Renovated house delivers 10% yield and capital gains

Our Rock Property Showroom, with some samples of the kitchen that we can install in your property

Our Rock Property Showroom, with some samples of the kitchen that we can install in your property

We found a property in a disastrous state in Hobart’s northern suburbs and helped a client purchase it for under $90,000. 

The property had no floor coverings, broken windows, half a kitchen and knee high grass in the yard – the sort of complete mess our team loves. Within 5 weeks, we had patched the walls, installed a new kitchen, repainted with modern colours, laid new carpets, and cleared and landscaped the yard. 

To save time and money while this was going on, our property managers were already screening tenants. Just days before the renovation was complete we leased the home to a family at $235/week. The total cost to the owner was $122,000, representing a 10% gross rental yield on cost. 

We then asked the bank to revalue the property, which they did at $170,000, enabling the owner to refinance and move onto their next Rock Property purchase.