Case Study: Elegant Zoo for Two in the Heart of Darlinghurst

An unrenovated property in the heart of Darlinghurst gets a much-needed renovation.

Client Goal: To build and operate a positively geared investment property

Client Budget: 10,000 – $15,000 for fit-out

Our Result: A durable and stylish property with value that will be recognised in the market

This property was researched and purchased by the client July 2019 with the assistance of Johannes Property and our detailed knowledge of the area and Airbnb market. The property was purchased as an unrenovated property. Through the research and purchase period, plans were being made regarding the renovations, so that at settlement work could begin as soon as possible.

We focused on updating the following areas:

Ceiling Renovation Originally the property had a popcorn ceiling that was outdated. A new floating ceiling was installed throughout the apartment that has been complemented with downlights and LED perimeter lighting, illuminating the property with a sophisticated and modern vibe.

Bathroom Renovation

The original bathroom was painted bright green, with filthy tiles covered in mould and outdated tapware. We repainted the entire bathroom, scrubbed all the tiles back to near new, and replaced all tapware. We also installed a new bathroom mirror and soap holder.

Blinds

Originally the property had very basic block out curtains which were old and needed to be replaced. Full-length curtains have been installed that match the style of the property. Sheer and block-out curtains provide guests with full privacy or filtered light.

Furniture

All furniture has been chosen to best suit travelling guests, with areas to work, relax, dine, and sleep in comfort. The styling is robust, economical, and consistent in style. It's always important to have a theme that's consistent and unique as this adds to the experience of the guest. Never over complicate the design with cutter, ensure each item has a purpose and is adding value. Cutter only provides opportunity for items to be broken, go missing and not to mention the additional element of cleaning.

Appliances

We have advised the client to install top end appliances as this is an easy investment which dramatically impacts the guest experience, adding a sense of luxe.

Bedroom

Originally there was a solid hinged door to the bedroom. This has been replaced with a sliding glass panelled door, which is more functional and provides an opportunity to separate the rooms without hard barriers, which is an important design consideration in smaller properties.

So, what was the outcome?

Originally the property was purchased for $505,000 and has recently been valued at $650,000, with an average NET earning of $3000 per month on the short-term accommodation market (Airbnb) and an estimated rental market value of $400 per week.

The cost of upgrades was approximately $15,000, which took the client approximately 10 months to recover.

The property took approximately 2 months to mature on the Airbnb market. (A listing reaches maturity when there are more than five reviews from previous guests, and the booking calendar is more than 75% full 5-6 weeks ahead from a current date)

In the second month of operating, the client had achieved their goal of owning a positively geared investment property that was purchased with a 90% loan.