Windale residential property with tenant and DA approval for secondary dwelling

Lake Macquarie Investment Property

This property is an ideal investment for anyone who wants to get into the Newcastle and Lake Macquarie property market. At the low end of the price range it is accessible to most property investors, including first home buyers.

Windale Investment Property

Much of the work has been done and this project is at it’s final stage. Reach out if you’d like to inspect the property and discuss the project.

Windale Investment Property Questions and Answers

Is there a secondary dwelling on the block already?

No, there was but it has since been removed and the gently sloping back yard is waiting for any secondary dwelling that you’d like to put on it. DA can be easily amended.

What is the potential rental return for the secondary dwelling?

The expected rental for a brand new 2 bedroom dwelling is $320-$340 per week

What is the current rental return?

The property is currently tenanted on a casual lease paying $300 per week. This rental return is a little below market rental for a 2 bedroom house in Windale.

She has been the tenant at this property for the last 4 + years and is happy to stay.

Will the front tenant be happy with a secondary tenant?

The tenant is aware of the plans to erect a secondary dwelling for rental purposes and her lease takes this into consideration. We’ve created extra storage for this tenant in a garden shed.

Is there asbestos in the house?

The house was built in 1970 and like most dwellings of that era there are parts of the house built with asbestos. There is no Mr Fluffy as we have had this checked with the NSW Government.

There was a garage on the property and it was made of asbestos but it has been removed by an asbestos removal company in 2018.

Have you improved the property?

Yes with these modifications:

  • Demolished and removed dilapidated shed and garage
  • Erected a new garden shed for storage
  • Replaced hot water header with a brand new one
  • Brand new toilet and vanity in bathroom
  • Brand new lounge room and kitchen energy efficient lights with dimmer switch
  • Removed large roof antenna
  • Removed and covered wall mounted air conditioning unit providing clear access to the rear yard via the driveway
  • Removed old besser brick privacy barrier at front of house and replaced with modern wood finish railing
  • Created parking area at front of the existing dwelling

What are the council and water rates?

  • Council Rates: $395.93 per quarter
  • Water Rates: $301.73 per quarter

What does building insurance cost?

$48 per month

What is the capital growth and rental income yield?

These figures are historical and you need to do your own research to confirm their accuracy. These figures will change with a secondary dwelling

  • Capital Growth: 7.25%
  • Rental Yield: 4.2%

Why are you selling?

To pay down debt and focus on other priorities. Not accepting low-ball offers as will hold and complete the development in the future.

How much would it cost to build the secondary granny flat dwelling?

Granny flats cost between $90,000 and $150,000 depending on the size and quality. We can connect you with granny flat builders if you need and our forecast income estimates (below) are based on a further investment of $150,000.

What is the rental return after the secondary dwelling is built?

Based on $300 (current tenant) + $330 (rental for brand new secondary dwelling) the rental yield would be 6.7%

DA Approved Development Consent for Secondary Dwelling Granny Flat

Approval has been granted for several improvements to the property that will massively increase the value and rental income return mentioned above.

Get the DA Approval Documentation