PROPERTY investors Daniel and Amber Knapp developed their latest project to cater for intergenerational families who are overcoming soaring house prices by pooling funds to crack the market.
The Gold Coast couple has just completed the renovation of a dual-living property designed to provide a relatively affordable housing solution for buyers who would otherwise be priced out of owning a home in a desirable area.
Mr Knapp is a real estate agent with Harcourts Coastal, and the couple has two daughters, Mila, 4, and Frankie, 2.
7-11 Marion Rd, Upper Coomera
The family lives at Mermaid Beach, but chose to invest in the Gold Coast’s northern growth corridor where buyer demand remained constant despite market fluctuations on the back of rising interest rates.
Upper Coomera was named as one of the Gold Coast’s top three most liveable and affordable suburbs along with Arundel and Oxenford, according to a report by PRD.
“I’m a lot more confident investing in this area. If the market turns, I’d rather have a $1m house in Upper Coomera I need to sell as opposed to a $2m house in Mermaid Beach, because there is always a market for entry-level property,” Mr Knapp said.
The property has been freshly renovated
PropTrack data shows the median house price in Upper Coomera was up 6.8 per cent over the past 12 months to a median of $780,000, while in Mermaid Beach a typical house was a whopping $2.675m — down 15.1 per cent from last year.
With 10 years’ experience flipping houses behind them, the Knapps purchased an 1618sq m property on Marion Rd, Upper Coomera for $955,000 in May last year, splitting the block into three lots and renovating the existing home.
The five-bedroom, three-bathroom home on the largest 816sq m lot is listed for sale with a $1.1m price tag. The two other lots, each about 400sq m, were marketed as vacant land, with one already snapped up for $475,000.
Renovations to the house included a new kitchen, bathrooms, flooring, paint, lighting and electrics, as well as drainage, roofing and landscaping works.
Self-contained accommodation with a kitchenette, ensuite and separate external entrance was converted from the home’s original double garage, which the previous owner had enclosed for use as an extra bedroom.
While the late change of plans blew the reno budget by about $40,000, Mr Knapp said dual-living potential added about $100,000 in value and extended the buyer pool to large families, as well as those looking to capitalise on rental return from their property to offset a mortgage.
“From an end selling point, the dual living potential bumps up the price significantly,” he said.
“As an agent, I am seeing a growing dynamic with older people who are in their 50s, 60s or 70s, and their adult children who may be in their mid-30s, but have never been able to get into the market.
“They are pulling their funds together and saying, ‘let’s build a granny flat’, so there is a big demand for dual living properties that can house an extended family.”
The home’s interiors have been designed in modern coastal style, with neutral tones and on-trend finishes. The kitchen has Caesarstone benches and German appliances, while outside is a pool and patio area.
The PRD report also named Brisbane’s most liveable and affordable markets — Springwood, Deagon and Capalaba.
But report author Diaswati Mardiasmo warned both Brisbane and the Gold Coast were now along the toughest places in the country to buy real estate in areas with good development and rental yield potential, with households earning less than $200,000 a year soon to be priced out.
“Many of the suburbs that do have an affordable price…couldn’t satisfy some of the liveability requirements, whether it’s low crime rates or future project development,” Dr Mardiasmo said.
Single average income earners, single parents, anyone on government benefits, pensioners and divorcees are among those who will only have the choice of buying a unit in future, unless they are willing to purchase in less desirable areas.
Article source: www.realestate.com.au