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The asking price on this renovator's delight in Orange has tripled since 2015
June 15, 2022
By Peter Holmes
A property on Margaret Street north of the CBD has been listed at three times the price it last sold for seven years ago.
The two-bedroom unit sold for $88,000 in 2015, according to real estate website Domain.
It has now been listed with a price guide of $250,000 - $270,000 by real estate agents McGrath.
The unit, at 124 Margaret Street, is described by the agency as having a "functional kitchen" and an "original bathroom".
A long-term tenant is in place, paying $240 a week ($12,480 annually). This represents a return of 4.9 percent on a $250,000 sale, or 4.6 percent on a $270,000 sale.
However there are significant associated costs, according to the listing.
Land rates are about $1,808 annually, strata administration fund is about $2,334 per year and the annual strata sinking fund is about $1,665, for a total of about $5,807.
After deducting these costs, the annual net rent is about $6,663. This represents a return of 2.7 percent on a $250,000 sale price or 2.5 percent on a $270,000.
There may be other bills, such as repairs or replacement of fixtures and fittings.
The “bright and sunny upstairs end unit” has one bathroom, a parking space and shared laundry.
“[It] is sure to attract the attention of astute investors or those seeking a first home given its close proximity to town including cafes, supermarkets, medical facilities and local schools,” the listing states.
“With major renovations to the building proposed by Strata this is an ideal entry level investment with potential for excellent capital growth and return in the future.”
According to Domain another two-bedroom, one-bathroom apartment in the same building sold for $120,000 in February 2022. It was originally purchased for $82,000 in November 2010.
Domain says 45 percent of residents in the unit block are owner-occupiers and 55 percent renters.
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