Unit block could earn more than many South Australians do at work

The Marden unit block at 195 O G Rd has the potential to earn more than many South Australians do at work.

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An Adelaide block of units is offering its new owner the opportunity to rake in significantly more money than many South Australians earn at work.

The five Marden units at 195 OG Rd currently bring in a combined $2150 per week, or $111,800 a year, in rent.

That’s $850 a week more than the median earnings for SA workers, which is $1300 a week, according to the latest Bureau of Statistics data.

A savvy buyer could easily increase their rental income to $3000 a week – or $156,000 a year – if they improved the property, which is being sold as part of a deceased estate after remaining with the same owner for the past six decades, said Harris Real Estate agent Tom Hector.

There are five units in the block.

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They currently earn a combined $2150 per week.

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Even doing nothing, the rent on each unit – which are currently let for between $400 and $460 a week – could be increased by $20 a week, bringing the annual earnings to $117,000, Mr Hector said.

“It’s a good property and it’s got huge upside potential,’’ he said.

“You could potentially put in a garage out the front there to make (tenant carparking) more secure, you could potentially renovate the units or you could put in private courtyards.

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“It depends (on what a new owner did with the property but) with any of those (options), you could be probably pushing (rental expectations to) $600 a week.’’

The units are currently all rented on periodic or fixed terms that end in July.

Given the prime inner-east location just eight minutes by car to the city, Mr Hector said there had never been problems finding long-term tenants.

The units each have two bedrooms, a combined kitchen and meals area and a separate living room.

The median earnings for SA workers is $1300 a week, according to the latest Bureau of Statistics data.

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The units could earn more if they were upgraded.

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All bathrooms have a separate shower and bath, with laundries accessed off each unit’s rear porch.

There is also an undercover carport at the front of the property.

While the sales listing suggested the property’s commercial and residential zoning and council approval for three- to potentially four-level construction made it ideal for development, Mr Hector said it would likely be bought for long-term investment.

He expected at least four local bidders would vie for the unit block, pushing the $2.3m asking price to $2.5m or “even potentially more’’.

Entire unit blocks were becoming rarer, which would increase buyer interest, Mr Hector said. The property is set to be auctioned on April 29.

– by Lauren Ahwan

They are in a prime inner-east location just eight minutes by car to the city.

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