6.68% Gross Yield Positive Gearing Growing Suburb
TOUGH MARKET...AND YET...PURCHASE #34 by Easy Buyer's Agent. Listed Price: $215,000 Firm. Purchase Price: $210,000. Renovated 725sqm currently tenanted at $270/week (6.68% gross yield) until June 2021. Read on.
BRIEF:
Our Buyer is a local investor who is looking to expand her property portfolio with long term buy-and-hold strategy. Her appetite for risk is Low.
PROPERTY STORY:
As we have seen in WA market currently, it is getting tougher and tougher to get a good property deal just because demand has increased massively due to people migrating back to WA. Then not to mention how WA has been a "safe haven" from COVID. Almost all properties now are snapped up at record pace with multiple offers on the table.
However, Easy Buyer's Agent always has a way to spot a deal. Our relationship with the local agent also helped us getting ahead of the pack. Not too long ago, we spotted this 3x1 property that is already tenanted at $270/week until June 2021. Except, it was previously under offer. But the finance fell through. When we heard about it, we quickly get in touch with our Buyer (and the selling agent) to put an offer through.
The seller was previously adamant that price is firm at $215k. She has already spent tens of thousands of dollars renovating parts of the property. However, using negotiation tactic, we managed to bring the price down further by $5000. While it might not sound much, this property is located in a suburb which median price has increased by 4.5% this year alone and is currently sitting at $256,000. Vacancy rate is currently sitting at 0.6%!
A lot of similar properties are selling between $225 to mid-high $200s. And here we are buying at $210k, meaning, there are always rooms for value-add in the future. At the moment, our buyer can just enjoy the rental income at 6.68% gross yield positive gearing. The property has been renovated so no further work required.
Looking to buy property in WA? You know who to call. We have helped First Home Buyers, Owner Occupiers and Investors (local, over-East and overseas). Market is hot...do not miss out!
Until the next purchase. Peace.
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