Purchase Recommendation · Shortlist candidate

2 Simpson Street

SUNSHINE NORTH VIC 3020 · 615m² · 15m FRONTAGE · 4 BED · 2 BATH · 4 CAR

Original weatherboard on 615m² with a 15m frontage, four bedrooms and two bathrooms across the two dwellings, plus a self contained bungalow out back with its own kitchen and bathroom. The quoted range of $670 to $720k is underquoted against a ~$765k estimate and will not buy it, so budget above the range. Needs a mid spec renovation, new kitchen, new bathroom and full cosmetic refresh, and on completion the main house should sit in the mid $600s per week with the bungalow on top.

$670 to $720k

Auction range

Mid $600s/wk

Main house, post reno estimate

~$55 to $75k

Mid spec reno allowance

4 bed, 2 bath, 4 car

Config

615m² · 15m frontage

Block

Auction Sat 8 August, 1:00pm Inspection Today, 11:30am Price guide $670,000 to $720,000

The call

Cheapest Sunshine North entry, mid spec reno, bungalow already there

Simpson is an underquoted campaign. The advertised range of $670 to $720k sits well below the ~$765k estimate and below what comparable weatherboard stock on 600m² plus has been transacting at in Sunshine North. Treat the range as a marketing entry point to attract a crowd, not as a guide to the likely result. On the day this should clear the top of the range, and the realistic buy zone sits above it.

This one is a renovation play, not a lease as is play. The kitchen and bathroom are original and the interior needs a full cosmetic program. Budget a mid spec renovation of roughly $55 to $75k, new kitchen, new bathroom, paint throughout, floor coverings, and the supporting electrical and window trim work. On completion the main house should appraise in the mid $600s per week, with the bungalow as a separate income line on top.

The bungalow and the land do the rest. Dual income once the works are done, and the 15m frontage on 615m² keeps redevelopment optionality STCA alive for the long hold.

Our position: shortlist candidate, with the caveat that the quoted range is not the buying range. Run the numbers off the estimate rather than the advertised guide, then read the buy price and the reno budget together before setting any limit at inspection stage.

The property

Original weatherboard, self contained bungalow, deep block

At a glance

Main house3 bed, 1 bath, 1 living + dining (4 bed, 2 bath with the bungalow)

BungalowSelf contained, own kitchen & bathroom

CharacterHigh ceilings, timber floors, arched doorways

KitchenOriginal, plenty of cabinetry and bench

BathroomCentral, bath + shower, separate WC, second vanity

RobesTwo of three bedrooms built in

ParkingGarage + long side drive, 4 car total

Land615m², 15m frontage

Auction range$670,000 to $720,000

Estimate~$765,000

Initial observations (pre-inspection)

Original weatherboard. High ceilings, timber floors, arched doorways. Character stock that is getting harder to find in Sunshine North at this price.
Self contained bungalow. Own kitchen and bathroom. Ready to be used as a second income stream, a home office, or guest accommodation.
15m frontage on 615m². Regular shape and generous frontage keep redevelopment optionality open STCA.
Kitchen and bathroom are original. Both are on the mid spec renovation list, along with paint, floor coverings and window trims. This is a renovation buy, not a lease as is buy.
Weatherboard character. The original weatherboard facade is the long term capital growth story here. The front picket fence is old and needs restoring.
Walk to Sunshine North Primary. Family friendly street, tenant demand supports both a family let and a shared setup with the bungalow.

Tap to expand

Why it's on the shortlist

Value entry, dual income, land shape

Under $765k buy in. Cheapest Sunshine North entry on the shortlist. Preserves borrowing capacity for the rest of the portfolio.
Dual income. The bungalow is already built with its own kitchen and bathroom, so the second income line does not need a conversion or a compliance build.
Manufactured equity through the reno. A mid spec program of roughly $55 to $75k lifts the main house from original to a mid $600s per week product.
15m frontage on 615m². Redevelopment optionality STCA sits behind the income story.
Original character stock. High ceilings, timber floors, arched doorways. The Sunshine North weatherboards that hold long term appeal.
Walk to Sunshine North Primary. Family friendly pocket, strong long term tenant demand.

The renovation

Mid spec program, allow $55 to $75k

Item	Scope	Allowance
Kitchen	New mid spec kitchen, cabinetry, benchtop, appliances, plumbing and electrical adjustments	$18,000 to $25,000
Bathroom	Full rebuild of the main bathroom, waterproofing, tiling, tapware, vanity, separate WC tidied	$15,000 to $20,000
Paint, internal and external	Full internal repaint, external weatherboard and trim touch up, worn window trims made good	$9,000 to $14,000
Floor coverings	Carpet to bedrooms, sand and polish or new flooring to living areas	$7,000 to $11,000
Supporting works	Light fittings, switches, blinds, door furniture, minor carpentry, clean and rubbish removal	$4,000 to $7,000
Bungalow refresh	Paint, floor covering, tidy up kitchen and bathroom fittings only	$2,000 to $4,000
Total allowance	Mid spec, trade rates, lower end assumes Iain handles paint and finishing work	~$55,000 to $75,000

Read: the reno is the reason the rent moves. Treat it as a one off upfront cost, funded in the loan, not an ongoing expense. Firm quotes only after inspection and building and pest.

