The PROPERTY DOCTORS, Sydney Australia Novak Properties
NOVAK PROPERTIES CREW and PROPERTY LEGENDS in the industry share their experiences and knowledge. Hacks and tips to make you a smarter property GURU :) Learn with exclusive content, advice, insider info and HOT real estate industry PRO SECRETS. For sale, for lease, residential, commercial, buying off the plan, finance, mortgages, interest rates, first home buyer, investments - all topics covered. The untold real estate info you've been waiting for.
The PROPERTY DOCTORS, Sydney Australia Novak Properties
EP. 1364 Doubling Money In Dee Why In 4 Years
Discover the secrets of turning overlooked properties into gold mines with our special guest, Josh Wapshott. We'll unravel the captivating story of a seemingly unremarkable $1.5 million purchase on Pitwater Road, DY, that morphed into a $2.5 million success in just four years. Despite its landlocked position and intimidating surroundings, this property defied expectations with its impressive rental yields and strategic investment potential, proving that even the most unassuming real estate can hold immense value. Join us as we highlight the innovative strategies and calculated risks that led to this remarkable transformation in the northern beaches' commercial property market.
In our exploration of the booming commercial property scene, we spotlight the northern beaches as a fertile ground for diverse and lucrative opportunities. With insights from Lisa and Josh, we emphasize the importance of diversifying your investment portfolio and capitalizing on emerging markets. Tune in every Wednesday for live updates and walkthroughs of standout properties that could redefine your investment approach. Follow us on social media for a constant stream of exciting listings and expert analysis, guiding you to recognize unique opportunities that others might miss.
one agent fails Novak nails. Here is a great tale of someone buying a property that no one else sort of wanted. Doubled, tripled, quadrupled their amount invested in a four-year period. Stay tuned, we're gonna tell you the story now.
Speaker 2:Josh Wapshot. Mark Novak, I'm coming to you live this morning live from Pitwater Road, dy.
Speaker 1:Hey, josh, it just occurred to me if these guys bought the property for a million bucks $1.5 million and four years later they sold it for $2.5 million, they probably only put in a 30% deposit, because on commercial that's all you've sort of got to put in. So return on the internal rate of return or return on equity is like seven.
Speaker 2:I know, I know and that's why we've come down here this morning, Mark, because I think it takes a little bit of you know singing from the hills to start to funnel out the opportunities that are coming up available on the northern beaches and how commercial real estate is something that can give you some sorts of returns you never thought possible and it's definitely a great way to start thinking of diversifying your in your investments. So, yeah, thought would come down here this morning and show everyone what they're missing out on.
Speaker 1:Wow, wow. So um what's your dress?
Speaker 2:everyone can address is 882 Pitwater Road. A wife I give you a little look this morning. You'll be very familiar about where we are. So here we've got your DY Pitwater Road and that's your main bus stop. I'm sure everyone knows and catches the bus who jumps on the B1. So we're smack bang right in the middle of it, which is absolutely a fantastic spot, because I just find that especially your rental market, in terms of an investment in the DY area, you can't get better because you've got, obviously, the new addition of our lighthouse, you've got the B line, the only, the only real direct transport into the city, so there's a lot of those facilities and infrastructure for renters, for young families, for young professionals. You know it's a perfect sort of playground, so to speak, you know, for young people. You know making that step out on their own.
Speaker 1:Now, Josh, you can't help but to feel sorry for this shot.
Speaker 2:Sorry, what was that Mark? You can't help but feel sorry for this shot. Sorry, what was that Mark?
Speaker 1:You can't help but feel sorry for this little puppy. I know I really couldn't See the building on the left and the building on the right. There's a little white building in the middle, just over 200 metres squared of land. Doesn't have a driveway, can never get a driveway, doesn't have a rear door, can never have a rear door. It's got a building a nine-storey building to the left, an eight-storey building to the right, an eight-store building behind it and a major northern beaches bus stop in front of it.
Speaker 2:this thing is cliche, classic, land locked exactly right, mark, and and um, I think, because we originally, obviously, this was sold with two options one being a completed product, um, from the vendor being those three retail and 20 studio apartments. But as I'm just taking you through, just showing you exactly what Mark's talking about by being what we call boxed in, you see, you take them to the toilet. We're boundary to boundary. So, yes, it is.
