Leichhardt
Large cold shell, converted into three tenancies for maximum return with strong annual rent increases. An asset to be held forever
- Purchase price
- $600,000
- Valuation uplift
- +$700k
- Gross yield
- 12%
- Income
- $70,000 P/A
Client was looking for a long term investment property to hold and keep forever. Our client was looking for something with growth, strong rental ability in an affluent suburb in Sydney.
- 01
Identified an opportunity
The vendor was unable to identify the ability to create additional tenancies within the space. We knew we could split the space into three to maximise returns.
- 02
Property sat for long periods
Selling vendor wanted above market money at the time for a cold shell with no tenant, with our ability to lease property we had no concerns taking the 'risk'
- 03
About $4,000 per sqm
We bought for under market value when neighbouring properties were purchased for $10,000 - $15,000 per sqm
- Building area
- 140sqm
- Tenant
- Multi-Tenancy
- Lease term
- 5x5
- Reviews
- 3%+GST
- Car parking
- 1 Car Space
- Independent valuation
- $1.3M
- Step 1Offer submitted and accepted to selling agent
- Step 2Took possession under a lease in order to commence our fit out
- Step 3Fit out completed and placed on the market for lease
- Step 4All spaces leased within 60 days and near settlement - happy client!
Contracted income to 2035 with CPI+1% reviews; independently valued at $2.68M within the first year.