95 & 95A Westbury St, Balaclava
84 Kernot St
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.
4 - Bedroom
3 - Bathroom
3 - Car space
Total Space - 335m2
Internal - 213m2
Year Built - 2010
Position - East (Front) / West (Rear)
Auction (will accept offers prior)
Agent Asking Price
$1,100,000 - $1,150,000
Milk Chocolate Valuation
Logical Price: $1,000,000 - $1,125,000
Emotional Price: $1,125,000 - $1,200,000
Current - $555/wk
Our Appraisal - $650/wk
This property is a 4 bedroom townhouse which was built in 2010. The property is located on Kernot St which is approximately 1.8km from Spotswood Train Station.
As you are aware, we have not yet viewed this property, so this is purely a review based on the numbers and how they stack up for you. The agent has advised that the property is currently leased at $555/wk. The tenants are now on a month-to-month lease and have been in the property for three years. They have indicated that they would love to stay on. We believe the rent they are currently paying is below market value. We have appraised the rental to be $650/wk. However, a $95/wk increase may mean the current tenants move on. If you were to buy this property, you may need to find a happy medium based on what numbers best work for you.
We would recommend a building and pest report. Given the property is only 7 years old, we like to ensure that the quality of build is above standard to ensure that there are no nasty surprises down the track. We essentially want to eradicate any build concerns from a sub-par builder/developer.
Interestingly, it's also important to note in our comparable sales below, that 54 Kernot St (4-bed townhouse built in 2016) sold for $915,000. That property was of similar spec to 84 Kernot, however, built 6 years after #84. Although, there are other comps that we feel support the agent's price range, it should be noted that this could have an effect on your resale if it was in the short-term for any reason. It most likely will not, but it's something for consideration nonetheless.
Our initial conversations with you indicated that we prefer to buy property where you can add value and manufacture equity. This could be through a basic cosmetic renovation, an extension which adds bedrooms and/or sub-divisions. This is especially relevant in a market where you are buying at the peak. Manufacturing your own equity in a market that is slowing/will slow, helps combat any negative/flat organic capital growth. Ultimately, it allows you to create that equity to keep purchasing and growing your portfolio.
Unless there is a specific reason to purchase a property that is essentially a set and forget, we prefer other options presented.
CoreLogic Property Report
4 Bed Townhouse Comparable Sales
* 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.