Case Studies – Some Of Our Success Stories
Here are some real life case studies demonstrating how we have helped some clients in the past:
Case Study #1
The client
An experienced investor engaged our buyers’ agency service to find a high growth investment property with development potential to add to his portfolio.
The situation
Whilst the client was an experienced investor, he was time-poor so he recognised the value in outsourcing his property acquisition to an experienced company and buyers’ agent. The client did not have plans to develop immediately, so the strategy needed to take into this into account by ensuring that the potential investment was suitable for the short term as well.
A suitable property was acquired in the suburb of Redcliffe. The property was a simply renovated 3x1 character home on a reasonably sized block, with an extra bedroom/study and shower. The buyers’ agent’s intimate knowledge of the City of Belmont’s planning rules and guidelines ensured he was able to locate a property that could be developed into two properties in an area that was largely zoned for lower density. In the short term, it provided a fantastic rental return and was easy to maintain, while in the long term development of the land provided the necessary value-adding potential. As an added bonus, the property was also located in the prime “top-end” of Redcliffe with less state housing, better access to key amenities, and minimal impact from air traffic.
The outcome
Purchase of a 3x1 (+study) brick and tile home in Redcliffe, 10km from Perth CBD.
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Purchase price: |
$450,000 |
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Estimated market value at time of purchase: |
$475,000 - $485,000 |
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Savings: |
$25,000 - $35,000 |
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Case Study #2
The client
Just commencing their investment journey, our client was interested in sourcing a property where immediate value could be added to the property.
The situation
Our buyers’ agent started researching a core group of suburbs that she knew from experience had strong growth prospects but also, being older suburbs, had scope for renovation and/or development.
After a brief search, the buyers’ agent located an ideal candidate in Kewdale. It was a small 1960’s property on a large piece of land, located close to the popular reserve ‘Tomato Lake’ and to nearby amenities. The home had a solid layout, large sized rooms and was in good condition, but very dated. This made it ideally suited to a cosmetic renovation.
Through the buyers’ agent’s negotiation skills and expert knowledge of the area she was able to secure the property under market value. Additionally, her thorough due diligence process resulted in the ability to take thousands of dollars more off the agreed price due to small problems that were uncovered, saving her client even more money.
The outcome
Purchase of a 3x1 brick and tile home in Kewdale, 8km from Perth CBD.
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Purchase price: |
$390,000 |
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Estimated market value at time of purchase: |
$420,000 |
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Savings: |
$30,000 |
The feasibility calculation of performing a renovation on this property was estimated to increase the market value to $530,000.
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Case Study #3
The client
Not looking for an investment property, but for somewhere to live, our client engaged our buyers’ agency service after having trouble finding a suitable property and being cautious about making a wrong decision.
The situation
Although the brief was for our client’s personal home, it was also crucial to select the right property that would perform solidly as an investment in order to accelerate her wealth creation plans.
Thanks to our careful due diligence process, our client was able to easily pull out of an earlier deal that she simply decided she was not comfortable with. Following on from this, our buyers’ agent found another more suitable property located in Lathlain. With Lathlain being centrally located yet still affordable, in the midst of redevelopment and with good growth prospects, it fit our client’s criteria well.
The property itself was a 3x1 villa in excellent condition on a quiet street near Victoria Park train station. With our buyers’ agent’s significant knowledge of property values and sales in the area, he was quickly able to identify this property as a prime opportunity to achieve instant equity. Our client happily settled on the property knowing that she had already built a decent sum of equity in it through astute buying.
The outcome
Purchase of a 3x1 brick and tile villa in Lathlain, 4km from Perth CBD.
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Purchase price: |
$410,000 |
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Estimated market value at time of purchase: |
$435,000 - $445,000 |
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Savings: |
$25,000 - $35,000 |
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Case Study #4
“The growth we have achieved has exceeded all of our expectations.”
The Client
A professional couple who own their own home were looking to leverage the equity in their home to purchase an investment property. The Client used the following Momentum Wealth services:
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Investment Planning
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Finance Broking
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Property Buyers Agent
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Property Wealth Management
Investment Planning
After discussions with the client regarding their circumstances and the development of a Property Wealth Plan, we were able to give The Client a realistic understanding of:
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how much they could afford to invest
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what type of investment suited their particular circumstances (taking into account rental returns and tax benefits)
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how much wealth they could reasonably expect to create over the next ten years
Although The Client had originally set a “mental limit” of how much they wanted to spend, we were able to show The Client that purchasing a $400,000 property, for example, would not necessarily cost them more “out of their pocket” than a $350,000 property because of different rental returns and opportunities for depreciation.
Finance Broking
Our in-house mortgage broker recommended and organised a great interest-only loan for The Client. The loan offered a low interest rate and importantly provided the features that would enable The Client to pursue their long term investment plans.
Property Buyer Agent
Our acquisitions manager located an excellent “off-market” property that, through careful research, was considered to be a solid investment and perfectly suited to The Client. The property, a 3 bedroom 2 bathroom home, is located 8km from the Perth CBD and offered the right combination of growth potential, rental income and tax benefits that suited The Client’s circumstances.
After presenting The Client with a comprehensive report on the property, The Client agreed to purchase the property. The property was purchased directly from the seller and was acquired at an excellent price of $360,000. Settlement proceeded without hassle and we took care of all inspections and organised for a depreciation schedule, which The Client could pass on to their accountant.
Property Wealth Management
Our property manager helped prepare the property for rent. A quality tenant was found within a week of settlement after just one home open. The Client was looking for a rental of $280 per week. A rental return of $300 per week was secured, exceeding The Client’s expectations and ensuring an impressive yield of 4.3%.
Growth to Date
Only 3 months after purchasing the property, it has been conservatively valued at $430,000, showing an enormous growth of $70,000.
Comments from The Client
“We couldn’t be happier with the success of our first investment property.”
“The property found for us by Momentum Wealth perfectly met our needs and the growth we have achieved has exceeded all our expectations.”
“Full credit for our success lies with the team at Momentum Wealth”
Case Study #5
The Client
An average income family.
The Situation
The Client was in a difficult financial position. They were behind with their mortgage loan repayments and had accumulated substantial credit card debt. As they were unable to repay their mortgage on time, the bank imposed a high penalty interest rate of 10.5% on their loan. The credit card company was also pressuring the family for owed amounts, causing them a lot of emotional distress.
The Solution
Momentum Wealth’s expert mortgage brokers helped the family by refinancing their home loan, and in doing so consolidating their credit card and minor debts into the one loan, which provided a lower interest rate of 8.09%.
The Outcome
The restructuring assistance provided by Momentum Wealth reduced the family’s loan repayments and combined all of their debts into one, which meant that repayments could be better managed and their overall situation could improve.