Back in 2013 we purchased this great original condition 3 bed 1 bathroom home in up and coming Nundah.
Today, Nundah is a thriving market with strong demand, Restaurants, Cafes and Bars have popped up in the suburb, as well as its proximity to the Brisbane Airport all add up to a winning combination.
Scope of Renovation in short; New kitchen and wall removal, main bathroom turned into an ensuite to master bedroom, reconfigure laundry to new main bathroom, Internal Paint, Window Furnishings, Lighting update.
So here are the numbers;
Total Renovation Cost: ~$80,000Rental Return BEFORE: $380-400 Per week
Rental Return AFTER: $530 Per week which on purchase price + renovation cost is a 5% yield
Rental uplift of around $130- $150 Per week thats around 8.45% ROI on the renovation spend. Not to mention the Tax depreciation that is now available.
Purchase Price: $468,000
Value After: Early $700’s ( $725,000 estimated in todays market)
Increase in value, when looking at the purchase plus renovation and the current market price point the property has enjoyed a strong growth rate of around 5.7% P/A.
Specifically, the $80,000 renovation appears to yield around $1.3 uplift in value for every dollar spent. providing a strong uplift in both equity and also rental return.
the long term strategy for this investment property is now to set and forget. having undertaken this renovation the property not meets the demographics in the Nundah area perfectly and is set to benefit from strong growth in the future.