CASE STUDY: Riviera Avenue, Terrigal: Strategy – New Addition (lower floor) 2 + 2 = $550,000
- Purchase type: This strategy could be used for a Principal Place of Residence or as an
Investment Property and the equity created could be extracted and recycled for future purchases
rather than selling. - Intrinsic Value: This demonstrates how looking at property differently can provide alternative
options to add value by using the intrinsic value that already exists in the property.
- Median Price Comparison: The median price for a 4 bedroom house in Terrigal was about
- $1,550,000 and there was no median price for 2 bedroom houses due to a lack of volume of
- sales for this product, but the most recent example of a 2 bedroom house that sold at the time
- was on Casino Street, Terrigal which sold for $1,000,000.
- Property Sale Price: The house below actually sold for $951,000 at the time.
- Strategy: In this case study, I looked at a house on Riviera Avenue and have chosen to retain
the existing building and add an additional lower floor which is made possible due to the slope of
the site and this being a pole home.
- Alternative Strategy: Another option would be to add an additional storey over the top as long
- as compliance with the planning controls could be achieved.
- Results: This strategy takes a 2 bedroom house and adds 2 bedrooms, a bathroom and TV
room to create a generous family home that is located within the existing building footprint. - Suitability: This results in a substantial increase in value, but it could equally be used by a family
trying to get into the market that didn’t have funds to pay the median price of a 4 bedroom house
in a blue chip suburb.