High-Yield Tenanted Investment 7.56% Gross
💥🏡😍 BOOM...22nd PURCHASE by Easy Buyer's Agent for our Local Investor Buyer. We have NOT even seen the inside of the property yet. It's COVID-19 phenomenon, we could not even inspect the property because the tenant refuses to open the house for viewing. No worries. Asking price is $230k, purchased at $220k and is currently tenanted until end of September 2020 at $320/week = 7.56% gross yield. Do your maths, it is positive gearing. Read on.
Client is a local investor looking to expand her property portfolio. She is specifically looking for property that is already tenanted, positive gearing and does not require any work or renovation.
🏡 PROPERTY STORY
When we spotted this 4x2 493sqm house, 23.5km from CBD asking for $230k we were immediately interested. We were equipped with suburb data to know that 4x2 in the area has sold for at least $250k+. What was interesting was, this property is already tenanted which lease is still running until end of September 2020, earning $320/week = 7.56% gross yield.
We called the agent and agent said that they have had couple of offers that fell through due to finance rejection because of COVID. To make matters worse, the tenant refused to open the door for viewing due to fear of infection. When we heard this, it was actually music to our ears. We used this situation to negotiate.
Logically, as it is already tenanted at an excellent rate, surely it is liveable and will not need much work. We presented this property to our buyer and she was immediately interested. This property truly suits her requirements.
We put an offer and accepted at $220k. To cover all bases, we always subject our offer to pest/timber/building/meth inspection. Any major structural damages coming out of these will allow us to negotiate further. Win Win.
We can always look at the bright side of life even in this climate. Had it not been for COVID, the other buyers might not have failed nor might the seller be willing to negotiate on the price knowing how much gross yield this property produces. Be positive everybody!
PS: And oh...this property was previously purchased at $337,000 at the height of market. Safe to say, potential equity is there.
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Until next purchase!