Investment Strategy at a Glance
- Purchase of a block of land for $170,000 (new blocks released are $210,000 plus)
- The land size is 800m+
- We have negotiated a client rebate of $30,000 on the build for you
- Build 4 Bedroom, 2 Bath property on an ‘infill’ site (no more land available)
- Immediate Equity Gain of 5%+
- 5.7% Rent Return
- 6.5% Capital Growth in the past year
- 7% Capital Growth last quarter
Investment Highlights
- Data and preliminary research shows that Mackay is currently in its recovery phase but has much potential for growth in the near future
- The Real Estate Institute of QLD has just released figures showing Mackay has had the strongest growth of any region in the past 12 months.
- Based on our research, owners can expect a Rent Return of almost 6% (5.7%) from this opportunity, leveraging strong rental demand
Land Location
Andegrove, Mackay, QLD
Example of actual finished house.
Industry and Lifestyle – Mackay
Industry
The Mackay economy is driven by key industry sectors including resources, agriculture, tourism, education and health. Mackay is the primary service hub to the worlds largest coal deposits in the Bowen and Galilee Basins and home to the larges coal terminals in the world, accounting for 7% of Global Seaborne coal exports. The Tourism Sector contributes $543M to the local economy with 790,000 annual visitors to the region. Mackay’s manufacturing sector makes up $3.7BN of its total economic output and has contributed 4,700 jobs in the region. The regions unemployment rate of 3.2% is the lowest in the State.
Lifestyle
Mackay boasts 31 beaches, access to pristine rainforest and access to the 74 Whitsunday Islands. Mackay experiences 261 days of sunshine each year and has a temperature range of 22 degrees in Winter to 30 degrees in Summer. Mackay has the only blue water river in Queensland and
The Metrics That Matter
The DSR (Demand Supply Ratio) is among the most important metrics that every property investor needs to know about. It’s a comprehensive metric that uses several factors of a property market to come up with a number on a scale of 0-100 (higher is better).
As you may have read from our previous article the DSR score encompasses 8 indicators that help mitigate property investment risk:
- Days on market
- % vendor discount
- Gross rental yield
- Auction clearance rate
- Market cycle timing
- Vacancy rate
- % renters
- Online Search Interest (OSI)
Based on Mardent’s research, the DSR in jumped from 49 in 2018 to 62 in April.
Suggesting a growing market that has a very promising future, it’s the best time to invest when the rest of the market is still generally unaware of this uprising star.
Decreasing Vacancy Rates And Strong Rental Forecast
A sign of the potential growth that this investment has is the notable decrease in vacancy rates down to 1.8% in the past year. Higher rents mean higher prices for houses.
The Mardent Insight
Our research shows that the end rent is approximately $510 per per week, with an almost 6%% yield on net purchase price.
Investment Numbers Breakdown
- The total cost of the land and build to you is $460,000
- The valuation is $485,000 providing an immediate 5%
- Mackay is in a recovering market (source: HTW Property Clock) with 7% capital growth in the past quarter alone.
Bottom Line: Why We Think This Investment Is Gold
Assuming a total cost of $460,000 against the valuation of $485,000 and with a Gross Rent of $510 per week, this property will provide immediate and future equity growth. Investors can hold for the medium term (2 years) or sell in a growing market.
Note: We’ve attached a simple chart below to show you the specific breakdown of this unit. Click on the button below to get the full report.
| Land Cost | $ 170,000.00 |
| Stamp duties | $5,100.00 |
| Construction Constract | $315,000.00 |
| Total Cost | $490,100.00 |
| Mardent Cash Reward to Purchaser | -30000 |
| Net Cost to Client | $460,100.00 |
| Valuation on Completion | $485,000.00 |
| Immediate Equity Gain | $24,900.00 |