EP. 1424 Turning your rent from $750 to $1350pw

Diamonds hiding in plain sight - that's what property investors often miss when looking at strata apartments. This eye-opening discussion reveals how strategic thinking can transform ordinary spaces into extraordinary investments.

We dive deep into a remarkable case study from Dee Why's 111 Oaks Avenue, where savvy investors spotted potential others missed. By converting part of an L-shaped living area into a guest bedroom before settlement, they achieved the near-impossible: doubling their rental income from $750 to $1,350 weekly. The most stunning part? This transformation, along with minor cosmetic updates like modern lighting and sleek black kitchen handles, cost merely $20,000 while adding approximately $200,000 in property value.

The conversation expands beyond this specific example to explore the untapped potential lurking in strata properties everywhere. From selling roof space for additional stories with premium views to ground-floor units acquiring communal lawn areas as private courtyards, these practical hacks can dramatically increase returns. The key insight: people often live in spaces for years without recognizing valuable modification opportunities right under their noses.

Before your next renovation, consider consulting a real estate agent rather than just builders or carpenters. We understand the market value of specific changes and can spot opportunities others miss. As we say, "I haven't sent a floor plan that I can't add value to." Send us your floor plan today, and let's discover what hidden potential your property might be concealing.

Episode Transcript

Speaker 1 (00:00):
Guys, out of the box thinking with Strata, it's not
always set and forget.
You can make a lot of moneywith rent and a lot of money
with sales if you're thinkingout of the box with Strata, with
your floor plan, with views.
Stay tuned, we're going to giveyou some more nuggets.

Speaker 2 (00:29):
I'm the ringleader, so let's go.
Josh Wapshot, mark Novak.
Good morning, good good.

Speaker 1 (00:41):
Who's your grey box?
Next to on your left, on yourshoulder there, the little grey
box, he's your friend.
I next to on your left, on yourshoulder there, this little
grey box, he's your friend.

Speaker 2 (00:46):
I know he's following me around today.
It seems Can't get rid of him.
That's where Cupid sits, I know, hey, oh wrong one.

Speaker 1 (00:56):
Jesus, tell me about 8 at 111 Oaks Avenue, because
everyone in the office yesterdaywas astonished with the result.
How did someone do so well witha slight alteration in the
property and how can we teachpeople to do this with their own
properties and what to look for?

Speaker 2 (01:19):
Well, quickly introduce to you the floor plan
of 8111 here.
So basically you've got.
We had like an L-shapedentertainment dining area.
I'm not sure if you can seethat here, but that's that
little area there was where wehad the entertaining.
Previously, buyers here wereinvestors of mine, looking for a

(01:43):
flexible floor space.
This did have it about 120squares upstairs.
Since then, what they've donethey've obviously exchanged on
the property prior to settlement, were given early access via
the vendor to install a guestroom.
So instead of probably a biggerentertaining area, what they've

(02:06):
done in that floor plan isessentially they've added that
guest bedroom in here and thatwall lines up right next with
the kitchen, so it almostbecomes like a little hallway
here out into your dining livingand obviously your balcony area
.
So what I did there was I said,mate, there's a perfect space

(02:27):
here for a guest bedroom, thisclose to the beach and Oaks, you
know, for an investment wecould definitely do a lot better
for for you in regards to theprevious rent.
So this was all done.
He's got a great contact.
A trader that came in basicallydid an amazing job, put in that
guest bedroom and essentially Ithen took that to the rental

(02:51):
market prior to them settling,and we managed to secure a
tenant yesterday, depositsecured for $13.50 per week.
It's almost doubling uh whatthe the property was originally
rented for and probablya 25uplift um on your average rental
yield on a unit in dy.

(03:12):
So um fantastic result, uh forfor the customer, um for the new
owner absolutely fantastic sopeople?

