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doesn’t require a positive return, though believes capital growth
is king. Given the age of the property, maintenance issues will
arise regularly, however a good pest and building report will
enable these to be considered and budgeted prior to purchase.
This property would also be attractive to an investor who
wishes to ‘land bank’ the property for a number of years, before
renovating and either occupying or on-selling.
¿ AT ITS PRICE POINT/RANGE, WOULD YOU LOOK TO TALK TO
THE AGENT OR WALK AWAY? WHY?
SP: Walk away. While this property may be attractive to an
investor that specifically wishes to own a budget-priced
detached residential investment property within the inner city
suburb of Paddington, I wouldn’t recommend this property to
an average investor. Although a strong believer in purchasing
where capital gains are highly likely, the rental return on this
property is below what I believe is necessary to make this
property an attractive investment. The lack of a third bedroom
and car accommodation can’t be easily or economically added,
therefore limited upside exists to increase the return.
¿ NORWOOD, SA
$475,000 - $495,000
Norwood is a suburb of Adelaide,
about four kilometres east of the city
centre. It has four main sections,
divided into the north and south
by The Parade and also the east
and west by Osmond Terrace. It’s
popular for its family lifestyle, leafiness and older-style housing.
The chosen listing is a two-bedroom blue stone-fronted cottage
adjoined to another property, with off-street parking and a rear
garden. Its price range is from $475,000 to $495,000 .
Waterman & Waterman
¿ WHAT WOULD BE THE APPROXIMATE RENTAL RETURN
D W: Rentals are extremely desirable in the eastern suburbs of
Adelaide and Norwood would be one of the trendiest suburbs
around. The popularity of the suburb remains high at all times.
The rental return of this property would be around $375 to $395
per week when comparing properties currently tenanted in the
CW: $375 to $395 per week.
¿ WHAT ARE ITS PROS AS AN INVESTMENT PROPERTY?
D W: This property has three big pros that make it quite
appealing as an investment. One has already been mentioned,
the location. Norwood has great shopping, is close to the city
and is one of the best lifestyle areas in Adelaide for restaurants
and dining. Other major factors include the age of the property
and the inclusion of off-street parking. Old character stone
cottages in Adelaide are highly sought after. This property
appears to be in good condition, although renovated in the
1970s to 1980s. It has a blue stone-frontage and has been used
as a home, not a rental property. This means there are many
features such as security screens, ceiling fans etc. that make
it attractive to renters. Homes that have been built and used
as a rental property for some time lose the cosy home feel that
makes them more attractive to renters. Having off-street parking
is a big bonus. Many properties in this area don’t include this
feature and it’s well appreciated when available, although due to
the close proximity to shops and the city, a vehicle would be an
optional extra anyway.
CW: Location, location and character. A character cottage with
off-street parking, albeit a bit snug it is there, will attract the
young and students and arty-fartys looking for value in a top
suburb with a fantastic lifestyle.
¿ WHAT ARE ITS CONS AS AN INVESTMENT PROPERTY?
property, although a great benefit, can also be a problem. The
age means there’s likely to be more maintenance issues – salt
damp, plumbing, electrical and the roof can be major issues,
if not checked out prior to purchase. If you’re looking for
depreciation as part of your investment strategy this property
won’t likely benefit you greatly.
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