
Property investment, like all investments, is subject to risk that could have adverse impact on its performance. Some of these risks may be beyond the
control of any agent, advisor, investor or any other person. This information is provided as general advice and may be given without taking account of the
investor's specific objectives, financial situation or needs.
Prudent investing requires that risks should be reduced or managed in an appropriate and careful manner. The following information highlights some of
the risks that investors should consider.
Property Value Movement
Property Value Movement relates to a property failing to achieve growth expectations or declining in value. Investors should note that properties in all
Australian regions have gone through rise and fall cycles. These follow a cycle generally known as the property cycle. The movement in the value of this
property is, therefore, subject to this cycle. Investors should regard property investment as a long term investment and generally seek to hold the
investment property for as long as possible.
Market Conditions
The performance of any property will be influenced by the general condition of the Australian economy and its finance and property markets. These
markets are cyclical in nature and therefore subject to change. Market risk can be managed by taking a long term view of investments and ensuring that
appropriate measures are taken to manage cash flow throughout the cycles.
Tenancy Demand
Tenancy Demand relates to the risk of the property failing to attract tenants at the rental rate factored into the income related benefits of the property.
The best way to minimise this risk is to have a good property management agent, set rental at realistic or “market” rates, and purchase in an area with
strong employment.
National and Global Events and Other Disasters
Wars, terrorism, civil insurrections and other major unforseen events are generally beyond our control. Sometimes these events occur in other parts of the
world, but have knock-on economic effects. This can result in higher capital growth or income from an asset than anticipated, but at other times they may
cause a loss of market confidence and depreciation in value or rental.
© Sold on Property Pty Ltd. All Rights Reserved. | Page 23 of 26Fortunately, Australia is politically stable. Our main natural disasters are cyclones, bush fires and floods. Risks can be mitigated by purchasing in areas
not historically prone to disasters and ensuring that adequate insurance cover is arranged.
Legislation
Australian taxation legislation currently allows investors to claim most of the expenses associated with owning an investment property. However, it is
important that this is done correctly to avoid any penalties and maximise claims. A qualified accountant and registered taxation agent who have a
thorough understanding of property investment should be engaged.
Government
Value-determining policies, such as zonings and the location of infrastructure such as roads, schools and shopping centres, may be made and changed by
the various levels of government or affected by some other government or semi-government department or authority. You can mitigate these risks to a
certain extent through the conduct of various searches that can be done by your conveyancer or solicitor to determine whether there are any plans for
these developments or changes in zonings.
Development
This risk applies to properties purchased before completion. Throughout such projects, the developer may arrange finance facilities related to the land
acquisition and development of the project. Unforeseen circumstances may arise where successful completion of the development may not be possible
upon the terms outlined in their forecasts. This may prevent the successful completion of the project. Purchasers could lose part or all of their deposit.
The best way to minimise this risk is to ask your solicitor to ensure that your deposit is held in trust (not to be released to the developer) until land
settlement.
Warranty
Faults in construction could result in warranty claims. These risks are managed by the statutory home warranty insurance taken out by the builder. The
builder’s licensing authority imposes certain timeframes for the rectification of any defects and the builder is required to provide a minimum warranty
although some builders exceed this minimum. To ensure that all defects are identified and rectified within the specified time frames it is recommended that
an independent building inspector be used to provide a full report.
However, should the builder become insolvent, struck off or suspended, the builder could be unable to honour this warranty. The relevant state builder’s
licensing authority insurance arrange for another builder to make good any deficiencies.
© Sold on Property Pty Ltd. All Rights Reserved. | Page 24 of 26Tenant
Tenant risks relate to three things:-
⇒ The availability of tenants
⇒ The financial reliability of tenants
⇒ Care for the property by tenants
A property manager will usually check professional default databases and obtain references of a prospective tenant before letting the property. Access to
these databases is only available to registered agencies and therefore care should be taken in appointing a licensed property management agent. The
property manager should also carry out regular inspections throughout the term of the lease and provide a written report detailing the condition of the
property. Investors are also advised to take out appropriate insurances, in particular, Landlord’s Insurance.
Personal
Investment strategies often depend upon the income of the investor. This is particularly relevant whenever the investment is negatively geared.
Such risk may be managed by taking out appropriate insurances. Such insurances include:
⇒ Life insurance
⇒ Trauma insurance
⇒ Income insurance
© Sold on Property Pty Ltd. All Rights Reserved. | Page 25 of 26Depreciation & Capital Gains Tax
Australian Taxation Legislation allows investors to claim the depreciation in value of an investment property through a building allowance and
depreciation based on the effective life of certain components within the property such as floor coverings, window coverings, appliances etc.
Depreciation claims can assist an investor with the cost of holding an investment property. A qualified quantity surveyor should be used to produce a
depreciation schedule which sets out the maximum amount that can be claimed to offset taxable income.
Valuation Report
A valuation is an assessment of the market value of a property from a lender/banks point of view. A valuation for mortgage purposes is very different to a
market price valuation and it gives the lender/bank an estimate of the market price for the property.
Note:
⇒ Appraisal and valuation figures relate to the date on which they were set.
⇒ A valuation for mortgage purposes often has variations of up to 10% compared to a market price valuation. This is standard practice and is expected
and normal for lending purposes. This is due to the essentially subjective nature of parts of the valuation and appraisal processes.
Conclusion
This report has sought to provide a comprehensive overview of all of the important elements that are involved in the purchase of an investment property.
It is hoped that the information contained herein has been informative and has provided assistance in taking consideration of all of the key factors
involved.
Thank you for taking the time to read this report, we trust that it has been an invaluable experience and we look forward to many years of working
together with you.
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