EXAMPLE
MILK BAR PAGE

ANNUAL RENT RECEIVED
TOTAL DEBT
ANNUAL OUTGOINGS
GROSS POSITION
ANNUAL (DEBT)/SURPLUS
AVAILABLE EQUITY @ 80% LVR
$2,332,000
MAX. NEXT PURCHASE
NEXT PURCHASE RECOMMENDATION

Your

Portfolio

PORTFOLIO VALUE

Your

Properties

Here we detail your individual properties and the stats that matter. We have also provided recommended renovations to your properties and the numbers post renovations.

Murarrie, QLD

123 Ives Street

61 Months

Ownership Period

$496,000

Equity @ 80% 

$620,000

Current Value

Recommended

Renovations

STRUCTURAL

20 - 24 weeks

The property occupies a small portion of the large 609m2 block. The key aspect of the location is the district/mountain views from the rear. Plans need to be drawn to consider that the rear of the property is facing south, which means minimal direct sun to the entertaining zones of the property. This is not a deal breaker, however, it will require some creative thinking as to the orientation and location of key inclusions such as a pool, rear deck / entertaining zone and living spaces. With all structural renovation, it is key to ensure you maximise the bedrooms on the plot, and considering the property is currently a 3 bedroom home, it would be worthwhile creating an additional two bedrooms which one can be used as a study. Secondary large living zones are also key, with the inclusions of a new kitchen and bathrooms a must. 

Budget:

$300K - $400K + PM fee

$950K - $1.05M

Post Reno Valuation

$800 - $850/wk

Post Reno Rent

$800,000 

Equity @ 80% LVR

COSMETIC

3 - 4 weeks

This option would entail maintaining the structural integrity and bones of the dwelling, however, cosmetically improving the house inside and out. The time and budget allocated to this should be considered and take into account a larger renovation in the future. This option is only recommended if the structural renovation is not a consideration of the owners for more than 5 years. The details below, take into consideration that it's a short-term update to increase the rental yield and attract a stronger tenant whilst you are still overseas.   

Budget

$30k + PM fee

$680K

Post Reno Valuation

$500 - $530/wk

Post Reno Rent

$544,000

Equity @ 80% LVR

Palm Beach, QLD

236 Jefferson Lane

25 Months

Ownership Period

$1,288,000

Equity @ 80% 

$1,610,000

Current Value

Recommended

Renovations

DEVELOP

52 weeks

This property has a DA approval in place for a substantial build and change of use. The DA expires on the 25th of July, 2019. This means the construction needs to have "substantially started before this date". We have spoken with the Department of Infrastructure within the Queensland Government to get an understanding of this, and the description/requirement was quite grey, but essentially, the determination is that the works should have started before the expiry date - they don't have to be completed by this date.

 

It's quite clear that this is a substantial development which sees the existing house retained with a large 5-storey (ground floor parking, 3 living levels and rooftop terrace) new dwelling to the rear on Jefferson Lane. The existing house should be updated cosmetically at the same time that the new dwelling is built, to ensure the rental return is maximised on completion for the existing dwelling. Currently, it is leased for $900/wk however this will reduce given the proposed sub-division and reduced lot size.

 

The overall opportunity this presents is a site with dual income plus an increase in total asset value and equity in your portfolio to allow it to grow. Importantly, the tax deductions created from the depreciation of the build will also be substantial.

 

This is a development we would recommend commencing ASAP. The current lease expires in November, so the options here are:

 

  • Terminate the lease in June and compensate the tenant financially, or;

  • Leave the lease in place until November and apply to the Department of Infrastructure at the Queensland Government for an additional extension. 

 

With both options, we would recommend kicking off the project regardless as soon as possible as there are the due-diligence, planning and tender process to be worked through before any hammers are picked up. This would also include the full renovation feasibility and recommendations for the existing dwelling. 

 

Our preference is to borrow against the property and finance the development as opposed to a construction loan. Construction loans limit the opportunity to tender the build and provide unnecessary restrictions on the project, which your position doesn't warrant. By financing the build, it allows you to maintain your strong cash position, keeping funds liquid to further grow and consolidate your portfolio.

Budget:

$1M (TBC) + $150K (TBC) + PM fee

$2.5M + $1.3M

Post Reno Valuation

$1,400/wk + $700/wk

Post Reno Rent

$3,040,000

Equity @ 80% LVR

Currumbin, QLD

2/31 Thrower Drive

22 Months

Ownership Period

$240,000

Equity @ 80% 

$1,175,000

Current Value

Recommended

Renovations

There is no current recommendations for this property.

105 Months

Ownership Period

$148,000

Equity @ 80% 

$185,000

Current Value

Brisbane, QLD

40/460 Ann St

Recommended

Renovations

Our recommendation is to sell this property. There are no recommended renovations for this property.

Japan

N/A

Ownership Period

$160,000

Equity @ 80% 

$200,000

Current Value

Recommended

Renovations

We are not licensed to provide an opinion for this lot of land in Japan. 

Copyright © 2018 by Milk Chocolate Pty Ltd. All rights reserved. This website or any portion thereof may not be reproduced or used in any manner whatsoever without the express written permission of Milk Chocolate Pty Ltd