36 LETTERS ST, EVATT

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

1 - Car space

 

Total Space - 839m2

Internal Living Area - 116m2 (approx.)

Lease Term Remaining: 55yrs

 

Front: West

Back: East​ (living area)

 

Private Treaty

Offers over $500k

 

Price

Logical Price: $505,000 - $515,000

Emotional Price: $515,000 - $520,000

Our Target Price: $515,000

Purchased 

2nd August 2017 for $503,000

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Estimated Rental Return

$470/wk  ($520/wk post renovation)

Rented 

$520/week 

 

Gross Rental Yield 

5.34%

 

Renovation Allowance

$30,000 - $45,000 

 

Other Fees

Professional - $2,200

MC Buyers Concierge - Paid

MC Project Concierge - 15% + GST

Outgoings

Rates = $136.91/month

Land Tax = $174.41/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

12.5km (18 mins) by car and 9.6km as the crow flies

Population

Recent data from the 2016 Census suggest the population in Evatt has remained steady since 2006

Medium Property Price

The medium price for houses in Evatt is $563,000

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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.

 

 

Other:

Suburb Releases 
Land releases 

 

36 Letters St, Evatt
 

Our Thoughts

 

We got really excited by this place, it’s prime for a reno. The front of the house is on the park (see video) and the back is accessed by a battle-axe driveway (see video), everyone entered via the back. The street is nice, there are some ‘govie’ looking places, lounges out the front etc, but some really nice homes as well. The backyard is lacking some privacy (see video), however, this is an easy fix with some taller trees/plants planted to create a privacy layer. There were about 10 groups through at the open with a good mix of young professionals in their mid 30’s, father and son looking to renovate, husband and wife couples and about 3 x Chinese groups. 

 

We like this property because it presents amazing opportunities to add value initially through a cosmetic renovation. Secondly, the block is very large and presents options for a separate dwelling (granny flat) and 4th bedroom with ensuite extension to the existing property. 

 

The property was initially on the market at $515k +. They did have an offer at $515k which fell through as the purchaser's finances fell through. They have since reduced the price to $500k + and it's our belief there's another offer on the table between $500k - $515k. We understand that the vendor is very motivated to sell. This is his investment property and he is using the sale to fund a business in Sydney! Discussions with the agent indicate he needs to move this ASAP.


What We Recommend

We essentially have a really small window to get this property. Our understanding is there's another offer and given the vendor's willingness to move this on, he has basically granted us the last chance to view and present an offer by Thursday.

 

Once Richie has viewed the property for the second time and spoken with the agent, he will present a recommendation on Wednesday afternoon (26th) on how to proceed. To secure the property, an offer will need to be made in writing no later than Thursday (27th).

 
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 (unsure if this would be possible given the vendor's intention to move on asap).
 
 
Next Steps

• Jack & Tuna to review the property page (Wed)
• Have our conveyancer review the contract and provide feedback (Wed)
• Richie to complete our 2nd inspection (Wed)
• Prepare offer and Milk Chocolate to provide a recommendation on max. purchase price and offer terms (Wed)
• All parties agree on approach (Thur)
• Present offer to agent (Thurs)

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

 

• In the desirable suburb of Evatt

• Great entry level purchase price at the lower end of your budget

• Ability to add value in three stages (Cosmetic, 4th bed extension and granny flat)

• Large flat block of land

• Backs onto the park with a playground so great for young families

• Prices in Evatt for renovated 3 bedroom homes would now achieve somewhere in the high 500's, so there's potential

• We value next door (#38) at $650k and it is of similar size and 3 bedrooms. A smart renovation that changes the street appeal of this property will see significant capital growth

Con's

 

• This property does not have street frontage as it backs onto the park. Access is down a driveway to the side of #38 

• It is the ugly duckling that people are somewhat confused by (this, however, present an amazing opportunity to turn it around with a really clever renovation)

• May require more than $30k to renovate, however, if this is a deal breaker we could look at alternate options to minimise the output

• There is no privacy between the house and the park (would recommend a new fence here)

• No garage or carport - however, there is off-street parking, just not covered

Demographics

Housing Commission Heat Map

6% of residents rent from a state or federal housing authority in Evatt. The neighbouring suburbs of Spence (11%), Melba (7%) and Mckellor (8%) all have a higher proportion than Evatt.

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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* 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.