Five inner-west shops that come with apartments above
Not sure whether to dip your toes into the residential or commercial market?
Maybe you’re split between buying a home and securing a space for your small business. If you’re a property investor, you may just want to diversify your portfolio.
One solution is buying a mixed-use building that includes a shop and a home above it. The properties often sell for little more than a standalone house, but have the benefit of being close to your business downstairs, or having rental income that will help pay off the mortgage that much faster.
Agent Matt Marano of the Oxford Agency is selling one of these properties in Summer Hill and said that “mixed-use, or live-work opportunities, are very difficult to find”, especially in Sydney’s popular inner west.
And he said demand for assets that include a retail space, however small, is strong in this area, based on recent sales activity.
He sold a property at 155 Illawarra Road, Marrickville, for $1.61 million in July, with the property currently subject to a development application before the Inner West Council for renovation work.
Tony Iskandar of First National Commercial – Iskandar, is selling a combined shop and residence at 245 Addison Road, Marrickville.
He said that interest in the property had primarily been from younger buyers who were operating their own business.
“Most people are young artists who do internet sales,” he said.
Mr Iskandar has sold several other properties on Addison Road – including 243 Addison Road – and said most shop owners were currently using their properties solely for residential purposes.
But investors chasing strong, yet consistent, yields were also a key buyer group, said Matthew Fenn of CBRE.
He has two mixed-use listings, at 343 King Street in Newtown and 1 Percival Street in Stanmore, and sold a similar property at 167 Regent Street, Redfern, last week for $1,075,000 to a private investor.
“[It’s mainly] private investors looking for high-yielding properties. [They get] a 5 per cent return instead of a 1 per cent return from a bank deposit,” Mr Fenn said.
Price guide: $1.75 million
Combined potential rental income: $70,000 per annum*
Median apartment price: $782,500**
Median house price: N/A**
The property in Summer Hill features a home and a retail space on a 253sqm block. Photo: Supplied
With a potential income of $70,000 a year and a price guide of $1.75 million, this Summer Hill property consists of a three-bedroom, one-bathroom home next to a 50-square-metre shop, all on a 253-square-metre block.
Set on the corner of Liverpool and Kensington roads, the property is in walking distance to Summer Hill village and train station.
26 Liverpool Street comes with a three-bedroom, one-bathroom house. Photo: Supplied
Price guide: N/A
Combined net rental income: $111,848 per annum*
Median apartment price: $650,000**
Median house price: $1,345,000**
343 King Street is currently leased to the Golden Lotus restaurant. Photo: Supplied
This property on bustling King Street is home to popular vegan restaurant Golden Lotus, which rents out both the retail space and the residential unit above it, according to the listing. Marketed by CBRE, the freehold building comprises a two-bedroom apartment and a ground-floor shop.
If you lived above the shop you’d have access to some of Sydney’s best restaurants, bars and boutiques at your fingertips – and plenty of enthusiastic customers for whichever business is operating below.
Advertised price: $1.75 million
Combined potential gross rental income: $95,000-$105,000 per annum*
Median apartment price: N/A**
Median house price: $1.35 million**
This property in Earlwood comes with a main residence and a separate backyard studio. Photo: Supplied
What’s better than a shop with a residence? A shop with two residences!
This listing in Earlwood includes a three-bedroom apartment above the shop and a separate two-bedroom granny flat in the backyard. The commercial property is currently trading as an established sports store and is located on a city-bound bus route. There is the potential for additional income of $7000 to $10,000 from leasing a billboard on the side of the property, according to the listing. Earlwood is a stone’s throw from Marrickville and also close to Sydney airport.
197 Homer Street, Earlwood, also features a detached two-bedroom granny flat. Photo: Supplied
Price guide: N/A
Combined net rental income: $129,724 per annum*
Median apartment price: N/A**
Median house price: $1,561,250**
1 Percival Road, Stanmore, consists of a shop, two offices and two residences. Photo: Supplied
This Stanmore property has two residences and two offices, as well as a shop, all spread across 372 square metres. Fully leased and 650 metres to Stanmore train station, it offers buyers a diversified income stream.
1 Percival Road features office space as well as retail and residential. Photo: Supplied
Price guide: $1.45 million
Combined rental income: N/A
Median apartment price:$710,000**
Median house price: $1.32 million**
245 Addison Road could accommodation a shop or office. Photo: Supplied
This property on Marrickville’s Addison Road offers warm interiors and plenty of natural light. It is currently being used as a residence, but retains the ability to be used as a shop or office space. It features three large bedrooms and a private courtyard with established garden.
There are plenty of period features in the three-bedroom apartment. Photo: Supplied
* All rental income figures are approximate only.
** Based on Domain Group data, with a minimum 50 sales.