Speaker 1:So what's at the back there? That's like can you open that door?
Speaker 2:Yeah, I can actually.
Speaker 1:So it's like, in terms of development potential, it's a shocker.
Speaker 2:It's a shocker. Well, it's definitely not one of your easier projects, mark. Obviously because you're on an extremely busy road and, like you said, quite boxed in. I mean to give you an example that's about the only space you've got between your neighbouring addresses there. Show me how high.
Speaker 1:You go next door Can't really see, but it's literally, it's massive, it's a tower. It's a nine-storey tower next door with no windows.
Speaker 2:Exactly right, and I think it's just this sort of that sort of product. Obviously doesn't fit the bill everywhere, but I think for somewhere like DY, our new, our happy purchasers are going to be more than happy and find it quite easy, with the help of Novak, in regards to keeping those studios full. So I believe what their plans are is they're going to probably arrange a short term tenants for the meantime and then obviously and look to start the build.
Speaker 1:You see, I have just a question Before we jump forward. A seller, our client, saw this five years ago at auction and bought it for $1.5 million. Nobody wanted to buy it because it was a little block of land and it was locked in Fast forward. Four years later we come along. You sell it for $2.5 million, so it went from $ million and fifty to two point five, so almost one and a half million dollars more. How, like first of all, who bought it and how the hell does that happen?
Speaker 2:exactly right. So, um, we've had an investor purchase, purchase this property and obviously, when we explain that the type of yields that this sort of asset would generate, I think that was the kicker. I think we were estimating somewhere between just over 700,000 in rental at a fully occupied rate. And the other option that this property had and I'm not sure if everyone knew is they actually had a facility to put 10% down, and this was for a completed product. So, like an off the plan opportunity, where what they did was say, for example, the finished product would be 11 and a half million, you'd put a one and a half million dollars down and then you would obviously pay the rest on completion of the build. So I mean having a facility like that as well, um is is is not something that you come around often, um, so, sorry, I'm confused, sir.
Speaker 1:Can you explain that again?
Speaker 2:well, essentially the the what, the vendor was pardon, yeah, correct. So the da is for those 21 studio apartments which are the high rise up. So you'd split them. You'd probably have a bunch of four in between each level, and what the vendor was happy to do here was actually deliver a few.
Speaker 1:How did you get 21 units on a 250 metre, on a 250 metre square block? Well, that's right.
Speaker 2:How did the?
Speaker 1:Bendor, get that approved. With no parking, with no driveway and with no setback side or back, how many 21.
Speaker 2:And it's under yeah 21. And it's under, yeah, and it's what we call a boarding house, which obviously, mark, you're quite privy to, because we do know Novak does look after probably one of the biggest allotments of boarding houses. Is that correct? You look after hundreds of them, yeah, yeah, and they do very well. So I think it was tailing that experience, understanding the asset and what it can deliver you. Not everything's going to be straightforward, so it's about just breaking it down for the purchaser, and that's the discussions we had. I think we had a visit here over the Christmas break. I didn't take any time off and we were here probably three days over the week. I think it was Christmas Eve. At one stage we were down here and once we broke down the figures and what we could create here, I think it was a no-brainer for the purchaser in the end. So the purchaser is going to build what's been DA approved, correct?
Speaker 1:So the purchaser's going to build what's been DA approved, correct, and they're going to be in it and they're going to. What sort of rent are they going to get per year once they rent out all those apartments?
Speaker 2:Well, you'd look at it roughly, based on the figures that we put of comparables on the market. You were looking at over $700,000. I think it was a 740 um to give you more an exact figure. But yeah, you think about that exactly right.
Speaker 2:It's a little money-making machine. All it needs is that ex is that person that's ready to take the leap. Um, and you know, trying and doing something or things outside the box, some sometimes can deliver. These are amazing results for you. I mean, you think of that sort of cash being generated year on year? You're not, you know, I think, in terms of maintenance of such there's studios. There's one bettors that you know you're not selling anything high end, I think it's the idea of quantity, and I think DY is just a perfect fit, which is why I was surprised that it didn't sell sooner.
