PROPERTY 3 - Sit & Forget

1/39 Hampshire Road, Sunshine

The Numbers

 

3 - Bedroom

2 - Bathroom

2 - Car space

 

Auction

$470,000 + 

 

Target Purchase Price

$500,000

 

Estimated Rental Return

$420/wk (potential)

 

Rental Yield (based on target price)       

4.36%

 

Outgoings

Water - TBC

Council - TBC

Strata - N/A

 

Renovation Allowance

Not required

 

Other Fee's

Professional: Approx. $1,500 + gst

Stamp Duty: $24,680

 

Milk Chocolate Fee's

• 0.9% on final sale price + gst

• 10% on total renovation costs for Project Management (if any) + GST

 

The Recommendations

 

Inspections

Building & Pest - Approx. $450 (one off) 

Strata - N/A

www.easypathinspections.com.au

 

Insurance

Full landlord insurance inc. damage, loss of rent, theft, legal and contents

- Approx. $300 p.a

canstar.com.au/landlord-insurance

 

Quantity Surveyor

Tax depreciation report -

Approx. $400 (one off)

www.washingtonbrown.com.au

 

Leasing Agent

www.mamproperty.com.au

The Details

 

About the property
A striking statement in contemporary style, this brand new low maintenance Villa provides generous proportions, quality appointments and sensational indoor-outdoor appeal. This quality 3-bedroom residence, featuring main bedroom with ensuite and walk in robe, open plan family living, a second main bathroom and sensational decked courtyard ideal for entertaining. Stylish Caesar Stone equipped kitchen, separate laundry, split system heating/cooling and surrounded by impressive landscaped gardens. Conveniently located to shopping, transport, schooling and all major amenities.​
 
What we also found out
  • Walking distance to train station 800m
  • Sunshine Primary School 250m walk
  • Brand new build
  • Part of dual lot - unit attached to the back of the property
  • For a 3 bedroom residence, it is a small living space with no yard, only a deck
  • Limited storage
  • Street traffic noise was generally louder than what you'd prefer 
  • Rental appraisal $420 week.
 
About the suburb
  • 20 minutes by car to the airport
  • Big houses on large blocks of land, wide tree lined streets
  • 30 minutes by car to Melbourne CBD (20 minutes by train)
  • Close connection to the M1 motorway
  • High buyer demand in Sunshine with Auctions seeing approx. 80-90 people in attendance
  • Developers and renovators targetting Sunshine.
 
Our thoughts
This property offers a secure investment opportunity. Being a brand new home, there is nothing more to do but collect the rent. The suburb is seeing strong growth as buyers are moving out to Sunshine from the neighbouring suburb of West Footscray and Yarraville. These suburbs have already seen strong growth and gentrification and we expect the same to happen with Sunshine. 
 
The property itself does however pose some concerns with the the floor plan and size. For a 3 bedroom house that you would expect a young family to be renting, having 1 living room and only a deck for entertaining does feel light on and could cause potential barriers for renters. However, the location and price point for a brand new home should outweigh this concern. But we feel it needs to be noted.
 
The property goes to auction on the 5th of March, so we would need to make a commitment asap to ensure we're ready to bid. We expect the property to go in the high 400's and would use your maximum budget as the max bid if we went down this path.
 
Suburb data
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Investment data
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Recent sales data
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