http://www.brockharcourts.com.au/Property/View/SHB841/St-Marys-1-The-Crescent
I have nothing to do with this property personally, just thought I would share the details as it's possibly one of the better deals I have seen around lately. Equivalent properties were selling in early/mid 2008 for $330-350k (as per sales history I have at hand).
I attended the auction for the property last Saturday (just out of interest as recently sold in the same suburb). Bidding started at $250k and rose to $305k before stalling. Vendor engaged on the phone by agent, agent speaks with bidders, I overhear that the vendor is looking for $330k. No further bids (e.g. passed in at $305k). Now advertised for sale @ $335k.
Here's some details, the property is currently listed as 3 bedrooms, you have to read the fine print in the article to note that it has a granny flat, in my opinion they should have listed as 4 bedroom to catch attention of those looking for this type of property. The granny flat is built in under the roof of the house, but access only from a door to the back of the house. There are some large cracks in some of the walls (e.g. not just hairline fractures), so I suspect structural check worthwhile. So long as it passed building inspection then I would think $15k spent on a cosmetic reno would bring this up to standards (interior a bit daggy) making it appeal to students. Further to this the lounge could probably be split off into a 5th bedroom quite easily (has separate dining for a common area which you could probably use as small lounge, 4x3.6m). Flinders University is barely a couple of kilometres down the road and for those not familiar with St Marys it is only around 10km from Adelaide CBD.
From experience it would not be hard to find student tenants to fill these rooms if you were keen to self manage and rent them individually and I suspect following $15k reno you could rent for:
3 x bedrooms = $300 ($100 each)
1 x converted lounge = $110 (larger than bedrooms, 4.8x3.9)
1 x granny flat = $130
So say if you managed to purchase for $325k, $15k reno, $340k outlay (+ other costs obviously depending on your situation). $540pw rent would give you $28,080 or around 8.25% yield, even if you went conservatively and said 1 room always empty and only 4 rented at a time, ($540x.8) still 6.6% yield.
Negatives:
- Property is outdated and cracks do subtract from interior, however as mentioned building check and reno would counter these issues.
- Too close to south road for my liking (however this is probably a + for students studying nearby)
Anyway, if you've read any of my recent posts you would note I am not particularly bullish on housing for the next few years, but this is perhaps a deal that could work without capital growth for the right investor.
P.S. If someone from here buys it, tell the agent he owes me a cut
I have nothing to do with this property personally, just thought I would share the details as it's possibly one of the better deals I have seen around lately. Equivalent properties were selling in early/mid 2008 for $330-350k (as per sales history I have at hand).
I attended the auction for the property last Saturday (just out of interest as recently sold in the same suburb). Bidding started at $250k and rose to $305k before stalling. Vendor engaged on the phone by agent, agent speaks with bidders, I overhear that the vendor is looking for $330k. No further bids (e.g. passed in at $305k). Now advertised for sale @ $335k.
Here's some details, the property is currently listed as 3 bedrooms, you have to read the fine print in the article to note that it has a granny flat, in my opinion they should have listed as 4 bedroom to catch attention of those looking for this type of property. The granny flat is built in under the roof of the house, but access only from a door to the back of the house. There are some large cracks in some of the walls (e.g. not just hairline fractures), so I suspect structural check worthwhile. So long as it passed building inspection then I would think $15k spent on a cosmetic reno would bring this up to standards (interior a bit daggy) making it appeal to students. Further to this the lounge could probably be split off into a 5th bedroom quite easily (has separate dining for a common area which you could probably use as small lounge, 4x3.6m). Flinders University is barely a couple of kilometres down the road and for those not familiar with St Marys it is only around 10km from Adelaide CBD.
From experience it would not be hard to find student tenants to fill these rooms if you were keen to self manage and rent them individually and I suspect following $15k reno you could rent for:
3 x bedrooms = $300 ($100 each)
1 x converted lounge = $110 (larger than bedrooms, 4.8x3.9)
1 x granny flat = $130
So say if you managed to purchase for $325k, $15k reno, $340k outlay (+ other costs obviously depending on your situation). $540pw rent would give you $28,080 or around 8.25% yield, even if you went conservatively and said 1 room always empty and only 4 rented at a time, ($540x.8) still 6.6% yield.
Negatives:
- Property is outdated and cracks do subtract from interior, however as mentioned building check and reno would counter these issues.
- Too close to south road for my liking (however this is probably a + for students studying nearby)
Anyway, if you've read any of my recent posts you would note I am not particularly bullish on housing for the next few years, but this is perhaps a deal that could work without capital growth for the right investor.
P.S. If someone from here buys it, tell the agent he owes me a cut
