$340k profit on cottage in six months
THE owner of this original cottage on the Gold Coast has pocketed a profit of more than $300,000 – just six months after they bought it.
And they did not lift a finger to improve the property.
In a clear sign of how nuts the Gold Coast property market has become, the cottage was purchased for $1.35 million on September 7 last year.
Just six months later, it again changed hands for $1.69 million – a profit of $340,000, that’s roughly 4.2 times the average annual salary.
It was sold by Kollosche agents Eoghan Murphy and Michael Kollosche.
Mr Kollosche said the property – a three-bedroom, one-bathroom original on a 409sq m block – first sold before auction on September 7 last year.
“The buyer had plans drawn up for some apartments but other than that, nothing else was done,” he said.
The property went under the hammer on Wednesday night, selling for $1.69 million. To put that profit into perspective, that profit is more than the median house price in Townsville.
Mr Murphy said six bidders registered for the Burleigh cottage.
“I sold it in September so that’s pretty much 20 per cent growth,” he said. “Not bad.”
Mr Murphy said the registered bidders were from Sydney, Brisbane and the Gold Coast.
“I’m not sure what they are going to do with it,” he said. “I think they are just going to sit on it.”
Meanwhile, another property – 45 Hill Ave, Burleigh Heads – also earned its owners an eye-watering profit.
It was sold by Mr Murphy for $3.175 million, earning the owners over $1 million in less than two years.
“That’s a phat ticket for doing nothing,” Mr Murphy said, adding Burleigh Heads was “red hot”.
“There is not a lot of residential sites in Burleigh Heads, as in single dwellings,” he said. “I think that’s why we have seen this growth.”