Speaker 1:So, guys, if you've just tuned in no-transcript Pitwater Road, you can Google it now and have a look. This property was a little block of land with no driveway, no rear access, nine storeys to the left, nine storeys to the right, 202 to 200 to 300 metres squared. A client of ours bought it at auction for $1 and fifty four years ago they got da approved 21 apartments and have now sold the land for 2.5 with the approval the new. So they've doubled more than doubled their money. The new person that's purchased it new year's eve sale by champion josh is going to build these 21 and rent it for over $700,000 a year.
Speaker 2:Everyone's a winner. Exactly right, exactly right. And I think bringing the audience down here this morning gives us a chance to show others that might not even think of these possibility and what's out there. I mean, yeah, I just think there's a massive potential to be unlocked with commercial, and I think what people get stuck around is just looking at things too straightforward. When it comes to commercial and I say this with, like, our bigger warehouse industrial units, you need to, you need to think outside the box now to really unlock the true yields of these assets.
Speaker 2:Um, I mean, anything in the Northern Beaches is going to do fantastically. I mean, we just had, funnily enough, domain come through and speak about a lot of figures and things like that and how we're quite resilient. So I think, in terms of your property values, you're always going to go quite. You know you can't beat Sydney, you can't beat the Northern Be beaches, um, but starting those assets to produce favorable yields for yourself is is what's going to be the real difference.
Speaker 2:So I just I just stress thinking outside the box when it comes to commercial, whether it be divvying up your spaces, investing a million dollars in something like this, as per se, uh, you know, a, a unit, um, I mean that sort of growth you would have seen over the four years. I mean, if you're buying four years ago, you're probably buying into a peak market, almost that 2021 stage, if anything. You're probably just recovering those prices at where we are now, whereas this individual's gone ahead and more than two times his money, um, and then forget about you know what sort of capital he's he's put down. Keep it simple he's more than doubled his money, guys, and and as a as an idea, this generally happens in residential every 10 years, so he's also normally normally by more than double years.
Speaker 2:Yeah, to give you guys an understanding of how well this did.
Speaker 2:So I mean it's beating. Yeah. That's why I thought, wow, I didn't think it would take so long to move on. But obviously, once it was explained properly and we had the right purchases come past, they said fantastic, love your work, josh. This is a great little asset for us and would love to for you to help us, once it's completed, in in um, offering this to the public. So I look forward to, obviously, once they start building that um, you know, locals start start using the space and I mean it is so convenient, I think also josh.
Speaker 1:Um, there's, there's a couple of pillars here from pete that people can take away. Um, my biggest one I think people can take away is if you see something that is good and you, you re, and, and you and you feel good about it. But the word sometimes, ever the noise around you is no, no, no, no, no. Sometimes go with your gut, because I can see this vendor here. A lot of bad noise around the property, blocks too small, can't build on it, no driveway, but he saw what definitely he could do and he went with it. So I think, if, if your gut sometimes is really strong on something, you can see someone here who's done really, really well from this. But that's all we've got to say for today. Anything else you've got to add?
Speaker 2:No, nothing else I've got to add. Just like I said, guys, we're having a really good turnaround since late last year on the commercial properties. So I just think, open up, open up your eyes to diversifying your options. If there's a spot on, if there's a spot to be for commercial property, it really is, in and around the northern beaches, a really good demand for it, and there's some amazing and different types of uses that can generate businesses and cash cows, just like this one here. I think Lisa's Lisa's caught on to the fact too. But, um yeah, fantastic opportunity, and we'll be making these more live. So I'll be doing a few little run-throughs, a couple of properties that I think are quite interesting. So tune in every Wednesday, guys, and I'll give you a on-the-ground look at a couple of opportunities we'll have running Tune in every day on your socials.
Speaker 1:You've got some cracker properties on there, josh Wapshot.
Speaker 2:Exactly right, good stuff, exactly right. See you mate, see you mate, see you guys, take care, bye, bye, bye, bye, bye, bye.