Renovated house delivers 10% yield and capital gain

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.

Simple improvements result in $75/week rent increase

Small improvements like new blinds can make a big difference.

Small improvements like new blinds can make a big difference.

After a lease expired at a Glenorchy house, our property managers recognised significant potential to increase the owner’s returns with some basic improvements. 

We contacted the owner, who agreed that the property should be “freshened up”. Our maintenance team then painted the interior, and installed a 4-lamp tastic in the new bathroom. New blinds were put up and new handles fitted to the kitchen cupboards. 

Within days of our team completing the small improvements our property manager had leased the home to a new tenant with a $75/week rent increase. 

We believe our ability to recognise cost-effective potential makes Rock Property unique.

Buying well and re-tenanting delivers 20% capital gain

A golden investment opportunity in central Hobart

A golden investment opportunity in central Hobart

We purchased a block of two units in Patrick St, Hobart.  We identified that just a few improvements could improve the whole look and feel of this beautiful building. It was also immediately evident to our team that the apartments had been severely under-rented given the central location and the uniqueness of the property. 

Our maintenance team re-painted the outside of the house and replaced its tired roof, while our property managers sourced new tenants at an increase of $110/week across the two units. 

After renovations, stamp duty and legals, the total investment was $440,000. The house was re-valued by the bank at $539,000. And the property still has the flexibility to be restored to a magnificent 5-bedroom inner city mansion at anytime in the future.

Oversized backyard turns an average house into a profitable mini-development

We purchased a scruffy 3-bedroom house in Mornington for one of our clients for $209,000. Before the purchase we identified that the house had a large enough back yard to permit the development of a second home. 

Within 14 months, on the excess land we had built a brand new 2-bedroom townhouse with fully landscaped gardens and a new driveway for just $205,000. This new home was sold shortly after for $285,000. 

At the same time, our renovation team worked on the existing house, installing a new kitchen, bathroom and laundry. We laid new carpets and re-painted inside and out for a total spend of $43,000. According to the bank, this increased the value of the existing house up to $255,000. 

A sensational result for a busy client and a great fun project for our team.

Chronic underperformance to positive cash-flow after a simple renovation

Our team purchased a rundown 2 bedroom house with a 1 bedroom flat in Lutana. 

The house was ‘original’ – 1950’s carpet and vintage wall paper, and was rented for $225 per week. The unit had a similar dowdy look and brought in only $150 a week. Our team transformed the house and flat in three weeks (we even added a bedroom to the house) for a cost of just over $9,000. 

Our property managers re-rented the house for a much stronger $360/week and the unit for $200/week. This resulted in our client realising a gross rental yield in excess of 9% on the total cost. And all this on a property just five minutes from Hobart’s CBD. 

Instead of feeding this investment, our client now makes over $170 per week positive cash-flow after interest costs from this property.

“The profit is in the buy price!”

A brand new kitchen - part of the complete refurbishment.

A brand new kitchen - part of the complete refurbishment.

We ran the numbers on a property just 7kms from Hobart’s CBD - and discovered that it would be a great deal, but only for the right price.  We negotiated for three months on our client’s behalf to get this deal across the line, but the time and effort was all worth it when we secured the property for almost $30,000 under the original advertised price!
Our renovation team got to work on a total internal and external overhaul of the property, costing just $40,000. Once the renovations were complete, the home felt almost ‘as new’.  
Finding tenants was easy for such a well-presented property; it was leased within a few days of the renovation being completed. 
For a total spend of just over $260,000, we delivered to our client a tenanted investment with an excellent rental yield, and substantially improved the capital value of the property. 
A great example of one of our favorite sayings: “The profit is in the buy price!”