Adelaide Renovation Finished (at last)

[adaran01]

Hello
After 8 months my renovation is complete, the tenants move in on Monday.
I am now getting $450 per week, as apposed to $375 before the renovation. This is on a property I paid 260K for about 3 years ago (just before prices ramped up). The bank valuer indicated it would be worth 360-380K once the renovation was complete.
The total cost of the renovation was around 20K excluding lost rent (12K).
I will post before and after pictures soon.
Adam

 

[Sim]

Hi adaran01.

Would you mind sharing which suburb (or at least which area) of Adelaide this property you renovated is in ?

Looking forward to the photos !

Hint: use JPG format, keep them smaller than 800x600 resolution and increase the compression so that the file is less than 100K in size.

 

[adaran01]

hi Sim
The suburb is Skye, Im pretty impressed with the rent I'm getting myself.
My properties are now officially cash positive, its taken 7 years to get them there.
one anomoly, I bought a house at Blakeview (near craigmore) 7 years (paid 72k valued at 130K) ago rented it out for 155 per week. 7 years later I still can only get 155 per week for that property. This means that the investement yeild has nearly halved. My question is why on earth anyone would buy an investement property on those figures at the moment. The other question I have is will rents eventually come back up to the level they were (in relation to the property value)
Regards Adam

 

[Michael Croft]

Hi Adam,

Residential property rents mainly reflect income levels and property prices reflect loan affordability (interest rates).

Interest rates have fallen far more (proportionately) than wages have risen in the last few years hence the low yields. Of course there is a time lag and several other factors involved.

Regards, Micahel Croft