Just bought a property - need ideas for higher return

To increase that much you'd need to do substantial work to it, far more than just carpet and kitchen (in most circumstances). Also would agree that 7 times out of 10 a huge block is not ideal - there are the odd few that think it's amazing, but typically people see it as high maintenance.

There's a few that have commented on renting by the room/student accommodation - which is probably doable and may see the largest return, but it's also a pain in the butt and the legislation is different.

 

Your wanting to manufacture an additional $300 per week rental income for a block penciled in for development? You buy a development block for the capital gain, not for the cashflow.

That said you can bump up the rent with a small cosmetic reno but do your numbers and see if it is worthwhile.

Development permit will take say 1 year and then you will offload?
So just work out the required rental for your outlay. Cosmetic reno might cost say $2000 plus take 2 weeks so taking into account lost rent, you are down $3,000.

It would need to increase the rental income by $57 to breakeven on the investment. Put a price tag on your time and what you actually need and realistically it needs to increase rent by $100 to be a worthwhile exercise IMO.

 

Thanks for all the inputs. It looks like I would just rent it out as is, unless I can come up with something better. On the meantime, lets hope the Bayside keeps going up
Will be in touch with @Lil Skater soon

 

Are you kidding Gockie ?

Of course fullylucky is here, the caped crusader I call him due to the avatar, he is also becoming an expert on trusts and surely you know he is the go to guy for temples ?

 

Ohhh. .. ohhh yeah, the temple thread....

 

@imbi3 you have a bunch of realistic posts and ideas above, so I won't repeat, and I agree with grey ghost if renovating a future dev site the cash flow has to be recouped before demolish to be worth it, otherwise, just enjoy the tax returns and get cracking with your approvals.