The bargain buy in one of Brisbane’s most prestigious blue chip suburb
This quaint cottage in one of Brisbane’s most prestigious and pricey suburbs packs a profitable punch as a short term rental.
And its new owner has just snapped it up for a bargain.
The renovated two bedroom cottage at 24 Terrace Street in New Farm sold for $875,000 on Friday — a whopping $625,000 less than the median house price of $1.5 million.
You could buy an average house in the Greater Brisbane region with those savings and still have some cash to splash on renovations or an extended overseas jaunt.
The property was listed with Scott Darwon and Robert Freeman of Ray White New Farm.
“Make no mistake, here is your opportunity to buy a house at a level never thought possible in New Farm, very much an opportunity for a young family to get into the house market at a completely affordable level,” the listing said.
This is a house in a suburb where properties regularly go for prices over $1 million, with one riverfront residence alone changing hands for $7.75 million in March.
“This is a great price for a cottage and it went to a local lady upsizing from the Woolstores,” Mr Freeman said.
“They are very rare at that price.”
Mr Freeman said they had a number of parties interested in that style of property — workers cottages on smaller lots.
He said professional couples with no kids wanting to live within the inner city ring were driving that interest, but there was also bites coming from the interstate and expat market.
The cottage was averaging $869 per week as a short term AirBnB and Stayz rental, according to the listing.
If fully booked, the cottage could earn over $45,000 a year — about $5000 shy of the total annual mortgage repayment for the property.
As it stands, the cottage has two bedrooms, one bathroom and space for one vehicle under the carport.
Fully airconditioned, the cottage has been renovated to preserve its original features, with more modern inclusions also added.
The listing said the house also has a 5 per cent-plus gross rental yield.
The indicative rental yield for a house in New Farm in 2.8 per cent, with the median asking rent at $800, according to CoreLogic.