The trade-offs

What you're not getting

Auction, not private treaty. Range at $670 to $720k, but a strong crowd can push the result toward the $765k estimate and thin the margin.
Most work of the active shortlist. New kitchen, new bathroom and a full cosmetic program. Dent by comparison needs close to nothing.
Income starts after the works. Allow eight to twelve weeks of program before the main house is leased at the improved rate.
Two tenancies to manage. Bungalow as a separate let means two leases rather than a single family lease.
Written appraisal to confirm. Main house and bungalow rents are estimates and will vary with the finish level. Independent PM in writing before committing.

The numbers

Income and yield, buy price plus renovation

Line	Buy at $720k (top of quote)	Buy at $765k (estimate)
Purchase price	$720,000	$765,000
Renovation allowance	~$65,000 (mid of range)	~$65,000 (mid of range)
All in, purchase + reno	~$785,000	~$830,000
Stamp duty (VIC est)	~$38,500	~$41,000
Main house rent, post reno	Mid $600s/wk (~$650 used)	Mid $600s/wk (~$650 used)
Bungalow rent	~$250/wk	~$250/wk
Combined weekly rent	~$900/wk	~$900/wk
Annual rent, combined	~$46,800	~$46,800
Gross yield, combined	~6.0%	~5.6%
Gross yield, main house only	~4.3%	~4.1%
Loan @ 6.2%, reno capitalised	~$48,700/yr	~$51,500/yr
Interest, weekly	~$936/wk	~$990/wk
Combined rent vs interest	Short ~$36/wk	Short ~$90/wk

Read: yields are calculated on purchase plus renovation, so they are comparable with the rest of the shortlist. All rents are estimates only and will vary with the finish level achieved. The renovation is a one off upfront cost, capitalised into the loan, not an ongoing expense. Confirm main house and bungalow rents in writing with an independent property manager before auction.

Suburb and location

What supports the rent and the hold in Sunshine North 3020

Measure	Figure	Why it matters
Nearest train station	Ginifer Station, ~1.8 km	Sunbury line services, Albion Station ~2.3 km as a second option
Distance to Melbourne CBD	~13 km	Inside the middle ring, closest group of suburbs on the shortlist
LGA population, 2025	198,181 (Brimbank)	Established, fully built out council area rather than a greenfield corridor
Demand drivers	Sunshine Hospital, the Sunshine transport superhub upgrade, Albion and Sunshine stations, and the planned Melbourne Airport Rail interchange at Sunshine	Infrastructure spend in this corridor is concentrated on the Sunshine precinct
Land supply	No greenfield land release in Sunshine North	New rental supply comes from infill only, which supports existing stock

Supply and fundamentals, Sunshine North

Measure	Sunshine North	Why it matters
Stock on market	0.18%	Share of dwellings listed for sale, lower means tighter supply
Inventory	0.59 mo	Months of stock at the current sale rate, under 3 months is a sellers market
Buyer to advertiser ratio	0.59%	Demand pressure against advertised stock
Average hold period	11.65 yrs	How long owners hold, longer means less stock turns over
Renters as share of households	29%	Depth of the local tenant pool
Units as share of dwellings	18%	Lower unit share means more houses and land content
Distance to Melbourne CBD	13 km	Commute and middle versus outer ring positioning
Population	12,047	Size of the local market
Dwellings	6,983	Total dwelling stock in the suburb
Infrastructure spend per resident	$3,017	Committed public investment flowing into the area

Sources: distances measured straight line from the property to the station and to the Melbourne CBD. Local government area population is ABS Estimated Resident Population 2025 (via economy.id). Suburb level rental vacancy is not published by SQM Research, which reports vacancy by region rather than by postcode, so no suburb vacancy figure is quoted here.

Next steps

How we play it

Inspect today, 11:30am. Walk the block and the bungalow. Confirm bungalow permit and status as a habitable dwelling. Check plumbing, electrical, and any separate metering.

Written rental appraisal. Independent PM in writing for main house and bungalow, individually and combined, on an as is basis and on a mid spec renovated basis so the uplift is documented.

Renovation quotes. Kitchen, bathroom, paint and flooring priced properly so the $55 to $75k allowance is tested before bidding, and so the DIY portion is separated out.

Building and pest, plus comps. Original weatherboard, confirm stumps and roof. Pull recent Sunshine North sales in the 600 to 700m² band with a second dwelling.

Auction strategy. Too early to set a price limit before inspection and due diligence. Revisit after the walk through, written rental appraisal on the main and bungalow, and building and pest.