Potential ROI of Cooks Hill Home Revealed Through Renovations
John and Alice* purchased a three-bedroom, two-bathroom property in Cooks Hill in 2012 as a home for their son studying at The University of Newcastle. Given the booming market, buying made more financial sense than renting. Shortly after, John and Alice engaged Leah Jay to manage their property, establishing a long-term client relationship that has lasted over 12 years.
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The Challenge
Cooks Hill’s appeal lies in its proximity to Newcastle’s beaches, cafes, and cultural hubs, making it attractive to tenants and a prime example of the benefits of investing in a high-demand inner-city suburb. The combination of location and a well-maintained property is crucial for maximising return on investment (ROI) for John and Alice.
Although the property had been maintained over the years, it had yet to undergo significant renovation, which limited its potential. John and Alice took a proactive approach, eager to explore the benefits of a renovation plan recommended by Leah Jay, and so we have ROI revealed through renovations.
The Solution
In collaboration with Investment Services Manager Matthew Snedden, John and Alice actively participated in the renovation process. Their openness to Matthew’s vision allowed for enhancements that would attract tenants and increase the property’s long-term value. Key renovations included:
- A new, relocated kitchen
- A new bathroom with a skylight
- Installation of new windows
- Interior and exterior painting
- Sanded and polished floorboards
- New lighting and electric fans in each room
- Built-in wardrobe in the bedroom
- New outdoor steps and retaining walls
- Updated security and fly screens
- Replacement of doors and addition of awnings
These renovations improved aesthetics and addressed long-term maintenance concerns, ensuring tenant satisfaction and future leasing opportunities.
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The Result
The renovations were transformative. Before the updates, the property was valued at approximately $1.7 to $1.8 million. After a renovation investment of circa $150,000 – $165,000 (around 6.3% of its initial value), the property’s value increased to about $2.1 to $2.2 million. Additionally, the weekly rental income surged from $750 to $950, reflecting a significant uplift in rental yield.
John and Alice’s proactive involvement and Matthew’s expert guidance led to increased rental income and impressive capital growth. By future-proofing the property, they have strategically positioned themselves to benefit from the Cooks Hill market for years to come.
Key Takeaways
- John and Alice's Cooks Hill property, managed by Leah Jay for over 12 years, underwent significant renovations to maximise its (ROI).
- John and Alice invested After a renovation investment of circa $150,000 - $165,000 (around 6.3% of its initial value) key renovations.
- The renovations increased its value from $1.7-$1.8 million to $2.1-$2.2 million and boosted weekly rental income from $750 to $950.
- The result was significant capital growth and increased rental yield, strategically positioning the property to benefit from the Cooks Hill market for years to come.
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