1/61 Sparkes Street, Chermside, is on the market for $129,000-plus.
A studio apartment earning more on the dollar than many super funds is the cheapest unit for sale here right now, with one catch – you will never be able to live in it.
The unit is a pure investment play – permanently rented by whoever is the manager of the Chermside Court motel complex located in Brisbane’s northside.
The property has had a $30,000 vendor discount, originally priced at $159,000-plus in August 2021, and reduced to $129,000-plus in May this year.
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The property is popular with visitors to major hospitals located nearby.
The manager’s residence is located right next to the lobby.
Watt Realty owner Justin Watt, who’s marketing the unit at 1/61 Sparkes Street, Chermsidewith colleague Michael Mangano, listed it as a “nice little earner” with a 9.5 per cent gross return.
That implies $12,225 earned in rent annually or about $235 a week off a purchase price of $129,000.
“The motel is well serviced by families and friends visiting patients at Prince Charles and Holy Spirit Hospitals across the road – one of Brisbane’s busiest hospital hubs with public and private emergency centres,” according to the listing. The studio apartment, which has a new bathroom, kitchenette with dishwasher and split system aircon, has been on the market for just over a year.
The studio apartment is permanently rented to the manager of the complex.
The asking price has reduced by $30,000 in almost a year.
Association of Superannuation Funds of Australia data shows the average balanced super funds delivered around 9 per cent per annum for five-year returns and around 8.5 per cent for ten-year average return. though 2021 was a standout with the average annual return at nearly 20 per cent.
ASFA CEO Dr Martin Fahy said “we would normally expect super funds to report annual returns in the order of 6, 7 or 8 per cent. Clearly this (FY2021 year) is a remarkable result – the system’s strongest performance in the nearly thirty years since compulsory superannuation began,”
Unit prices in Chermside have dropped by 0.6 per cent in the past year months, according to latest Proptrack figures, though the median of $418,500 was still 5.9 per cent higher than the same time last year.
The closest property price-wise in Chermside is a one bedroom, one bathroom unit at Affinity Apartments – P4/15 Kingsmill Street priced at $289,000. The Affinity property is tenanted at $295 a week, returning over 5 per cent, according to marketing agency Franchi Realty.
The Kingsmill Street unit, which has the advantage of an extra 20sq m in space and you can live in it if you wish, has gone under contract.
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