Speaker 1 (03:23):
what I notice with people is they can be living in
a floor plan for 10 years or 20years and not actually see the
diamonds under their nose justbecause they've been there for
such a long time.
Or a buyer could go through aproperty and not be looking for
this and not see this.
So what we want to encouragepeople to do is actually be
looking for a floor plan whereyou can put a wall, you can

(03:47):
slide a kitchen around, dosomething a little bit different
and add enormous value.
Now, a guest room which has gotthe ability to put a sofa bed,
which has got the ability to puta desk, is what people
absolutely pine for, what peoplelove.
So doing that is going to add alot of value.
So, in terms of adding value tothis property, these guys have

(04:10):
probably added a couple ofhundred thousand in value at
least, and these guys havedefinitely doubled their rent.
So the rent was $750 per weekand now the rent is $1,350 per
week.
Did they do much else to theproperty, josh?

Speaker 2 (04:25):
$1350 per week.
Did they do much else to theproperty, josh?
They did do a couple of otherslight changes, but very minor,
and that included replacing someof the lighting in the property
and just the kitchen handlesfrom the old like shark nose
type handles to a nice sleekblack one.
But all very minor.
When you think about you, youknow what the property was

(04:46):
purchased for and the upgradesthey've spent.
We sold the property for 1.445,or I sold the property for
1.445 million and consideringI'd say it wouldn't cost them
more than maybe $20,000 for theworks.
So when you compare that costto the cost of purchasing the

(05:06):
unit and what value that'sbrought to the owners I'd like
to sort of to compare it to anyof our commercial guys out there
or girls it's like putting amezzanine in your storage or
your warehouse.
You're getting that extra floorspace, that extra use, which is
unlocking the potential andvalue in the property, which is

(05:26):
what we're talking about thismorning, mark can.

Speaker 1 (05:30):
Just, it's just under your nose under your nose.
So I reckon if you went throughso dy's got maybe 70 units for
sale at the moment.
I reckon if you went through dy, you'd probably find a bit less
than a handful of units whereyou could make a quick design
modification that can doubleyour rent, increase your rent
substantially and your value.

(05:51):
This is what we want you tolook for today, guys.
Other things we spoke about umoff air that we're saying where
you could add a lot of value issometimes we're seeing people
now sell their roof space sothey're in an area that can
actually take another story andthat story has amazing views.
So there's opportunities there,like smaller blocks at
courtyards.

(06:11):
People are in a block four.
They get onto body corporate.
There's been a lawn mowing guycoming out for 50 years, 40
years, 30 years, 20 years andthey're paying per week to mow
that lawn and that and theground floor unit turns around
with no balcony and says, hey,lawn.
And the ground floor unit turnsaround with no balcony and says

(06:32):
, hey, if I could put thisgrassed area on my title, you
won't have to maintain it as ablock any longer and the other
three owners go yeah, I'll dothat.

Speaker 2 (06:40):
Genius.
Yeah, actually, same thinghappened in the block.
The bottom floor of thatcomplex there was sold prior to
us selling.
I think it sold for a littlebit less, but yeah, they
requested against the bylaws aspart of the sale to include that
backyard area as their own andthey took over responsibilities

(07:02):
of that.
So yeah, it definitely doeshappen, mark, and that's
happened in that exact exactbuilding.
But definitely the value add iswhere I think unlocking the
potential and the new, the newway to sort of um unlock the
value in these properties thatyou know you wouldn't previously
very important and I think it'sa big thing moving forward

(07:23):
strata property hacks.

Speaker 1 (07:26):
We've got more up our sleeve.
Just give me the call and sendus your floor plan and we can
tell you what, uh, what you,what, what you could do to add
some value.
I haven't sent a floor planthat I can't add value to.
So always share with your agent.
People will always go to like akitchen guy or a carpenter and
stuff and try to modify theirfloor plan, or a builder, but

(07:47):
going to a real estate agent,they understand the intrinsic
value of the change and whatchanges need to be done.
So, guys, if you're doing arenovation in a strata or you're
wanting to modify a floor plan,talk to us, talk to your local
agent, because we understandwhat adds enormous value to
floor plans.

Speaker 2 (08:07):
Exactly Well said, mark.
Do you want to add anythingfurther?
No, perfect, sounds like a goodway to end it.
Well, thanks everyone forwatching in this morning and,
like Mark said, reach out Morethan happy to help in how to uh

(08:29):
uh, incentivize those floorplans for you love you guys have
a great day, see ya.