Period: Sep 2017 to Current
Subject: 3% Property Management call turned this Cecil Hills property into a gold mine!
For several years, Simon had been steadily increasing his rent as per his previous agent’s advice and was earning $680 per week on his expiring lease. It had increased by an average of $20 per year (well below CPI). When we arrived at the property, we found that it hadn’t been maintained properly as a result of the simple fact that comprehensive inspections were not carried out on the property; and the tenant wasn’t the type to care.
- We helped with Granny Flat build
- We developed an exceptional marketing campaign
- We leased out the property in just 3 weeks in a slow market for a great rate
- We increased the asset value of the property by $300,000
When we arrived on site, we saw that there was so much potential for Simon’s property. We recommended that he build a granny flat in the back, and helped him seek out a quality very well priced builder. Within weeks, Simon had the approvals and built a granny flat to the specifications that we developed – to ensure we can lease it out fast! For the main dwelling, refreshed his property photos with our own professional photographer and put it up for lease.
After spending $123,000 on the granny flat, Simon got a valuation and his house value had increased by $300,000. What a perfect outcome – maybe even an opportunity to refinance and buy another positively geared investment!
- The main dwelling rental increased to $800 per week despite the fact that the backyard now had a granny flat.
- His brand new granny flat fetched an additional $475 per week.
- In total, Simon is making a solid $1275 per week, that’s almost double what he was earning!
Graph: Annual Net Returns
There is no doubt, that we have turned around Simon’s negatively geared investment into a serious positively geared investment. The graph above helps to visualise the true annual income that came about as a result of a little pro-activeness on our part. The graph takes into account maintenance spends that were required to get the property up to scratch, lease downtime and letting and marketing fees associated with the new lease. With all those expenses, it still gets your heart racing!