Add Some Spice
107 Petterd Street, Page
The Numbers
3 - Bedroom
1 - Bathroom
1 - Car space
Total Space - 740m2 (RZ2 zoning)
Internal Living Area - 131m2
Position - North (Front) / South (Rear)
Auction (May 13, 2017)
Low - Mid $500's
Land Value (2016)
$384,000
Pre-Auction Purchase Price
$572,000
Estimated Rental Return
$450/wk
Gross Rental Yield (target price)
4.09%
Outgoings
Rates = $2,356 p.a
Land Tax = $3,705 p.a (approx.)
Acquisition Cost (on auction max)
Bank Loan = $457,600 (80% LVR)
Deposit Required = $114,400
Stamp Duty = $17,457
TOTAL OUTLAY = $131,857
Cash Flow (per month)
Rent received = $1,950
Property Management = $171.60
Your mortgage = $1,511*
Rates & Land Tax = $505.08
Insurance = $80
BALANCE = -$317.68/month
*3.96% based on pre-approval / Interest Only
Renovation Allowance
$50,000 (full feasibility TBC)
Other Fee's
Professional = $1,800 + $300 (excl. GST)
Milk Chocolate Fee's
Purchase: $12,980 - $3,245 (already paid)
Project Management: $5,500 (inc. GST)
Total Outlay (inc. GST)
Purchase Price = $572,000
Settlement Misc. Estimate = $850
Stamp Duty = $17,457
Professional Fee's = $2,310
Renovation = $50,000
Milk Chocolate = $9,735
Milk Chocolate = $5,500
Sub-Total = $657,852
- $457,600 (bank loan)
Net Total = $200,252
The Recommendations
Inspections
Already completed
Insurance
Full landlord insurance inc. damage, loss of rent, theft, legal and contents
- Approx. $80/month
Quantity Surveyor
Tax depreciation report -
Approx. $400 (once off)
Leasing Agent
The Documents
The Details
Agents Advertising Details
Framed by mature gardens and set on a gently sloping 740m2 block, this spacious three bedroom residence offers an ideal canvas to renovate and decorate to taste and capitalise on its prized inner Belconnen location. A large formal living room is complemented by a family room and eat-in kitchen.
All bedrooms are embraced by the morning sun. From its generous living spaces through to its lush leafy backyard, here is an affordable family home where opportunity is knocking.
Features and inclusions
New family room extension
Braemar ducted gas heating
Bonaire ducted evaporative cooling
Simpson upright electric stove
Dux 160l electric hot water
Covered rear deck
Single metal garage for off-street parking
RZ2 zoning
Our Thoughts
There is room to reconfigure the internal floor plan, create an outdoor entertaining area and open up the back of the property. A granny flat is legally possible, however, it would mean reconfiguring the rear yard layout to move the current garage forward to the front of the property.
It was the 1st open that we viewed the property (Wednesday 26th), so it is hard to get a feel for the market. The agent is really opposed to making an offer prior to the auction and is willing it to go to auction on the 13th. He knows the market is ripe for a property like this, but also understands the owner would be happy with $500k! It's not a good idea to make any offers prior to auction after the 1st open, but if we did want to try, we could do so at the back end of next week (WC May 1).
We have one shot at this property, so the written offer needs to be very strong.
What We Recommend
• Provide a written offer pre-auction (signed contract), with a section 17 certificate (un-conditional) accompanied with a 5% bank cheque deposit. The offer would include conditions for a 49-day settlement and early access to start work. We recommend an offer at $572,000. If the offer is not accepted, we then recommend a counter offer of $605,000.
