Renovation 7.66%+ Gross Yield, 50%+ ROI on Cash Invested
🏡🥰 YAYY...PURCHASE #35 by Easy Buyer's Agent. This time it's for myself and a Joint-Venture money-partner who will be participating in the renovation of this property. Original asking: $149,000. Purchase price: $135,000. We will be spending up to $50,000 on renovation of this property, which after that, the property will be rentable for $280+/week (conservative 7.5%+ gross yield). Similar renovated properties have sold for at least $220,000. This should give us around 57% ROI on the invested cash. Read on.
🏡 BRIEF:
Me and the JV money-partner will be primarily holding onto this property for positive gearing. This is my 11th investment property. Knowing that there is a potential 57% ROI on the invested capital is an icing on the cake.
🏡 PROPERTY STORY:
This property has surprisingly been on the market for some time. When we spotted this property for the first time we knew it's an excellent deal. Yes, the property is not sitting on a huge block of land. Rather, it is sitting on a survey-strata subdivided land with around 220sqm in size.
Nonetheless, the property is 3x1 with potential 4th bedroom/study. It already has high ceiling. Once it's cleaned up and renovated, it should be very beautiful. It is located in a suburb with 0.5% vacancy rate and 13km from Perth CBD. Most importantly, according to REIWA the suburb has shown 1.2% growth over the past year with median price of $300k.
Do your maths...$135k purchase in a suburb with median price of $300k is a $165k potential gap for profit. Yes, median price is definitely misleading. After all, you don't know what kind of property that sits in that "median" price. It can very well be a 4x2. Nonetheless, with that much gap for profit, I can easily target early $200s and still make decent return on the invested cash. In my opinion, after my analysis, this purchase shall show profit, just like the meth house I purchased. If you have not seen the video, visit https://www.youtube.com/watch?v=MLaL_V7qhBs.
A 3x1 in this suburb is easily rented for $280/week (very conservative). Let's say, after all renovation and purchase costs, the property ends up being $190k in price, at $280/week rent it is returning 7.66% gross yield positive gearing. Either for buy-hold or buy-flip, in my view this property has the potential.
Stay tuned, I'll keep you updated with the progress! Other than that, if you are looking to buy property in WA, or are keen on doing JV with us (maybe you are in the position where you are very short of time to do all the property research, and yet, have spare money to invest), do let us know. I'm a property investor myself so be at peace that you are in good hands.
Until the next purchase. Peace.
