Listing Number:  2616
Posting Date:  03 June 2015

Site Area:150 m2
Address: Login
Building Area:506 m2
Property Image


Situated 5 blocks back from the centre of town is this 1920’s renovated bungalow that can potentially return 15.9% gross yield (yes you did read that right!!)
The 5 bedroom furnished property is currently operated as a rent by room and at full capacity is returning $730 per week.

The tenants enjoy a beautifully decorated warm home and have mod cons such as Wifi as part of their rent, along with having power and utilities taken care of. The property also boasts a lovely free standing fire that was installed in 2006 so will be legal for another 15 years under the current council bylaw.

The house was renovated over a period of three years when the vendors lived in one room and rented out the others. I can honestly say this has been done with amazing taste and they have paid attention to detail when doing so.

A new roof has been added and the exterior repainted along with enhancing the garden with a beautiful outdoor area complete with a brazier area.

Being a rent by room, each tenant has a lock on their door for privacy and security.

It is also important in this situation to ensure that you have a reliable property manager to choose the right people to be lucky enough to live in this lovely property.
I am able to recommend a company that will “treat your home like their own” to ensure that this property runs as smoothly as possible. There is also a very special offer of 9% management fee on offer from this particular management company.

A couple of the current tenants have been living here for about 2 years, and have indicated they have no intention to leave!

The suburb of Appleby is within 5 minutes’ walk to the CDB, 10 minutes to Pak n Save and 10 minutes to Southern Institute of Learning (SIT) which offers a “Zero Fees” Scheme.

There is an extensive list of chattels including beds, furniture and even the pots and pans. This can be supplied on request.

Figures look like this:
Purchase price $238,500 (incl finder’s fee)
Rates $1514 pa
Property manager $3929 (super dupa special deal of 9% - Property managers can charge upwards of 15% to manage a rent by room)
Misc $3720 pa (power, broadband, firewood etc.)
Insurance estimate $1500 pa

Gross Yield 15.9%

Net Yield 11.4%

If you can get an interest only rate of 6% (you should be able to do better tn this) then this would mean a positive cash flow of around $13,000 pre tax per annum

Current registered valuation and builders report available to prospective buyers.