Hot Property

Overview:

Our client, a previous investor, was looking to rebuild his portfolio after selling off his previous investments in prior years. He requested the assistance of buyers agent Ray Chua to help him locate a high growth property for under $420,000 that would kick-start his portfolio once again.

Keeping the client’s requirements in mind, Ray turned his attention to a few key suburbs that he felt offered the best opportunities. A short time later, Ray honed in on what appeared to be an ideal property in the southern suburb of Cloverdale that offered huge potential for long-term growth.

The property was a small 1960’s home in original condition, on a large flat plot, and perfectly located nearby parks and within walking distance of Belmont Forum. The property’s key feature however was that it was located within the proposed rezoning area, offering the potential to buy today at single residential prices while potentially being able to develop it into a triplex in future.

With the green light from the client, Ray proceeded to tie up the deal. He negotiated a price well below market value, helped in part because he discovered the property was a deceased estate. In the meantime, the client wished to undertake some basic renovations so Ray also negotiated early access before settlement to minimise any vacancy periods.

Result:

Purchase of a 3x1 brick and iron home in Cloverdale, 10km from Perth CBD.

Purchase price:                                                            $402,600

Estimated market value at time of purchase:                   $435,000 - $445,000

Savings:                                                                      $32,400 - $42,400

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