Both dwellings are significantly under rented at $49,400 p.a, with scope to increase to market level closer to $60,000 p.a (rental appraisals available). This move alone would generate a gross yield of up to 5.2% and over $16,000 p.a positive cashflow at today's interest rates. There is further potential to increase returns through cosmetic renovation, although this is not immediately necessary.
The upper four bedroom, 1970’s home has two bedrooms, bath and living upstairs, while two large downstairs rooms with a shared bathroom and laundry compliment the dwelling. Relocated in 1993, the rear 3 bedroom home has a large covered deck area looking out over the Kaimais.
Here’s the twist - our vendor was granted consent to subdivide, subject to conditions, back in 2012 (scheme plan available) but elected to bank the additional cash flow for the interim. The choice is yours, develop what is on offer now, or land bank for the future and enjoy the split risk double income the two homes provide.
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