PROPERTY 3 - Sit & forget

1/94, Primrose Street, Essendon

The Numbers

 

2 - Bedroom

1 - Bathroom

1 - Car space

 

Auction

$360,000 + 

 

Target Purchase Price

$370,000

 

Estimated Rental Return

$360 - $390/wk (potential)

 

Rental Yield (based on target price)       

5.05 - 5.48%

 

Outgoings

Water & Strata - $1,600 p.a

 

Renovation Allowance

Not required

 

Other Fee's

Professional: Approx. $1,500 + gst

Stamp Duty: $18,434

 

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

 

Leasing Agent

www.mamproperty.com.au

 

Other Considerations

 

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

The Details

 

About the property
Exceptional attention to detail enhances outstanding contemporary style in this impressively renovated home. Just move on in, put your feet up and relax. Located in the heart of Essendon and a short walk to public transport, cafes and bars. 
- Two double bedrooms both with BIRs 
- Recently renovated kitchen featuring stainless steel appliances and induction cook top 
- Renovated bathroom with shower over bath and separate laundry 
- Heating/cooling & off street parking
 
This apartment was really well presented, it had been freshly painted, new carpet and new floorboards, was styled for sale. Both the kitchen and bathroom were also very well presented. All of the rooms were of good proportion. This apartment didn’t have a balcony, although it was ground floor with lots of natural light. It also felt private. 
 
All of the common property had just been repainted – this included the outside brick, and internal staircase. The building looks nice; the gardens have also been updated. The only thing left to do is the external windows. The agent said the building is mostly owner occupied so there is a big push from the strata to keep it well maintained. The apartment had an external laundry, shared with one other unit next to the front door, you can hear the washing machine but would be no different to your own.
 
What we also found out
  • Above 360k is the expectation at auction; the vendor is motivated and looking to sell before auction 
  • Rent is $360 - $390/wk. and the agent believes it should rent quickly. The vendor would be fine to have rental openings before settlement
  • Suburb medium price for 2 bedroom units is $493,000, showing we are buying into the market substantially below the medium
  • 8 units in the block
  • 6min walk to Pascovale train station 
  • 8km and 16min drive to Melbourne CBD
  • 5min walk to tram
  • 7min drive to Mooney Ponds shopping centre or 22min walk
  • 5min walk to cafes
  • Other people viewing the property were Aussie young professional couples
 
About the suburb
  • The area was great, loads of shops, close to transport, was a great place 
  • Quiet street, really nice homes
 
Our thoughts
This is a secure investment property at the lower end of your budget. Although it's listed to goto auction on the 2nd of April, we believe a strong bid prior to auction will get it across the line. We enjoyed viewing this property as it was beautifuly presented and well maintained. The area is certainly growing and the average medium price for a 2 bedroom apartment in Essendon is $493,000 so you're buying well under the average which puts you in good stead for future capital growth. 
 
Suburb data
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Investment data
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Recent sales data
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