Client Background: Oliver & Kelly are a young couple with two dependents. Their goal was to purchase a set and forget investment property in Western Sydney.
Where they were: They owned a couple of properties when they came to us. This time around they wanted to buy the right property with a limited budget for Sydney around $600,000 as a maximum.
What was important to them: Capital Growth over the long term was more important. They were unfamiliar with the markets and were time poor. The main challenge was to avoid the key mistakes they may make by choosing the wrong property in the wrong location, which would be a costly outcome.
They purchased, for what we believe is the cheapest house you could find in Sydney on a greater than 500sqm block. It’s a great long-term purchase given the future potential for the region!
Here is what they purchased as part of the Property Twins Buyers Agency
Property Type: 3-bedroom house
Purchase Price: $575,000
Rent: $375 per week
Rental Yield: 3.40%
Vacancy Rate (Current): 0.8%
Cashflow: Negative (Capital Growth focus as opposed to cashflow)
Current Value: $680,000
Capital Growth: $105,000 in 12 months
Metro / Regional: Regional – 52.3 km / 58 minutes’ drive from the CBD
Renovation Required: No
Due Diligence Completed:
- Negotiated the deal as a win-win where the vendors had two deals fall over and they required a deposit to complete their next home purchase. The agent worked with us to structure the deal that protected the vendors and also got our client a good outcome.
- 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)
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