The Details

 

About the property
Quietly positioned and ideally located, this home is set in a tree-lined street oozing with character it will be sure to impress that first home buyer or investor. Offering 3 large bedrooms with BIR (Master Ensuite/WIR), open living/dining areas and separate bathroom.

Tremendously located, families will definitely enjoy the gentle stroll to Buckingham Reserve and Kororoit Creek trails. Only minutes away from Public transport, Local schools, Cafes/Shopping Centers, Cinemas, Medical Centers and access to Melbourne CBD just down one road.
 
The layout was good with an open plan kitchen and living. The house was fine it just needed a good clean. Could also do with paint and new carpets, however if you were just going to rent back to Asians I wouldn’t bother. The house had an overpowering ‘Asian’ smell.
 
There was an ok courtyard, it was private and had a nice well maintained garden. There were no apparent cracks in internal or external walls
 
What we also found out
  • Rent around $420 / wk. – currently owner occupied, however the agent said it would rent easily
  • Suburb medium for 3 bedroom houses is $567,500, meaning we are buying in below the avergae medium for the area
  • Freestanding property
  • 5min by car or 23min walk to Sunshine train station, bus stop 2min walk away
  • No trams
  • No cafes that I could see, 7/11 8min by car or 36min walk
  • 7min drive or 27min walk to Sunshine Plaza 
  • A quick walk to the end of the street is a reserve and creek. It includes a great bike track that was filled with young families cycling 
  • Asian families inspecting x 2
  • The agent was also a young Asian
 
About the suburb
  • The area was very industrial
  • The street is nice and quiet with some well-kept properties and some needing attention
  • 20min by car to the airport
  • Big houses on large blocks of land, wide tree lined streets
  • 30min by car to Melbourne CBD (20min by train)
  • Close connection to the M1 motorway
  • High buyer demand in Sunshine with Auctions seeing approx. 80-90 people in attendance
  • Developers and renovators targetting Sunshine.
 
Our thoughts
The suburb is seeing strong growth as buyers are moving out to Sunshine from the neighbouring suburb of West Footscray and Yarraville. These suburbs have already seen strong growth and gentrification and we expect the same to happen with Sunshine. 
 
It's a numbers game, and the numbers with this property in particular stack up. We have purely picked this suburb to jump on the wave of capital growth. The area is Asian heavy, and that's who we think the property would be rented by. Although there is some cosmetic updates required, given the target rental market, we would suggest to not over capitalise, just get tennants in ASAP. Would be worthwhile in getting a profesional clean once the current owners move out. 
 
Suburb data
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Investment data
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Recent sales data
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The Numbers

 

3 - Bedroom

2 - Bathroom

2 - Car space

 

Private Sale

$440,000 - $470,000 

 

Target Purchase Price

$450,000

 

Estimated Rental Return

$420/wk (potential)

 

Rental Yield (based on target price)       

4.85%

 

Outgoings

Water - TBC

Council - TBC

Energy - TBC

 

Renovation Allowance

Needs some attention, but the likelihood is Asians would be renting this and the current condition wouldn't affect them. Bank the money for the time being.

 

Other Fee's

Professional: Approx. $1,500 + gst

Stamp Duty: $23,430 

 

Milk Chocolate Fee's

• 0.9% on final sale price + gst

• 10% on total renovation costs for Project Management (if any) + GST

 

The Recommendations

 

Inspections

Building & Pest - Approx. $450 (one off) 

Strata - N/A

www.easypathinspections.com.au

 

Leasing Agent

www.mamproperty.com.au

 

Other Considerations

 

Insurance

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

- Approx. $300 p.a

canstar.com.au/landlord-insurance

 

Quantity Surveyor

Tax depreciation report -

Approx. $400 (one off)

www.washingtonbrown.com.au

What Social Media is saying about Sunshine

PROPERTY 2 - Growth suburb

2A Moira Street, Sunshine