Hot property – growth and yield can be achieved
Our clients were looking for an investment property to add to their existing portfolio. They were interested in acquiring a property that would achieve good capital growth AND would also provide a reasonable cash flow, all with the threshold of a $400,000 maximum budget.
Always ready for a challenge, buyers’ agent Ray Chua immediately knew the strategies of buying under market value, plus how adding value to create instant equity and achieving a higher rental yield would suit his clients’ needs. Being in the market full-time Ray was able to sort the wheat from the chaff so to speak and could immediately recognise a good deal.He found the perfect candidate in a 1975 duplex half in Carlisle. The clients budgeted around $12,000 to spend on renovations and with Ray’s negotiations, were able to obtain early access for quotes so that the renovation trades were booked to commence at settlement, minimising the vacancy period.
Purchase of a 2×1 villa in Carlisle, 4km from Perth CBD.
Purchase Price: $316,000
Estimated Market Value: $340,000
After renovation the property was estimated at $385,000 – $425,000. This represents instant equity for the new owners of between $57,000 – $97,000!