Construction is looking to be one of our biggest and brightest areas of growth over the next few months (and years). We’re currently working on around $22,000,000 worth of projects, ranging from small-scale cosmetic renovations to complete new builds. Considering construction is our newest vertical, we’re pretty thrilled about its incredible early success.
Smart renovation and construction are crucial parts of our purchasing strategy. This is because they have the ability to add significant value to both a property’s capital growth potential and its rental yield. Such is the case with one of our current projects, a home in Torrensville in inner western Adelaide.
We recently purchased the property for $682,750. To add value to the home, we’re adding a fourth bedroom and an additional 1.5 bathrooms, and extending the property to create an extra 35m2 of internal floor space.
The renovation cost is $387,000 and will take six months to complete, but we have no doubt it will add substantial value to the property. Post-renovation, we forecast the home’s appraisal to sit close to $1,200,000. As well, its weekly rent will increase considerably, from $425 pre-renovation to $675 post-renovation.
We also recognise the long-term capacity to add even more value to the home. The size of the property allows for possible sub-division, which will mean an even better financial end result for our clients.
Like many of our other construction projects, Torrensville is further proof of the power of smart renovation and construction in significantly advancing a property’s value. Our construction team is excited to pick up the tools and get their hands dirty to take this property to the next level.
Have a construction project you need help with? Contact us today.
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