ResiFund is delighted to announce it’s latest acquisition in Morley, located just 9km northeast of the Perth CBD. The property was acquired for $560k plus purchase costs, which is 7.4% or $45k below the median house price for 4 bedroom homes in Morley
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The acquisition is attractive for the Fund, due to:
- • Morley being an affordable suburb with low rental vacancy rates (0.4% vacancy Dec 22) and rapidly rising rents (10% growth last QTR)*
- • Good quality amenity, with the suburb benefiting from the local Galleria Shopping Centre as well as numerous schools and sporting facilities
- • Tonkin Hwy, providing quick access to various employment hubs, including Perth CBD and the Ashfield industrial precinct
- • A new train station being constructed in Morley, which is due to be completed in 2024.
These ingredients provide a strong recipe to potentially deliver steady and growing income for investors as well as potential capital growth in the years ahead. In addition, the zoning and land size of 727sq.m, make it a prime candidate for future development. Based on our preliminary assessment there are a range of potential ways which further value could be added to the site, subject to Council approvals, including:
- • Demolishing the current property and building two new houses
- • Acquiring an adjacent site and seeking a larger redevelopment
- • Extending and converting the existing house into a co-living property with up to 6 tenants.
Notwithstanding these options, which provide a strong basis for above-average capital growth in the future, the strategy for the property is to initially lease it, which will further boost ResiFund’s portfolio of income generating assets. The rental assessment indicates a likely rental range of $560-$600 per week, which should provide a strong net rental yield of 4%. This highlights the incredible lack of residential rental accommodation we are seeing in Perth and around Australia, which should result in further rental and capital growth over time.
To find out more about this acquisition please view our Acquisition Flyer