Investment Services Manager, Matthew helps owner renovating to rent Wallsend property.
In 2010, Joshua* purchased a three-bedroom, two-bathroom house in the thriving suburb of Wallsend, drawn by its family-friendly atmosphere, affordability, and proximity to Newcastle’s expanding infrastructure.
With a strong demand for well-maintained rental homes in the area, Joshua quickly found success renting out the property through Leah Jay, maintaining occupancy for over a decade. However, after the last tenant vacated, Joshua recognised the need for a significant renovation to enhance the property’s appeal and increase its rental income.
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The Challenge
Having leased the property to long-term tenants at a stable rate of $520 per week, Joshua had no immediate urge to renovate. Nevertheless, the departure of the last tenants highlighted the property’s outdated condition. As a proactive multi-property owner, Joshua sought the expertise of Matthew Snedden, Leah Jay’s Investment Services Manager, who specialises in renovations and project management, to conduct a Property Health Check.
This assessment provided Joshua with various avenues to enhance his investment, along with a detailed renovation plan aimed at modernising the home while ensuring each upgrade added tangible value.
The Solution
The renovation plan included aesthetic and functional upgrades designed to elevate the property’s long-term value. Key improvements consisted of:
- Addition of two modern bathrooms, with one strategically relocated for better functionality
- Installation of a brand-new kitchen that maximises space and efficiency
- Creation of a European-style laundry to enhance utility
- Replacement of flooring throughout for a fresh, contemporary look
- Complete electrical and lighting upgrades to ensure safety and compliance
- Fresh paint was applied throughout both the interior and exterior
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The Result
The renovation, costing $168,500, proved to be a strategic investment, yielding a solid return on investment (ROI) of approximately 5%. The rental price surged from $520 per week to an impressive $690 per week, and the property was leased after being on the market for four days. This spike in interest showcased the high demand for quality rental properties in Wallsend.
In addition to the completed upgrades, Joshua is planning to add parking to the property, which could potentially increase its value by an extra $100,000, further enhancing its market appeal and future profitability.
Joshua successfully increased his rental income thanks to the thoughtful renovations and Matthew’s comprehensive Property Health Check. He positioned his property as a highly sought-after rental option in the Wallsend market. This strategic investment has ensured the property remains competitive and well-poised for long-term growth.
Need property advice?
If you’re interested in exploring your property’s potential or would like to learn more about a Property Health Check, contact our Investment Services team today.
