Case study No.1
Location: Dapto | Strategy:-
buy, renovate, add granny flat dwelling and sell strategy
This free standing 3 bedroom older cottage on a 600m2 plus block located close to CBD and train station in Dapto was purchased for $275,000. The home was given a facelift and a 2nd dwelling was added at rear. New driveway and landscaping was completed and both dwellings rented out.
They were sold recently (late 2013) for a combined total of $690,000.
Sale Price: $690,000 (two dwellings)
Rental returns – $800 per week (combined both dwellings)
Rental yield: 6% on sale price
Rental yield: 9% on cost price