The Little Renovator

Your

Property

 
In this section, we take a dive into the nitty-gritty of your property. We analyse the property itself, its surrounds and the numbers that matter. We also take a look at the comparable sales in the area and how they stack up against your property and everything else you haven't thought of!

The Numbers

 

3 - Bedroom

1 - Bathroom

2 - Car space

 

Total Space - 754m2

Internal Living Area - 102m2 (approx.)

 

North West facing front / South East facing back

 

Auction (22nd July)

Low 400's

 

Price

Logical Price: $410,000 - $430,000

Emotional Price: $430,000 - $450,000

Our Target Price: $420,000 - $440,000

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Estimated Rental Return

$440/wk  ($480/wk post renovation)

 

Gross Rental Yield (target price) 

5.20% / 5.67%

 

Renovation Allowance

$30,000

 

Other Fees

Professional - $2,200

MC Buyers Concierge - Paid

MC Project Concierge - 15% + GST

 

Outgoings

Rates = $209/month

Land Tax = $202/month 

 

The Figures (Cash Flow & Total Outlay)

80%LVR - Principal & Interest

80%LVR - Interest Only

90%LVR - Principal & Interest

The Recommendations

 

Insurance

• Full landlord insurance inc. damage, loss of rent, theft, legal and contents

• Home & Contents Insurance​
terrischeer.com.au

- Approx. $120/month 

 

Quantity Surveyor

Tax depreciation report (on completion of renovation)

www.bmt.com.au

- Approx. $750 (once off)

 

Leasing Agent

TBC

The Documents

 

Contract of Sale

Building & Pest

The Stats

Distance to CBD

14km by car and 11km as the crow flies

Population

Recent data from the 2011 Census suggest the population in Spence is 2,560. It was 2,596 in 2006 showing a very small decline

Medium Property Price

The medium price for 3 bedroom houses in Spence is $510,000

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Infrastructure Snapshot

 

Belconnen Town Centre
Master plan

 

  • The Belconnen Town Centre Master Plan defines what is important about the centre and will guide growth and development over the next 10 to 15 years. The master plan identifies land use, economic, social and environmental opportunities and challenges. It investigates opportunities for additional residential development and urban renewal. The master plan recommends ways to:

  • reinforce the town centre’s role as a major community and commercial hub for the Belconnen District and wider Canberra region

  • stimulate urban renewal in the town centre through changes to the Territory Plan

  • enable active and attractive destination areas that better utilise the centre’s lakeside location

  • identify opportunities for improvements the centre’s public spaces

  • improve access and amenity in the town centre through recommended improvements to the cycle and pedestrian networks, and

  • improve the town centre’s relationship and connectivity with the University of Canberra.​

 

12 Boyland Close, Spence
 

Our Thoughts

As we discussed, we generally look for properties where we can add value - either immediately or in the future. This property presents the opportunity to do both, i.e. an internal cosmetic renovation then extending out in the future to create a 4th bedroom with ensuite.

 

This is an ex-government house and the street is majority ex-government homes. Whilst this may not sound appealing, we are confident that the homes are no longer rented from the government. The property sits at the top of the cul-de-sac on the high side. The property borders Evatt which is a desirable suburb and is most literally, across the road. 

 

Features

• North orientation to living areas

• Ducted reverse cycle air conditioning (heating & cooling)

• Freshly updated bathroom with new shower screen, vanity & mirror

• The main bedroom has mirrored built-in robes

• Covered pergola & paved entertaining area

• Oversized double garage with remote & storage at rear plus multiple car spaces in the driveway

• Open floorplan


What We Recommend

They are talking low $400's for this one and very accommodating to offers pre-auction. You would need to spend $30k for a cosmetic renovation to bring this up to scratch. We believe a post-renovation valuation would be +$500k. 

 
We believe the logical price for this property is between $410,000 and $430,000. However, given the strong interest in the property and the low price point, it's not unreasonable to think it will go for more. We, therefore, recommend a max purchase price of $440,000 to secure the property.
 
