Top performance of an investment property in a stagnant market
Approximately 2 years ago we had a client who was looking for an investment property to buy and hold that would perform well over the coming years. This was also around the time that the market was beginning to look a little unsteady courtesy of the looming GFC.
Buyer Agent Emma Everett knew that the best strategy was to stick with areas and specific properties that had the underlying fundamentals to perform solidly even if the market stalled. Emma immediately honed in on a tight selection of suburbs close to the CBD and with careful research and many years of buying experience under her belt to guide her, selected what she felt was the ideal property. It was a 1980’s 4×1 family home in the suburb of Willetton, situated on a large lot of over 600sqm on a quiet street near parkland and the local primary school. Emma estimated that should she be able to negotiate the price she wanted, which she was confident she would, that the client would be purchasing the property well under market value creating instant equity as well.
Purchase of a 4×1 family home in Willetton, 10km from Perth CBD.
Purchase price: $466,000
Estimated market value at time of purchase: $490,000
Estimated market value today: $580,000
Estimated equity gained since purchase: $114,000
Approximately 2 years later, even through the soft market post the GFC, and very little average market price growth, this property has still managed to achieve an estimated gain of $114,000 in value without any renovations completed. A great win for the owners!