…Rental returns above 5% in Melbourne?…

One of our most recent adventures spanned for a few months and it was indeed a very special brief. We had the opportunity to work with a wonderful lady who’s home-finder purchase criteria was to identify a light, well renovated, two bedroom villa unit in Melbourne’s west or north-west with not only an outdoor courtyard on title, but a spacious dining/kitchen area for her own love of cooking. The challenge was the budget – $320,000.

Was it possible?
Of course.

Would it be easy?
Not at all. She knew that we’d all have to turn over every stone before we’d find the gem.

And that we did.

From Footscray to Altona, Sunshine to Albion, and everything in between, we canvassed areas where train stations were within walking distance, and streets featured a strong blend of houses (as opposed to just units).

One day during her afternoon off, we got an excited report of one which made the shortlist – a front renovated villa in a neat block of four in Melbourne’s Sushine West. We wasted no time booking in an inspection to cross-check our buyer’s enthusiasm.

Not only did this property offer a fabulously renovated, well lit living space and entertainer’s kitchen, but the bedrooms were both well sized and the floor plan was ideal. The best element however was the private secure courtyard and decked area. This property had it all to match our buyer’s checklist. And it offered not one car space but two. We immediately felt that we’d found our winner.

The tenant was paying a month to month lease of $335pw and the asking price after a series of reductions was $330,000. How could this be, in a metro city where villa unit yields are ordinarily in the mid four percent vicinity in the west?

The answer was simple but no other buyers had tackled it with pragmatism.

The tenant had cooked spicy, aromatic food in the unit and the scent was almost intoxicating. Buyer interest had been adversely affected and many buyers had obviously decided that they couldn’t accept the smell.

This was unfortunate for the vendor, and unfortunate for those buyers who could have applied the same pragmatism as our buyer. A thorough clean and some airing and deodorising will make a significant difference and in time she will be able to reflect on the value she achieved… just by remaining pragmatic.

We secured the property on a 70 day settlement for $320,000. A wonderful win for our delighted buyer.

Wishing her happiness, great entertaining and many happy new memories in her unit.

 – photos sourced from REA and Jas Stephens