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Deals and Don’ts – Morley, Edgewater, Spearwood

Wednesday, 5th Apr 2017

Here we take a look at just some of the different properties on the market and explain why they’re either deals (that represent a good investment) or don’ts (that should be carefully avoided by investors).

Deals

Morley

Purchase price: $520,000
Purchase date: January 2017
Block size: 359sqm
Specification: 3 bedroom, 2 bathroom duplex built in 2012, zoned R20/25.

Deal: This property represents a deal as it offers a high specification finish and strong cash flow with a 4.23% rental yield. The duplex is just 9 kilometres from the CBD and has a good 359sqm land holding for a relatively new asset.

Edgewater

Purchase price: $480,000
Purchase date: January 2017
Block size: 723sqm
Specification: 4 bedroom, 2 bathroom house built in 1982, zoned R20/40.

Deal: This property represents a deal given its strong development potential, being zoned R20/40 and situated on a corner block, which would allow for an enhanced development design. The dwelling is also in a highly rentable condition with 4 bedrooms and multiple bathrooms suited to families, and delivering an estimated rental yield of 4.55%.

Spearwood

Purchase price: $478,000
Purchase date: January 2017
Block size: 693sqm
Specification: 3 bedroom, 1 bathroom house built in 1972, zoned R30/40.

Deal: This property represents a deal given its location opposite a park and high development potential, being zoned R30/40. While the fitout is basic the property would offer estimated rental yields of 3.21% and represents a good land holding.

Don’ts

Wembley

For sale price: $240,000
Specification: 2 bedroom, 1 bathroom apartment

Don’t: This property doesn’t represent a good investment because it is located on a busy road in a large 126-unit complex. The complex is dated and poorly presented with little chance of revitalisation due to the strata-ownership style. State housing is prevalent in the area due to the affordable nature of the property types surrounding. Currently 5 properties are for sale in the complex, showing continual supply being added. The property was on the market for sale for 151 days in 2016, and has been re-marketed in 2017 being on the market for over 60 days without sale.