Existing Residential 4 units – Purchase, renovation, strata title and hold.

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The single best way to create uplift in property is to change the use. Zoning is one way, the creation of additional dwellings is another (and my favourite, but the creation of separate titles is a close second). In this project there was an existing super solid indestructible Besser block building divided into four units but under one title. Now, this wasn’t and still isn’t a pretty project up for any design awards or ‘Insta-worthy’ images as they now say. However, a cosmetic reno and strata titling created an uplift of some $200k overnight. Why? Well, simple.

How many buyers are there for four beat-up units for $600k? The answer – very few. And how many buyers go for small, affordable two bed, one bath units within walking distance to the CBD? The answer – lots! First home buyers, owner occupiers, and investors all like the bottom end as its the most attainable. Valued at $200k each, it could have been easy to sell, but when offered for rent, these typically attract a hundred enquiries overnight. Simply put, they will never be vacant and are cash flow positive, solid and dependable. So, we are holding but the value uplift still assists the equity position and loan LVR.