We recommend completing the cosmetic renovation immediately before leasing out the property to generate a greater lease return and create instant equity. The offer would be subject to early access and a longer settlement.

 

Recommended Renovations

• Refresh and replace kitchen cupboards, sink, bench and splash

• Install new floorboards over existing cork floors

• New carpet in all bedrooms

• Paint internally throughout

• Update window furnishings throughout

• Update light switches, power points and light fittings

• Install new built-in wardrobe for one of the bedrooms

• Update laundry (functionality)

• Landscaping to the rear (if budget allowed)

• New deck built over existing rear patio

• Spray paint bricks externally

 

 
Next Steps

• Jack & Tuna to review all data and view property/location (if required)
• Have our conveyancer review the contract and provide feedback
• Both parties sign off on the contract once happy
• Prepare offer and Milk Chocolate to provide a recommendation on max. purchase price and offer terms
• All parties agree on approach
• Present offer to agent prior to auction

 
Investment Data
Click here
CoreLogic Data Report
Click here
Pro's

 

• In a quiet cul-de-sac
• Room to add value through a cosmetic renovation
• Your preferred renovation budget will cover our recommended property improvements
• Numbers stack up really well to manufacture equity through a smart cosmetic renovation
• 15-minute walk to Evatt shops
• Land value is approximately 60% of the purchase price. We prefer this to be between 60-70%.
• Well under your max budget
• Opportunity exists to purchase pre-auction
• Borders the popular suburb of Evatt

• Neighbouring suburbs recording significantly higher median house prices which illustrate there's room for this suburb to grow. 

Con's

 

• Ex-government house
• Housing in the street is mostly ex-government
• 1-2 properties in the street are not well kept with a lot of junk at the front of their property

• The suburb sits to the rear of the Belconnen region and may not be seen as desirable 'currently'.

Demographics

Housing Commission Heat Map

4% of residents rent from a state or federal housing authority in the zone where this property is located. The zone to the north represents 26% of residents rent from a state or federal housing authority. 

What's Around

Comparable Recent Sales 

Here we provide the most recent sales in the area that are no more than 1km from your property and not older than three months. We also provide a rating (superior, equal or inferior) of the comparable property against your property across three categories; market timing, location and overall. Generally speaking, if the property ranks overall inferior, then we can expect your property to be valued higher and vice versa if rated superior. Market timing refers to the strength of the market when the comparable property was purchased compared to now.

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Comparable Renovated Sales 

Here we provide the most recent sales in the area that are no more than 1km from your property and not older than three months. We also provide a rating (superior, equal or inferior) of the comparable property against your property across three categories; market timing, location and overall. Generally speaking, if the property ranks overall inferior, then we can expect your property to be valued higher and vice versa if rated superior. Market timing refers to the strength of the market when the comparable property was purchased compared to now.

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Recent Rental Comparables

Here we provide the most recent rental comparables in the area that are no more than 1km from your property and not older than three months (where possible). We also provide a rating (superior, equal or inferior) of the comparable property against your property across three categories; market timing, location and overall. Generally speaking, if the property ranks overall inferior, then we can expect your property to be valued higher and vice versa if rated superior. Market timing refers to the strength of the market when the comparable property was purchased compared to now.

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Our Videos

The streets of Spence

Walk through of property

Our Photos

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What Social Media Is Saying

* Milk Chocolate price data used on this website is sourced and relies upon information supplied by a number of external sources (including governmental authorities). This data is supplied on the basis that while Milk Chocolate believes all the information provided will be correct at the time of writing, it does not warrant its accuracy or completeness and to the full extent allowed by law excludes liability in contract, tort or otherwise, for any loss or damage sustained by you, or by any other person or body corporate arising from or in connection with the supply or use of the whole or any part of the information on this website through any cause whatsoever and limits any liability it may have to the amount paid to the external sources for the supply of such information.