The strategy was to acquire an asset that performed from day one while retaining a second, longer-term avenue for value. On 777m², the site carries both a house and a granny flat — two established income streams at settlement — and is duplex-capable, meaning the land itself holds development upside that can be exercised later rather than committed to now.
The property was secured at $1,230,000 against an assessed market level of $1.28m — 3.9% below. Both dwellings were already tenanted, so there was no construction timeline, no approval risk, and no gap between purchase and full rental return.
As it stands, the property returns $530 per week from the house and $450 per week from the granny flat, or $50,960 per annum, delivering a 4.1% gross yield on the purchase price. That places the asset in a dual-income position immediately rather than on projection.
The duplex potential is the second layer. It is not priced into the acquisition and does not need to be actioned for the asset to hold its return — it simply remains available. Colyton's block sizes and zoning profile continue to attract investor attention for exactly this reason: established rental demand in the near term, development capacity in the longer term.
Buying an asset that was already performing, at a price below the prevailing market level, meant our client took on optionality rather than obligation.
