The investors guide to our Pods.
How do you know a Pod is a good investment?
Please see below some of our Pods that we have seen rented or appraised. We go through the year it was rented and how much it was rented for. We show you the basics of the size of the pod and if it was unfurnished or furnished.
Under the images, we have created some base calculations based of the averages from the below rentals showing a 7% yield on the low rent and over 11% on the high rent.
As always, consult your broker and see if a Pod is the right fit for your block.
2b2b Furnished Pod (with appliances)
Weston creek area
Appraised by Hayman Partners 2023
$690 – $770 per week
In construction
2b2b Unfurnished or Furnished Pod (with appliances)
City side area
Appraised by Hayman and Partners in 2022
$730 – $800 Per week
2b2b Fully Furnished Pod & Deck
South side
Rented upon completion 2021
$900 per week
2b2b Unfurnished Pod (with appliances)
City Side
Rented upon completion in 2020
$750 per week
2b2b Unfurnished Pod (with appliances)
City Side
Rented upon completion in 2020
$750 per week
2b2b Unfurnished Pod (with appliances)
South Side
Rented upon completion in 2019
$550 per week
Let’s do some calculations
The Pods have ranges from $560 per week in rent to $900 as per the above jobs (of the Pods that have been rented soon after completion that we know of).
Let’s say a median of $730.00
The total build cost ranged from 250k-510k depending on the inclusions, site works and ultimate goal of the client.
Let’s say a median of 400k
Let’s say you were using equity of your existing house or putting cash down as a deposit of 80k that would leave you with a 320k loan. On the Wespac online repayment calculator based on a 6% interest rate is $2,399 per month.
Considering you are paying all of the council rates, land tax and water for your existing property already, let’s say we add in $500 buffers for each to cover any extras incase.
| Estimated expenses | Weekly | Monthly | Annually |
| Mortgage Repayments | $442.85 | $1,919.00 | $23,028.00 |
| Landlord insurance | $0.00 | $0.00 | $0.00 |
| Council Rates | $9.62 | $41.67 | $500.00 |
| Land tax | $9.62 | $41.67 | $500.00 |
| Water Rates | $3.85 | $16.67 | $200.00 |
| Management fees | $39.20 | $169.87 | $2,038.40 |
| Expenses Total | $505.12 | $2,188.87 | $26,266.40 |
| Income Comparisons | |||
| Lower Rent | $560.00 | $2,426.67 | $29,120.00 |
| Median Rent | $730.00 | $3,163.33 | $37,960.00 |
| Higher rent | $900.00 | $3,900.00 | $46,800.00 |
| Estimated Cash flow before tax | |||
| Lower Rent | $54.88 | $237.80 | $2,853.60 |
| Median Rent | $224.88 | $974.47 | $11,693.60 |
| Higher Rent | $394.88 | $1,711.13 | $20,533.60 |
YIELDS
| Purchase Price | $400,000.00 | ||
| Deposit | $80,000.00 | ||
| Lenders mortgage insurance | $0.00 | ||
| Conveyancing | $1,200.00 | ||
| Total cash to purchase | $81,200.00 | ||
| Loan Amount | $320,000.00 | ||
| Yield on low rent | 7.28% | ||
| Yield on low rent | 9.49% | ||
| Yield on low rent | 11.70% | ||
We have been informed by our clients there is a period of paying interest only until the Pod is completed therefore you’ll need to be mindful during the build you pay this interest only with increases due to the stage of the Pod is complete.
Here are our progress payment stages and percentages:
Deposit 5% to get started on plans and approvals (this is usually paid out of the clients pocket rather the bank funded from the beginning, best to discuss this with your preferred lender)
Construction progress payments:
| Approvals complete 15% |
| Site works complete 20% |
| Frame Stage complete 25% |
| Lock Up Stage complete 20% |
| Internal Linings Complete 10% |
| Practical Completion 5% |
When the Pod is complete thats when you’ll start to pay the full monthly repayments.
Any questions you have about the process, our team will be happy to help you.
Make sure you give us a call on 1300 843 763 or email sales@thepodcanberra.com.au to be taken through a Pod or for us to check if a Pod can fit on your block from an pretty close accurate satellite view of your block, we don’t need to disturb your tenants!
Please note these are estimates to give investors the idea of the potential returns from a secondary residence as we do not provide financial advice. This is our experience and cannot be taken as financial advice and this information may change. There also might be calculations we have missed therefore please consult your broker, bank, financial adviser and accountant before making financial decisions.