Sydney cheapie sells for $211,000 to investor, with plans to build granny flat
A three-bedroom house in Wyong was the weekend’s cheapest auction sale in Sydney, according to Australian Property Monitors.
Located at 22 Cutler Drive, the house sold for $211,000 through Capital One Real Estate – Gorokan/Wyong.
Listing agent Darren Smith told Property Observer the house sold “under the hammer”, and the auction saw five registered bidders.
He revealed the successful bidder was an investor, who plans to build a granny flat in the yard.
Smith added that the property market in Wyong is “strong” at the moment, and the demand for “affordable” rental properties has increased.
“The market’s rising, especially from the bottom end. We’re in the same situation as say 11 to 12 years ago, where the market’s rising and rents won’t rise as fast as the market rises,” he said.
The house is expected to rent for around $300 per week, while the granny flat is expected to rent for $280 per week, according to Smith.
“But of course they’ll need to tidy the house a bit, build the granny flat, add in some fences and do some repainting first,” he said.
Smith added that the house would rent for around $310 or $320 a week without a granny flat.
He believes the property market in Wyong will continue to rise in 2014.
“You’ll probably find the bottom end of the market will rise about 1% every month; around 12% to 15% for the year,” he said.
Additionally, Wyong has a train station, while an Aldi supermarket is about to open. A Chinese theme park is due to open in 2020, while there is also the potential for a new airport. Smith believes these new infrastructure plans could further expand Wyong’s property potential.
According to the latest RP Data report, the median house price in Wyong is $317,000, down 7.4% on last year. The average discount required to sell a house is 6.3%, while private treaty sales average 105 days on market.
The median asking rent for houses is $340 per week, while gross rental yield currently stands at 5.6%.