Buyers Guide $3,600,000

This 3-bedroom, 2-bathroom apartment with 1 parking space at 501/15 Young Street, Sydney, is positioned in a premium CBD location. The 'Buyers Guide $3,600,000' places it at the higher end of the comparable properties, but it aligns with other large, high-end apartments in the area. Specifically, comparable property #1 (3-bed, 3-bath, 2-car) is priced at $3,100,000 with an estimated rent of $3200/wk, and comparable property #6 (4-bed, 2-bath, 2-car) is $3,520,000 with $3000/wk rent. Given our property has 3 beds, 2 baths, and 1 car, it sits between these two in size and features. The estimated weekly rental income for this property is $2500. This estimate is derived by considering the rent of comparable #1 ($3200/wk for 3/3/2) and adjusting downwards for one less bathroom and one less parking space, while still acknowledging the premium nature of a 3-bedroom CBD apartment. It is also well above the 2-bedroom comparable rents (e.g., $1800/wk for #9). Based on a purchase price of $3,600,000 and an estimated weekly rent of $2500, the gross annual rental yield is approximately 3.61%. This yield is typical for high-value properties in prime Sydney CBD locations, where capital growth often outweighs immediate high cash flow. The Undervalued Score of 60 reflects that while the price is high, it's generally in line with large, premium apartments in this sought-after address, suggesting it's not significantly undervalued but also not overpriced for its segment. The Rental Yield Score of 65 is moderate, reflecting a decent yield for a high-value asset in a low-yield market like Sydney CBD. The Flip Potential Score of 75 is strong due to the property type (apartment), prime location, and the potential for a high-end renovation to further enhance its value, especially if the current condition is not ultra-modern. Key investment strengths include its blue-chip CBD location, demand for larger luxury apartments, and potential for strong capital appreciation. A potential risk is the high entry price point and the relatively lower yield compared to regional markets. My confidence in the rental estimate is moderate-high, given the range of comparable data available for similar high-end properties in the immediate vicinity. Recommendation: This property is a strong candidate for a long-term capital growth strategy, particularly for investors seeking a premium asset in a top-tier location, with potential for value-add through renovation.