It costs more than three times the average full-time wage to rent this house in one of Sydney’s most desirable locations – but that’s nothing compared to the expected profit from its sale.
It has brought in up to $338,000 per year in rental income – but this luxury investment property is expected to net the seller over $2 million in profit per year if it sells for its current price guide.
The six bedroom house in the Vaucluse has been offered for sale through Sydney Sotheby’s International Realty with an indicative price of around $16 million, more than double its value when purchased four years ago.
But this is not your standard Sydney rental.
Tenants living at 84 Hopetoun Ave enjoy floor-to-ceiling views of Parsley Bay while utilizing a wine room with a tasting table, a home gym, and an entertainment deck with a swimming pool and hot tub. spa.
Records show the property was last rented at $6,500 a week, which equates to just over $28,000 a month and around $338,000 a year, more than three times Australian income full-time medium.
Renters would need to earn well over $1 million a year to be able to comfortably afford that level of rent, based on the standard income measure used by real estate agents.
The home last sold in 2018 for $7.7 million, meaning the owner should make more than $8 million in profit over four years if it sells according to the price guide.
Sales agent Michael Pallier said the home’s sleek design and northern orientation appeal to buyers, as does its sought-after position.
“The location is stunning – it adjoins Parsley Bay Reserve,” he said.
“It’s mid-century architecture, but built 12 years ago.”
The house is spread over three levels, with the main living space on the top floor. This has a sandstone feature wall and a double sided gas fireplace. It also opens onto a wrap-around terrace overlooking the bay.
The adjoining kitchen has a seven-burner gas stove, two Liebherr refrigerators and an espresso machine.
On the ground floor, the master bedroom opens onto a second balcony and has a dressing room and a sumptuous bathroom.
The basement is where you will find the gym and wine cellar.
The house also has a C-Bus smart home automation system and a security system as well as a second living room with a bar.
The house has not been renovated since its purchase in 2018.
Originally published as Investment property in Vaucluse expected to generate $8 million in profits in four years