• Once successful, we recommend completing the following work on the property;
- Internal painting throughout
- Replace window furnishings
- Update lighting with downlights throughout
- Knock out the wall separating kitchen/dining and family room and install a new kitchen
- Knockout hallway wall in the family room to create more room to open up Bedroom 3. We believe bed 3 should be converted into the main bedroom and turn the laundry into an ensuite. Close off the current access to the current laundry. By buying some space from the hallway, we should be able to add a significant robe for the bedroom. The current deck is then only accessed by the main bedroom
- We would then recommend creating a new access point to the rear yard from the current dining room. The far right-hand window can be knocked out and a larger stacker door inserted. This would open up to a new rear deck and pergola extension. The new kitchen should run along the back wall and the current kitchen window could be converted to a french window with seating on the other side looking back in
- Spray bathroom tiles, bathtub and update vanity, fixtures and fittings
* Estimated cost of works is $50,000
• We would then recommend leasing the property (see below analysis)
• We then recommend completing the following when you are comfortable financially to do so;
- Build new granny flat and reposition car port (allowing access to granny flat (this should include taller fencing to separate the granny flat from the main residence)
* Estimated cost of works is $60,000
Investment Data
Click here
CoreLogic Property Report
Click here
Distance to CBD
10.3km by car and 8.5km as the crow flies
Population
Recent data from the 2011 Census suggest the population is 2,880. Increased by 7% over the past 5 years.
Medium Property Price
The medium price for 3 bedroom houses in Page is $514,000
Locality
The Stats
Demographic
Adding Value
Weighing It Up
• An absolute opportunity to add value through cosmetic, structural and new dwelling builds - creating equity and stronger rental yields
• The property is suitable to lease out straight away if desired
• Structurally the property is solid
• Vacant premise, early access possible
• Flexible settlement terms (30 - 90 days)
• Extremely strong rental demand
• Great access to public transport
• RZ2 zoning
• Unique floor plan that provides opportunity to remodel
• The current owners have extended at the front to create a larger living/family space which is unique for properties built in the same era
• No evidence of termite activity
Pro's
Con's
• Property goes to auction on the 13th of May, which is too late to wait
• Agent is against taking offers prior to the auction and has suggested not to do this. Although he has to show the owner all offers that are in writing, the concern is he will advise his client against it
• The position of the block on the land is in an awkward position and makes the addition of a granny flat tricky. Repositioning of the garage to the front of the property to create space for a granny flat is the only option, this could become quite expensive and cost prohibitive. It is possible, just more expensive than a block with more room to move.
• We haven't seen enough good evidence that 4th bedroom addition is an effective investment strategy given comparable sales available
• The garage has not had building approval and sits on an easement
80% LVR - Interest Only - 3.96%
Infrastructure Snapshot
Belconnen Town Centre
Master plan
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The Belconnen Town Centre Master Plan defines what is important about the centre and will guide growth and development over the next 10 to 15 years. The master plan identifies land use, economic, social and environmental opportunities and challenges. It investigates opportunities for additional residential development and urban renewal. The master plan recommends ways to:
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reinforce the town centre’s role as a major community and commercial hub for the Belconnen District and wider Canberra region
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stimulate urban renewal in the town centre through changes to the Territory Plan
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enable active and attractive destination areas that better utilise the centre’s lakeside location
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identify opportunities for improvements the centre’s public spaces
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improve access and amenity in the town centre through recommended improvements to the cycle and pedestrian networks, and
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improve the town centre’s relationship and connectivity with the University of Canberra.
Housing Commission Heat Map
9% of residents rent from a state or federal housing authority in the area. The red indicates 22% and Orange indicates 17%
Sold - Un-Renovated 3 Bedroom Homes
Sold - Renovated 3 Bedroom Homes
Video
Petterd Street leading upto #107
Our Photos
Photos were taken on the iPhone
What Social Media Is Saying
* Milk Chocolate price data used on this website is sourced and relies upon information supplied by a number of external sources (including governmental authorities). This data is supplied on the basis that while Milk Chocolate believes all the information provided will be correct at the time of writing, it does not warrant its accuracy or completeness and to the full extent allowed by law excludes liability in contract, tort or otherwise, for any loss or damage sustained by you, or by any other person or body corporate arising from or in connection with the supply or use of the whole or any part of the information on this website through any cause whatsoever and limits any liability it may have to the amount paid to the external sources for the supply of such information.