Background:
Our Clients, a young family from North-West Sydney looking to buy their first investment property. They approached us with their brief and we developed a tailored strategy for them.
- As this is their first investment property we recommended that we buy in a Major city rather than going regional, this will ensure we start the portfolio with solid foundations.
- Shortlist locations with solid fundamentals where we can extract equity in short to medium term to go for the next investment property.
Challenges:
- Identifying areas in Major cities with solid fundamentals and in a right property cycle to be able to provide good capital growth in the near to medium term.
- Limited suburbs options that we had to work with.- Budget limitations.
- Limitations on out of pocket expenses on the property. - Navigating the very active and hot markets
Our Approach:
- Review data for major cities across Australia and shortlist locations in the correct growth cycle as per strategy keeping the budget and yields in mind.
- Work out cash flow on the property.
- Negotiating and purchasing the property under market valuations (if possible), getting out clients instant equity.
Solution:
We secured an amazing property in a growing suburb in Adelaide, SA for $670,000. This near new 4 Bed, 2 Bath, 4 Car with a big land parcel offers a potential rental of around 5% and with a valuation of $695,000 gives an instant equity of around $15k.
This property checks all the boxes and is a solid addition to our client's property portfolio.
Outcome:
- Location with Solid Fundamentals
- $15k instant equity based on property valuation.
- Newer property with almost 5% yield, minimising out-of pocket.
- Big land parcel and corner position - future opportunities.
From our very first meeting, their dedication to helping us find and secure our first investment home was evident, What truly set them apart was their commitment to education-explaining every process.
