High Growth Zone Investment

This flat, rectangular 750m2+ block has a ROW and is located in a pocket identified for medium-density development.

It sits within a highly affluent suburb with a significant activity centre, hospital and education precinct, and top primary and secondary schools. There is precedent all around for triple story townhouse projects that meet the demand from local renters and buyers.

The existing dwelling is tired, and requires some modest non-structural updates to pass rentability standards (e.g. new electrical box, tested appliances, etc). These could form part of a conditional offer.

It has been on our radar for a couple months. Project profitability for 5-7 townhouses isn’t quite strong enough for our builder/developer clients. But the potential for long-term capital appreciation is massive. And, now that the vendors have modified their low $2m expectations, there is a good deal to be had.

This property is best suited to a high income individual who will benefit from the negative gearing tax benefits, and who is motivated by long-term asset appreciation. Wait 3/7/15 years to develop for long-term retention and further depreciation tax benefits.