Over the last two months we have shared a recent journey of a client of ours who was living abroad, but eager to get into the Brisbane property market. The start of the journey was the purchase of a great home in the northside suburb of Zillmere. It was a 3 bed, 1 bath on a corner block with a great elevation and aspect.
To add some equity to the home a renovation was undertaken. We managed this renovation for our client. Whilst it was a relatively simple and straightforward renovation on the surface, the process took some twists and turns along the way, but the results have been astounding.
When we purchased this property, and started planning the renovation we knew it was going to be a great opportunity, but the result speaks for itself.
With an investment of around $50,000 we fully updated the kitchen and bathroom, removed a wall, installed built in robes, painted the property internally, tidied the yard, undertook an external wash, new window furnishings and installed a new fence.
The single biggest improvement was undoubtedly the kitchen, by removing a wall it has allowed much more natural light to flow throughout the house. There is also a new view from the kitchen to the Glasshouse Mountains, this was not visible prior. The living area now looks more modern and open, giving the home a great living and entertaining area.
Every bedroom now features built in robes, which offer occupants heaps of storage space. Coupled with a fresh coat of paint and updated window furnishings, all the rooms now feel larger and brighter than ever before.
Aside from the kitchen and living area, the yard is another area that needed attention. Our handyman ended up taking around 1.7t of green waste out of the yard, undertook an eternal house wash and installed a new fence. This really has helped transform the property and given its’ street appeal a well needed boost. It has also allowed more natural light into the home.
So, no doubt you are all thinking was it worth the investment? What are the numbers on this purchase?
Here is a quick summary on the numbers:
Purchase Price: $445,000
Total Renovation Investment: $50,000
Estimated value: $525-535,000
Equity Created: $30-40,000
Original Rental Appraisal: before renovation $380-400 Per week
Rental After Renovation: $460-480 Per week
From a gross rental yield point of view we have increased the performance of the property for our clients by more than 10% in the space of 2 month periods. As well this has created equity that can now assist in the purchase of another property, allowing him to continue and grow his portfolio.
If you would like to chat further about investing or renovating an investment property then please call us on 07 3170 3760 or Email Madi@hpsba.com.au