Wollongong house renovated on Selling Houses Australia set for auction

A Wollongong property that was recently renovated on popular LifeStyle property reality show Selling Houses Australia is set for televised auction in early September. 

A short walk to the Wollongong CBD, the three-bedroom cottage last sold for $185,000 in 1999 and was on the market briefly in 2006, according to RP Data. The Selling Houses Australia team added new paint throughout, new blinds, new doors, new light fittings, new taps and a revamped kitchen and outdoor entertainment area. Listing agent Michele Lay of Ray White says it could attract a rental of up to $460 per week. In 2009 it was listed for rent for $400 per week. 

Lay is marketing the property with price hopes of $399,000 plus, and if it sells for $399,000 and rents for $460, that would secure an investor a gross rental yield of 6%, above the indicative gross rental yield of 4.7% for Wollongong houses, according to RP Data. The gross rental yield does not consider the costs of maintaining the property, including council rates and other fees such as water bills and managing agent fees. Washington Brown estimates the first-year tax depreciation deduction to be $4,000 and over five years to be $8,000.

The median house price in Wollongong fell 9.9% in the past year but rose 10.5% in the past five years, according to RP Data.

The property will go to auction Monday, September 3 at 6pm. The property will be open for inspection on September 3, with the television crew from the TV show present to capture potential buyers' opinions of the house's makeover. 

For more about prices and yields in Wollongong, see the RP Data suburb page.

For real-life property lessons from reality TV shows, download our free eBook Lights, Camera, Auction!