🏡🏡🔥💥 JUST PURCHASED...NO #23 by Easy Buyer's Agent. This is for our Local Investor Buyer who was looking to multiply his wealth through property. Asking Price: FROM $260,000. Purchase Price: $242,500. Read on 👇
BRIEF:
Our client is a local investor who seeks to add more into his property portfolio using buy-and-hold strategy. Our client has specific requirements whereby the property needs to be in City of Rockingham and City of Parmelia vicinity. Property needs to also be ready-to-move-in with no extra cent of work required.
PROPERTY STORY:
Easy Buyer's Agent business promise is clear that any property we present to our clients for buy-hold strategy needs to have the following attributes:
— 6.5% gross yield minimum to ensure positive gearing
— below market purchase
— close to amenities
— potential value add for rapid equity creation
When we spot this 4x1 656sqm property, we were immediately interested. Not only is the property clean, neat and tidy (which fit our client's requirements), it's 2-minutes drive away to a lot of amenities including the main city center of City of Rockingham. And with 4x1 property, there is a lot of value-add potential. One of the options is to add a bathroom to make it 4x2 and immediately the value would have multiplied rapidly based on the data we see. The only problem was, the asking price was FROM $260,000. At $260,000 in comparison to the potential rental income, the yield would not fit our business promise.
Similar property on the same street has rented for $320/week. To make it a 6.5% gross yield, we have to buy this property at $256,000 maximum. But, if you can buy even lower, why not, right?
We contacted the seller's agent and she revealed how the owner has received so many offers in the past at $250k but all have been rejected. The asking was clear: FROM $260k. Using negotiation tactics we managed to secure this property for $242,500, the lowest compared to what all other offers have been in the past.
At $320/week, a $242,500 purchase produces 6.86% gross yield. But what is more important is, 4x2 properties in the area have sold for at least $350k. Just think about it...if you have $100k+ margin to create equity, I think you'll do well. There are really a lot of avenues to explore with this property for our buyer to compound his wealth.
PS: 4x1 across the road has sold recently for $297,500, and here we are, manage to buy a similar one at $55k less.
🏡 This is what we as a Buyer's Agent is engaged for by our buyers: that is to find them great quality property deals that match their specific requirements. We don't buy using the old "buy-hold and hope for the best". Rather, we buy properties that possess multiple attributes to maximise their potential. And more than just identifying deals, we have many ways to negotiate to ensure we get the best price for our buyers.
🏡 Thinking of buying or investing in property? You know who to call. We have access to pre-post-on-off market deals, mortgagee-in-possession, motivated vendors, deceased estate, etc.
Until the next purchase.
