Client Background: Rob is an IT professional who already owned an investment property (purchased brand new) and then another established property (purchased through Property Twins Buyers Agents). He was looking to expand the property portfolio with high growth and cash flow properties.
Where he was: Rob had already purchased the property next door with over 800sqm. This opportunity was difficult to pass given the land banking opportunity it presents with potential to add multiple townhouses down the track.
What was important to him: The ultimate goal for Rob is to acquire sufficient property holding to enable cashflow in retirement.
The property offers land banking (with future potential) + cash flow + capital growth – with 37% PLUS growth in the time Rob has held the property.
Here is what he purchased as part of the Property Twins Buyers Agency
Property Type: 4-bedroom house
Purchase Price: $523,000
Rent: $490 per week
Rental Yield: 4.87%
Vacancy Rate (Current): 0.4%
Cashflow: Positive
Current Value: $720,000
Capital Growth: $197,000 in 14 months
Metro / Regional: Metro – 27.9 km / 29 minutes’ drive from the CBD
Renovation Required: Yes – minor paint, carpets and tidy up
Due Diligence Completed:
- Leveraged qualitative & quantitative factors to determine location, type of property, cash flow and risk-based analysis to zero in on the right property.
- Discarded lemon deals presenting hazards and high risk (avoiding key mistakes)
- Upfront clarity with cashflow analysis to determine if the deal stacked up
- Took benefit of the property cycle in a rising and hot market
- Land banking as our client owns the next-door property as well – giving them over 1400sqm for future development
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