BOOM...JUST PURCHASED...#30 by Easy Buyer's Agent. We would personally say that this is one of, (if not) THE craziest purchases we have ever made. Asking $199k, purchased for $110k. That is $89k (44.7%) price reduction of the asking price! What's even more crazy is, property is already tenanted for $460/week making it 21.7% gross yield. Yep..you hear it right. Read on
This is the 4th purchase for our repeat investor. He is in the accumulation phase and has owned more than a dozen properties.
Do not try this at home. This property is very high risk because it is located in the regional area. We would normally stay away from regional. However, when we spotted this 6x2 (duplex made of 3x1 and 3x1) that is already tenanted for $230/week each (making it $460/week total), sitting on some 3000sqm+ of land, we were immediately interested.
We did further research. Vacancy rate is sitting at 1.1% in the area. And as we get in contact further with the selling agent, we found out that the property was owned by an elderly couple who is very motivated and just want to let it go. We negotiated and negotiated, who would expect that the seller would let it go for $110k: $89k down from their asking price of $199k.
Tenant is already in place until July next year. Talking about minimising risk, combined with the very low vacancy rate, our buyer is OK to take the risk.
Thinking of buying property in WA? You know who to call. We have a diverse range of strategies we can apply to each property we look for our clients to ensure risk is minimised, and return is maximised. Our Buyer's Agency has helped Owner Occupiers, First Home Buyers and Investors both local, over east and international.
Until the next purchase.