Kallangur Townhouses including Dual Living, Brisbane North

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Kallangur Townhouses including Dual Living, Brisbane North/Moreton Bay

A fantastic opportunity to secure a very high yield property at an entry level price in an area with strong capital growth potential

A boutique development of 53, two level townhouses with 3 bedrooms and at least 2.5 bathrooms
All in duplex configuration to allow natural light

Entry level price of $352k to $370k
Opportunity to undertake minor work to convert to a dual occupancy townhouse.

Excellent rents of:

  • $350 to $380pw for the standard townhouse
  • $480 to $515pw for dual occupancy

Strong capital growth potential due to:

  • Great location:
    • 2 mins drive to Dakabin station
    • 8 mins to North Lakes
    • 23 mins to Brisbane Airport
    • 30 mins to Brisbane
    • 30 mins to Sunshine Coast
  • new $1.15 billion Moreton Bay Rail Link with station at Kallangur
  • new USC campus for 10k students, just 2km south due for completion in 2020

Off plan and suitable for SMSF

Construction of Stage 1 well underway and due for completion Q1 2017. Stage 2 due to commence shortly after

Secure property management with onsite manager

Please contact us for a FREE personalised cashflow calculator

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The suburb of Kallangur is 24 km north of Brisbane and set within the southern area of the Moreton Bay Region of Queensland. In the 2011 census, the population of Kallangur was 19k. It is part of Brisbane’s rapidly expanding northern growth corridor.

It has good access to rail and road transport and is an easy drive to the Northlakes shopping precinct as well as to Moreton Bay.

Kallangur will benefit from the $1.15 billion Moreton Bay Rail Link (PDF) due for completion in 2016. This will run from Petrie to Kippa Ring and has a station at Kallangur.

Kallangur will also benefit from the redevelopment of the old Petrie paper mill just 2km south of Kallangur into a precinct (The Mill at Moreton Bay) containing at its core a full-scale campus of the USC which will offer world-class study opportunities for up to 10k university students in its first 10 years. The campus is on track for completion in 2020 supported by additional work; study and community facilities. It is expected to create 6k jobs and add $950 million pa to the Queensland economy. This will be fast‑tracked ~ in September 2016 the state government declared it a Priority Development Area (PDA); there are only 13 other PDAs in south­east Queensland.

The development is also conveniently located – refer Google map and Street View of suburb:

  • 2 mins drive to Dakabin station
  • 8 mins to North Lakes
  • 23 mins to Brisbane Airport
  • 23 mins to Redcliffe
  • 30 mins to Brisbane
  • 30 mins to Sunshine Coast

Further information on Kallangur (link)

A boutique development of 53, two level townhouses.

All in duplex configuration to allow natural light. Refer Site Plan (PDF)

Construction for Stage 1 is expected to complete in Q1 2017. Stage 2 is expected to commence shortly after.

About half ~ Type 3 (PDF) and mirror image Type 4 (PDF) have:

  • upstairs – 3 beds, 2 bath, and study nook
  • downstairs – kitchen, living area, powder room, patio, courtyard, garage (some with extra car space)

For detailed dimensional drawings see Type 3 (PDF) and Type 4 (PDF)

The others ~ Type 1 (PDF) and mirror image Type 2 (PDF) have two possible configurations.

The first is:

  • upstairs – kitchen, living area, balcony, 2 beds and 2 bathrooms
  • downstairs – living area, third bathroom, study/smaller fourth bedroom, 3rd bathroom, patio, courtyard, garage (some with extra car space)

For detailed dimensional drawings see Type 1 (PDF) and Type 2 (PDF)

The second configuration involves post construction work to the lower level to convert the dwelling into a dual occupancy unit. This will be done after initial construction by the same builder under separate agreement. This will be done at cost for an additional charge of $10k including additional air con.

Upstairs will not involve any extra work and be a two bed unit accessed via the garage, with a courtyard area accessed via the garage and laundry.

Downstairs will be have one bed, plus study/small second bed, with a laundry added under the stairs, and a kitchen added adjacent the stairs. See plan for downstairs dual occupancy conversion (PDF). See sample agreement setting out  Supplementary Building Works (PDF).

The dual occupancy option will result in substantial extra rent.

The rent appraisal (PDF) for the single dwelling is $350-380pw and for the dual occupancy option is $290-305pw plus $190-210pw = $480-$515pw.  Since this appraisal was undertaken in August 2016, there has been a sizeable increase in supply in Kallangur in anticipation of increased demand when the University commences in 2020. Investors should anticipate some rent reduction (perhaps 10%) until the new supply is absorbed.

Units with an additional car space allocation (PDF) are an additional $5k approx.

Separate metering can be arranged for telephone and internet, but the water and power bills will need to be shared between the tenants. The onsite manager would attend to this as part of the lease agreement. A simpler option might be for the owner to pay the water and power bills and increase the rent to cover this. A reasonable rent increase would be $20pw for the one bed unit and $35pw for the 2 bed unit. This would be acceptable to most tenants and should cover the cost of the utilities to the owner.

Brochure (PDF)

Schedule of Finishes (PDF)

Google map and Street View of suburb

For the standard townhouses (Types 3 & 4) the price is $351,900 or $355.900 with an additional car space.

The rent appraisal (PDF) for the single dwelling is $350-380pw

For townhouses with the dual occupancy option (Types 1 and 2) the price is $369,900 including the dual occupancy supplementary works after construction (and usually with an additional car space).

The extra works for the dual occupancy fit-out will cost $10k – see sample agreement setting out  Supplementary Building Works (PDF). Optional extras include an additional clothes line for $170 and and additional overhead cupboards for $1,100.

The dual occupancy option will result in substantial extra rent.

The rent appraisal (PDF) for the the dual occupancy option is $290-305pw plus $190-210pw = $480-$515pw

Separate metering can be arranged for telephone and internet, but the water and power bills will need to be shared between the tenants. The onsite manager could attend to this as part of the lease agreement. A simpler option might be for the owner to pay the water and power bills and increase the rent to cover this. A reasonable rent increase would be $20pw for the one bed unit and $35pw for the 2 bed unit. This would be acceptable to most tenants and should cover the cost of the utilities to the owner.

Since the appraisals were undertaken in August 2016, there has been a sizeable increase in supply in Kallangur in anticipation of increased demand when the University commences in 2020. Investors should anticipate some rent reduction (perhaps 10%) until the new supply is absorbed.

Refer Pricelist (PDF).

The rent appraisal (PDF) for:

  • the single dwelling is $350-380pw
  • the dual occupancy option is $290-305pw plus $190-210pw = $480-$515pw

Tax Depreciation Estimate (PDF) is estimated to be $10k to $14k in year 1.

Strata fees are approximately $2,350pa which includes $1k pa per townhouse to pay the wages of the on-site manager.

Council Rates are approximately $800 to $1k pa

Please contact Compass Capital to reserve a property

Refundable Holding Deposit
$1,000 – refundable if purchase does not progress
Please make a reference with deposit to trust account below – Duplex number / surname

Trust Account Details
Account Name: RiverLegal Law Practice Trust Account
Bank: NAB
Branch: Capital Office 308-322 Queen Street Brisbane, QLD, 4000
BSB: 084-004
Account #: 74-123-7574
SWIFT CODE: NATAAU3303M
Reference required: 300362

Deposit Amount
10%

Seller’s Solicitor Details
RiverLegal
3A John Street Beenleigh QLD 4207
PO Box 48 Beenleigh QLD 4207
Telephone: +61 7 3807 0777 Facsimile: +61 7 3287 4663

Email: *protected email*

DISCLAIMER

Information has been provided by Vendor and may be subject to change from time to time. Updated information can be obtained at any time by contacting Compass Capital. Whilst this information has been carefully compiled, no warranty or promise as to its correctness is made or inatended. The information outlined within this document also represents subjective interpretation by Compass Capital and should not be relied upon for investment decisions.  Interested parties should undertake independent inquiries and investigations to satisfy themselves that any details herein are true and correct. No forecasts are being made by Compass Capital about potential capital gains. Past information about capital gains does not imply that such gains or growth will be made in the future. The material in this publication is copyright. This document cannot be reproduced without the express permission of Compass Capital. This information is current as at the time of compilation. The product information contained within this document is based on third party information obtained throughout the course of our research.

This information has been verified to the best of our ability, but Compass Capital accepts no responsibility for reliance on this information. This is not investment advice. You should seek your own financial advice. This report does not take into account the investment objectives, financial situation and particular needs of investors. It is important that you read the entire document and any supplementary amendments in full before making any investment decisions. It is particularly important that you consider the risk factors that could affect the financial performance of the development. You should seek professional advice from your own professional advisors before deciding to invest. While Compass Capital believes it is unlikely that the electronic version of this report will be tampered with or altered in any way, Compass Capital cannot give any absolute assurance that this will not occur. Any investor in doubt concerning the validity or integrity of an electronic copy of the report should immediately check directly with Compass Capital. All financial amounts in this report are expressed in Australian Dollars ($AUD) unless otherwise stated.

RISKS

As with all investments, residential property investment involves risk. It is important to understand the many factors that impact the success of a development, and the performance of an investment.

While drivers of growth and other attributes that positively contribute to the performance of an investment have been analysed in depth, it is equally important to understand the risks that could detrimentally affect the performance. Investors should obtain independent professional advice. The information on the Compass Capital website does not constitute financial advice.

RISKS TO FORECASTS

Although Compass Capital believes the forecasts contained within this document are based on reasonable grounds, information is predictive in nature and the forecast rate of return may be affected by inaccurate assumptions, or by known and unknown risks and uncertainties.

MARKET RISK

The success of the development may be affected by a change in the residential property market. There is a risk that if the investor or owner chooses to sell the property during or following a period of depressed market activity, they may realise a value less than the property was purchased for.

SUPPLY RISK

If the supply of properties in a region outpaces population growth, it is possible that there may be downward pressure on dwelling prices.

INTEREST RATE RISK

An increase in interest rates will increase mortgage repayments.

DEVELOPMENT RISK

It is possible that a development may not proceed on time or may not proceed at all. Deposit monies are held in trust and are insured and should not be at risk – they would be returned should a development not proceed.

GOVERNMENT POLICIES

Changes to government policies, legislation or taxes may affect property values and returns. Changes in government, local authority policy or requirements with respect to the property may require additional unbudgeted expenditure. This may result in a reduction in an investor’s rate of return.

RENTAL YIELDS

Rental yields fluctuate and are contingent on other market factors. They may go up or down depending on factors such as supply, demand, employment, investment in the area, and the state of the overall residential market.